Life360 Reports Record Q4 and FY 2024 Results
Monthly Active Users Reached Approximately 79.6 million
Record Annual Global Net Additions to Paying Circles of 457 thousand - Reaching Nearly 2.3 million
Total Quarterly Revenue Grew 33% Year-Over-Year to $115.5 million
Annualized Monthly Revenue increased 34% Year-Over-Year to $367.6 million
Achieved Positive Net Income in Q4 and Record Positive Adjusted EBITDA of $45.5 million for the Year
SAN FRANCISCO, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Life360, Inc. ("Life360" or the "Company") (NASDAQ: LIF, ASX: 360), the San Francisco-based leader in family safety and connection, today announced unaudited financial results for the fourth quarter and audited financial results for the full year ended December 31, 2024. Building on the momentum of prior quarters, the Company achieved record-breaking results across key metrics, including Monthly Active Users (MAUs), Paying Circles, Subscription Revenue, and Annualized Monthly Revenue.
"Life360 made remarkable strides in Q4 2024, capping off the year with our best-ever holiday period and achieving record-breaking annual results in MAU and subscribers, while continuing to make progress with our overall strategy," said Life360 Co-founder and Chief Executive Officer Chris Hulls. "2024 was a transformative year for Life360. We successfully launched our advertising business, unlocking new growth opportunities, introduced a cutting-edge lineup of Tile devices, executed an award-winning brand campaign, forged a key strategic partnership with Hubble, and celebrated a significant milestone by completing our U.S. IPO to become publicly traded on Nasdaq.
"As we enter 2025, we are laser-focused on achieving our longer term strategic goals: reaching 150 million MAU, surpassing $1 billion in annual revenue, and exceeding a 35% Adjusted EBITDA margin. By keeping families safe, connected to the people, pets, and things they love, and helping make everyday life better, we are uniquely positioned to tap into vast global market potential and drive sustained growth for years to come."
Life360 Chief Financial Officer Russell Burke added: "On top of exceptional revenue growth, we continued to make significant progress toward profitability during the quarter and the year. In Q4 2024, we achieved positive Net Income of $8.5 million, and our ninth consecutive quarter of positive Adjusted EBITDA(1) and seventh consecutive quarter of positive Operating Cash Flow. For the full year, we generated total revenue of $371 million, up 22% year-over-year, while keeping total operating expenses growth at 14% YoY, which drove our EBITDA and Adjusted EBITDA results above the high end of our guidance ranges. Looking ahead, we are confident in our ability to keep growing positive Adjusted EBITDA(1) throughout 2025 as we continue balancing robust revenue growth with expanding profitability."
Q4'24 Financial Highlights
-- Total Q4'24 revenue of $115.5 million, a YoY increase of 33%, with total
subscription revenue of $78.8 million, up 32% YoY and Core subscription
revenue2 of $73.1 million, up 36% YoY.
-- Annualized Monthly Revenue $(AMR)$ of $367.6 million, up 34% YoY.
-- Q4'24 Net Income of $8.5 million, which includes other income of
$0.6 million and a benefit from income tax3 of $2.2 million.
-- Positive Adjusted EBITDA1 of $21.2 million and EBITDA1 of $8.4 million
compared to positive Adjusted EBITDA1 of $8.9 million and an EBITDA1 loss
of $(2.0) million, respectively, in Q4'23.
-- Positive Operating Cash Flow of $12.3 million, up 38% YoY.
-- Quarter-end cash, cash equivalents and restricted cash of $160.5 million,
an increase of $89.7 million from Q4'23, which was primarily the result
of net capital raised from the U.S. IPO in Q2'24.
Q4'24 Operating Highlights and 2025 Outlook
-- Q4'24 global MAU net additions were 2.8 million, which slowed seasonally
after a very strong Q3'24. Total MAU increased 30% YoY to approximately
79.6 million, with significant contribution from organic growth.
-- Q4'24 global Paying Circle net additions of 69 thousand were up 27% YoY.
Total Paying Circles grew 25% YoY to 2.3 million, supported by improved
conversion and retention in the U.S.
