Q2 2024 Life360 Inc Earnings Call

August 8, 2024

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Operator: Greetings, everyone, and welcome to our second quarter 2024 earnings conference call. This call is being conducted as a Zoom Audio Webinar. All participants will be in a listen-only mode until the question-and-answer session.

Operator: Greetings, everyone, and welcome to our second quarter 2024 earnings conference call. This call is being conducted as a Zoom audio webinar. All participants will be in a listen-only mode until the question and answer session. When we come to the Q&A, please 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.

Operator: Greetings everyone, and welcome to our Q2 2024 Earnings Conference Call. This call is being conducted as a Zoom audio webinar. All participants will be in a listen-only mode until the question and answer session. When we come to the Q&A, please 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 be making 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 in our Form 10-Q filing with the ASX and the SEC, dated 8 August 2024.

Speaker Change: Greetings, everyone and welcome to our 2nd quarter 2024 earnings conference call.

Speaker Change: This call is being conducted as a Zoom audio webinar.

Speaker Change: All participants will be in a listen-only mode until the question and answer session. When we come to the Q&A, please raise your hand by pressing the raise hand icon at the bottom center of your screen and your line will be unmuted in turn.

Operator: When we come to the Q&A, please raise your hand by pressing the raise hand icon at the bottom setter 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.

Operator: Please wait or try again later.

Speaker Change: Participants who have joined by telephone will be in a listen-only mode throughout.

Operator: As a reminder, we will be making 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 factor section in our Form 10-Q filing with the ASX and the SEC dated August 8, 2024. These forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, August 8, 2024, and we have no obligation to update these statements as a result of new information or future events, except as required by law.

Operator: As a reminder, we will be making 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 factor section of our Form 10-Q filing with the ASX and the SEC dated August 8, 2024. These forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, August 8, 2024, and we have no obligation to update these statements as a result of new information or future events, except when required by law.

Operator: You have joined the meeting as an attendee and will be muted throughout the meeting.

Speaker Change: As a reminder, we will be making 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.

Chris Holes: Greetings, everyone, and welcome to our second quarter, 2024 earnings conference call. This call is being conducted as a Zoom audio webinar. All participants will be in a listen-only mode until the question and answer session. When we come to the Q&A, please raise your hand by pressing the raise hand icon at the bottom setter 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.

Speaker Change: A summary of these risks may be found in the risk factors section in our Form 10-Q filing.

Speaker Change: with the ASX and the SEC dated August 8, 2024.

Chris Holes: As a reminder, we will be making 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 factor section in our form 10Q filing with the ASX and the SEC dated August 8, 2024. These forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, August 8, 2024, and we have no obligation to update these statements as a result of new information or future events except from required by law.

Operator: These forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, 8 August 2024, 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 or as 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 press release issued earlier today, which has been posted on the investor relations page of the company's website.

These forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, August 8, 2024, and we have no obligation to update these statements as a result of new information or future events, except when required by law.

Operator: Additionally, we will present both GAP and non-GAP 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 press release issued earlier today, which has been posted on the investor relations page of the company's website. We will also post an updated investor presentation on the investor relations page later this evening, which includes additional complimentary graphics and data.

Operator: 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.

Additionally, we will present both GAAP and non-GAAP financial measures on today's call.

Speaker Change: 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.

Operator: A description of these non-GAAP financial measures, as well as a reconciliation to the nearest GAAP financial measures, is included at the end of the company's earnings press release issued earlier today, which has been posted on the investor relations page of the company's website. We will also post an updated investor presentation on the Investor Relations page later this evening, which includes additional complementary graphics and data. Please note that this presentation has been provided as an additional reference and that we will not be using the presentation as an exhibit during today's call.

Speaker Change: 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 press release issued earlier today, which has been posted on the investor relations page of the company's website.

Chris Holes: Additionally, we will present both GAP and non-GAP financial measures on today's call. These non-GAP measures are not intended to be considered an isolation from a substitute for or superior to our GAP results and should be read in conjunction with the company's consolidated financial statements prepared in accordance with GAP. A description of these non-GAP financial measures as well as a reconciliation to the nearest GAP financial measures are included at the end of the company's earnings press released issued earlier today, which has been posted on the investor relations page of the company's website.

Operator: We will also post an updated investor presentation on the investor relations page later this evening, which includes additional complementary graphics and data. 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 a business update by co-founder and CEO, Chris Hulls, and then CFO Russell Burke will provide detail on the Q2 financials. Chris will then provide some outlook comments, which will then be followed by a Q&A session. We request that participants limit themselves to one question initially, so that we can get through as many participants as possible. I would now like to turn the call over to Chris Hulls, CEO.

Speaker Change: We will also post an updated investor presentation on the investor relations page later this evening, which includes additional complimentary graphics and data. 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.

Operator: 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.

Operator: We will begin with a business update by Co-founder and CEO Chris, and then CFO Russell Burke will provide detail on the Q2 financials. Cris will then provide some Outlook comments, which will then be followed by a Q&A session.

Operator: We will begin with a business update by co-founder and CEO Chris Hull, and then CFO Russell Burke will provide detail on the Q2 financials. Chris will then provide some Outlook comments, which will then be followed by a Q&A session. We request that participants limit themselves to one question initially so that we can get through as many participants as possible. I would now like to turn the call over to Chris Hull.

Speaker Change: We will begin with a business update by co-founder and CEO Chris Hulse, and then CFO Russell Burke will provide detail on the Q2 financials. Chris will then provide some Outlook comments, which will then be followed by a Q&A session.

Chris Holes: We will also post an updated investor presentation on the investor relations page later this evening, which includes additional complimentary graphics and data. 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.

Operator: We request that participants limit themselves to one question initially so that we can get through as many participants as possible.

Speaker Change: We request that participants limit themselves to one question initially so that we can get through as many participants as possible.

Chris Holes: I would now like to turn the call over to Chris Holes, CEO. Good afternoon to everyone in the U.S. And good morning to everyone in Australia, and thanks for joining our Q2 results goal. Life360 delivered excellent results for the quarter as we set new records in business and financial performance and completed our U.S. IPO. We achieved positive metrics across all of our key strategic priority areas. We achieved impressive audience growth, increasing our free member base by 4.3 million monthly active users, reaching 70.6 million overall, a 31 percent year-on-year increase. We continued to scale our paid offerings, increasing net paying circles by 132,000 compared with a 96,000 increase in Q1.

Speaker Change: I would now like to turn the call over to Chris Hulls, CEO .

Operator: We will begin with a business update by CoFounder and CEO Chris and then CFO Russell Burke will provide detail on the Q2 financials. Cris will then provide some Outlook comments, which will then be followed by a Q&A session. We request that participants limit themselves to one question initially so that we can get through as many participants as possible.

Chris Hulls: Good afternoon to everyone in the U.S. and good morning to everyone in Australia, and thanks for joining our Q2 results call. Y360 delivered excellent results for the quarter as we set new records in business and financial performance and completed our US IPO. We achieved positive metrics across all of our key strategic priority areas. We achieved impressive audience growth, increasing our free member base by 4.3 million monthly active users, reaching 70.6 million overall, a 31% year-on-year increase. We continue to scale our paid offerings, increasing net paying circles by $132,000 compared with a $96,000 increase in Q1. This delivered a new quarterly record for global net assets.

Chris Hulls: Good afternoon to everyone in the US and good morning to everyone in Australia, and thanks for joining our Q2 results call. Life360 delivered excellent results for the quarter as we set new records in business and financial performance and completed our US IPO. We achieved positive metrics across all of our key strategic priority areas. We achieved impressive audience growth, increasing our free member base by 4.3 million monthly active users, reaching 70.6 million overall, a 31% year-on-year increase. We continue to scale our paid offerings, increasing net paying circles by 132,000, compared with 96,000 increase in Q1. This delivered a new quarterly record for global net adds.

Chris Hulse: Good afternoon to everyone in the U.S., and good morning to everyone in Australia, and thanks for joining our Q2 results call.

Chris Hulls: Y360 delivered excellent results for the quarter as we set new records in business and financial performance, and completed our US IPO. We achieved positive metrics across all of our key strategic priority areas.

Chris Holes: I would now like to turn the call over to Chris Holes, CEO. Good afternoon to everyone in the U.S, and good morning to everyone in Australia, and thanks for joining our Q2 results goal. Life360 delivered excellent results for the quarter as we set new records in business and financial performance and completed our U.S. IPO. We achieved positive metrics across all of our key strategic priority areas. We achieved impressive audience growth, increasing our free member base by 4.3 million monthly active users, reaching 70.6 million overall, a 31 percent year on your increase.

We achieved impressive audience growth, increasing our free member base by 4.3 million monthly active users, reaching 70.6 million overall, a 31% year-on-year increase.

Speaker Change: We continue to scale our paid offerings, increasing net paying circles by 132,000 compared with 96,000 increase in Q1.

Chris Holes: This delivered a new quarterly record for global net ads. Our focus on international growth also contributed significantly to our paying for performance as we grew our international MAUs by 48 percent year over year, and our international paying circles by 42 percent year over year.

Speaker Change: This delivered a new quarterly record for global net ads.

Chris Hulls: Our focus on international growth also contributed significantly to our paying performance as we grew our international MAUs by 48% year over year and our international paying circles by 42% year over year. We believe that we're very early in penetrating our global market opportunity and that we have significant headroom to grow as we expand to new regions and launch new safety, connection, and location features that make everyday family life better throughout all life stages.

Chris Hulls: Our focus on international growth also contributed significantly to our performance as we grew our international MAUs by 48% year-over-year and our international paying circles by 42% year-over-year. We believe that we're very early in penetrating our global market opportunity and that we have significant headroom to grow as we expand to new regions and launch new safety, connection, and location features that make everyday family life better throughout all life stages. We launched triple-tier membership in Australia and New Zealand in April, following the UK launch in October 2023, underpinning a significant uplift in average revenue per paying circle in both markets. Q2 revenue in the UK and New Zealand increased 76% and 69% year-over-year, respectively. This positive performance drove a 12% year-over-year increase in international ARPPC for the quarter.

Speaker Change: Our focus on international growth also contributed significantly to our paying performance as we grew our international MAUs by 48% year-over-year and our international paying circles by 42% year-over-year.

Chris Holes: We continued to scale our paid offerings, increasing net paying circles by 132,000 compared with 96,000 increase in Q1. This delivered a new quarterly record for global net ads. Our focus on international growth also contributed significantly to our paying for performance as we grew our international MAUs by 48 percent year over year, and our international paying circles by 42 percent year over year. We believe that we are very early in penetrating our global market opportunity, and that we have significant headroom to grow as we expand to new regions, and launch new safety, connection, and location features that make everyday family life better throughout all life stages.

Chris Holes: We believe that we are very early in penetrating our global market opportunity, and that we have significant headroom to grow as we expand to new regions and launch new safety, connection, and location features that make everyday family life better throughout all life stages. We launched triple tier membership in Australia and New Zealand in April, following the UK launch in October 2023, underpinning a significant uplift in the average revenue per paying circle in both markets. Q2 revenue in the UK and New Zealand increased 76 and 69 percent year on year, respectively. This positive performance drove a 12 percent year-over-year increase an international ARPPC for the quarter.

Speaker Change: We believe that we are very early in penetrating our global market opportunity and that we have significant headroom to grow as we expand to new regions and launch new safety, connection, and location features that make everyday family life better throughout all life stages.

