Life360 Q1 2025 Earnings Call Transcript

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Provided by Quartr
May 12, 2025

Key Takeaways

  • Life360 delivered record Q1 user growth with Monthly Active Users up 26% year-over-year to 83.7 million and paying circles rising 26% to 2.4 million, including a record net add of 137,000 paying circles.
  • Q1 revenue climbed 32% year-over-year to $103.6 million, subscription revenue grew 33%, net income turned positive at $4.4 million (vs. a $9.8 million loss last year), and adjusted EBITDA rose to $15.9 million.
  • International expansion gained momentum with MAUs up 39% and average revenue per paying circle rising 39% year-over-year, driven by an updated premium pricing strategy.
  • Hardware revenue declined 13% to $8.9 million due to retail softness, higher discounts and tariff headwinds, with Q2 expected to be the trough for adjusted EBITDA.
  • Full-year 2025 guidance was raised, with consolidated revenue now expected at $450 million–$480 million and subscription revenue lifted by $5 million to $355 million–$365 million following a strong Q1 start.
AI Generated. May Contain Errors.
Earnings Conference Call
Life360 Q1 2025
00:00 / 00:00

Transcript Sections

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Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Q and A. Raise your hand by pressing the raise hand icon at the bottom center of your screen and your line will be unmuted in turn. Participants who have joined by telephone will be in a listen only mode throughout. As a reminder, we will make forward looking statements regarding future events and potential financial performance during this call, which are subject to material risks and uncertainties that can cause actual results to differ materially from such statements. A summary of these risks may be found in the Risk Factors section of our Form 10 ks filing with the SEC dated 02/27/2025, and in our most recent Form 10 Q.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

These forward looking statements are based on assumptions that we believe to be reasonable as of today's date, 05/12/2025, and we have no obligation to update these statements as a result of new information or future events, except when required by law. Additionally, we will present both GAAP and non GAAP financial measures on today's call. These non GAAP measures are not intended to be considered in isolation from, a substitute for or superior to our GAAP results and should be read in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. A description of these non GAAP financial measures as well as a reconciliation to the nearest GAAP financial measures are included at the end of the company's earnings media release issued earlier today, which has been posted on the Investor Relations page of the company's website. We have posted an updated investor presentation on the Investor Relations page, which includes additional complementary graphics and data.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Please note that it has been provided as an additional reference and that we will not be using the presentation as an exhibit during today's call. We will begin with an overview of results from our Co Founder and CEO, Chris Hulls followed by a business update from our Chief Operating Officer, Lauren Antinoff then our Chief Financial Officer, Russell Burke, walk through the Q1 twenty twenty five financials. Chris will return with comments on our updated 2025 outlook before we open up the call for Q and A. We ask that participants please limit themselves to one question to ensure that we can hear from as many of you as possible. With that, I'll turn the call over to Chris.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

Good afternoon to everyone joining from The U. S, and good morning to those tuning in from Australia. Thank you for being here for our first quarter results call. Live three sixty started strong in Q1 twenty twenty five, achieving record breaking results across both monthly active users and paying circles, while continuing to advance our broader vision of becoming a super app for everyday family life. These results underscore the strength of our product market fit, the value of our subscription model, and the resilience of our business in an uncertain environment.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

Our member base grew 4,100,000 new MAUs this quarter, reaching 83,700,000, up 26% year over year. We also saw strong momentum in our subscription business, with paying circles growing 26% year over year to $2,400,000 including a record Q1 net increase of 137,000 paying circles. International expansion continues to be a powerful growth driver. International MAUs rose 39% year over year, and paying circles were up 33% even with price changes to legacy subscribers outside of our core triple tier markets. Importantly, average revenue per paying circle in international markets grew by 39% year over year, thanks to our updated premium pricing strategy.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

These improvements are enabling us to further scale our multi tier approach in international markets. In today's environment, where economic uncertainty, shifting markets and everyday anxieties weigh heavily on families, people are seeking stability and trust more than ever. Life360 meets that need. Whether it's knowing your child got home safely, being alerted to a car crash in real time or simply staying connected across generations, our platform offers peace of mind in a world that can feel unpredictable. Our Q1 performance reflects not only the strength of our model, but the growing demand for services that bring peace of mind in a world that feels increasingly uncertain.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

As a daily essential for millions of families, we're not just helping people through uncertain times. We're building something they can rely on no matter what lies ahead. That's the kind of value that resonates with consumers today, and it's the kind of reliable durability that investors can feel confident about. We're also encouraged by recent federal court ruling related to Apple's App Store policies that allows apps to direct users to external payment platforms. In response, we are implementing web based checkout options with our first updates launching in June.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

We're taking a thoughtful, compliant approach, and we'll test different flows to optimize the user experience. While still early, we see this as a meaningful opportunity and are moving quickly to position ourselves for long term benefit. Before I turn it to Lauren, I want to share a milestone that brings Life360's journey full circle. As many of you know, the idea for Life360 was born in the wake of Hurricane Katrina when I saw how hard it was for families to reconnect after disaster. That moment inspired our mission to keep families safe and connected when it matters most.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

