FY'25 Investor Presentation For personal use only 2 March 2026 U.S. PT | 3 March 2026 AEDT Investor Presentation | March 2026 DISCLAIMER These materials and the accompanying oral presentation have been prepared by Life360, Inc. (ARBN 629 412 942) ("Company") on a confidential and non-reliance basis, and may not be reproduced in whole or in part, nor may any of its contents be disclosed, to any other person, without the prior written consent of the Company. These materials are for informational purposes only ...

Core Viewpoint - Netflix is transitioning from a growth strategy focused on increasing subscriber numbers to optimizing monetization efficiency, with advertising becoming a key component of this new phase [2][4]. Group 1: Advertising Strategy - The advertising sector is emerging as a crucial part of Netflix's growth strategy, offering high profit margins and scalability with low incremental costs compared to content creation [3][4]. - The "Standard with Ads" plan, priced at approximately $7.99/month in the U.S., has led to a significant increase in ad revenue, which grew by 2.5 times in 2025 to exceed $1.5 billion, with expectations to reach $3 billion in 2026 [5][10]. - The ad-supported tier has become the default choice for many new sign-ups, constituting 55% of all new subscriptions in available markets [5]. Group 2: Live Content and Engagement - The introduction of live events, such as NFL games and WWE programming, is driving revenue growth by allowing for higher CPMs and creating a premium advertising environment [6][7]. - Live content reduces the likelihood of viewers skipping ads, enhancing engagement and enabling interactive advertisement formats that can lead to higher conversion rates [7]. Group 3: Technological Advancements - Netflix is developing its own in-house advertising technology, moving away from reliance on Microsoft, which allows for better targeting using first-party data [8]. - Integration with Amazon's Demand-Side Platform (DSP) enables brands to purchase ads on Netflix more efficiently, positioning the company as a comprehensive advertising platform [8]. Group 4: Pricing Strategy - Netflix has strategically raised prices for its ad-free plans while keeping the ad-supported plan attractive, creating a notable price differential that encourages users to opt for the ad-supported tier [10]. - The average revenue per membership for ad-supported subscribers can equal or surpass that of standard ad-free subscribers, while the lower price point helps reduce churn [11].

Core Insights - Roblox has shown a strong rebound in 2025 with user growth reaccelerating, engagement reaching new highs, and an expanded monetization toolkit, but this reset does not equate to resolving its core issues [1][2] Profitability Challenges - Roblox remains unprofitable, with estimated losses reaching $1.1 billion in 2025 due to high infrastructure costs, trust and safety spending, and developer payouts that scale with platform success [3][4] - The company's business model prioritizes growth over short-term financial gains, leading to a situation where operating leverage is more theoretical than actual [4][5] - Although Roblox generates significant free cash flow, profitability is still an expectation rather than a reality until revenue growth consistently outpaces total costs [5] Advertising Potential - Advertising is seen as a crucial monetization opportunity, with progress made in 2025 through immersive ad formats and integration with Google Ad Manager, but it remains in its infancy [6][7] - The scalability of ads without compromising user experience is yet to be proven, and regulatory constraints exist due to the platform's young audience [7][8] - While there is potential for significant upside in ad revenue, it is currently viewed as an optionality rather than a proven earnings engine [8] Creator Economy Dynamics - Roblox's creator ecosystem is a strength but also a financial constraint, with creators earning over $1 billion in just nine months of 2025 [9][10] - Developer payouts have not significantly decreased as a percentage of bookings, limiting margin expansion and creating a tension between supporting creators and achieving profitability [10][11] Investment Outlook - Despite real progress in growth and monetization options in 2025, Roblox has not resolved its most challenging issues, including profitability and advertising scalability [12] - Investing in Roblox requires patience and conviction, as the company remains a high-potential platform with unresolved challenges that could impact returns [13]

