Family safety and location-tracking application creator Life360 [ASX:360] has revealed a 103% leap on revenue to the total of US$228.3 million for the year ending 31 December 2022.
This was up from the US$112.6 million reported a year earlier.
What shortly followed was a boost of more than 3% for the group’s share price.
While Life posted a higher revenue count, it also said it took a loss of US$91.6 million, compared with US$33.6 million — 173% more than 2021.
360 shares were trading for $5.05 at the time of writing.
So far in 2023, it appears to be tracking well, with a gain of nearly 4%, however, in the long term, over 12 months, it’s dropped nearly 5%.
It’s keeping with the wider market however, and is higher than its sector average by 13.5%:
www.TradingView.com
Life360 revenue increase dampened by higher losses
The family tracking platform released an update on its financial activities and results for the year ending December 2022, and with the uptick of more than 3% in share value, investors may have been reacting to the group’s a surge in revenue.
Revenue of US$228.3 million was tallied at the end of 2022, up from US$112.6 million that was reported the end of the prior year.
And yet, it wasn’t all good news. Life360 also admitted to an even bigger surge in losses, which had increased by 173% — a loss of $US91.6 million, on 2021’s loss of US$33.6 million.
In the end, the group said that its adjusted for its activities, after tax, had increased by 155%, to US$37.9 million.
Life360 reported US$153.3 million in customer sales compared with the US$86.5 overturned in 2021 — an increase of 77%.
Customer subscription revenue increased 72% from US$17.8 million to US$30.6 million.
Revenue made from the group’s hardware had grown 8%, from US$25.1 million to US$27.1 million.
Total operating expenses had also gone up 99%, from US$122.1 million to US$243 million. Life360’s expenses had also increased 410% for sales and marketing, 211% for administration, and 191% for total stock-based compensation expenses.
With this in perspective, the group posted a net loss of 40%, compared with 30% the year before.
Unsurprisingly, Life360’s board did not declare or pay out any dividends.
The group has been in the process of cost-saving measures since the start of the year, with the announcement of offloading 14% of its workforce in order to give support to growing positive cash flow.
It had also increased its membership price, and completed a $50 million capital raising at the end of the year.
In January, the company said it should be reaching towards a cash flow positive era by the second quarter. It has finalised mergers with Jiobit and Tile, and wrangled its restructure so that it can boost operational cash flow and earnings.
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