• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Latest ASX News

Life360 [ASX:360] Chases Profitability for 2023 in Workforce Overhaul

Like 0

By Mahlia Stewart, Friday, 13 January 2023

Location-tracking app creator Life360 believes it can reach profitability in 2023, offloading 14% of its workforce to do so.

Family safety and protection app Life360 [ASX:360] has lowered its EBITDA guidance and revealed its strategy for achieving profitability this year, planning to accelerate positive cash flow by terminating 14% of employee contracts after its Tile and Jiobit merger.

Despite celebrating strong momentum in the last quarter of last year, overall numbers have been lacking, causing the stock to slide 13% in the month and pummelling it down 43.5% across the year.

ASX:360 life360 stock chart 2023

www.Tradingview.com

Life360 optimistic about profitability strategy

The location-sharing application maker today revealed it had accelerated a plan to reach positive operating cash flow after the company’s merger of Jiobit and Tile last year, calling for an extreme overhaul to streamline operations and drive lower operating expenses.

Restructuring the company’s workforce will mean culling the company’s current employee population by around 14%, one of the steps the company hopes will propel its strength within its industry.

Life anticipates around $4 million to be forked out in employee transition and termination costs, which is to be reflected in the Q1 2023 balance sheet.

The company said this would result in the longer-term benefit of annualised cost savings of around $15 million.

Co-founder and CEO of Life360, Chris Hulls, harked back to the company’s third quarter 2022 update, reiterating market conditions have pushed the company to look for ways to accelerate strategies.

‘The restructure that we are announcing today will enable us to bring forward by a quarter the achievement of positive operating cash flow and Adjusted EBITDA to CY23 Q2,’ explained Hulls.

‘Today’s restructuring is designed to benefit the most important areas of our business – our product enhancements continue to deliver very strong growth from new and existing members. We believe these changes will also enable us to realize additional business efficiencies and reduced operating expenses.’

Life360 fundamentals

Life’s global monthly users went up 37% YoY (year-on-year), significantly boosted by post-Christmas sign-ups, while churn levels met expectations, showing some resilience despite the economic downturn.

Core subscription revenue — not including Tile and Jiobit — grew by 54%, in line with company guidance. However, challenging retail headwinds have recently seen lower orders.

Life’s management expects revenue and adjusted EBITDA to be towards the lower end of guidance, with the cash balance guidance remaining at $55–60 million.

Life says the shift in its workforce this year will streamline its ability to deliver better on core opportunities for the year, which include the Tile bundle and focus on expanding internationally.

The security app creator will also begin its launch of full membership in the UK by the second half of the year.

Hulls concluded:

‘We are moving into 2023 in a very strong position to pursue our global growth agenda, with significant upside opportunity from the launch of the bundled hardware subscription in Q1, a strong balance sheet and an accelerated trajectory to profitability.’

The company expects positive cash flow in 2023 and revenue growth in the range of 35%.

Five bargain stocks

The end of 2022 was a period fraught with challenges.

For many, 2023 hasn’t begun much better — not just yet anyway.

The pandemic, war, inflation, continually rising rates, and lean means for costs of living…

With these challenges lingering, many are still looking to save a pretty penny where they can.

And it’s in times like these that some real ASX stock bargains can emerge — if you know where to look.

Our small caps expert Callum Newman has done the hard work for you.

He’s found five of what he calls ‘the best stocks to own in Australia’ right now.

And the best part is, right now, they don’t even cost that much.

Click here to discover Callum’s top five Aussie bargain stocks.

Regards,

Mahlia Stewart,
For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Mahlia Stewart

Mahlia’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • America’s next Vietnam begins
    By Callum Newman

    I remember George W Bush on a US carrier declaring ‘Mission Accomplished’ when it came to Iraq in the second Gulf war. That was in 2003. The war was still going in 2011. Iraq became a failed state, instead of a flourishing democracy. The Iranians aren’t stupid.

  • Are we at war with China?
    By Nick Hubble

    Tariffs, fentanyl, the Straits of Hormuz, Canadian steel quotas and the EU admitting “Trump is right” all mean one thing: the West is finally taking on China.

  • Looking for the Catalyst: European Rearmament
    By James Cooper

    Every commodity cycle has a demand catalyst… James Cooper highlights one that few have paid attention to: conflict and military rearming. One of the primary drivers of higher metal prices. Read on to find out why this is important.

Primary Sidebar

Latest Articles

  • America’s next Vietnam begins
  • Are we at war with China?
  • Looking for the Catalyst: European Rearmament
  • An oil price spike is in the offing now
  • The Shopping Revolution No One Saw Coming

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988