Chris Hulls: We launched triple-tier membership in Australia and New Zealand in April, following the UK launch in October 2023, underpinning a significant uplift in average revenue per paying circle in both markets. Q2 revenue in the UK and New Zealand increased 76% and 69% year-on-year, respectively. This positive performance drove a 12% year-over-year increase in international ARPPC for the quarter. U.S. ARPPC increased 8% year-over-year, benefiting from Android price increases implemented in Q2 of 2020.

Speaker Change: We launched triple tier membership in Australia and New Zealand in April , following the UK launch in October 2023, underpinning a significant uplift in average revenue per paying circle in both markets.

Speaker Change: Q2 revenue in the UK and New Zealand increased 76% and 69% year-on-year respectively.

Speaker Change: This positive performance drove a 12% year-over-year increase in international ARPPC for the quarter.

Chris Holes: We launched triple tier membership in Australia and New Zealand in April, following the UK launch in October 2023, underpinning a significant uplift in the average revenue per paying circle in both markets. Q2 revenue in the UK and New Zealand increased 76 and 69 percent year on year respectively. This positive performance drove a 12 percent year over year increase an international ARPPC for the quarter. US ARPPC increased 8 percent year over year, benefiting from Android price increases implemented in Q2 of 23.

Chris Holes: US ARPPC increased 8 percent year over year, benefiting from Android price increases implemented in Q2 of '23. We also continue to make excellent progress in creating new revenue streams from our existing member base. Earlier this year, we launched a new advertising offering, which is now live for US members and available soon globally. Importantly, we're focusing on providing our members with contextually relevant ads and hands-to-use experience by leveraging our extensive first-party location data. Following the rapid development of our programmatic ad capability and positive signals and early testing, with both users and advertisers, we initiated our direct sales efforts in June.

Chris Hulls: US ARPPC increased 8% year-over-year benefiting from Android price increases implemented in Q2 2023. We also continue to make excellent progress in creating new revenue streams from our existing member base. Earlier this year, we launched a new advertising offering, which is now live for US members and available soon globally. Importantly, we're focusing on providing our members with contextually relevant ads to enhance the user experience by leveraging our extensive first-party location data. Following the rapid development of our programmatic ad capability and positive single signals in early testing with both users and advertisers, we initiated our direct sales efforts in June. Revenue from our ad offering started to expand in Q2 2024, and we have been actively engaging with multiple prospective large advertisers and potential partners, which align well with our loyal base of families.

Speaker Change: U.S. ARPPC increased 8% year-over-year, benefiting from Android price increases implemented in Q2 of 2023.

Chris Hulls: We also continue to make excellent progress in creating new revenue streams from our existing members. Earlier this year, we launched a new advertising offering, which is now live for U.S. members and will be available soon globally. Importantly, we are focusing on providing our members with contextually relevant ads to enhance their user experience by leveraging our extensive first-party location data. Following the rapid development of our programmatic ad capability and positive signals in early testing with both users and advertisers, we initiated our direct sales efforts in June.

Speaker Change: We also continue to make excellent progress in creating new revenue streams from our existing member base.

Speaker Change: Earlier this year, we launched a new advertising offering, which is now live for U.S. members and available soon globally. Importantly, we are focusing on providing our members with contextually relevant ads to enhance their user experience by leveraging our extensive first-party location data.

Speaker Change: Following the rapid development of our programmatic ad capability and positive signals in early testing with both users and advertisers, we initiated our direct sales efforts in June .

Chris Holes: We also continue to make excellent progress in creating new revenue streams from our existing member base. Earlier this year, we launched a new advertising offering, which is now live for US members and available soon globally. Importantly, we're focusing on providing our members with contextually relevant ads and hands-to-use experience by leveraging our extensive first-party location data. Following the rapid development of our programmatic ad capability and positive signals and early testing, with both users and advertisers, we initiated our direct sales efforts in June.

Chris Hulls: Revenue from our ad offering started to expand in Q224, and we have been actively engaging with multiple prospective large advertisers and potential partners, which align well with our loyal base of families. We continue to expect a noticeable revenue contribution from ads in the second half of 2024 as we build our ad sales, measurement, and tech capabilities and further enable our platform through service integrations like those in place of the Trade Desk, Live Rent, Pubmatic, and Google Admin.

Chris Holes: Revenue from our ad offering started to expand in Q2 24, and we have been actively engaging with multiple prospective large advertisers and potential partners, which line well with our loyal base of families. We continue to expect a noticeable revenue contribution from ads in the second half of 2024, as you build our ad sales, measurement, and tech capabilities and further enable our platforms through service integrations like those in place of The Trade Desk, LiveRamp, PubMatic, and Google Ad Manager. We recently hired a new VP for the ads business who will join us very soon and brings extensive experience and ads for us to leverage.

Speaker Change: Revenue from our ad offering started to expand in Q224, and we have been actively engaging with multiple prospective large advertisers and potential partners, which align well with our loyal base of families.

Chris Hulls: We continue to expect a noticeable revenue contribution from ads in the second half of 2024 as we build our ad sales, measurement, and tech capabilities and further enable our platform through service integrations like those in place with The Trade Desk, LiveRamp, PubMatic, and Google Ad Manager. We recently hired a new VP for the ads business who will join us very soon and brings extensive experience in ads for us to leverage. Today, we also announced expanded partnership agreements with two of our existing strategic partners, Arity and Placer.ai. Arity provides us with technology that enables our crash detection and driving alerts and also helps us provide opt-in personalized car insurance quotes for our members. Arity will now become more involved as a contributor to our advertising business going forward, both on-site and off-site, which we're really excited about.

Speaker Change: i

Speaker Change: We continue to expect a noticeable revenue contribution from ads in the second half of 2024 as we build our ad sales, measurement, and tech capabilities, and further enable our platform through service integrations like those in place of the Trade Desk, LiveRamp, Pubmatic, and Google Ad Manager.

Chris Holes: Revenue from our ad offering started to expand in Q2 24 and we have been actively engaging with multiple prospective large advertisers and potential partners which line well with our loyal base of families. We continue to expect a noticeable revenue contribution from ads in the second half of 2024, as you build our ad sales, measurement and tech capabilities and further enable our platforms through service integrations like those in place of the trade desk, live ramp, pubmatic, and Google ad manager.

Chris Hulls: We recently hired a new VP for the ads business who will join us very soon and brings extensive experience in ads for us to leverage. Today, we also announced expanded partnership agreements with two of our existing strategic partners, Airty and Placer.ai. Airty provides us with technology that enables our crash detection and driving alerts and also helps us provide opt-in personalized car insurance codes for our members.

Speaker Change: We recently hired a new VP for the ads business who will join us very soon and brings extensive experience in ads for us to leverage.

Chris Holes: Today, we also announced expanded partnership agreements with two of our existing strategic partners, AirD and Placer.AI. AirDee provides us with technology that enables our crash detection and driving alerts and also helps us provide opt-in personalized car insurance close for our members. AirDee will now become more involved as a contributor to our advertising business going forward, both on-site and off-site, which you're really excited about. For Garding Placer, we've extended our data partnership in a multi-year agreement, which creates opportunities for increased revenue in the near and long term. The 2024 impact is expected to be modest and is included in our updated outlook.

Speaker Change: Today, we also announced expanded partnership agreements with two of our existing strategic partners, Airty and Placer.ai.

Speaker Change: Airdrie provides us with technology that enables our crash detection and driving alerts, and also helps us provide opt-in personalized car insurance codes for our members.

Russell Burke: ARD will now become more involved as a contributor to our advertising business going forward, both on-site and off-site, but you're really excited. Regarding PLACER, we have extended our data partnership in a multi-year agreement, which creates opportunities for increased revenue in the near and long term. The 2024 impact is expected to be modest and is included in our updated outlook. However, we expect increased revenue in 2025 and beyond as a result of the updated agreement.

Speaker Change: ARD will now become more involved as a contributor to our advertising business going forward, both on-site and off-site, which we're really excited about.

Chris Holes: We recently hired a new VP for the ads business who will join us very soon and brings extensive experience and ads for us to leverage.

Chris Hulls: Regarding Placer, we have extended our data partnership in a multi-year agreement, which creates opportunities for increased revenue in the near- and long-term. The 2024 impact is expected to be modest and is included in our updated outlook. However, we expect increased revenue in 2025 and beyond as a result of the updated agreement. Additionally, we continue to move through the finalization process of our relationship with Hubble. We remained excited about the long-term potential of their satellite-to-Bluetooth technology combined with our own location network. With that, I'll turn the call over to Russell to run through the financials.

Speaker Change: For guarding place, or we've extended our data partnership in a multi-year agreement, which creates opportunities for increased revenue in the near and long-term.

Speaker Change: The 2024 impact is expected to be modest and is included in our updated outlook. However, we expect increased revenue in 2025 and beyond as a result of the updated agreement.

Chris Holes: However, we expect increased revenue in 2025 and beyond as a result of the updated agreement. Additionally, we continue to move through the finalization process of our relationship with Hubble. We remain excited about the long-term potential of their satellite to Bluetooth technology, combined with our own location network.

Russell Burke: Additionally, we continue to move to the finalization process of our relationship with Hubble. We are still excited about the long-term potential of their satellite-to-Bluetooth technology, combined with our own location network. With that, I'll turn the call over to Russell to run through the financials.

Speaker Change: Additionally, we continue to move through the finalization process of our relationship with Hubble. We remained excited about the long-term potential of their satellite to Bluetooth technology combined with our own location network.

Chris Holes: For Garding Placer, we've extended our data partnership in a multi-year agreement, which creates opportunities for increased revenue in the near and long term. The 2024 impact is expected to be modest and is included in our updated outlook. However, we expect increased revenue in 2025 and beyond as a result of the updated agreement.

Russell Burke: With that, I'll turn the call over to Russell to run through the financials. Thanks, Chris, and thanks everyone for joining the call today. As a reminder, all of the financials I'll be referencing are unordered and denominated in US dollars. The strong operating metrics which Chris has outlined supported an acceleration in Q2 revenue momentum. Q2 revenue increased 20% year-on-year to 84.9 million, with particularly strong growth in subscription, which increased 25% year-on-year. Core Life 360 subscription, which excludes hardware subscriptions, also increased 25% year-on-year, driven by the 25% increase in global paying circles and 6% higher ARPPC. Hardware revenue increased 3% to 11.9 million, driven by the contribution from bundling and fewer discounts offered.

Speaker Change: With that, I'll turn the call over to Russell to run through the financials.

Russell Burke: Thanks Chris and thanks everyone for joining the call today. As a reminder, all of the financials I'll be referencing are unaudited and denominated in US dollars. The strong operating metrics, which Chris has outlined, supported an acceleration in Q2 revenue momentum. Q2 revenue increased 20% year-on-year to $84.9 million, with particularly strong growth in subscriptions, which increased 25% year-on-year. CoreLife 360 subscriptions, which excludes hardware subscriptions, also increased 25% year-on-year, driven by the 25% increase in global paying circles and 6% higher ARPPC. Hardware revenue increased 3% to $11.9 million, driven by the contribution from Bundling and fewer discounts offered. Standalone units shipped were stable, with an average selling price up 1% year-on-year.

Russell Burke: Thanks, Chris, and thanks everyone for joining the call today. As a reminder, all of the financials I'll be referencing are unaudited and denominated in US dollars. The strong operating metrics, which Chris has outlined, supported an acceleration in Q2 revenue momentum. Q2 revenue increased 20% year-over-year to $84.9 million, with particularly strong growth in subscription, which increased 25% year-over-year. Core Life360 subscription, which excludes hardware subscriptions, also increased 25% year-over-year, driven by the 25% increase in global paying circles and 6% higher ARPPC. Hardware revenue increased 3% to $11.9 million, driven by the contribution from bundling and fewer discounts offered. Standalone units shipped were stable with average selling price up 1% year-over-year. Other revenue increased 12% to $7.3 million due to a combination of the ramp in advertising revenue and higher data revenue.