Today, nearly two decades later, we're proud to announce a partnership with AccuWeather, the global leader in weather forecasting. This collaboration will bring real time, location specific severe weather alerts to our members. It's a powerful evolution of our platform, combining our core location technology with critical life saving information.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

It's a reminder that Light three sixty's mission is as relevant today as when we started. With that, I'll turn it over to Lauren to share more on what she's seeing on the front lines.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

Thanks, Chris. Twenty twenty five is off to a strong start. We're creating enduring value by helping families stay connected to the people, pets, and things they love. Most of our growth continues to come organically through word-of-mouth and referrals. Even in our most mature US regions, we're seeing strong momentum underscoring the meaningful runway ahead.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

While penetration is increasing, we continue to believe that we're still early in our journey, both in The US and especially in international markets. As we scale, our clear objective is to create long term durable value in a disciplined way, not just short term wins. We've put an emphasis on experimentation so that we're continually learning from our customers and discovering what works. Our results reflect this, consistent subscriber growth, increased engagement and expanding lifetime value. Internationally, we remain significantly underpenetrated.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

Given the huge opportunity, we're executing full funnel marketing campaigns across our focus markets to boost brand awareness and drive MAU growth. We're also increasing the value we deliver to members beyond these regions by expanding emergency dispatch features, including SOS and crash detection to to drive global adoption of our premium tiers. Our freemium model remains the heart of our strategy. We introduce users to the platform and then guide them towards premium features that offer unmatched peace of mind. That's what drives our consistent compounding subscriber growth.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

Given the importance of our free member base, this year, we're focused on elevating the core Life three sixty app experience. In q one, we launched a major update to our iOS map, delivering a faster, more intuitive interface and improved location accuracy. We're working on a similar update for Android for later this year. We're also making progress on new premium experiences tailored towards specific use cases like pet safety to deepen engagement and broaden our value proposition. These enhancements paired with targeted marketing are designed to accelerate conversion of free users into long term subscribers.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

Speaking of marketing, I wanna make sure you all caught the latest iteration of our family proof your family brand campaign, which launched a couple of weeks ago. It confronts a hard truth that most brands would shy away from. We wanna destigmatize the anxieties and intrusive thoughts that occur whenever our kids step out the door. The hero creative aptly named I think of you dying illustrates a mother's worst fears in a morbidly comedic way by imagining all the horrible ways she worries about how her daughter could die. Most of us who are mothers aren't eager to admit that we worry about the people we love and imagine all these worst case scenarios about how they might get hurt, but it's one of those shared experiences that hits home and is really resonating.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

We took an innovative approach and tapped into a real human truth, albeit one that's almost too taboo to say out loud, to to highlight the power at the core of the Life three sixty experience, peace of mind and the love we have for our families. Families trust us because we show up for them every day. That trust and our relationship with our members is how we've won the right to build a family super app as the foundation of a business that lasts and scales far into the future. Hardware is a key part of how we go beyond the phone to make everyday family life better. Over the past quarter, we've made huge strides in our hardware strategy, which is designed to drive Life three sixty subscription growth.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

I'm thrilled to share that you can now activate and use Tile within Life three sixty without a separate Tile app. This lets our BLE trackers serve as an entry point to the Life three sixty ecosystem. We're nearing full integration of Tile into the Life three sixty app, which will soon become the default activation platform for all new devices, a major step in streamlining the experience and driving engagement. In q one, we saw continued growth in the number of US premium subscribers linking Tile devices to their account despite challenging environment for consumers, further reinforcing how hardware enhances our broader subscription model. We expect the number that we expect member growth to accelerate as Life three sixty becomes the primary on ramp for Tile customers.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

As you know, we're also preparing to expand our hardware lineup to better serve evolving family needs. Our first GPS enabled tracking device for pets remains on track for a q four launch. Some of you may have already seen early beta versions in the app. Well, initially, we plan to launch with in The US, but in light of recent tariffs impacts tariff impacts on devices made in China, we made a call to shift the focus of our initial rollout to key international markets. This strategic pivot mitigates tariff exposure and accelerates our entry into new global markets ahead of broader distribution in 2026.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

I'm super proud of the team for leveraging a challenge to expedite our international plans while mitigating risks. This flexibility is another way that we're leveraging the value of our expanding global presence. Q one was also an exciting time for our advertising platform. We launched a successful case study with Uber showcasing how our airport landing notifications drove a 12% click through rate and over 60,000 rides well above industry benchmarks. We started alpha testing our first native ad format, geocontextual notifications, which we plan to test launch with new partners in q two.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

You can think of this as a way to alert members when someone in their circle stops by a local grocery store or coffee shop. It's a great opportunity to add something to the shopping list. These ads allow brands to reach families at relevant real world moments while delivering value to our members. We're designing ad experiences with the explicit goal of making everyday family life better. The experiences we've created with Uber and AccuWeather are great examples of this mindset in action.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

I'll add that we see AI as a critical of delivering uniquely relevant connections between advertisers and consumers. The integration of the Fantix team expands our personalization tools and accelerates our delivery of smarter privacy first audience insights. We recognize that tariffs may weigh on our on ad budgets near term, particularly in retail and DTC, but the capabilities we gain by bringing ad expertise in house strengthen our long term position. With enhanced off-site targeting and measurement offerings, we're well positioned to drive better ROI for advertisers alongside experiences designed for our members. This is a huge opportunity, though we recognize that it'll take time to scale.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

