Life360 (360) H1 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results with revenue of $84.9 million, up 20% year-over-year, and completed a U.S. IPO raising $93 million.

• Monthly active users (MAUs) grew by 4.3 million to 70.6–71 million, up 31% year-over-year, with international MAUs up 48%.

• Net paying circles increased by 132,000 to over 2 million, a 25% year-over-year rise, with international paying circles up 42%.

• Adjusted EBITDA was $11 million, marking the seventh consecutive positive quarter.

• Expanded advertising and data partnerships, including Placer.ai, and launched new ad revenue streams.

Financial highlights

• Q2 revenue was $84.9 million (+20% YoY); subscription revenue $65.7 million (+25% YoY); core subscription revenue $60.2 million (+25% YoY).

• Hardware revenue increased 3% to $11.9 million; other revenue up 12% to $7.3 million, driven by advertising and data.

• Q2 gross profit was $63.6 million, gross margin at 75%; subscription-only gross margin at 84%.

• Adjusted EBITDA was $11 million (up from $5.7 million); EBITDA loss of $5.6 million due to $5.8 million IPO costs.

• Q2 net loss was $11 million, up from $4.4 million, mainly due to IPO costs and higher tax expense.

• Ended Q2 with $162 million in cash, cash equivalents, and restricted cash, up $87.4 million from Q1.

Outlook and guidance

• Upgraded 2024 revenue guidance to $370–$378 million, with core subscription revenue growth of 25%+.

• Adjusted EBITDA guidance raised to $36–$41 million; EBITDA loss expected at $8–$13 million (including IPO costs).

• Positive operating cash flow expected for each quarter of 2024; year-end cash projected at $150–$160 million.

• Anticipates consistent quarterly Adjusted EBITDA positivity and sustained positive EBITDA in 2025.