Q3'25 Financial Performance - Life360's Q3'25 revenue reached $124.5 million, a 34% year-over-year increase[19, 125] - Adjusted EBITDA for Q3'25 was $24.5 million, representing a 20% margin[19, 125] - Global Paying Circles grew to approximately 2.7 million, a 23% year-over-year increase[19, 125] - Annualized Monthly Revenue (AMR) increased by 33% to $446.7 million[126] User Engagement and Growth - Global Monthly Active Users (MAU) reached approximately 91.6 million, a 19% year-over-year increase[19, 125] - International MAU experienced a 24% year-over-year growth[125] - Life360 is ranked as the 7 top social networking app by DAU in the U S[19] Revenue Breakdown - Subscription revenue was $96.3 million, a 34% year-over-year increase[126] - Hardware revenue was $11.3 million, a 4% year-over-year decrease[126] - Other revenue, including data and partnership agreements, was $16.9 million, an 82% year-over-year increase[126] FY'25 Outlook - Life360 expects consolidated revenue of $474 million to $485 million for FY'25[169] - The company anticipates positive Adjusted EBITDA of $84 million to $88 million for FY'25[168]

Core Thesis - Grindr Inc. (GRND) is viewed as a compelling low-risk investment opportunity with potential to double in value over the next two years, driven by strong advertising growth, early-stage subscription monetization, and effective product execution [2][5]. Advertising Growth - In Q2, Grindr's advertising revenue increased by 39% year-over-year, now accounting for a significant portion of total revenue, indicating robust market reception [2][3]. - The company has enhanced its third-party advertising partnerships and adtech capabilities, allowing for innovative ad formats such as native ads and rewarded video [3]. - The average revenue per user (ARPU) is approximately $4, which is below industry peers, suggesting significant upside potential as ad growth contributes positively to gross margins due to the absence of third-party app store fees [3]. Subscription Monetization - Grindr has successfully converted free users to paying subscribers, with the percentage rising from 5.6% of monthly active users (MAUs) in 2021 to 8% recently, with further potential for a 10-20% increase as new features are introduced [4]. - The company has demonstrated strong product execution, delivering five out of eight planned features ahead of schedule, with additional features expected to enhance user engagement and monetization [4]. Competitive Positioning - Competitive threats from other apps, such as Sniffies, are considered limited due to app store restrictions and Grindr's differentiated use cases [5]. - The CEO's alignment with shareholder interests is reinforced by a compensation structure tied to market cap and key performance indicators, ensuring management's focus on long-term growth [5]. Financial Outlook - Grindr is currently trading at 17 times its projected free cash flow (FCF) for 2026, with expectations of multi-year FCF growth exceeding 20%, presenting a favorable risk/reward profile [5]. - The stock has seen a depreciation of approximately 35% since a previous bullish thesis, but the underlying growth potential remains intact, supported by recent advertising acceleration and strong management alignment [6].

Group 1 - Seaport Global Securities upgraded Netflix Inc. from Neutral to Buy, with a new price target of $1,385.00, leading to a more than 2% increase in shares intra-day on Tuesday [1] - The firm views Netflix's recent share momentum moderation as a consolidation phase after a 30% year-to-date rally, expecting renewed upside as advertising-related monetization gains accelerate [1] Group 2 - Analysts noted continued market share gains against traditional linear television, with YouTube TV identified as a key competitor, and credited Netflix's professionally curated content for maintaining strong engagement levels [2] - Seaport Global incorporated higher operating leverage and ad revenue projections into its forecasts, reflecting expanding market share, and recommended investors accumulate shares ahead of Netflix's third-quarter earnings report on October 21 [2]