In parallel, our data business continues to grow. We're seeing consistent progress with Placer.ai and early progress at Hubble, which we believe has long term potential to enhance device discovery and unlock future enterprise revenue opportunities. We recently formed a strategic partnership with Aura, expanding our reach through their employee benefits channel and creating new opportunities. At Life360, we're not just delivering growth. We're executing on a strategic plan to deliver consistent long term growth.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

We're innovating with purpose to make everyday family life better, and we're executing with consistency. That's how we plan to win, not just in 2025, but over the long term. With that, I'll hand it over to Russell to walk through the financials and our continued focus on increasing profitability.

Russell Burke
Russell Burke
CFO at Life360

Thanks, Lauren, and thank you all for joining us today. As a reminder, the Q1 financials I'll be referencing are unaudited and denominated in U. S. Dollars. We are really pleased to report record breaking Q1 results, driven by continued strength in our subscription business and growing contributions from our other revenue streams.

Russell Burke
Russell Burke
CFO at Life360

Q1 revenue increased 32% year on year to $103,600,000 reflecting strong momentum in both subscription and other recurring revenue. Subscription revenue grew 33% year on year, accelerating from q four. Core Life three sixty subscription, which excludes hardware subscriptions, increased 37%, driven by 26% global paying circle growth and 8% higher ARPPC. This performance reflects improved retention across US markets, supported by targeted marketing and deeper product engagement. Hardware revenue declined 13 year over year to $8,900,000 primarily due to softness at physical retail and increased discounts.

Russell Burke
Russell Burke
CFO at Life360

Gross margin in hardware was impacted by fixed cost deleverage. While direct to consumer and online sales remained solid, retail store performance continues to be soft, in line with broader consumer electronic trends. Looking ahead, we anticipate these demand patterns to persist. While we anticipate partial tariff exemptions for our devices, we do expect tariffs to impact both revenue and costs in the near term. We've already adjusted our strategy based on current conditions and remain prepared to adapt further as the landscape evolves.

Russell Burke
Russell Burke
CFO at Life360

Importantly, hardware continues to serve as a strategic on ramp into our subscription ecosystem, supporting long term value creation even as short term demand fluctuates. Other revenue grew 99% year over year to $12,800,000 driven by strong contributions from advertising and data partnerships, which are both performing in line with expectations. March annualized monthly revenue reached 393,000,000, up 38% year over year, underscoring the strength and durability of our high quality recurring revenue streams. Gross profit grew 39% year over year to $83,500,000 with gross margin expanding to 81%, up from 77% in the prior year. This improvement was driven by favorable revenue mix, including higher margin other revenue.

Russell Burke
Russell Burke
CFO at Life360

Operating expenses, excluding commissions, increased 21% year over year, demonstrating continued operating leverage as revenue and gross profit outpaced spend. R and D increased 12%, primarily reflecting investments in people, technology and third party services. Sales and marketing rose 43% due to investments in brand and acquisition campaigns ahead of key product launches. Commissions were in line with subscription revenue, and G and A grew 9% consistent with overall company growth and continued organizational scaling. We continue to deliver meaningful progress on profitability.

Russell Burke
Russell Burke
CFO at Life360

Net income was $4,400,000 a sharp improvement from a $9,800,000 loss in Q1 of last year. Adjusted EBITDA rose to 15,900,000.0 up from $4,300,000 in Q1 twenty twenty four, our tenth consecutive quarter of positive adjusted EBITDA, driven by strong subscription growth and disciplined cost management. For modeling purposes, investors should expect that Q2 this year will include higher sales and marketing investment, along with the impact of some personnel costs shifting from Q1 and Q3. As a result, Q2 will represent our trough for adjusted EBITDA in 2025, with profitability expected to rebound in the second half as earlier investments support global growth initiatives. Looking briefly at the balance sheet and cash flow in Q1, we ended the quarter with $170,400,000 in cash, cash equivalents and restricted cash, up $9,900,000 from Q4.

Russell Burke
Russell Burke
CFO at Life360

Operating cash flow was positive for the eighth consecutive quarter at 12,100,000 slightly below adjusted EBITDA due to the timing of receipts and payables. Investing outflows of $4,300,000 were primarily related to cash paid for the Phantix asset acquisition and internal software development. Financing inflows were 2,200,000.0 and related mainly to net proceeds of option exercises and RSU settlements. Thanks for your attention. I'll now hand back to Chris to walk through our updated earnings guidance.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

As we look ahead, we remain confident in the durability of our business, which delivers peace of mind to families and is built to perform through cycles. Despite ongoing economic pressures and cautious consumer spending, our subscription growth remains strong and consistent. We're actively managing the impact of new tariffs on our hardware products and have already adapted our strategy, shifting the launch of our Pets device to focus initially on international markets, where we continue to see strong performance. This pivot reflects both the strength and flexibility of our model and our commitment to optimizing return on investment. We remain on track for a Q4 twenty twenty five Pet Tracker launch and continue to view hardware as a strategic differentiator, one that drives long term subscription growth and deepens engagement across our ecosystem. We're executing with focus, expanding internationally, scaling our connected device portfolio and growing our advertising business with discipline while closely monitoring evolving market dynamics. Across all areas, we remain disciplined on cost and committed to long term value creation.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

