Life360 (360) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 results with total revenue up 18% year-over-year to $92.9 million, 76.9 million MAUs (+32% YoY), and 2.2 million paying circles (+25% YoY), with strong international momentum and new highs in subscriber growth.

• Positive Adjusted EBITDA for the eighth consecutive quarter at $9.0 million, reflecting operating leverage and disciplined cost management.

• Net income was $7.7 million, a turnaround from a net loss of $6.5 million in Q3 2023, aided by a one-time investment gain and tax benefit.

• Launched new in-house designed Tile devices with unique SOS feature, driving direct-to-consumer sales to more than double year-over-year post-launch.

• Advertising and data businesses showed renewed growth, with key partnerships (Uber, Placer.ai, Hubble) expanding monetization and technology capabilities.

Financial highlights

• Q3 2024 revenue: $92.9 million (+18% YoY); subscription revenue: $71.8 million (+27% YoY); core subscription revenue: $66.2 million (+34% YoY); hardware revenue: $11.7 million (–24% YoY).

• Gross profit was $70 million (gross margin 75%, up from 74% YoY); subscription-only gross margin was 85%.

• Adjusted EBITDA was $9 million, up from $5.5 million last year; EBITDA loss narrowed to $2.6 million.

• Operating cash flow was $6.3 million; ended Q3 with $160.2 million in cash and equivalents.

• Other revenue (including advertising and data) was $9.3 million (+43% YoY).

Outlook and guidance

• 2024 revenue guidance updated to $368–$374 million, reflecting lower hardware revenue; core subscription revenue growth expected at 25%+ YoY.

• Adjusted EBITDA guidance raised to $39–$42 million; EBITDA loss guidance improved to $(7)–$(10) million.

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

• Expects to remain Adjusted EBITDA positive quarterly and achieve positive EBITDA in Q4 2024 and throughout 2025.

• Positive operating cash flow expected for Q4 and year-end cash of $150–$160 million.