Russell: Thanks Chris and thanks everyone for joining the call today.

Russell Burke: Other revenue increased 12% to $7.3 million, due to a combination of the ramp in advertising revenue and higher data revenue. June AMR of close to $305 million increased 23% year-on-year, reflecting the performance of subscription and other revenue. Q2 gross profit of $63.6 million increased 16% year-on-year, with gross margin slightly lower at 75% compared with 77% in the prior year. However, Q223 included a one-time adjustment in relation to the discontinuation of certain battery-related membership benefits, and that favorably impacted gross margin in that period. Excluding this one-time benefit, margins were stable year over year.

Russell: As a reminder, all of the financials I'll be referencing are unaudited and denominated in US dollars.

Chris Holes: Additionally, we continue to move through the finalization process of our relationship with Hubble. We remain excited about the long-term potential of their satellite to Bluetooth technology, combined with our own location network.

Russell Burke: At the same time, Q2 operating expenses only increased 12%, demonstrating strong operating leverage given the revenue uplift of 20 percent. R&D costs increased 17% year-on-year, primarily driven by higher personnel-related costs, technology, and outside services spend. Sales and marketing costs increased 4% year-on-year, primarily due to higher commissions, which increased in line with the 20% increase in subscription revenue. Paid acquisition costs were lower year-on-year and quarter-over-quarter due to an intentional shift of timing for marketing campaigns. We plan to prioritise marketing and investment for the back to school period and the launch of the new Tile product line in Q3.

Russell: The strong operating metrics, which Chris has outlined, supported an acceleration in Q2 revenue momentum.

Russell Burke: As a result, we expect paid acquisition and other marketing spend in Q3 to be around $6 million higher than Q2. General and administrative expenses in Q2 increased 17% year-on-year, primarily driven by ongoing public company compliance costs. The Q2 net loss of $11 million increased from $4.4 million in the prior year due to the costs associated with the IPO and higher income tax expenses. This is due to the changes in US tax laws impacting many companies, primarily around the requirement to amortise capitalised R&D costs over a five-year period, as well as the timing limitations on NOLs.

Russell Burke: With that, I'll turn the call over to Russell to run through the financials. Thanks Chris and thanks everyone for joining the call today. As a reminder, all of the financials I'll be referencing are unordered and denominated in US dollars. The strong operating metrics which Chris has outlined supported an acceleration in Q2 revenue momentum. Q2 revenue increased 20% year-on-year to 84.9 million, with particularly strong growth in subscription, which increased 25% year-on-year. Core life 360 subscription, which excludes hardware subscriptions, also increased 25% year-on-year, driven by the 25% increase in global paying circles and 6% higher ARPPC.

Russell Burke: We saw a significant increase in the current provision in Q2, with the deductibility of these items deferred to future years. In addition, under GAAP accounting guidance, the provision for income taxes during quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any one quarter may be subject to fluctuations during the year as new information is obtained, and that may impact the assumptions used to estimate the annual effective rate. As a result of all of that, the prescribed method of calculating income tax expense for the quarter results in a higher income tax expense for the quarter than for the full year.

Russell: Q2 revenue increased 20% year-on-year to $84.9 million, with particularly strong growth in subscription, which increased 25% year-on-year.

Russell: CoreLife 360 subscription, which excludes hardware subscriptions, also increased 25% year-on-year, driven by the 25% increase in global paying circles and 6% higher ARPPC.

Russell: Hardware revenue increased 3% to $11.9 million driven by the contribution from bundling and fewer discounts offered.

Russell Burke: Stand-alone unit shipped were stable with average selling price up 1% year-on-year. Other revenue increased 12% to 7.3 million due to a combination of the ramp in advertising revenue and higher data revenue. June AMR of close to 305 million increased 23% year-on-year, reflecting the performance of subscription and other revenue. Q2 gross profit of 63.6 million increased 16% year-on-year, with gross margin slightly lower at 75% compared with 77% in the prior year. Q2 23 included a one-time adjustment in relation to the discontinuation of certain battery-related membership benefits, and that favorably impacted gross margin in that period. Excluding this one-time benefit, margins were stable year-on-year.

Russell: Standalone units shipped were stable, with average selling price up 1% year-on-year.

Speaker Change: Other revenue increased 12% to $7.3 million due to a combination of the ramp in advertising revenue and higher data revenue.

Russell Burke: Hardware revenue increased 3% to 11.9 million, driven by the contribution from bundling and fewer discounts offered. Stand-alone unit shipped were stable with average selling price up 1% year-on-year. Other revenue increased 12% to 7.3 million due to a combination of the ramp in advertising revenue and higher data revenue. June AMR of close to 305 million increased 23% year-on-year, reflecting the performance of subscription and other revenue. Q2 gross profit of 63.6 million increased 16% year-on-year, with gross margin slightly lower at 75% compared with 77% in the prior year.

Russell Burke: June AMR of close to $305 million increased 23% year-over-year, reflecting the performance of subscription and other revenue. Q2 gross profit of $63.6 million increased 16% year-over-year, with gross margin slightly lower at 75% compared with 77% in the prior year. Q2 2023 included a one-time adjustment in relation to the discontinuation of certain battery-related membership benefits, and that favorably impacted gross margin in that period. Excluding this one-time benefit, margins were stable year-over-year. At the same time, Q2 operating expenses only increased 12%, demonstrating strong operating leverage given the revenue uplift of 20%. R&D costs increased 17% year-over-year, primarily driven by higher personnel-related costs, technology, and outside services spend. Sales and marketing costs increased 4% year-over-year, primarily due to higher commissions, which increased in line with the 20% increase in subscription revenue.

Speaker Change: June AMR of close to $305 million increased 23% year-on-year, reflecting the performance of subscription and other revenue.

Speaker Change: Q2 gross profit of $63.6 million increased 16% year-on-year, with gross margin slightly lower at 75% compared with 77% in the prior year.

Speaker Change: Q223 included a one-time adjustment in relation to the discontinuation of certain battery-related membership benefits, and that's favorably impacted gross margin in that period.

Speaker Change: Excluding this one-time benefit, margins were stable year over year.

Russell Burke: At the same time, Q2 operating expenses only increased 12%, demonstrating strong operating leverage given the revenue uplift of 20%. R&D costs increased 17% year-on-year, primarily driven by higher personnel-related costs, technology, and outside services spend. Sales and marketing costs increased 4% year on year, primarily due to higher commissions, which increased in line with the 20% increase in subscription revenue. Pay acquisition costs were lower year on year and quarter over quarter due to an intentional shift of timing for marketing campaigns. We plan to prioritize marketing investment for the back to school period and the launch of the new tile product line in Q3.

Speaker Change: At the same time, Q2 operating expenses only increased 12%.

Russell Burke: Q2 23 included a one-time adjustment in relation to the discontinuation of certain battery-related membership benefits, and that favorably impacted gross margin in that period. Excluding this one-time benefit, margins were stable year-on-year. At the same time, Q2 operating expenses only increased 12%, demonstrating strong operating leverage given the revenue uplift of 20%. R&D costs increased 17% year-on-year, primarily driven by higher personnel-related costs, technology and outside services spend. Sales and marketing costs increased 4% year on year, primarily due to higher commissions which increased in line with the 20% increase in subscription revenue.

Speaker Change: Demonstrating strong operating leverage given the revenue uplift of 20%.

Speaker Change: R&D costs increased 17% year-on-year, primarily driven by higher personnel related costs, technology and outside services spend.

Speaker Change: Sales and marketing costs increased 4% year-on-year, primarily due to higher commissions, which increased in line with the 20% increase in subscription revenue.

Russell Burke: Paid acquisition costs were lower year-over-year and quarter-over-quarter due to an intentional shift of timing for marketing campaigns. We plan to prioritize marketing investment for the back-to-school period and the launch of the new Tile product line in Q3. As a result, we expect paid acquisition and other marketing spend in Q3 to be around $6 million higher than Q2. General and administrative expenses in Q2 increased 17% year-over-year, primarily driven by ongoing public company compliance costs. The Q2 net loss of $11 million increased from $4.4 million in the prior year due to the costs associated with the IPO and higher income tax expense.

Speaker Change: Peed acquisition costs were lower year on year and quarter over quarter due to an intentional shift of timing for marketing campaigns.

Speaker Change: We plan to prioritise marketing and investment for the back to school period and the launch of the new Tile product line in Q3.

Russell Burke: As a result, we expect paid acquisition and other marketing spend in Q3 to be around $6 million higher than Q2. General and administrative expenses in Q2 increased 17% year on year, primarily driven by ongoing public company compliance costs. The Q2 net loss of 11 million increased from 4.4 million in the prior year due to the costs associated with the IPO and higher income tax expense. Due to the changes in US tax laws impacting many companies primarily around the requirement to amortize capitalized R&D costs over a 5-year period, as well as the timing in limitations on NRLs.

Speaker Change: As a result, we expect paid acquisition and other marketing spend in Q3 to be around $6 million higher than Q2.

Russell Burke: Pay acquisition costs were lower year on year and quarter over quarter due to an intentional shift of timing for marketing campaigns. We plan to prioritize marketing investment for the back to school period and the launch of the new tile product line in Q3. As a result we expect paid acquisition and other marketing spend in Q3 to be around $6 million higher than Q2. General and administrative expenses in Q2 increased 17% year on year, primarily driven by ongoing public company compliance costs.

Speaker Change: General and administrative expenses in Q2 increased 17% year-on-year, primarily driven by ongoing public company compliance costs.

Speaker Change: The Q2 net loss of $11 million increased from $4.4 million in the prior year due to the cost associated with the IPO and higher income tax expense.

Russell Burke: Due to the changes in US tax laws impacting many companies, primarily around the requirement to capitalize and amortize R&D costs over a five-year period, as well as the timing and limitations on NOLs, we saw a significant increase in the current provision in Q2 with the deductibility of these items deferred to future years. In addition, under GAAP accounting guidance, the provision for income taxes during quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any one quarter may be subject to fluctuations during the year as new information is obtained, and that may impact the assumptions used to estimate the annual effective rate. As a result of all of that, the prescribed method of calculating income tax expense for the quarter results in a higher income tax expense for the quarter than for the full year.

Speaker Change: Due to the changes in U.S. tax laws impacting many companies, primarily around the requirement to amortize capitalized R&D costs over a five year period.

Russell Burke: The Q2 net loss of 11 million increased from 4.4 million in the prior year due to the costs associated with the IPO and higher income tax expense. Due to the changes in US tax laws impacting many companies primarily around the requirement to amortize capitalized R&D costs over a 5-year period, as well as the timing in limitations on NRLs. We saw a significant increase in the current provision in Q2 with the deductibility of these items deferred to future years.

Speaker Change: as well as the timing and limitations on NOLs. We saw a significant increase in the current provision in Q2, with the deductibility of these items deferred to future years.

Russell Burke: We saw a significant increase in the current provision in Q2, with the deductibility of these items deferred to future years. In addition, under gap counting guidance, the provision for income taxes during quarterly reporting periods is based on our estimates of the effective tax rates for the form fiscal year. The effective tax rate in any one quarter may be subject to fluctuations during the year as new information is obtained and that may impact the assumptions used to estimate the annual effective rate. As a result of all of that, the prescribed method of calculating income tax expense for the quarter results in a higher income tax expense for the quarter than for the full year.

Speaker Change: In addition, under GAAP Counting Guidance, the provision for income taxes during quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year.