We are a durable, high impact business, serving families today and creating meaningful value for the future. With the resilience of our subscription model and proactive mitigation of tariff related cost pressures, we are updating our full year 2025 guidance reaffirming consolidated revenue of $450,000,000 to $480,000,000 Subscription revenue of $355,000,000 to $365,000,000 raising the range by $5,000,000 from our previous outlook based on our strong start to the year. Hardware revenue of 40,000,000 to 50,000,000 adjusting the range $5,000,000 from our previous outlook to account for consumer demand sensitivity other revenue, which includes partnership and advertising of 55,000,000 to $65,000,000 and positive adjusted EBITDA of $65,000,000 to 75,000,000 That concludes our prepared remarks. And now I'll turn the call over to RJ, who will manage the Q and A portion of our call today.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Thanks, Chris. As a reminder to participate in the Q and A, please raise your hand by pressing the raise hand icon at the bottom of your screen within the Zoom app. You will need to unmute yourself to ask a question. With that, we can start with Mark Mahaney from Evercore. Mark, are you there?

Mark Mahaney
Senior Managing Director at Evercore ISI

Yes. I am. Thanks, RJ. Okay. Two questions, please.

Mark Mahaney
Senior Managing Director at Evercore ISI

The US price increases, you refer to them. Your learnings from those price increases in terms of maybe your long term, I don't value proposition, the the gap you have between the prices you're currently charging and and what you're offering to customers. So so learnings from the price increase. And then secondly, can you talk about, as you've gotten a little bit more into this ad revenue generation and looks like growth is pretty good there. Your thoughts about the long term, like, how do you think about how big that could be, you know, three to five years down the road and any new learnings that that give you greater insight into how much advertising revenue potential there is for the business long term? Thank you very much.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

Sure. I will take the first question, and then I will, let Lauren take the second, and they're somewhat tied together. So if you look at pricing, I I think what you can see very clearly is we're leaving a lot on the table. Every time we've raised price, it's been taken very, very well by our consumers. And it's not surprising because we are a very low cost product in relation to what we offer, in particular, in relation to legacy competitors if you were to buy similar premium products.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

And the vision, we've been consistent about, is build an amazing product, give a strong value surplus so people feel really good about what they're getting. And while we're growing, it's not the right move to harvest to the maximum. At some point, when growth slows down and we are more mature, yeah, sure, we might take up price, and we we can see there's there's a we have not yet even once really kinda chipped away at retention. But that's down the road, but I do think it should give investors and and, quite frankly, the entire team. We we take a lot of confidence that we do have we do have a long way to go.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

And I think we've also seen just even more broadly, many have been surprised by just how much, resilience consumer subscriptions have once they become part of people's daily routines, which we clearly are. So we don't see any short term huge price increases in particular in The US. We're more focused on adding value. As we launch some of these new hardware products, we have, like, pets. We'll eventually have seniors.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

That's ways that we can push people to higher price points, but we really wanna make sure that no matter what, our customers are getting that really good feeling of what they're paying for us because it is a differentiator for many of our legacy competitors who who really have price to perfection. Part of how we want to enable ourselves to keep the price low is through ads because if we have tasteful ads, that's a whole another revenue stream. And so I'll let Lauren quickly hit on that because and and she really has been the the mastermind behind the ad business. So something that she's fully set up since she's been here. So over to you, Lauren.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

Thanks, Chris. We have said before that we think that the ads business has the potential to scale sort of on the the same level as our subscription business, and we continue to be really bullish about the potential. We also recognize that we're super early. We're seeing really good progress, both good signals and then actually realizing the kind of results that we are hoping to see as we as we ramp the business. So feeling really bullish.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

I think what makes us special with ads is that we we see this relationship between the value we're delivering advertisers and the value that we're delivering customers. And and that mindset that really connects customer value and advertiser value is is a big unlock and makes us feel good about the investments we're making and the the potential to create magical experiences that are are ad powered.

Mark Mahaney
Senior Managing Director at Evercore ISI

Okay. You, Lauren. Thank you, Chris.

Russell Burke
Russell Burke
CFO at Life360

And, Mark, just just circling back to your comment referencing The US price increases, just so we're clear on that. We we adjusted our annual plan prices in the early part of this year. As you will remember, the the annual plan was at a significant discount from the monthly plan. So we've just, made some adjustments to that, but that's that's the effective price increase for for The US this in this quarter.

Mark Mahaney
Senior Managing Director at Evercore ISI

Thank you, Ross.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Great. Thanks, Mark. I'd like to turn now to Laff from MST. Laff, are you available?

Lafitani Sotiriou
Senior Emerging Analyst at MST Financial

I am, and I appreciate the opportunity to ask a question. I just wanted to follow-up on a couple of these new partnerships slash investment with Aura as well as Accru Accru Wealth Weather. Sorry. Accru Wealth. Can you is there revenue associated with either of these

Lafitani Sotiriou
Senior Emerging Analyst at MST Financial

Are you paying anything for Accrua weather? What's the ultimate strategy there? And if you could just talk us with the employment benefit channel for Aura. Yeah. What is what what does that mean?