-- Average Revenue Per Paying Circle ("ARPPC") increased 6% YoY due mainly
to impacts from a U.S. shift in product mix towards higher priced
products, as well as from legacy price increases and Dual Tier membership
launches in non-Triple Tier countries and UK and ANZ Triple Tier
memberships.
-- Outlook for FY'25 Consolidated revenue of $450 million - $480 million and
positive Adjusted EBITDA1 of $65 million - $75 million.
1 Adjusted EBITDA and EBITDA are Non-GAAP measures.
For more information, including the definitions of
Adjusted EBITDA and EBITDA, the use of these non-GAAP
measures, as well as reconciliations of Net Income
(Loss) to each of EBITDA and Adjusted EBITDA, refer
to the "EBITDA and Adjusted EBITDA" and "Supplementary
and Non-GAAP Financial Information" sections below.
2 Core subscription revenue is defined as subscription
revenue derived from the Life360 mobile application
and excludes non-core subscription revenue which relates
to other hardware related subscription offerings.
For more information, including the use of this measure,
refer to the "Core subscription revenue" section below.
3 The provision for (benefit from) income taxes for
interim quarterly reporting periods is based on the
Company's estimates of the effective tax rates for
the full fiscal year in accordance with ASC 740-270,
Income Taxes, Interim Reporting. ASC 740-270-25-2
requires that an annual effective tax rate be determined
and such annual effective rate be applied to year
to date income (loss) in interim periods. The effective
tax rate in any quarter may be subject to fluctuations
during the year as new information is obtained, which
may positively or negatively affect the assumptions
used to estimate the annual effective tax rate, including
factors such as valuation allowances against deferred
tax assets, the recognition or de-recognition of tax
benefits related to uncertain tax position, if any,
and changes in or the interpretation of tax laws in
jurisdictions where the Company conducts business.
Key Performance Indicators
(in millions, except ARPPC, ARPPS, ASP, Q4 Q4 and percentages) 2024 2023 % YoY --------------------------------------- ------- ------- ----- Core(4) Monthly Active Users $(MAU.AU)$ - Global(5) 79.6 61.4 30% U.S. 43.7 36.8 19% International 36.0 24.6 46% ANZ 2.7 2.0 35% Paying Circles - Global(6) 2.3 1.8 25% U.S. 1.6 1.3 23% International 0.6 0.5 33% Average Revenue per Paying Circle (ARPPC)(7) (,) (8) $131.76 $124.17 6% Life360 Consolidated Subscriptions(9) 2.9 2.4 19% Average Revenue per Paying Subscription (ARPPS)(8) (,) (10) $110.43 $102.17 8% Net hardware units shipped(11) 1.9 1.7 8% Average Selling Price $(ASP.AU)$(12) (,) (13) $ 12.56 $ 11.50 9% Annualized Monthly Revenue (AMR) $ 367.6 $ 274.1 34% FY FY 2024 2023 % YoY --------------------------------------- ------- ------- ----- Core(4) Average Revenue per Paying Circle (ARPPC)(7) (,) (8) $128.00 $121.09 6% Life360 Consolidated Average Revenue per Paying Subscription (ARPPS)(8) (,) (10) $106.16 $ 99.53 7% Net hardware units shipped(11) 3.9 4.0 (4)% Average Selling Price $(ASP.NZ)$(12) (,) (13) $ 13.72 $ 13.48 2% 4 Core metrics relate solely to the Life360 mobile application. 5 A monthly active user ("MAU") is defined as a unique member who engages with our Life360 branded services each month, which includes both paying and non-paying members, and excludes certain members who have a delayed account setup. 6 A Paying Circle is defined as a group of Life360 members with a paying subscription that has been billed as of the end of a period. 7 ARPPC is defined as annualized subscription revenue recognized and derived from the Life360 mobile application, excluding certain revenue adjustments related to bundled Life360 subscription and hardware offerings, for the reported period divided by the Average Paying Circles during the same period. 8 Excludes revenue related to bundled Life360 subscription and hardware offerings of $(0.6) million and $(4.6) million for the three months and year ended December 31, 2024, respectively, and $(1.2) million and $(3.1) million for the three months and year ended December 31, 2023, respectively. 9 Subscriptions are defined as the number of paying subscribers associated with the Life360, Jiobit and Tile brands who have been billed as of the end of the period. 10 ARPPS is defined as annualized total subscription revenue recognized and derived from Life360, Tile and Jiobit subscriptions, excluding certain revenue adjustments related to bundled Life360 subscription and hardware offerings, for the reported period divided by the average number of paying subscribers during the same period.