Russell Burke: The effective tax rate in any one quarter may be subject to fluctuations during the year as new information is obtained, and that may impact the assumptions used to estimate the annual effective rate. As a result of all of that, the prescribed method of calculating income tax expense for the quarter results in a higher income tax expense for the quarter than for the full year.

Speaker Change: The effective tax rate in any one quarter may be subject to fluctuations during the year as new information is obtained. And that may impact the assumptions used to estimate the annual effective rate.

Russell Burke: In addition, under gap counting guidance, the provision for income taxes during quarterly reporting periods is based on our estimates of the effective tax rates for the form fiscal year. The effective tax rate in any one quarter may be subject to fluctuations during the year as new information is obtained and that may impact the assumptions used to estimate the annual effective rate. As a result of all of that, the prescribed method of calculating income tax expense for the quarter results in a higher income tax expense for the quarter than for the full year. As a result, we expect the annual 2024 income tax expense to be between two and four million dollars.

Speaker Change: As a result of all of that, the prescribed method of calculating income tax expense for the quarter results in a higher income tax expense for the quarter than for the full year.

Russell Burke: As a result, we expect the annual 2024 income tax expense to be between two and four million dollars.

Russell Burke: As a result, we expect the annual... 2024 income tax expense to be between two and four million dollars. Finally, and most importantly, we continued to make meaningful progress in expanding profitability. Adjusted EBITDA was positive for the 7th consecutive quarter, increasing to $11 million from $5.7 million in the prior year. The EBITDA loss of $5.6 million increased from $2 million in the prior year due to transaction-related costs associated with the US IPO of $5.8 million; we would have recorded positive EBITDA absent those costs.

Russell Burke: As a result, we expect the annual 2024 income tax expense to be between $2 and 4 million. Finally, and most importantly, we continued to make meaningful progress in expanding profitability. Adjusted EBITDA was positive for the seventh consecutive quarter, increasing to $11 million from $5.7 million in the prior year. The EBITDA loss of $5.6 million increased from $2 million in the prior year due to transaction-related costs associated with the US IPO of $5.8 million. We would have recorded positive EBITDA absent those costs. Our updated guidance for the full year EBITDA loss of $13 to 8 million includes the IPO transaction costs and incorporates an expectation of positive EBITDA contribution in Q4, reflecting our usual seasonal peak earnings. We expect to be consistently EBITDA positive on a quarterly basis in 2025.

Speaker Change: As a result, we expect the annual...

Speaker Change: 2024 income tax expense to be between two and four million dollars.

Russell Burke: Finally, and most importantly, we continued to make meaningful progress in expanding profitability. Adjust the EBITDA was positive for the seventh consecutive quarter, increasing to 11 million dollars from 5.7 million in the prior year. The EBITDA loss of 5.6 million increased from 2 million in the prior year due to transaction-related costs associated with the US IPO of 5.8 million. We would have recorded positive EBITDA absent those costs. Our updated guidance for the full year EBITDA loss of 13 million to 8 million includes the IPO transaction costs and incorporates an expectation of positive EBITDA contribution in Q4, reflecting our usual seasonal peak earnings.

Speaker Change: Finally, and most importantly, we continue to make meaningful progress in expanding profitability.

Speaker Change: Adjusted EBITDA was positive for the seventh consecutive quarter, increasing to $11 million from $5.7 million in the prior year.

Speaker Change: The EBITDA loss of $5.6 million increased from $2 million in the prior year, due to transaction-related costs associated with the US IPO of $5.8 million.

Speaker Change: We would have recorded positive EBITDA absent those costs.

Russell Burke: Our updated guidance for the full year EBITDA loss of $13 million to $8 million includes the IPO transaction costs and incorporates an expectation of positive EBITDA contribution in Q4, reflecting our usual seasonal peak earnings. We expect to be consistently EBITDA positive on a quarterly basis in 2025.

Speaker Change: Our updated guidance for the full year EBITDA loss of $13 million to $8 million includes the IPO transaction costs and incorporates an expectation of positive EBITDA contribution in Q4, reflecting our usual seasonal peak earnings.

Russell Burke: We expect to be consistently EBITDA positive on a quarterly basis in 2025. The difference between adjusted EBITDA and EBITDA in the quarter consisted almost entirely of stock-based compensation expense and the transaction costs related to the US IPO.

Speaker Change: We expect to be consistently EBITDA positive on a quarterly basis in 2025.

Russell Burke: The difference between Adjusted EBITDA and EBITDA in the quarter consisted almost entirely of stock-based compensation expense and transaction costs related to the US IPO. Turning to the balance sheet and cash flow. Life360 ended Q2 with cash, cash equivalents, and restricted cash of $162 million, an increase of $87.4 million from Q1'24. Operating cash flow was positive for the fifth consecutive quarter. Q2 net cash provided by operating activities of $3.3 million was lower than adjusted EBIT DAR of $11 million, primarily due to USIPO-related transaction costs, as well as the timing of receipts and payments.

Russell Burke: The difference between adjusted EBITDA and EBITDA in the quarter consisted almost entirely of stock-based compensation expense and the transaction costs related to the US IPO. Turning to the balance sheet and cash flow. Life360 ended Q2 with cash equivalents, and restricted cash of $162 million, an increase of $87.4 million from Q1 2024. Operating cash flow was positive for the fifth consecutive quarter. Q2 net cash provided by operating activities of $3.3 million was lower than adjusted EBITDA of $11 million, primarily due to the US IPO related transaction costs, as well as the timing of receipts and payments. Net cash used in investing activities of $1.2 million related to payments for internally developed software.

Speaker Change: The difference between Adjusted EBITDA and EBITDA in the quarter consisted almost entirely of stock-based compensation expense and the transaction costs related to the US IPO.

Russell Burke: Turning to the balance sheet and cash flow, Life360 ended Q2 with cash, cash equivalence, and restricted cash of 162 million, an increase of 87.4 million from Q124. Operating cash flow was positive for the fifth consecutive quarter. Q2 net cash provided by operating activities of 3.3 million was lower than adjusted EBITDA of 11 million, primarily due to the US IPO-related transaction costs, as well as the timing of receipts and payments. Net cash used in investing activities of 1.2 million related to payments for internally developed software. Net cash provided by financing activities of 85.4 million, related primarily to the proceeds from the US IPO, partially offset by the 7.8 million in taxes paid for the next settlement of RSUs.

Russell Burke: Net cash used in investing activities of $1.2 million related to payments for internally developed software. Net cash provided by financing activities of $85.4 million related primarily to the proceeds from the USIPO, partially offset by the $7.8 million in taxes paid for the next settlement of RSUs. I note that the cash paid on RSU settlements was higher due to our higher stock price, and therefore fair market value, at the time of settlement of the RSUs, and we expect this higher cash outflow to continue in the second half. Thanks for your attention, and I'll hand back to Chris to outline our earnings guidance.

Speaker Change: Turning to the balance sheet and cash flow.

Speaker Change: Life360 ended Q2 with cash, cash equivalents and restricted cash of $162 million, an increase of $87.4 million from Q1-24.

Speaker Change: Operating cash flow was positive for the fifth consecutive quarter.

Speaker Change: Q2 net cash provided by operating activities of $3.3 million was lower than adjusted EBITDA of $11 million, primarily due to the USIPO related transaction costs, as well as the timing of receipts and payments.

Russell Burke: Turning to the balance sheet and cash flow, Life360 ended Q2 with cash, cash equivalence and restricted cash of 162 million, an increase of 87.4 million from Q124. Operating cash flow was positive for the fifth consecutive quarter. Q2 net cash provided by operating activities of 3.3 million was lower than adjusted EBITDA of 11 million, primarily due to the US IPO related transaction costs, as well as the timing of receipts and payments. Net cash used in investing activities of 1.2 million related to payments for internally developed software.

Speaker Change: Net cash used in investing activities of $1.2 million related to payments for internally developed software.

Russell Burke: Net cash provided by financing activities of $85.4 million related primarily to the proceeds from the US IPO, partially offset by the $7.8 million in taxes paid for the net settlement of RSUs. I note that the cash paid on RSU settlements was higher due to our stock, higher stock price and therefore fair market value at the time of settlement of the RSUs, and we expect this higher cash outflow to continue in the second half. Thanks for your attention, and I'll hand back to Chris to outline our earnings guidance.

Speaker Change: Net cash provided by financing activities of $85.4 million related primarily to the proceeds from the USIPO, partially offset by the $7.8 million in taxes paid for the next settlement of RSUs.

Russell Burke: I note that the cash paid on RSUs settlements was higher due to our stock price and therefore fair market value. At the time of settlement of the RSUs, and we expect this higher cash outflow to continue in the second half.

Speaker Change: I note that the cash paid on RSU settlements was higher due to our higher stock price.

Russell Burke: Net cash provided by financing activities of 85.4 million, related primarily to the proceeds from the US IPO, partially offset by the 7.8 million in taxes paid for the next settlement of RSUs. I note that the cash paid on RSUs settlements was higher due to our stock price and therefore fair market value. At the time of settlement of the RSUs and we expect this higher cash outflow to continue in the second half.

Speaker Change: therefore fair market value at the time of settlement of the RSUs and we expect this higher cash outflow to continue in the second half.

Chris Holes: Thanks for your attention, and I'll hand back to Chris to outline our earnings guidance. We are updating our 2024 outlook, which includes the following considerations. Starting with revenue, while we remain excited and optimistic about current trends in our subscription business, we are also careful to consider relevant risks, especially those related to shifting demand from possible recessionary pressures at retail for hardware, managing seasonal hardware inventory, and launching new hardware products, which we have coming up this fall. Turning from the top to the bottom line, looking at how EBITDA can flow for the remainder of the year, as we discussed earlier, we have an intentional seasonal increase of expenses occurring in the third quarter in paid acquisition and other marketing costs of approximately 6 million to support our back to school and new product initiatives.

Speaker Change: Thanks for your attention and I'll hand back to Chris to outline our earnings guidance.

Chris Hulls: We are updating our 2024 outlook, which includes the following considerations, starting with revenue.

Chris Hulls: We are updating our 2024 outlook, which includes the following considerations. Starting with revenue. While we remain excited and optimistic about current trends in our subscription business, we are also careful to consider relevant risks, especially those related to the shifting demand from possible recessionary pressures at retail for hardware, managing seasonal hardware inventory, and launching new hardware products, which we have coming up this fall. Turning from the top to the bottom line, looking at how EBITDA can flow for the remainder of the year, as we discussed earlier, we have an intentional seasonal increase of expenses occurring in Q3 in paid acquisition and other marketing costs of approximately $6 million to support our back-to-school and new product initiatives. These expenses will impact how EBITDA and adjusted EBITDA land during the quarters in the second half of the year.

Speaker Change: i

Chris: We are updating our 2024 outlook, which includes the following considerations.

RJ: While we remain excited and optimistic about current trends in our subscription business, we are also careful to consider relevant risks, especially those related to shifting demand from possible recessionary pressures at retail for hardware, managing seasonal hardware inventory, and launching new hardware products, which we have coming up this fall. Turning from the top to the bottom line, looking at how EBITDA can flow for the remainder of the year, as we discussed earlier, we have an intentional seasonal increase in expenses occurring in the third quarter for paid acquisition and other marketing costs of approximately $6 million to support our back-to-school and new product initiatives.

Chris: Starting with revenue.

Chris: While we remain excited and optimistic about current trends in our subscription business, we are also careful to consider relevant risks, especially those related to shifting demand from possible recessionary pressures at retail for hardware, managing seasonal hardware inventory, and launching new hardware products, which we have coming up this fall.