Lafitani Sotiriou
Senior Emerging Analyst at MST Financial

Where do you guys fit in? And how is there is the revenue gonna work?

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

Sure. I will take Aura, and I'll let Lauren do AccuWeather because that is very much in her domain. It was a deal she she led with the team. On Aura, it's a company that a long standing personal relationship with just getting to know them because they're also in the family safety space. They grow very differently than us.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

They have a number of channels that we haven't developed. The the one that we're working with them on is b e to b to c through employee benefits. So I'm not sure, since we have some Australians on the call, and I'm not sure how similarly it works for Australian employers. But if you are part of a US, medium or large corporation, you usually get benefits offered to you as part of your your annual, election of benefits, and that is an opportunity for companies to sell products and services. Usually, how it works is you get a little bit of a discount, but once people are on, you get very, very low churn because it comes directly out of your paycheck.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

We have long wanted to look at that channel, but we're not a sales org, really a consumer products org. That is changing as Lauren builds up the ads team. But Aura has a great, in already to that channel, and they're selling a similar ish product. And when I say similar ish, the features aren't the same, but it's family safety. They're more taking the consumers, online and digital safety side of things whereas everyone knows what we do.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

So very complementary. So they have a, essentially, a plug and play Salesforce that can, mark market our product through that channel. And it's essentially a rev share. We haven't disclosed specifics, but there there should be revenue associated with that. It's gonna take some time to ramp up, and they will also be an advertiser on the platform, but we're very excited about the the long term potential to to sell that way.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

So I'll take the AccuWeather angle. The idea actually for working for AccuWeather started when we were reenvisioning the app and really thinking about what we wanted to do for members. And, you know, Chris mentioned the full circle nature of thinking about weather emergencies and those kinds of things. And so we approach them about, you know, how we could deliver that kind of value for our our customers, and then also what we could do for them in terms of letting them reach our audience. And we have made sort of a a a good relationship and a good foundation.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

We're starting with delivering customer value and really figuring out how to make the mechanics work. There were a lot of new capabilities we had to build in order to deliver those kind of alerts to members in certain areas and certain times. So we're focused on that first, and we think that there's a lot of value to be delivered on this from both sides, including commercial value over time, but we're starting simply by making the right experiences work, building the foundation.

Russell Burke
Russell Burke
CFO at Life360

And, Left, just, on in terms of the revenue flow for Aura, we we do expect to start seeing some advertising revenue in the current year and the, employee benefits starting starting next year. But, there's definitely a a good good level of expectation in terms of revenue flow there. And, yeah, the advertising piece is part of our road map and and part of what we look for for for '25.

Lafitani Sotiriou
Senior Emerging Analyst at MST Financial

Got it. Thank you.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Great. Thanks, Now I'd like to turn to Maria with Canaccord. Maria, are you available?

Maria Ripps
Managing Director, Senior Research Analyst at Canaccord Genuity Inc

Yes. Thanks so much. Thanks so much for taking my question. So I just wanted to ask about your subscription business, which continues to do really well. I guess, have you seen any sort of any changes in consumer behavior where there's sort of consumers opting for less expensive plans or maybe downgrading?

Maria Ripps
Managing Director, Senior Research Analyst at Canaccord Genuity Inc

I mean, obviously, the business continues to do well. I just wanna emphasize that. And the sort of what's what's the sort of the main reason behind full year increase in guidance for the subscription segment?

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

So we have not seen any slowdown, if anything, the opposite, which is great. Our our view, which I I hope doesn't get battle tested, when the tariffs were raging, we thought it might, is that when people get anxious, what are the categories that do well? And home security, firearms, as much as I don't don't like to be in those buckets, they do do well, and I think we are a peace of mind product from a very low cost. We've been stress tested before during COVID even though we lost 70% of our downloads for a few weeks when everyone was locked down. We did not get much subscription churn. So I I think what we see is when people get anxious, Life three sixty is considered more of an essential item, and it's not very expensive.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

So we're optimistic that even if there is a recession, we will, do better than our peers. I'm sure if there's something extremely bad, we'll we'll we'll take some hit. But as of now, we're really not seeing anything. So as it relates to guidance, we had a record quarter. We were not necessarily expecting that early on, and oftentimes, we have a good quarter.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

It bounces down, but it was it was well ahead of what our expectations were, and we're updating guidance as a result. And, Russell, I don't know if you have anything to add to that.

Russell Burke
Russell Burke
CFO at Life360

No. I mean, that's that that's the the rationale. And, you know, because it's a because we're essentially adding to to paying circles early in the year, just the nature of the subscription model is that that flows tends to flow through the balance of the year. So we we've got a a good level of visibility on subscription revenue, and thus the the the increase in or the raise to our guidance for for subscription.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

And then one one very small addition. International and US is doing very well, and, we're an organic business. And so international is sometimes very hard to forecast, but that is really on track, which is a a a huge driver of, the long term outlook.