Core Insights - Roblox has a strong user engagement with over 100 million daily active users, but struggles with profitability and high losses while maintaining a premium valuation [1][2] Group 1: Revenue Diversification - Roblox primarily generates revenue from in-game currency sales, making it reliant on player spending, thus advertising could provide a significant opportunity for diversification and profitability [3][4] - The introduction of immersive ad formats and partnerships with Google Ad Manager aims to facilitate brand campaigns and enhance revenue streams for developers [4] - A modest increase of $10 in annual ad revenue per user could yield over $1 billion in additional high-margin revenue, indicating a substantial growth opportunity [5][6] Group 2: User Demographics - The platform's popularity among younger users presents challenges, as they tend to spend less and pose regulatory hurdles [7][8] - The over-13 age group accounted for 71.4 million of the 111.8 million daily active users, a significant increase from 36.8 million two years prior, highlighting the importance of engaging older users for higher spending and advertising appeal [8][9] - Providing more sophisticated experiences could enhance user lifetime value and prevent churn as users mature [9] Group 3: International Growth - Roblox's global expansion is notable, but monetization in international markets lags behind the U.S., where average bookings per daily active user were $40.7 compared to $4.95 in Asia-Pacific and $11.49 in Europe [10][12] - To improve international monetization, Roblox needs to localize content, enhance payment systems, and collaborate with regional brands [11][12] - Increasing international spending, even modestly, could unlock significant growth potential given that only 20.6 million of the 111.8 million daily active users are from the U.S. and Canada [12] Group 4: Investment Implications - The company has demonstrated the ability to attract a large audience, but converting engagement into earnings is crucial for profitability [13] - Investors should focus on the company's ability to execute on building a credible advertising business, retaining and monetizing older users, and increasing international spending [15]

Core Insights - Xperi reported Q2 FY2025 earnings with GAAP revenue of $105.9 million, missing analyst expectations of $113.01 million and reflecting an 11.5% decline from the previous year on a non-GAAP basis [1][5] - Non-GAAP earnings per share were $0.11, below the anticipated $0.13, indicating ongoing challenges in top-line growth despite improved profitability margins [1][5] Financial Performance - GAAP revenue for Q2 FY2025 was $105.9 million, down from $119.6 million in Q2 FY2024, marking an 11.4% year-over-year decline [2] - Non-GAAP operating income increased to $8.8 million, a 6.0% rise from $8.3 million in the previous year [2] - Non-GAAP adjusted EBITDA rose to $15.2 million, with an adjusted EBITDA margin of 14.4%, up from 12.2% in Q2 FY2024 [2][5] Business Focus and Strategy - Xperi develops and licenses media software and platform solutions for smart TVs, automotive infotainment systems, and pay TV, aiming to enhance user experience and monetize new media consumption models [3] - The company is focusing on growth vectors such as supporting streaming technologies, improving advertising monetization, and expanding its ecosystem through hardware partnerships [4] User and Market Expansion - Monthly active users on the TiVo One advertising platform increased to 3.7 million, up from 2.5 million in the previous quarter [6] - In the connected car segment, the DTS AutoStage platform expanded to over 12 million vehicles, a 70% increase year-over-year, with new contracts signed with major automotive partners [7] - Xperi surpassed 3 million global IPTV subscriber households, achieving over 30% year-over-year growth [8] Financial Position and Guidance - As of June 30, 2025, Xperi reported a cash balance of $95.1 million, down from $130.6 million at the end of 2024, and replaced $50 million in short-term debt with $40 million in long-term debt [9] - Management maintained a revenue outlook of $440–$460 million for FY2025, reflecting a conservative stance due to market uncertainty [10]