Chris Holes: Thanks for your attention and I'll hand back to Chris to outline our earnings guidance. We are updating our 2024 outlook, which includes the following considerations. Starting with revenue, while we remain excited and optimistic about current trends in our subscription business, we are also careful to consider relevant risks, especially those related to shifting demand from possible recessionary pressures at retail for hardware, managing seasonal hardware inventory and launching new hardware products, which we have coming up this fall.

Speaker Change: Turning from the top to the bottom line, looking at how EBITDA can flow for the remainder of the year, as we discussed earlier, we have an intentional seasonal increase of expenses occurring in the third quarter in paid acquisition and other marketing costs of approximately $6 million to support our back-to-school and new product initiatives.

Chris Holes: These expenses will impact our EBITDA and the just EBITDA land during the quarters in the second half of the year.

RJ: These expenses will impact how EBITDA and adjusted EBITDA land during the quarters in the second half of the year. With that in mind, we expect to deliver the following metrics for 2024, with upgraded guidance for revenue and adjusted EBITDA. We anticipate consolidated revenue of $370 to $378 million with core subscription revenue growth of 25% year-over-year. We anticipate positive adjusted EBITDA of $36 million to $41 million and an EBITDA loss of $8 million to $13 million, which includes the $5.8 million in IPO-related transaction costs, and positive operating cash flow for each quarter of 2024 and year-end cash, cash equivalents, and restricted cash of $150 million to $160 million

Speaker Change: These expenses will impact how EBITDA and adjusted EBITDA land during the quarters in the second half of the year.

Chris Holes: With that in mind, we expect to deliver the following metrics for 2024 with upgraded guidance for revenue and adjusted EBITDA. We anticipate consolidated revenue of 370 to 378 million, with core subscription revenue growth of 25 percent year-over-year. We anticipate positive adjusted EBITDA of 36 to 41 million and EBITDA loss of 8 to 13 million, which includes the 5.8 million in IPO-related transaction costs and positive operating cash flow for each quarter of 2024 and year-end cash equivalent and restricted cash of 150 to 160 million. The forecast includes expected significantly higher outflows from RSU settlements as a result of the higher stock price, the anticipated investment in Hubble, IPO proceeds and related transaction costs, and timing differences in Q4 working capital related to hardware inventory and the new product.

Chris Hulls: With that in mind, we expect to deliver the following metrics for 2024 with upgraded guidance for revenue and adjusted EBITDA. We anticipate consolidated revenue of $370 to 378 million, with core subscription revenue growth of 25% year-over-year. We anticipate positive adjusted EBITDA of $36 to 41 million and EBITDA loss of $8 to 13 million, which includes the $5.8 million in IPO-related transaction costs, and positive operating cash flow for each quarter of 2024, and year-end cash equivalents, and restricted cash of $150 to 160 million.

Chris Holes: Turning from the top to the bottom line, looking at how EBITDA can flow for the remainder of the year, as we discussed earlier, we have an intentional seasonal increase of expenses occurring in the third quarter in paid acquisition and other marketing costs of approximately 6 million to support our back to school and new product initiatives. These expenses will impact out EBITDA and the just EBITDA land during the quarters in the second half of the year.

Speaker Change: With that in mind, we expect to deliver the following metrics for 2024 with upgraded guidance for revenue and adjusted EBITDA.

Chris: We anticipate consolidated revenue of $370 to $378 million with core subscription revenue growth of 25% year-over-year.

Speaker Change: We anticipate positive adjusted EBITDA of $36 million to $41 million, and EBITDA loss of $8 million to $13 million, which includes the $5.8 million in IPO-related transaction costs.

Speaker Change: and positive operating cash flow for each quarter of 2024 and year-end cash, cash equivalents, and restricted cash of $150 to $160 million.

Chris Hulls: The forecast includes expected significantly higher outflows from RSUs settlements as a result of the higher stock price, the anticipated investment in Hubble, IPO proceeds and related transaction costs, and timing differences in Q4 working capital related to hardware inventory and the new product launch. The company expects to continue to be adjusted EBITDA positive on a quarterly basis going forward to achieve a positive EBITDA in Q4, reflecting our usual peak earnings, and to be consistently EBITDA positive on a quarterly basis in 2025. That concludes our prepared remarks, and I'll now turn the call over to RJ, who will manage the Q&A portion of our call today.

Speaker Change: The forecast includes expected significantly higher outflows from RSU settlements as a result of the higher stock price.

Speaker Change: the anticipated investment in Hubble, IPO proceeds and related transaction costs, and timing differences in Q4 working capital related to hardware inventory and the new product launch.

Chris Holes: The company expects to continue to be adjusted EBITDA positive on a quarterly basis going forward to achieve a positive EBITDA in Q4, reflecting our usual peak earnings.

Speaker Change: The company expects to continue to be adjusted EBITDA positive on a quarterly basis going forward to achieve a positive EBITDA in Q4, reflecting our usual peak earnings.

Chris Holes: The forecast includes expected significantly higher outflows from RSU settlements as a result of the higher stock price, the anticipated investment in Hubble, IPO proceeds and related transaction costs, and timing differences in Q4 working capital related to hardware inventory and the new product. The company expects to continue to be adjusted EBITDA positive on a quarterly basis going forward to achieve a positive EBITDA in Q4, reflecting our usual peak earnings.

Chris Holes: And to be consistently EBITDA positive on a quarterly basis in 2025.

Chris: and to be consistently EBITDA positive on a quarterly basis in 2025.

RJ: That concludes our prepared remarks, and I'll now turn the call over to RJ, who will manage the Q&A portion of our call today. Thanks, Chris. As a reminder to everyone, if you have a question, please click the raise hand button in the middle bottom part of the screen. Let me queue up here. Like to start with Mark Mahaney. If we can unmute him, and Mark, if you could ask your question. Okay, thanks RJ. Chris, the number of the net ads in terms of the paying circles. It accelerated versus last quarter. I think it may have accelerated versus last year.

RJ: The forecast includes expected significantly higher outflows from RSU settlements as a result of the higher stock price, the anticipated investment in Hubble, IPO proceeds and related transaction costs, and timing differences in Q4 working capital related to hardware inventory and the new product. The company expects to continue to be adjusted EBITDA positive on a quarterly basis going forward to achieve positive EBITDA in Q4, reflecting our usual peak earnings, and to be consistently EBITDA positive on a quarterly basis in 2020. That concludes our prepared remarks, and I'll now turn the call over to RJ, who will manage the Q&A portion of our call today.

Speaker Change: That concludes our prepared remarks, and I'll now turn the call over to RJ, who will manage the Q&A portion of our call today.

Operator: Thanks, Chris. As a reminder to everyone, if you have a question, please click the Raise Hand button in the middle bottom part of the screen. Let me queue up here. Like to start with Mark Mahaney, if we can unmute him, and Mark, if you could ask your question.

Chris Holes: And to be consistently EBITDA positive on a quarterly basis in 2025.

RJ: As a reminder to everyone, if you have a question, please click the raise hand button in the middle bottom part of the screen. Let me queue up here, and I'd like to start with Mark Mahaney, if we can unmute him, and Mark, if you could ask your question.

RJ: Thanks, Chris.

RJ: As a reminder to everyone, if you have a question, please click the raise hand button in the middle bottom part of the screen.

RJ: Let me queue up here. I'd like to start with Mark Mahaney, if we can unmute him, and Mark, if you could ask your question.

RJ: That concludes our prepared remarks and I'll now turn the call over to RJ who will manage the Q&A portion of our call today. Thanks Chris. As a reminder to everyone if you have a question, please click the raise hand button in the middle bottom part of the screen. Let me queue up here.

Chris Hulls: Okay, thanks, RJ. Chris, the number of net ads in terms of the paying circles, it accelerated versus last quarter. I think it may have accelerated versus last year. Talk about the sustainability of that. Is it something either through greater awareness, more marketing, a better product, more functionality? Do you feel like you're in a cadence now where you're in an I don't want to You can't always accelerate, but yet you're in an acceleration mode in terms of just paid circles for the near-term foreseeable future? Thank you.

Mark Mahaney: Okay. Thanks, RJ. Chris, the number of the net adds in terms of the paying circles-

Mark: Okay, thanks RJ.

Chris: Chris, the number of...

Mark Mahaney: The net ads, in terms of the paying circles, it accelerated versus last quarter. I think it may have accelerated versus last year. Talk about the sustainability of that. Is it something either through greater awareness, more marketing, better product, more functionality? Do you feel like you're in a cadence now where you're at a, I don't want to.

Chris Hulls: Yep.

Mark Mahaney: It accelerated versus last quarter.

Chris Hulls: Yep.

Mark Mahaney: I think it may have accelerated versus last year. Talk about the sustainability of that. Is it something either through greater awareness, more marketing, better product, more functionality? Do you feel like you're in a cadence now where I don't wanna, you know. You can't always accelerate, but yet you're in an acceleration mode in terms of just paid circles for the, you know, near-term foreseeable future? Thank you.

Mark Mahaney: Talk about the sustainability of that. Is it something either through greater awareness, more marketing, better product, more functionality? Do you feel like you're in the cadence now where you're at a, I don't know, you can't always accelerate, but yet you're in an acceleration mode in terms of just paid circles for the near term foreseeable future. Thank you. So I'll always add in a few ways.

Mark Mahaney: Like to start with Mark Mahaney if we can unmute him and mark if you could ask your question. Okay, thanks RJ. Chris, the number of the net ads in terms of the paying circles. It accelerated versus last quarter. I think it may have accelerated versus last year. Talk about the sustainability of that. Is it something either through greater awareness, more marketing, better product, more functionality.

Speaker Change: you can't always accelerate, but yet you're in an acceleration mode in terms of just paid circles for the, you know, near-term foreseeable future. Thank you. Sure. So I'll answer that in a few ways. If I start looking at our long arc, quarter to quarter, things

Chris Hulls: Sure. I'll answer that in a few ways. If I start looking at our long arc, quarter to quarter things change, and we try not to get too excited by a great quarter or sad by an average or mediocre one. If you think about the overall trends, millennials aging into our category, people becoming more aware of the product, international in particular, we do think there are long-term, overall wins at our back. We have been also investing in. We've been having more optimizations this year, improving our funnel. We hired a VP of growth, who's been launching a bunch of experiments that have driven increased conversion. Then, of course, in the longer term horizon, we have different product features for different life stages.

Chris Hulls: Sure. So I'll answer that in a few ways. If I start looking at our long arc, quarter to quarter, things change, and we try not to get too excited by a great quarter or sad by an average or mediocre one. But if you think about the overall trends, millennials aging into our category, people becoming more aware of the product, international in particular, we do think there are long-term overall wins that are back.

Chris Holes: If I start looking at our long mark, quarter-quarter, things change and we try not to get too excited by a great quarter or sad by an average or mediocre one. But if you think about the overall trends and millennials aging to our category, people becoming more aware of the product international in particular. We do think there are long term overall wins that are back. We have been also investing in we've been having more optimizations this year improving our funnily higher to VP of growth has been launching a bunch of experiments that have driven increased conversion.

Speaker Change: change, and we try not to get too excited by a great quarter or sad by an average or mediocre one. But if you think about the overall trends, Millennials aging to our category, people becoming more aware of the product, international in particular, we do think there are long-term overall wins that are back.

Chris Holes: Do you feel like you're in the cadence now where you're at a, I don't know, you can't always accelerate, but yet you're in an acceleration mode in terms of just paid circles for the near term foreseeable future. Thank you. So I'll always add in a few ways. If I start looking at our long mark, quarter quarter things change and we try not to get too excited by a great quarter or sad by an average or mediocre one.