Maria Ripps
Managing Director, Senior Research Analyst at Canaccord Genuity Inc

Thank you so much for the color.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Mhmm. Thanks, Maria. Next, we'd like to turn to Wei Sim from Jefferies. Wei, are you available?

ZheWei Sim
ZheWei Sim
SVP at Jefferies

Can you guys hear me?

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Yep.

ZheWei Sim
ZheWei Sim
SVP at Jefferies

Okay. Great. I just wanted to ask a question just on the Aura partnership. So I I noticed that they also have some, I guess, deal with MetLife going on. So is the idea that, you know, we will get access to, you know, the the MetLife channel on a look forward basis, and it's essentially kinda like a hunting license for them, and and we get a rev share for that.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

Exactly.

ZheWei Sim
ZheWei Sim
SVP at Jefferies

And then sorry. Just if the other one is on the financial side of the Aura thing, the $25,000,000 that we we announced, is that does that does that give us equity in in Aura? How much? And is that cash, or is that kinda like offset for advertising credits? How does that that part work? Thanks.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

I'll take the first half, and I'll let Russell answer the investment related questions. You basically said it as well as I can. MetLife is the biggest benefits provider. Aura has spent a lot of time establishing that channel, we will have access to it exactly like you said. And then we will have a portion of rev share.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

There's some complexity in terms of how we price and all that. We're very optimistic it's gonna do very well, but the the first year will be a a learning year, and it will scale from there.

Russell Burke
Russell Burke
CFO at Life360

And, way in terms of the the revenue side, yeah, we do have high expectations over a a period of time for for the revenue flow from from this this partnership. But, again, it'll it'll be sort of starting to establish those pieces. The the investment itself, you you'll see is is in the form of a convertible note, but we would absolutely expect it to flow into equity at some point in the future.

ZheWei Sim
ZheWei Sim
SVP at Jefferies

Okay. Got it. Thank you.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Thanks, Wei. Next, we'd like to invite Andrew from Citizens JMP. Andrew, are you there?

Andrew Boone
Managing Director at Citizens JMP

Thanks so much for taking the question. We've been seeing PET in beta in our own usage. Can you talk about any early results from PET tracking? And then what are kind of the expectations of that as pet does go live in April and and 2026? Thanks so much.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

Well, I will let Lauren answer that one, a, because she's been spearheading it, and b, she has this tiny little dog who got lost. That's part of the reason she joined to begin with. I I call it a rat, but, you know, we still saved we saved the rat. But, Lauren, since you're so passionate about it, why don't you why don't you chime in on that one?

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

Okay. I will do that. So the things that you're seeing in beta are not really performance testing. They're small scale in order for us to basically put water through the pipes and make sure that we can deliver a great end to end experience for our customers. So they help us refine the experience.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

We use it ourselves. We do a lot of well, in tech, we call it dog fooding. It makes a lot of sense here when we're talking about pets. But we use our own product, and we let other customers use it. We find issues we need to refine.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

We find problems before we ship. So we don't really have performance insights or those kinds of things. The the product is on track. We're excited about what it's gonna do. We are we're being a little bit we're taking a little bit more conservative approach, I think, in the world of tariffs that we might have otherwise just in terms of volumes, pulling back from retail a bit and really focusing on direct to consumer in part because it gives us the most flexibility to be responsive as the external environment changes.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

But this year is really a great learning experience. We're planning to get some decent volume. I'll let Russell talk about specific numbers if he wants to add anything. But all things are looking good. We're excited.

Russell Burke
Russell Burke
CFO at Life360

Yeah. I I I I don't think we're we're talking about sort of specific numbers yet. You know, there's a as we've said, we've pivoted our our plan somewhat. So but but, yeah, this this year is gonna be a a good test, and and we we expect to to see some some good flows there.

Andrew Boone
Managing Director at Citizens JMP

Thank you.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Thanks, Andrew. Next, like to turn to Wei Wang from RBC. Are you there?

Wei-Weng Chen
Wei-Weng Chen
Director - Equity Research at RBC Capital Markets

Hi, guys. Yeah. I'm here. Thanks. Yeah.

Wei-Weng Chen
Wei-Weng Chen
Director - Equity Research at RBC Capital Markets

Just my question is around the Apple App Store changes. How do you expect them to play out for March? Do we see should we expect to see an immediate step up, you know, in in margins, or or is it gonna be more gradual? Like, how do we think about this?

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

I would say take a long term lens, not a short term lens. For those who have known us a while, we've we've been pretty consistent, and I think we're prove being slowly proven right that over time, Apple will lose more and more leverage for a number of reasons, namely antitrust and government scrutiny. It was happening much more overseas. Now it's come to The US with arguably the biggest ruling that is beneficial for us. The reason I'm saying don't make any short term assumptions, this is gonna get a little esoteric, but there are different types of credit card processing, including Apple Pay, which is very different than, in app purchase.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

And it's unclear how much we can use Apple Pay, which is what we really need to have lower friction. And I I would I would be getting very esoteric if I went fully into it. But if I get a little more abstract, we're testing a number of flows. We're trying to see what we can get away with. We're watching very carefully the appeal process because there have been many starts and stops.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

If I'm a betting man, Apple's actually gonna have to make the App Store more competitive with credit card because I know their their monopoly is going away. So in the long term, I'd say this adds validation that that 22 and a half or whatever percent is is that we pay for payment processing will be going down. I definitely would not see an immediate benefit unless we get some pretty big news in Apple Pay. But as of now, we don't know. So we have not changed our forecast or guidance based on this decision yet.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

And, course, if things change, we'll we will announce that and be very excited to share.