Core Insights - Xperi reported Q2 2025 results with non-GAAP revenue of $105.9 million, missing estimates by $10 million, and non-GAAP EPS of $0.11, two cents below consensus [1][2] - The company lowered its full-year guidance for revenue and margins due to a challenging macroeconomic environment [1][13] Financial Performance - Non-GAAP revenue decreased by 11.5% year-over-year from $119.6 million in Q2 2024 [2] - Non-GAAP EPS fell by 8.3% from $0.12 in Q2 2024 [2] - Non-GAAP operating income increased to $8.8 million, up 6.0% from $8.3 million in Q2 2024 [2] - Non-GAAP net income declined by 14.3% year-over-year to $4.8 million [2] - Adjusted EBITDA rose to $15.2 million, a 4.1% increase from $14.6 million in the previous year, with an adjusted EBITDA margin improvement to 14.4% from 12.2% [2][8] Business Overview - Xperi operates at the intersection of entertainment and technology, focusing on software platforms for Smart TVs and connected cars, with brands like TiVo and DTS [3][4] - The company aims to expand its independent media platform and DTS AutoStage infotainment system, emphasizing user growth and monetization through advertising and subscriptions [4][5] User and Device Growth - TiVo One's monthly active users increased from 2.5 million to 3.7 million, on track to exceed the goal of 5 million by the end of FY2025 [5] - DTS AutoStage expanded to 12 million vehicles, up from 11 million, with new partnerships with major automotive brands [6] Strategic Focus - Xperi's strategy includes developing technology platforms for partners, allowing them to monetize content and advertising effectively [9] - The TiVo One Advertising Platform is crucial for attracting advertising revenue, although specific financial metrics were not disclosed this quarter [10] Outlook and Guidance - Management revised FY2025 revenue guidance to $440–460 million from $480–500 million, citing increased uncertainty in the macroeconomic environment [13] - Non-GAAP adjusted EBITDA margin guidance was also lowered to a range of 15% to 17% [13]

Core Insights - The article highlights the contrasting strategies of Netflix and Amazon in the competitive streaming landscape, with Netflix focusing on pure-play streaming while Amazon integrates its services within a broader ecosystem [1][2]. Netflix (NFLX) Overview - Netflix reported strong first-quarter 2025 results, significantly beating earnings expectations, driven by healthy subscriber growth and retention metrics [2][3]. - The advertising opportunity is identified as a key growth catalyst, with expectations to double advertising revenues in 2025 through the rollout of its proprietary ad tech platform [4][7]. - Netflix's content strategy includes major investments exceeding 1 billion euros in Spain through 2028 and partnerships like the TF1 Group distribution deal in France, enhancing its competitive position [5]. - The gaming initiative, while still in early stages, is seen as a growth vector with minimal risk of cannibalization, focusing on premium, ad-free experiences tied to popular IP [6]. - Management has set ambitious targets, including doubling revenues by 2030 and achieving $9 billion in annual advertising revenues by the same year [7]. - The Zacks Consensus Estimate for 2025 earnings is $25.32 per share, indicating a year-over-year growth of 27.69% [8]. Amazon (AMZN) Overview - Amazon's investment case is based on its diversified business model, with AWS generating $29.3 billion in quarterly revenues and 17% growth [11]. - Prime Video benefits from integration within Amazon's ecosystem, allowing for aggressive content spending without immediate profitability pressure [12]. - The upcoming content pipeline for Prime Video includes diverse programming across multiple genres, appealing to a broad demographic [13]. - Amazon's advertising revenues reached $13.9 billion, growing 19% year over year, with premium targeting capabilities enhancing monetization potential [14]. - The company has a free cash flow of $25.9 billion, providing sustained investment capacity for content acquisition [15]. - The Zacks Consensus Estimate for 2025 earnings is $6.17 per share, reflecting an 11.57% increase from the previous year [15]. Valuation and Performance Comparison - Both Netflix and Amazon trade at premium valuations, with Netflix at 44x forward earnings and Amazon at 32.09x [16]. - Netflix's focused business model offers greater transparency and predictability, potentially leading to multiple expansions as advertising initiatives gain traction [16]. - Year-to-date, Netflix shares have climbed 37.1%, outperforming Amazon, which has declined by 3.1% [10][19]. Conclusion - Netflix is positioned as the superior investment choice for those seeking upside potential, with its focused streaming strategy and innovative content approaches providing clearer paths to growth [22].