Chris Hulls: We have also been investing in – we've been doing more optimizations this year, improving our funnel. We hired a VP of growth who's been launching a bunch of experiments that have driven increased conversion. And then, of course, in the longer-term horizon, we have different product features for different life stages. Right now, the premium product is very much tied to families with teens, whereas the overall user base is much broader.

Speaker Change: We have been also.

Speaker Change: Investing in, we've been having more optimizations this year, improving our funneling way higher to VP of growth is damaging a bunch of experiments that have an increase in burden.

Chris Holes: And then, of course, in the longer term horizon, we have different product features for different life stages. Right now, the premium product is very much tied to families with teams, while the overall user base is much broader. So we're certainly excited by the forward march. We're feeling good about trends, and we feel very, very good about the long term, but the quarter-to-quarter can be no easier. But that's not a signal that is chopping out. We're off to a good start. Even in recent days. Thank you, Chris. Thanks, Mark.

Speaker Change: And then, of course, in the longer-term horizon, we have different product features for different life stages. Right now, the premium product is very much tied to families with teens, whereas the overall user base is much broader.

Chris Holes: But if you think about the overall trends and millennials aging to our category, people becoming more aware of the product international in particular. We do think there are long term overall wins that are back. We have been also investing in we've been having more optimizations this year improving our funnily higher to VP of growth has been launching a bunch of experiments that have driven increased conversion. And then of course in the longer term horizon, we have different product features for different life stages right now the premium product is very much tied to families with teams were the overall user base as much broader.

Chris Hulls: Right now, the premium product is very much tied to families with teens, whereas the overall user base is much broader. We're certainly excited by the forward march. We're feeling good about trends, and we feel very, very good about the long term, but the quarter to quarter can be noisier.

RJ: So we're certainly excited by the forward march. We're feeling good about trends, and we feel very, very good about the long term, but the quarter-to-quarter can be noisy. But that's not a signal that it's chopping out. We're off to a good start, even in recent days. Thank you, Chris. Thanks, Mark. Next question, like...

Speaker Change: So, we're certainly excited by the forward march, we're feeling good about trends, and we feel very, very good about the long-term, but the quarter-to-quarter can be noisier.

Mark Mahaney: Okay.

Chris Hulls: I wanna be clear, that's not a signal that it's chopping out. We're off to a good start, even in recent days.

Chris: But that's not a signal that it's chopping out. We're off to a good start.

Chris: even in recent days.

Mark Mahaney: Thank you, Chris.

Chris: Thank you, Chris.

Operator: Thanks, Mark. Next question, I'd like to unmute the line of Chris Goller. Chris, if you could ask your question.

Russell Burke: Mark. Next question, I'd like to unmute the line for Chris Galler. Chris, if you could ask your question. No problem, thanks.

Chris Goll: Next question. I'd like to unmute the line of Chris Goll, or Chris, if you could ask your question. No problems. Thanks, Jay, and get a Chris and Russell. I just had one on advertising, curious if you could let us know how much ad rev is in that indirect revenue line in the second quarter and whether we should still think about the second half as around $5 to $10 million from advertising. Thanks.

Chris Holes: So we're certainly excited by the forward March. We're feeling good about trends and we feel very, very good about the long term, but the quarter to quarter can be no easier. But that's not a signal that is chopping out. We're off to a good start. Even in recent days. Thank you, Chris. Thanks, Mark.

Speaker Change: Thanks, Mark. Next question, I'd like to unmute the line of Chris Galler. Chris, if you could ask your question.

Chris Goll: Next question.

Chris Goller: No problems. Thanks, RJ. G'day, Chris and Russell. I just had one on advertising. Curious if you could let us know how much ad rev is in that indirect revenue line in Q2 and whether we should still think about the second half as around $5 to 10 million from advertising. Thanks.

[Analyst 1]: No problems. Thanks, RJ. G'day, Chris and Russell. I just had one on advertising. Curious if you could let us know how much ad rev is in that indirect revenue line in Q2 and whether we should still think about the second half as around $5 to 10 million from advertising. Thanks.

Chris Galler: No problems, thanks Jay and G'day Chris and Russell. I just had one on advertising. Curious if you could let us know how much AdRev is in that indirect revenue line in the second quarter and whether we should still think about the second half as around 5 to 10 million dollars from advertising. Thanks.

Russell Burke: I'd like to unmute the line of Chris goll or Chris if you could ask your question. No problems. Thanks, Jay and get a Chris and Russell. I just had one on advertising curious if you could let us know how much ad rev is in that indirect revenue line in the second quarter and whether we should still think about the second half is around $5 to $10 million from advertising. Thanks. Can I take that one Russell?

Russell Burke: Can I take that one, Russell? Sure, yeah, it's a relatively small amount in Q2, as we projected. And I think we're still looking at the full year in that sort of range of 5 to 10 million. I would say that we've put a lot of things in place and made a lot of progress in terms of the infrastructure for advertising. As Chris mentioned, we've just also employed a VP for Ad sales. We've got a lot of the pieces in place, as well as just signing the the Arity extension. So I think we have a lot more confidence as we go into second.

RJ: Do you want to take that one, Russell? Sure, yeah, it's a relatively small amount in Q2, as we'd projected, and I think we're still looking at the full year in that sort of range of 5 to 10 million. I would say that we've put a lot of things in place and made a lot of progress in terms of the infrastructure for advertising. As Chris mentioned, we've just also employed a VP for ad sales.

Chris Hulls: You wanna take that one, Russell?

Chris: i

Russell Burke: Sure. It's a relatively small amount in Q2 as we'd projected. I think we're still looking at the full year in that sort of range of $5 to 10 million. I would say that we've put a lot of things in place and made a lot of progress in terms of the infrastructure for advertising. As Chris mentioned, we've just also employed a VP for ad sales. We've got a lot of the pieces in place, as well as just signing the Arity extension. I think we have a lot more confidence as we go into the second half.

Chris: Do you want to take that one Russell?

Russell: Sure. It's a relatively small amount in Q2, as we'd projected, and I think we're still looking at the full year in that sort of range of 5 to 10 million. I would say that we've put a lot of things in place and made a lot of progress in terms of the infrastructure for advertising. As Chris mentioned, we've just also...

Russell Burke: Sure, yeah, it's a relatively small amount in Q2 as we projected. And I think we're still looking at the full year in that sort of range of 5 to 10 million. I would say that we've put a lot of things in place and made a lot of progress in terms of the infrastructure for advertising. As Chris mentioned, we've just also employed a VP for ad sales. We've got a lot of the pieces in place as well as just signing the the Arity extension. So I think we have a lot more confidence as we as we go into second. Thank you. Thanks Chris.

Chris: employed a VP for ad sales. We've got a lot of the pieces in place, as well as just signing the arity extension. So I think we have a lot more confidence as we go into the second half.

RJ: We've got a lot of the pieces in place, as well as just signed the ARITY extension. So I think we have a lot more confidence as we go into the second half. Cool, thank you. Thanks, Chris. Next, we'd like to

Chris Goller: Cool. Thank you.

[Analyst 1]: Cool. Thank you.

Maria Rips: Thank you. Thanks, Chris.

Speaker Change: Cool, thank you.

Operator: Thanks, Chris. Next, we'd like to Maria Ripps, if you could unmute your line, that'd be great.

RJ: Next, we'd like to Maria Rips. If you could unmute your line, that'd be great. Okay. Thank you.

Chris Holes: Next, we'd like to Maria Rips if you could unmute your line. That'd be great. Great. Thank you so much for taking my questions. I just wanted to follow up on Mark's question. So as we look at the second half course subscription growth sort of implied in your career outlook. How should we be thinking about sort of key contributors to accelerating growth here? Sure, so we have our seasonality, and we normally get a nice wave around back to school, which is obviously happening right now. We have more product optimizations that's more of a steady drum beat.

Chris: Thanks, Chris.

Speaker Change: Next, we'd like to Maria Rips, if you could unmute your line, that'd be great.

Maria Ripps: Great. Thank you so much for taking my questions. I just wanted to follow up on Mark's question. As we look at the second half core subscription growth sort of implied in your full year outlook, how should we be thinking about sort of key contributors to accelerating growth here?

Maria Rips: Great, thank you so much for taking my question. I just wanted to follow up on Mark's question. So as we look at the second half course subscription growth sort of implied in your full year outlook, how should we be thinking about sort of key contributors to accelerating growth here?

Maria Rips: Next we'd like to Maria Rips if you could unmute your line. That'd be great. Great.

Chris Hulls: Sure. We have our seasonality, and we normally get a nice wave around back to school, which is obviously happening right now. We have more product optimizations; that's more of a steady drum beat. We have some new features that we'll be launching in the second half. We have a few. We have our new Tile product launch, which is a little less on net sub ads but could tie to that a little bit because we think we can use that to drive up sales.

Chris Hulls: Sure. We have our seasonality, and we normally get a nice wave around back to school, which is obviously happening right now. We have more product optimizations, that's more of a steady drumbeat. We have some new features that we'll be launching in the second half. We have our new Tile product launch, which is a little less on net sub adds, but could tie to that a little bit because we think we can use that to drive upsell. The big one is international, just as it's a. That's gonna be less ads but more revenue because we are gonna continue to expand there, and as you can see, we are in the early days there where our year-over-year growth has been extremely strong.

Speaker Change: Sure, so we have our seasonality and we normally get a nice wave around back to school, which is obviously happening right now.

Chris Holes: Thank you so much for taking my questions. I just wanted to follow up on Mark's question. So as we look at the second second half course subscription growth sort of implied in your career outlook. How should we be thinking about sort of key contributors to accelerating growth here? Sure so we have our seasonality and we normally get a nice wave around back to school, which is obviously happening right now. We have more product optimizations that's more of a steady drum beat.

Speaker Change: We have more product optimizations, that's more of a steady drum beat.

Chris Holes: We have some new features that we'll be launching in the second half. We have a few we have a new tile product launch, which is a little less on net sub ads, but couldn't tie to that a little bit because we think we can use that to drive up sell. And the big one is international just as it's a it's a that's going to be less ads, but more revenue because we are going to continue to expand there. And as you can see, we are in the early days; there were your growth has been extremely strong.

Speaker Change: We have some new features that we'll be launching in the second half.

Speaker Change: We have a few, we have our new Tile product launch, which is a little less on net sub ads, but could tie to that a little bit because we think we can use that to drive up sell.

Chris Hulls: And the big one is international, just as it's a that there are going to be fewer ads but more revenue because we are going to continue to expand there. And as you can see, we are in the early days there where our year-over-year growth has been extremely strong.

Speaker Change: And the big one is international, just as it's a, that's going to be less ads, but more revenue, because we are going to continue to expand there. And as you can see, we are in the early days there, where our year over year growth has been extremely strong.

Chris Holes: Thank you very much. That's a problem. Thanks for it.

Maria Ripps: Got it. Thank you very much.

Speaker Change: Thank you very much.

Chris Hulls: You're welcome.

Speaker Change: That's welcome.

Operator: Thanks, Maria. The next is we'd like to have Lach, if you could unmute your line with MST Financial.

MST Financial Analyst: The next is we'd like to have a lot of your kids unmute your line with MST Financial. I could a guys my question is in relation to slide 13 and just to highlight it. It's the one where you show the respective US states and the level of penetration. Could you guess a little bit of color in the past? Chris, you said that you're still growing in the most penetrated states. Is that still the case? And what and at what rate? Sure. So I don't have exactly precise numbers for you. And I have not looked at the latest numbers since the US listing.

RJ: The next thing is we'd like to have Laph on the line, if you could unmute your line with MST Financial.

Speaker Change: Thanks for it. The next is we'd like to have a laugh and ticket on mid-year line with MST Financial.

