Life360 (360) H2 2024 earnings summary

Executive summary

• Achieved record FY'24 revenue of $371.5M, up 22% year-over-year, with Q4 revenue up 33% to $115.5M, driven by strong subscription and international growth.

• Monthly Active Users (MAUs) grew 30% to 79.6M, and Paying Circles increased 25% to 2.3M, with international MAUs up 46% and international ARPPC up 42%.

• Adjusted EBITDA rose to $45.5M (12% margin), a 121% increase year-over-year, and net loss narrowed to $4.6M from $28.2M.

• Completed U.S. IPO in June 2024, raising $93M in net proceeds, and acquired Fantix's ad unit for $4.5M to accelerate ad platform growth.

• Strategic partnership with Hubble Network to expand global location-tracking capabilities and launched new product lines, including pet and elder care devices.

Financial highlights

• Subscription revenue grew 26% to $277.8M; hardware revenue was $57.6M (flat); other revenue (data, partnerships, ads) up 41% to $36.0M.

• Q4 gross profit rose 42% to $85.5M; full-year gross profit increased 25% to $279.2M, with gross margin at 75%.

• Q4 net income was $8.5M, reversing a $3.1M loss last year; full-year net loss improved to $4.6M.

• Operating expenses increased 14% to $287.1M, with R&D at $113.1M, sales and marketing at $113.4M, and G&A at $60.7M.

• Cash and equivalents at year-end: $159.2M, with positive operating cash flow of $32.6M.

Outlook and guidance

• FY'25 revenue guidance: $450M–$480M; subscription revenue $350M–$360M; hardware $45M–$55M; other (ads/partnerships) $55M–$65M.

• Positive adjusted EBITDA expected at $65M–$75M, including $8M investment in pet tracking launch.

• Adjusted EBITDA margin expected to be 15–17%, with margin expansion weighted to the back half of 2025.

• Continued investment in R&D and marketing to drive international expansion and new product launches.

• No major price increases planned in 2025; focus remains on MAU growth and international expansion.