Life360, Inc.-Life360 Reports Record Q3 2024 Results

Core Insights - Life360 achieved record quarterly results in Monthly Active Users (MAUs), Paying Circles, Subscription Revenue, and Annualized Monthly Revenue for Q3 2024, with MAUs reaching approximately 76.9 million, a 32% year-over-year increase [1][3][11] - Total revenue for Q3 2024 grew 18% year-over-year to $92.9 million, with subscription revenue increasing 27% year-over-year to$ 71.8 million [10][25] - The company raised its outlook for 2024 Adjusted EBITDA, expecting positive Adjusted EBITDA of $39 million to$ 42 million [11][36] User Growth and Engagement - The member base grew by 32% year-over-year, adding 6.3 million new MAUs in Q3 2024 [3][23] - Paying Circles saw a record net increase of 159 thousand, a 35% year-over-year growth, bringing the total to nearly 2.2 million [11][23] - International MAUs increased by 51% year-over-year, contributing significantly to overall growth [3][23] Revenue Performance - Annualized Monthly Revenue (AMR) increased by 30% year-over-year to $336.2 million [10][11] - Average Revenue Per Paying Circle (ARPPC) grew by 6% year-over-year, driven by a shift towards higher-priced products in the U.S. market [11][23] - Core subscription revenue increased by 34% year-over-year, primarily due to a 25% increase in Paying Circles [26] Product and Market Strategy - Life360 launched a new lineup of Tile devices, which significantly differentiates the company from competitors with its SOS feature [4][5] - The advertising initiative, particularly the partnership with Uber, is showing significant potential for monetization [7][8] - The company is focusing on international expansion, which is critical for future growth, and has started to reach tipping points in multiple countries [2][3] Financial Highlights - Q3 2024 net income was$ 7.7 million, marking a significant improvement from a net loss in the prior year [10][33] - Operating cash flow for Q3 2024 was $6.3 million, reflecting a 55% year-over-year increase [10][30] - Total operating expenses increased by 10% year-over-year, demonstrating strong operating leverage despite revenue growth [29] Future Outlook - Life360 updated its 2024 guidance, expecting consolidated revenue of$ 368 million to $374 million and maintaining core subscription revenue growth of over 25% year-over-year [11][36] - The company anticipates achieving positive EBITDA in Q4 2024 and sustaining positive Adjusted EBITDA on a quarterly basis moving forward [37][36]