Chris Hulls: G'day guys, my question is related to slide 13, and just to highlight it, it's the one where you show the respective US states and the level of penetration. If you could give us a little bit of color, in the past, Chris, you said that you were still growing in the most penetrated states. Is that still the case, and at what rate? Sure.

Lach: Good day, guys. My question is in relation to slide 13, and just to sort of highlight it's the one where you show the respective US states and the level of penetration. Could you give us a little bit of color? In the past, Chris, you said that you're still growing in the most penetrated states. Is that still the case? At what rate?

[Analyst] (MST Financial): Good day, guys. My question is in relation to slide 13, and just to sort of highlight it's the one where you show the respective US states and the level of penetration. Could you give us a little bit of color? In the past, Chris, you said that you're still growing in the most penetrated states. Is that still the case? At what rate?

Speaker Change: G'day guys. My question is in relation to slide 13 and just to sort of highlight it. It's the one where you show the respective US states and the level of penetration.

Chris Holes: Thank you very much. That's a problem. Thanks for it.

Speaker Change: Could you give us a little bit of color? In the past, Chris, you said that you're still growing in the most penetrated states. Is that still the case? And at what rate?

Rob Anderson: The next is we'd like to have a lot of your kids unmute your line with MST financial. I could a guys my question is in relation to slide 13 and just to highlight it. It's the one where you show the respective US states and the level of penetration. Could you guess a little bit of color in the past Chris you said that you're still growing in the most penetrated states. Is that still the case?

Chris Hulls: Sure, so I don't have exact precise numbers for you, and I have not looked at the latest numbers since the US listing. So, everything I comment on here will be about 2 months out of date. But when we ran those numbers for the US IPO deck, those trends were continuing. I don't have the exact numbers.

Chris Hulls: Sure. I don't have exactly precise numbers for you, and I have not looked at the latest numbers since the US listing, so everything I comment on here will be about 2 months out of date. When we ran those numbers for the US IPO deck, those trends were continuing. I don't have the exact numbers, but we still continue to see that once we hit that 3% tipping point-ish, things seem to accelerate. There are some signs that's happening internationally as well. The macro trends, at least as of 2 months ago there, were holding quite nicely.

Chris: Sure, so I don't have exactly the precise numbers for you, and I have not looked at the latest numbers since the U.S. listing, so everything I comment on here will be

Chris Holes: So everything I comment on here will be about two months out of date. But when we ran those numbers for the US IPO deck, those trends work continuing. I don't have the exact numbers. But we still continue to see that once we hit that 3% tipping point, ish things seem to accelerate. There are some signs that's happening internationally as well. But the meta trends, at least as of two months ago, were holding quite nicely.

Speaker Change: But 2 months out of date, but when we ran those numbers for the US I. P. O. deck, those trends were continuing. I don't have the exact numbers.

Rob Anderson: And what and at what rate? Sure. So I don't have exactly precise numbers for you. And I have not looked at the latest numbers since the US listing. So everything I comment on here will be about two months out of date. But when we ran those numbers for the US IPO deck, those trends work continuing. I don't have the exact numbers. But we still continue to see that once we hit that 3% tipping point ish things seem to accelerate. There are some signs that's happening internationally as well. But the meta trends, at least as of two months ago there were holding quite nicely. I guess I know given it's not quite a complete answer.

Chris Hulls: But we still continue to see that once we hit that 3% tipping point-ish, things seem to accelerate. There are some signs that that's happening internationally as well. But the meta trends, at least as of 2 months ago, were holding.

Chris: But we still continue to see that once we hit that 3% tipping point-ish, things seem to accelerate. There are some signs that's happening internationally as well, but the meta trends, at least as of 2 months ago there, were holding quite nicely.

MST Financial Analyst: I guess I know, given it's not quite a complete answer.

Chris Hulls: I guess tonight, given it's not quite a complete answer, can I follow up with a different question on the Placer AI renegotiated contracts? You flagged one to two million this year, but really, overall, you're getting around 20 million revenue for Placer AI, and you flagged a step up next financial year. Can you give us sort of an idea because, you know, if we look at when you first signed the Placer AI contract, it's just under three years ago, and since then, your MAUs have more than doubled, so should we expect... that kind of delta trajectory change?

Mark Mahaney: I guess can I, given it's not quite a complete answer, can I follow up with a different question on the Placer.ai renegotiated contract? You flagged $1 to 2 million this year, but really overall, you're getting around $20 million revenue for Placer.ai, and you flagged a step up next financial year. Can you give us sort of an idea? 'Cause, you know, if we look at when you first signed the Placer.ai contract, it's just under 3 years ago. Since then, your MAU has more than doubled. Should we expect that kind of delta trajectory change? Are we looking at over $10 million new revenue next year, or can you give us any color?

[Analyst] (MST Financial): I guess can I, given it's not quite a complete answer, can I follow up with a different question on the Placer.ai renegotiated contract? You flagged $1 to 2 million this year, but really overall, you're getting around $20 million revenue for Placer.ai, and you flagged a step up next financial year. Can you give us sort of an idea? 'Cause, you know, if we look at when you first signed the Placer.ai contract, it's just under 3 years ago. Since then, your MAU has more than doubled. Should we expect that kind of delta trajectory change? Are we looking at over $10 million new revenue next year, or can you give us any color?

Speaker Change: I guess tonight, given it's not quite a complete answer, can I follow up with a different question on the Placer AI renegotiated contract? You've slowed $1 to $2 million this year but

MST Financial Analyst: Can I follow up with a different question on the place or AI. We negotiated contracts. You flared one to two million this year. But really, overall you're getting around 20 million revenue for Place or AI. And you flared a step up next financial year. You give us sort of an idea is you know if we look at when you first signed the place or AI contract. It's just under three years ago. Since then, your MAU is more than doubled. So should we expect that kind of delta directory change. So we're looking at a 10 million new revenue next year, or can you give us any color?

Speaker Change: Really, overall, you're getting around $20 million revenue for Placer AI, and you flag a step up next financial year. Can you give us sort of an idea, because, you know, if we look at when you first signed the Placer AI contract, it's just under three years ago.

Rob Anderson: Can I follow up with a different question on the place or AI. We negotiated contracts. You flared one to two million this year. But really overall you're getting around 20 million revenue for place or AI. And you flared a step up next financial year.

Speaker Change: Since then, your MAU has more than doubled, so should we expect...

Speaker Change: that kind of

Chris Hulls: So are we looking at over 10 million new revenue next year, or can you give us any color? It's unlikely to be that high, but I do anticipate that the revenue from the partnership will grow more quickly than core subscription revenue because we have changed the partnership. And yes, we've doubled our MAU. There's a J-curve effect where, as you grow your network, early on, each incremental user brings a lot more than the additional ones.

Speaker Change: Delta trajectory change, so we're looking at over $10 million new revenue next year, or can you give us any color? It's unlikely to be that high, but I do anticipate that the revenue from the partnership will grow more quickly than core subscription revenue, because we have changed the partnership. And yes, we've doubled.

Chris Holes: It's unlikely to be that high. But I do anticipate that the revenue from the partnership will grow more quickly than core subscription revenue because we have changed the partnership. And yes, you've doubled our MAU. But there's a J-curve effect where, as you grow your network early on, each incrementally users with a lot more than the additional ones. So we're pretty far out that J-curve, but a lot of what we are looking at with place are other things that would not have that same impact. So there's not a nice linear equation for you, but we are very confident that it is going to grow.

Chris Hulls: It's unlikely to be that high, but I do anticipate that the revenue from the partnership will grow more quickly than core subscription revenue because we have changed the partnership. Yes, we've doubled our MAU. It, there's a J-curve effect, where as you grow your network early on, each incremental users worth a lot more than the additional ones. We're pretty far up that J curve, but a lot of what we are looking at with Placer are other things that would not have that same impact. There's not a nice linear equation for you. But we are very confident that it is gonna grow. Without getting into specifics of the contract, there are some mechanisms in there that do give me that confidence that it will grow faster than core subscription numbers next year.

Chris Holes: You give us sort of an idea is you know if we look at when you first signed the place or AI contract. It's just under three years ago. Since then your MAU is more than doubled. So should we expect that kind of delta directory change. So we're looking at a 10 million new revenue next year or can you give us any color? It's unlikely to be that high. But I do anticipate that the revenue from the partnership will grow more quickly than core subscription revenue because we have changed the partnership.

Speaker Change: RMAU.

Speaker Change: There's a J-curve effect where...

Speaker Change: as you grow your network.

Speaker Change: Early on each incremental users with a lot more than the additional ones. So, we're pretty far up that J curve, but a lot of what we are looking at with place or other things that.

Chris Hulls: So we're pretty far up that J curve, but a lot of what we are looking at with space or other things that would not have that same impact. So there's not a nice linear equation for you, but we are very confident that it is going to grow and, without getting into the specifics of the contract, there are some mechanisms in there that do give me that confidence that it will grow faster than course subscription numbers next year.

Speaker Change: would not have that same impact. So there's not a nice linear equation for you, but we are very confident that it is going to grow. And without getting into specifics of the contract, there are some mechanisms in there that do give me that confidence that it will grow faster than course subscription numbers next year.

Chris Holes: And yes, you've doubled our MAU. But there's a J-curve effect where as you grow your network early on, each incrementally users with a lot more than the additional ones. So we're pretty far out that J-curve, but a lot of what we are looking at with place are other things that would not have that same impact. So there's not a nice linear equation for you, but we are very confident that it is going to grow. And without getting into specifics of the contract, there are some mechanisms and do give me that confidence that it will grow faster than, of course, the prescription numbers next year.

Chris Holes: And without getting into specifics of the contract, there are some mechanisms and do give me that confidence that it will grow faster than, of course, the prescription numbers next year.

Rob Anderson: Okay, thank you. Welcome.

MST Financial Analyst: Okay, thank you.

Chris Hulls: OK, thank you.

Mark Mahaney: Okay. Thank you.

[Analyst] (MST Financial): Okay. Thank you.

Chris Hulls: You're welcome.

Mark Kelly: Welcome. Next, we'd like to ask Mark Kelly from Stiefel to unmute your line and ask a question. Thank you. Mark, are you available? Mark Kelly. Sorry, take a second to get the unmute button up. Thanks for taking the question. Appreciate the time. I want to go back to just the advertising business. You know, I know it's super early. You're adding new partners, and you know, you're hiring a lot of folks to manage that business. I guess, you know, Chris, you talked about at some point, maybe that business would be, you know, could approach the subscription business.

Speaker Change: Okay, thank you.

RJ: Next, we'd like to ask Mark Kelly from Stiefel to unmute your line and ask your question. Thank you. Mark, are you available?

Operator: Next, we'd like to ask Mark Kelley from Stifel to unmute your line and ask your question. Thank you. Mark, are you available? Mark Kelley?

Mark Kelly: Next, we'd like to ask Mark Kelly from STFL to unmute your line and ask your question. Thank you.

Mark Kelly: I'm sorry, I'm sorry, I'm sorry.

Chris: i

Speaker Change: Mark, are you available? Mark Kelly?

RJ: Sorry, it took a second to get the unmute button up. Thanks for taking the question. Appreciate the time. I want to go back to just the advertising business. I know it's super early.

Mark Kelley: Sorry. It took a second to get the unmute button up. Thanks for taking the question. Appreciate the time. I wanna go back to just the advertising business. You know, I know it's super early. You're adding new partners and, you know, you're hiring a lot of folks to manage that business. I guess, you know, Chris, you talked about at some point, maybe that business would be, you know, could approach the subscription business. I guess, what needs to happen over time in order for that to become a reality?

