Family monitoring and connectivity app Life360 Inc [ASX:360] recorded the largest quarterly growth in global monthly active users (MAU) in 3Q23 — more than 5 million, up 39% year-on-year (YoY).
Life360 shares fell 9% in early trade before rebounding. The family safety stock was up 3% in late Tuesday trade.
While Life360 has been down 50% in the past 12 months, it has rallied 170% since mid-June 2022.
Source: tradingview.com
Life360 grows active users
Today the family safety app provided its financial and trade results for the quarter ending September 30, 2022.
The following were the key results:
- Global monthly active users are up 39% YoY to more than 5 million
- 3Q23 consolidated revenue is up 92% to US$57.2 million
- October month 2022 average revenue per paying circle (ARPPC) is up 47% YoY for new US subscribers
- Gross profit is up 61% YoY to US$39.2 million, but gross margin is down 13.2% to 68.7%
- Operating expenses rose by 88% YoY to US$60.4 million
- Net loss of US$21.1 million, up 160% YoY
- Net decrease in cash of US$20.4 million, up from US$0.4 million in 3Q22
- The nine months ended 30 September 2022, Life360 has burned through US$172.5 million in cash.
Life360 said the drop in gross margin and a bump in operating expenses reflected the integration of Tile and Jiobit acquisitions.
Life360 pointed out that hardware traditionally has lower gross margins, with Tile and Jiobit both in the business of selling tracking devices.
Source: Life360
Life360 earnings guidance
Life360 said that recent price hikes for its key subscription services mean that the business expects to exit CY22 with ‘significantly higher than previously anticipated AMR and ARPPC.’
‘As a result of our price increase, we expect to exit CY22 with significantly higher than previously anticipated AMR and ARPPC. The price increase is also expected to drive a one-time increase in churn that will result in largely flat net subscriber additions in Q4, ahead of subscriber growth resuming in CY23 Q1. While our guidance for continued strong subscription revenue performance is unchanged, our consolidated revenue expectations are lower due to continuing headwinds in the stand-alone hardware business. We will not have high levels of visibility on hardware revenues until after the traditional “Black Friday” holiday sales period in the U.S.’
Source: Life360
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