11 Net hardware units shipped represent the number of
tracking devices sold during the period, excluding
hardware units related to bundled Life360 subscription
and hardware offerings, net of returns by our retail
partners and directly to consumers.
12 Excludes revenue related to bundled Life360 subscription
and hardware offerings of $0.4 million and $4.3 million
for the three months and year ended December 31, 2024,
respectively, and $1.2 million and $3.7 million for
the three months and year ended December 31, 2023,
respectively.
13 To determine the net ASP of a unit, we divide hardware
revenue recognized, excluding revenue related to bundled
Life360 subscription and hardware offerings, for the
reported period by the number of net hardware units
shipped during the same period.
-- Global MAU increased 30% YoY to approximately 79.6 million, with Q4'24
net additions of 2.8 million. U.S. MAU increased 19% YoY, with Q4'24 net
adds of 1.4 million. International MAU increased 46% YoY, with Q4'24 net
adds of 1.3 million. ANZ MAU increased 35% YoY to 2.7 million.
-- Q4'24 global Paying Circle net additions of 69 thousand were driven by
strong performance in the U.S. market. U.S. Paying Circles increased 23%
YoY on the back of both higher registrations and improved conversion and
retention metrics. International Paying Circles maintained strong
momentum, up 33% YoY. Total Paying Circles in the Triple Tier markets of
the UK, Canada, and ANZ increased 21% YoY.
-- Q4'24 global ARPPC increased 6% YoY. U.S. ARPPC increased 3% YoY,
benefiting from a shift in product mix towards higher priced products.
Q4'24 international ARPPC increased 42% YoY due to price increases for
legacy subscribers in non-Triple Tier markets followed by the launch of
Dual Tier pricing in September, and legacy subscriber price increases in
the Triple Tier UK and ANZ markets.
-- Q4'24 net hardware units shipped increased 8% YoY. The Average Selling
Price of hardware units shipped increased 9% YoY primarily due to a shift
in channel mix and decreased returns and discounts offered.
-- December 2024 AMR increased 34% YoY, benefiting from accelerating
subscription revenue momentum over the course of Q4'24.
Operating Results
Revenue
Three Months Ended Year Ended
December 31, December 31,
----------------------- -------------------
2024 2023 2024 2023
------ -----
($ millions) (unaudited)
Subscription
revenue $ 78.8 $ 59.8 $ 277.8 $220.8
U.S.
subscription
revenue 66.9 53.3 240.6 196.1
International
subscription
revenue 11.8 6.5 37.3 24.5
Hardware revenue 23.8 21.1 57.6 58.2
Other revenue 13.0 6.1 36.0 25.5
--- ------ ------ ----- -----
Total revenue $ 115.5 $ 87.0 $ 371.5 $304.5
-- Q4'24 total subscription revenue increased 32% YoY to $78.8 million,
primarily driven by growth in Paying Circles.
-- Q4'24 hardware revenue increased 13% YoY to $23.8 million, primarily
driven by reduced returns and discounts offered, as well as an increase
in units shipped and a shift in channel mix.
-- Q4'24 other revenue of $13.0 million was $6.9 million higher YoY due to
increases in data and partnership revenue, which includes advertising
revenue.
