Life360 (ASX: $360) CY23 Results Overview

Life360 (ASX: $360) has reported its CY23 results, achieving a 33% year-on-year revenue growth and positive Adjusted EBITDA for the first full year. The company's achievements include cementing its position as the market-leading family safety membership service, with a 26% year-on-year growth in global monthly active users (MAU) reaching approximately 61.4 million. Additionally, the company experienced a 40% year-on-year growth in international MAU, with record MAU additions, and a 25% year-on-year lift in global average revenue per paying circle (ARPPC) reflecting a U.S. price increase.

Executive Commentary on CY23 Results

Chris Hulls, Co-Founder and CEO, highlighted the company's strong subscription revenue momentum, with a 44% increase including hardware subscriptions, and 52% growth for Life360 subscriptions. The company also saw a 21% increase in hardware revenue, reflecting an increase in net units shipped, lower returns, and benefits from bundling. Notably, Life360 achieved positive Adjusted EBITDA in every quarter of CY23, surpassing the CY23 Adjusted EBITDA of $20.6 million ahead of guidance.

Summary of CY23 Results and Outlook

Life360's CY23 results demonstrate its robust growth strategy and business plan, with a focus on effectively managing its growth and meeting future capital requirements. The company expects to continue its positive Adjusted EBITDA on a quarterly basis going forward and aims to achieve positive EBITDA in the first half of CY25. Looking ahead, Life360 anticipates delivering consolidated revenue of $365 million - $375 million for CY24, with core Life360 subscription revenue growth of at least 20% year-on-year. The company also expects positive Adjusted EBITDA of $30 million - $35 million and a positive operating cash flow for each quarter of CY24, with the usual seasonal low point in Q1. Furthermore, Life360 aims to achieve year-end cash, cash equivalents, and restricted cash of $80 million-$90 million.