Wei-Weng Chen
Wei-Weng Chen
Director - Equity Research at RBC Capital Markets

Okay. Thanks so much. That that's all for me.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Thanks, Next, I'd like to turn it over to Mark from Stifel. Mark, are you available?

Mark Kelley
Mark Kelley
MD - Internet at Stifel Financial

Yeah. Hey, guys. Thank you very much. I wanted to ask you just on the advertising side. I know, obviously, very uncertain times for for all businesses.

Mark Kelley
Mark Kelley
MD - Internet at Stifel Financial

But, you know, given that you're a, you know, a newer ad platform, are you still seeing the interest in testing out the platform or are you seeing people kind of saying, hey, let's wait until things kind of get sorted out on the tariff front? How are those conversations going bigger picture? And I know the long term view is intact to what Lauren said earlier, but just near term, we'd love to know how those conversations are going.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

Lauren, you want to take that one?

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

Sure. I I think this is where we may benefit by our early and small scale. You know, we have very few salespeople to start. We can only have so many conversations, and so we're always picking and choosing what conversations we wanna have. So, you know, in that sense, we we're able to sort of focus on those partnerships that are are ready.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

There's a lot of brands that continue to do well and wanna talk with us. So so it it hasn't hit us yet. There's there's some risk, but we haven't really experienced a big change yet.

Mark Kelley
Mark Kelley
MD - Internet at Stifel Financial

Okay. Thank you. And then maybe one more just on the app refresh. Can you just remind us, you know, the main benefit of that is just making the the the sign up flow, you know, to subscriptions a little bit easier. Is that is that kind of the gist of it? Or maybe I'm too little bit yeah.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

Sure. I'll take this. You know, if you think about why Life three sixty has been successful in the way it has, it's because we really we earn this enthusiastic membership. You know, people try us. They hear about us from someone.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

They try us out. Once they try us, we have a very high stick rate in our free member base, and people enthusiastically tell other people. And that's based on the value they get in that free member experience. We think of it as the engine that powers everything else. The problem is if that experience stays the same, the rest of the world moves on, and, you know, other apps add features and capabilities, the bar, the expectations that customers have rise.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

And so if you're gonna if we're gonna keep that effect that's powered our business working well, we have to continually add value and and create delight in that free experience. So that's one of the main focuses of investing in our free member experience just to make sure that we're nurturing this sort of this fuel source that powers the business. The other is that, you know, we're doing more and more sort of expanding the scenarios, adding things like pets or eventually aging parents, working with more and more partners. And that can put pressure against the user experience. You know, where do you put the next feature?

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

You know, how does it fit in? And so when we designed the app originally, we had a smaller set of use cases. You know? And now that we're adding so much more value, it's hard sometimes to figure out how do you show that in a way that customers can really find it in a way that you're unlocking that value. So as we're thinking about this refresh, as we're thinking about this redesign, we really think about creating space, creating an interface that, allows for customers to be more engaged in different parts of the app experience to hopefully have more dwell time with to benefit advertising, and create space for for more and more features that we create as well as integrations with third parties.

Mark Kelley
Mark Kelley
MD - Internet at Stifel Financial

Perfect, Lauren. Thank you very much.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Thank you. Next, we'd like to invite James from Morgan Stanley to ask a question. James, are you there?

James Bales
James Bales
Executive Director at Morgan Stanley

I am. Thanks for the opportunity. So I guess I wanted to ask about pets. Could you maybe help us understand the difference between the product that's live on the Geobit site and what you plan to launch in Q4? Maybe also some of the differentiating features versus competition.

James Bales
James Bales
Executive Director at Morgan Stanley

And then help us understand how to think about the pricing strategy here, whether this is completely bundled, minimum terms, hardware purchases, etcetera.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

Lauren, probably another good one for you.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

Okay. I'm a big fan of the pups. So if the the guts of Geobit, a a lot of the same similar technology is used in the PetTracker. There's a a lot of overlap in the the tech and the platform that we're using. But we built, basically, from a ground up, a new device that is designed from a Life three sixty sort of family point of view.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

It's designed to work seamlessly as part of the Life three sixty ecosystem. We've been using the reason that we're sort of pushing Geobit right now is that we're sort of using it to, again, test some of those pipes to test the the underlying connection to Life three sixty is the same. We we started with Geobit to build those connections between the pet tracking capabilities and Life three sixty. But the new device is you know, I think one of the the biggest changes is it's really built to work for pet scenarios. It is more durable.

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

It is longer lasting, has a longer battery life. But the most important thing, I think, is how it works to show up as part of your your family.

Russell Burke
Russell Burke
CFO at Life360

And because of that, some you know, it it it obviously will it will be a bundled product. We think there's a lot of opportunity, particularly with the free user base to, you know, help that sort of conversion. And and and therefore, it will be a bundled product. It will be also available sort of separately, but with a subscription. So all of this is really geared towards, you know, continuing to boost subscription revenue.