Core Subscription Revenue
-- Core subscription revenue is defined as GAAP subscription revenue derived
from the Life360 mobile application and excludes non-core subscription
revenue, which we define as GAAP subscription revenue from other hardware
related subscription offerings, for the reported period. Core
subscription revenue represents revenue derived from and the overall
success of our core product offering. Q4'24 core subscription revenue
increased 36% YoY primarily driven by a 25% YoY increase in Paying
Circles and a 6% higher ARPPC.14
Three Months Ended Year Ended
December 31, December 31,
--------------------- ------------------
2024 2023 2024 2023
------ -----
($ millions) (unaudited)
Subscription
revenue $ 78.8 $ 59.8 $277.8 $220.8
Non-Core
subscription
revenue (5.7) (5.9) (22.6) (23.3)
------ ------ ----- -----
Core
subscription
revenue(15) $ 73.1 $ 53.9 $255.2 $197.5
14 Refer to the 'Key Performance Indicators' section
above for additional information regarding the impact
of bundled offerings on KPI calculations for the periods
presented.
15 Beginning with the second quarter of 2024, this definition
was updated and calculated in accordance with GAAP.
Gross Profit
Three Months Ended Year Ended
December 31, December 31,
-------------------------- ----------------------
2024 2023 2024 2023
----- -----
($ millions,
except
percentages) (unaudited)
Gross Profit $ 85.5 $ 60.1 $279.2 $222.6
Gross Margin 74% 69% 75% 73%
Gross Margin
(Subscription
Only) 86% 86% 85% 86%
-- Q4'24 gross margin increased to 74% from 69% in the prior year period,
primarily due to the increased proportion of Other revenue.
Operating Expenses
Three Months Ended Year Ended
December 31, December 31,
------------------------- ----------------------
2024 2023 2024 2023
----- -----
($ millions) (unaudited)
Research and
development $ 29.8 $ 26.0 $113.1 $101.0
Sales and
marketing 33.5 25.7 113.4 99.1
General and
administrative 16.5 12.8 60.7 52.6
----- ----- ----- -----
Total operating
expenses $ 79.8 $ 64.5 $287.1 $252.6
Total operating
expenses as %
of revenue 69% 74% 77% 83%
-- Q4'24 operating expenses, excluding commissions, increased 22% YoY
despite revenue growth of 33%, demonstrating continued strong operating
leverage.
-- Q4'24 research and development costs increased 14% YoY, primarily driven
by higher personnel-related costs, technology, and outside services spend,
due to Company growth.
-- Q4'24 sales and marketing costs increased 31% YoY, primarily due to an
increase in commissions, in line with the 19% increase in subscriptions,
and the launch of the new Tile hardware product line.
-- Q4'24 general and administrative expenses increased 29% YoY, primarily
driven by Company growth, as well as increased professional service
expenses related to corporate and strategic matters. Excluding the
incremental costs incurred related to corporate and strategic matters,
general and administrative expenses increased 17% YoY.
Cash Flow
Three Months Ended Year Ended
December 31, December 31,
------------------------ ------------------
2024 2023 2024 2023
----- -----
($ millions) (unaudited)
Net cash
provided by
operating
activities $ 12.3 $ 9.0 $ 32.6 $ 7.5
Net cash used in
investing
activities (6.8) (1.0) (10.1) (2.2)
Net cash
provided by
(used in)
financing
activities (5.2) (0.9) 67.3 (25.0)
------- ----- ----- -----
Net Increase
(Decrease) in
Cash, Cash
Equivalents,
and Restricted
Cash 0.3 7.1 89.7 (19.7)
Cash, Cash
Equivalents,
and Restricted
Cash at the End
of the Period $ 160.5 $ 70.7 $160.5 $ 70.7
-- Life360 ended Q4'24 with cash, cash equivalents and restricted cash of
$160.5 million, an increase of $0.3 million from Q3'24.
-- Q4'24 operating cash flow was $12.3 million. This was partially offset by
$5.2 million used in financing activities, primarily for final initial
public offering transaction costs and taxes paid for the net settlement
of equity awards. Additionally, $6.8 million was used for investing
activities, which include a $5.0 million investment in Hubble and
payments for internally developed software.
-- Q4'24 net cash provided by operating activities of $12.3 million was
lower than Adjusted EBITDA of $21.2 million primarily due to an overall
increase in working capital balances driven by increased activity. See
the EBITDA and Adjusted EBITDA section below for definition and
reconciliation of Adjusted EBITDA.
EBITDA and Adjusted EBITDA
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