Life360, Inc.(LIF) - 2024 Q2 - Quarterly Report

Financial Performance - Subscription revenue for Q2 2024 reached $65.678 million, a 25% increase from$ 52.727 million in Q2 2023[145] - Total revenue for Q2 2024 was $84.863 million, up 20% from$ 70.788 million in Q2 2023[145] - Gross profit for Q2 2024 was $63.626 million, representing a 16% increase compared to$ 54.783 million in Q2 2023[145] - Net loss for Q2 2024 was $10.964 million, a 148% increase from a net loss of$ 4.413 million in Q2 2023[145] - Total revenue for the three months ended June 30, 2024, was $84.9 million, representing a$ 14.1 million, or 20%, increase compared to the same period in 2023[150] - Net loss for the three months ended June 30, 2024, was (13)% of total revenue, compared to (6)% in the same period of 2023[148] Revenue Breakdown - Hardware revenue for Q2 2024 was $11.901 million, a 3% increase from$ 11.585 million in Q2 2023[145] - Other revenue for Q2 2024 was $7.284 million, a 12% increase from$ 6.476 million in Q2 2023[145] - Subscription revenue increased by $13.0 million, or 25%, during the three months ended June 30, 2024, primarily due to a 20% growth in total subscriptions and a 25% growth in Paying Circles[150] - Hardware revenue increased by$ 0.3 million, or 3%, during the three months ended June 30, 2024, primarily due to fewer discounts offered[151] - The company experienced a 12% increase in other revenue during the three months ended June 30, 2024, attributed to a ramp-up of advertising revenue[152] Expenses - Operating expenses for Q2 2024 totaled $65.989 million, a 12% increase from$ 59.026 million in Q2 2023[145] - Research and development expenses for Q2 2024 were $27.013 million, up 17% from$ 23.182 million in Q2 2023[145] - Sales and marketing expenses for Q2 2024 were $24.363 million, a 4% increase from$ 23.347 million in Q2 2023[145] - General and administrative expenses increased by $2.1 million, or 17%, during the three months ended June 30, 2024, primarily due to higher professional and outside services costs[173] - Research and development expenses increased by 22% during the three months ended June 30, 2024, totaling$ 6.5 million[147] - Sales and marketing expenses increased by $1.0 million, or 4%, during the three months ended June 30, 2024, driven by a$ 2.1 million increase in commissions to Channel Partners[171] Profitability Metrics - Subscription gross margin decreased to 84% during the three months ended June 30, 2024, down from 88% in the same period of 2023[159] - Hardware gross margin increased to 19% for the six months ended June 30, 2024, up from 16% for the same period in 2023[166] - Average Revenue per Paying Subscription (ARPPS) increased by 6% to $104.00 for the three months ended June 30, 2024, compared to$ 97.83 for the same period in 2023[187] - Average Revenue per Paying Circle (ARPPC) for the three months ended June 30, 2024, was $125.96, a 6% increase from$ 119.25 in 2023[193] User Metrics - Monthly Active Users (MAUs) grew by 31% to 70.6 million for the three months ended June 30, 2024, up from 54.0 million in the same period in 2023[187] - Total subscriptions increased by 20% to 2.7 million for the three months ended June 30, 2024, compared to 2.2 million in the same period in 2023[187] - The number of Paying Circles increased to approximately 2.0 million as of June 30, 2024, representing a 25% year-over-year growth from 1.6 million in 2023[191] - Total paid subscribers across Life360, Tile, and Jiobit brands reached approximately 2.7 million as of June 30, 2024, a 20% increase from 2.2 million in 2023[195] Cash Flow and Financial Position - Net cash provided by operating activities for the six months ended June 30, 2024, was $13.9 million, compared to a net cash used of$ 5.5 million in 2023[209] - As of June 30, 2024, cash and cash equivalents totaled $160.8 million, up from$ 69.0 million as of December 31, 2023[203] - The company completed its U.S. IPO on June 6, 2024, raising net proceeds of $93.0 million after underwriting discounts and commissions[203] Risks and Regulatory Matters - The company anticipates ongoing regulatory inquiries related to data protection and consumer rights, which may lead to future litigation[228] - The company has not entered into any active hedging arrangements for foreign currency risk, but may consider doing so in the future[220] - The company does not believe inflation has materially affected its business, but significant inflationary pressures could harm its results[222] Internal Controls - As of June 30, 2024, the company's management concluded that its disclosure controls and procedures were effective[224] - There were no changes in internal control over financial reporting that materially affected the company during the three months ended June 30, 2024[225]