James Bales
James Bales
Executive Director at Morgan Stanley

Perfect. Thanks, guys.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Thanks, James. Next, I'd like to open it up to Chris from UBS. Chris, are you available? Chris, hopefully, you're there.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

We're still not hearing him. How do we move on and come back, RJ?

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Yep. K. We'll open it up to Rob from Loop. Rob, are you available?

Rob Sanderson
Managing Director at Loop Capital

I am here. Thanks, RJ. Thanks for taking my questions, everyone. I I wanted to go back to the changes on the App Store fees if we could. I mean, it's it's such a significant cost driver.

Rob Sanderson
Managing Director at Loop Capital

Your commission's 53% of sorry. 53,000,000 in revenue last year. So is there anything you can give us to just help calibrate sort of the expectations on sort of the potential outcomes? Is is this, like, something that could potentially shave, like, a couple hundred basis points from that 20 plus percent? Could it be meaningfully more?

Rob Sanderson
Managing Director at Loop Capital

Is it just, you know, too many moving pieces and too early to to even have, to say too much more than just that's clearly directionally positive? And then I have a follow-up on advertising if I could ask. Maybe you can answer that first, I'll come back on advertising.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

Yeah. I'll take that one, and, I'll let Lauren answer your ads question. Let me first explain why it's a little bit more complicated than it sounds. It's not just the cost. There's the conversion impact and the retention impact.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

The thing that's really good about in app purchase is click, click, click, you've converted. The downside of that is you pay the big fees, and it's also very easy to cancel because I I know many consumers, including myself. I just go into the App Store, iTunes, and I cancel all my subscriptions even as a pretty well off person. It's just so easy to cancel everything. And so people do that on Apple, and we don't keep that relationship with the consumer.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

So if you move to credit card, the only thing you know is that the payment processing is going down. The other thing we essentially know is conversion will also go down unless you can use Apple Pay, which has credit card pricing, but with the same click click click conversion. And that if we knew we could use Apple Pay, would put my reputation on the line to say it's saving more than a few hundred basis points is a lot. It would be a massive, massive savings. That still remains unknown, which is why I'm being a little bit more, cautious around our optimism.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

If you take what we know we can do, which is do our own credit card collections, there are ways to reduce the friction. How what does that do to retention? We know we're gonna take a conversion impact, but are we gonna make that up? Because we can have our own dunning strategies. We can have our own process of and now that we're gonna trick users to stay, but, like, Apple just doesn't even let you talk to them.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

And then that takes a long time for the data to come through. So the team already has experiments out, which are gonna test all of these things, the only exception being the big one. We just don't know if we're allowed to use Apple Pay. And so there could be a very good benefit today from what's already happened. Probably not it still could be a couple hundred basis points, but still a little bit unknown.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

We will report back. And if we get word about being able to use Apple Pay, then then that's a huge game changer.

Russell Burke
Russell Burke
CFO at Life360

So I and just to add to that, Rob, you know, as as Chris said before, in the long term, we absolutely see a a benefit from this. So, you know, the the this will flow in one direction. It will benefit our our costs in in the longer term. But because of of these complexities and the and the fact that you have seen before that, you know, Apple will will make different moves, We're we're not certainly not jumping to, you know, include that in any in any forecast or guidance for the time being, but but we will we will pursue it and and and let let you know when when that starts to become meaningful.

Rob Sanderson
Managing Director at Loop Capital

Alright. Thanks thanks, Russell. Thanks, Chris. So, Lauren, advertising, just thinking about maybe a two or three or longer year time frame, do you see bigger opportunity from, like, retail and local local commerce? Or do you think the more near term, like sort of two, three year time frame is a little more focused on insurance and acquisition channel for other services and other sort of maybe vertical type opportunities?

Lauren Antonoff
Lauren Antonoff
Chief Operating Officer at Life360

I think we're we're still exploring what the best opportunities are. I would say we're in exploration mode and really looking at all sorts of different partnerships as brands come to us. So anybody who wants to reach consumers, I think we're attractive an attractive way to do that, and we'll use the learnings from early partners to decide where to double down.

Rob Sanderson
Managing Director at Loop Capital

Okay. Thanks, Lauren.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

Great. Thanks, Rob. K. We'll turn it back over to Chris from UBS if he's available. Chris, are you there? Chris, last call. Okay.

Raymond Jones
Raymond Jones
VP - Investor Relations at Life360

That is the end of our questions that are in the queue. I'll turn it back over to Chris to close us out.

Chris Hulls
Chris Hulls
Co-Founder, CEO & Executive Director at Life360

I don't have any closing remarks. Very excited to meet with you all over coming days, and have a great day.

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    • Maria Ripps
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    • ZheWei Sim
      SVP at Jefferies
    • Andrew Boone
      Managing Director at Citizens JMP
    • Wei-Weng Chen
      Director - Equity Research at RBC Capital Markets
    • Mark Kelley
      MD - Internet at Stifel Financial
    • James Bales
      Executive Director at Morgan Stanley
    • Rob Sanderson
      Managing Director at Loop Capital
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