Mark Kelly: Sorry, it took a second to get the unmute button up. Thanks for taking the question. Appreciate the time. I want to go back to just the advertising business. I know it's super early. You're adding new partners and.

Mark Kelly: Next, we'd like to ask Mark Kelly from Stiefel to unmute your line and ask a question. Thank you. Mark, are you available? Mark Kelly. Sorry, take a second to get the unmute button up. Thanks for taking the question. Appreciate the time.

Chris Hulls: You're adding new partners, and you're hiring a lot of folks to manage that business. I guess, Chris, you talked about at some point maybe that business would be, could approach the subscription business. I guess, what needs to happen over time in order for that to become a reality? Sure. That's all for me. Thanks very much.

Chris: you're hiring a lot of folks to manage that business. I guess, Chris, you talked about at some point maybe that business would be.

Chris: you know, could approach the subscription business. I guess, what needs to happen over time in order for that to become a reality? That's all for me. Thanks very much.

Chris Holes: I guess what needs to happen over time in order for that to become a reality? Sure. That's all for me. Thanks very much.

Chris Hulls: Sure.

Mark Kelley: That's all for me. Thanks very much.

Mark Kelly: I want to go back to just the advertising business. You know, I know it's super early. You're adding new partners and you know, you're hiring a lot of folks to manage that business. I guess, you know, Chris, you talked about at some point, maybe that business would be, you know, could approach the subscription business. I guess what needs to happen over time in order for that to become a reality? Sure. That's all for me. Thanks very much.

Mark Kelley: That's all for me. Thanks very much.

Chris Holes: So that is a very long arc, and to do that, it's we need to move beyond just giving banners, but really become a destination where people are coming to be matched with offers that are uniquely tied to the data we know about them. So the key example we have, we're very excited about in the long term, is car insurance. If you think about what we can do, hey, Mark, you're better than 8% of drivers, safer than 8% of drivers. We actually have to point where we give you your real time quote without you having to go through any process.

Chris Hulls: That is a very long arc. To do that, we need to move beyond just giving banners, but really become a destination where people are coming to be matched with offers that are uniquely tied to the data we know about them. The key example we have and we're very excited about in the long term is car insurance. If you think about what we can do, like, "Hey, Mark, you're better than 80% of drivers, safer than 80% of drivers." We can actually get to a point where we give you your real time quote without you having to go through any process. If you have confidence that what we show you is real, why would you not be checking Life360 for how you get a better insurance rate?

Chris: So that is a very long arc. And to do that, we need to move beyond just giving banners, but really become a destination where people are coming to be matched with offers that are uniquely tied to the data we know about them. So the...

Chris Hulls: And to do that, we need to move beyond just giving banners but really become a destination where people are coming to be matched with offers that are uniquely tied to the data we know about them. So the... key example we have and we're very excited about in the long term is car insurance. If you think about what we can do, like, hey, Mark, you're better than 80% of drivers, safer than 80% of drivers. We can actually get to a point where we give you a real-time quote without you having to go through any process. And if you have confidence that what we show you is real.

Chris: A key example we have and we're very excited about in the long term is car insurance.

Chris Holes: So that is a very long arc and to do that, it's, we need to move beyond just giving banners, but really become a destination where people are coming to be matched with offers that are uniquely tied to the data we know about them. So the key example we have, we're very excited about in the long term, is car insurance. If you think about what we can do, hey, Mark, you're better than 8% of drivers, safer than 8% of drivers, we actually have to point where we give you your real time, quote, without you having to go through any process.

Chris: If you think about what we can do, hey Mark, you're better than 80% of drivers, safer than 80% of drivers.

Mark: We can actually get to a point where we give you your real-time quote without you having to go through any process.

Chris Holes: And if you have confidence that what we show you is real, why would you not be checking life through 60 per cent how you get a better insurance rate? And it would be the, also, we'll build trust by saying the inverse, like, hey, did you know you're in the bottom 10% of drivers? You better be careful never to give your, your information to an insurance company. And I hope as we build that trust and we build these offers in a way that is can actually relevant with our customers, that will start driving the success we want.

Mark: And if you have confidence that what we show you is real.

Chris Hulls: Why would you not be checking Life360 for how you get a better insurance rate? And it would also build trust by saying the inverse, like, hey, did you know you're in the bottom 10% of drivers? You better be careful never to give your information to an insurance company. And I hope as we build that trust, and we build these offers in a way that is contextually relevant to our customers.

Speaker Change: Why would you not be checking Life360 for how you get a better insurance rate? And it would also build trust by saying the inverse, like, hey, did you know you're...

Chris Hulls: We'll also build trust by saying the inverse, like, "Hey, did you know you're in the bottom 10% of drivers? You better be careful never to give your information to an insurance company." I hope as we build that trust and we build these offers in a way that is contextually relevant with our customers, that will start driving the success we want. The company we look to most is Credit Karma. They did a very similar thing with your credit scores where they took your most private information, far more sensitive than driving data. You give them your Social Security number, and they would match you with credit cards. It was just advertising.

Chris: In the bottom 10% of drivers, you better be careful never to give your...

Chris: Your information to an insurance company and I hope as we build that trust and we build these offers in a way that is actually relevant with our customers.

Chris Hulls: That will start driving the success we want, and the company we look to most is Credit Card Mother. They did a very similar thing with your credit scores, where they took your most private information, far more sensitive than driving data, gave them your social security number, and they would match you with credit cards.

Chris Holes: And if you have confidence that what we show you is real, why would you not be checking life through 60 per how you get a better insurance rate? And it would be the, also, we'll build trust by saying the inverse, like, hey, did you know you're in the bottom 10% of drivers, you better be careful never to give your, your information to an insurance company. And I hope as we build that trust and we build these offers in a way that is can actually relevant with our customers, that will start driving the, the success we want.

Chris: That will start driving the success we want. And the company we look to most is Credit Karma. They did a very similar thing with your credit scores where they took

Chris Holes: And the company we look to do most is credit card; they did a very similar thing with your credit scores where they took your most private information for more senses than driving data. You have your social security number, and they would match you with credit cards. It was just advertising; users knew they were being advertised to, but they liked it because they're getting matched to the credit card for them. And with a meaningfully smaller user base than us, they were able to generate over a billion of lead general revenue. And they actually now are trying to replicate them in the car front, not in a competitive way, but they just bought a company called ZenDrive to do exactly what we would like to do in the long run with insurers.

Chris: your most private information far more sensitive than driving data, give them your social security number, then they would match you with credit cards. It was just advertising. Users knew they were being advertised to, but

Chris Hulls: It was just advertising. Users knew they were being advertised to, but they liked it because they were getting And with a meaningfully smaller user base than us, they were able to generate over a billion dollars in lead gen revenue, and they actually are now trying to replicate that in the car front, not in a competitive way, but they just bought a company called Zendrive to do exactly what we would like to do in the long run with insurers.

Chris Hulls: Users knew they were being advertised to, but they liked it because they were getting matched with a credit card for them. With a meaningfully smaller user base than us, they were able to generate over $1 billion of lead gen revenue. They actually now are trying to replicate that in the car front, not in a competitive way, but they just bought a company called Zendrive to do exactly what we would like to do in the long run with insurers. I think people are realizing if you have a captive audience with proprietary first-party data, and high engagement, there's a lot you can do. That's one of many examples. That's the one I'm most excited about.

Chris: They liked it because they're getting matched with a credit card to them and with a meaningfully smaller user base.

Chris Holes: And the company we look to do most is credit card, they did a very similar thing with your credit scores where they, they took your most private information for more senses than driving data. You have your social security number and they would match you with credit cards. It was just advertising, users knew they were being advertised to, but they liked it because they're getting matched to the credit card for them and with a meaningfully smaller user base than us, they were able to generate over a billion of lead general revenue and they actually now are trying to replicate them in the car front, not in a competitive way, but they just bought a company called ZenDrive to, to do exactly what we would like to do in the long run with insurers.

Speaker Change: They're not they were able to generate over a billion of lead gen revenue and they actually now are trying to replicate that in the car front not in a competitive way but they just bought a company called.

Chris: to do exactly what we would like to do in the long run with insurers. So I think people are realizing if you have a captive audience with proprietary first party data.

Chris Hulls: So I think people are realizing if you have a captive audience with proprietary, first-party data and high engagement, there's a lot you can do. So that's one of many examples of the one I'm most excited about, but you can also imagine if you move to a new home, we can sell you home security, your homeowner's insurance. If you get a new pet, you'll buy our tracker, and then we'll sell you a pet insurance policy. There are many of these things that will feel like they're extensions of our product, and that's when I think we have hit the true gold mine.

Chris Holes: So I think people are realizing if you have a captive audience with, with proprietary and a first party data and, and high engagement, there's a lot you can do. So that's one of many examples that the one I'm most excited about. You can also imagine, like, you move to a new home; we can tell you home security, your homeowner's insurance. You get a new pet; you'll buy our tracker, and then we'll tell you a pet insurance policy. There, there are many of these things that will feel like their extensions of our product.

Chris: And in high engagement, there's a lot you can do. So that's one of many examples of the one I'm most excited about. You can also imagine, like, you move to a new home, we can tell you home security, your homeowner's insurance, you get a new pet, you'll buy our tracker, and then we'll sell you a pet insurance policy. There are many of these things that will feel like they're extensions of our product.

Chris Hulls: You can also imagine, like you move to a new home, we can sell you home security or homeowners insurance. You get a new pet, you'll buy our tracker, and then we'll sell you a pet insurance policy. There are many of these things that will feel like they're extensions of our product, and that's when I think we hit the true goldmine.

Chris Holes: And that's when I think we hit the true gold mine. All right. Thank you, Chris. And being better than 8% of drivers sounds about right for me. So that I think you're in the ballpark. Thank you. There you go. I am definitely not going to opt into that. Well, all right. Thanks very much. Thanks, Mark.

Chris Holes: So I think people are realizing if you have a captive audience with, with proprietary and a first party data and, and high engagement, there's a lot you can do. So that's one of many examples that the one I'm most excited about, you can also imagine like, you move to new home, we can tell you home security, your homeowner's insurance, you get a new pet, you'll buy our tracker and then we'll tell you a pet insurance policy. There, there are many of these things that will feel like their extensions of our product. And that's when I think we hit the true gold mine. All right.

Chris: And that's when I think we hit the true goldmine.

Chris Hulls: All right. Thank you, Chris. And being better than 8% of drivers sounds about right for me, so I think you're in the ballpark.

Mark Kelley: All right. Thank you, Chris. Being better than 8% of drivers sounds about right for me. I think you're in the ballpark. Thank you.

Chris: All right, thank you, Chris, and being better than 8% of drivers sounds about right for me. So that I think you're in the ballpark. Thank you. I am definitely not going to opt into that. Well, thanks very much.

Chris Hulls: Thank you. There you go. I am definitely not going to opt into that program.

Chris Hulls: There you go. I am definitely not gonna opt into that program. Well.

RJ: Well, all right, thanks very much, Mr. Garris. Thanks, Mark. Next, we'd like to

Mark Kelley: All right. Thanks very much.

Chris Hulls: Of course.

RJ: Thanks, Mark. Next, we'd like to open up the line for James Bales from Morgan Stanley, if you could unmute. James from Morgan Family, hopefully you're still here. James, if we don't catch you this round, we'll come back. Go to the next slide.

Operator: Thanks, Mark. Next, we'd like to open up the line for James Bales from Morgan Stanley, if you could unmute. James from Morgan Stanley, hopefully you're still here. James, if we don't catch you this round, we'll come back. Next. Oh, oh, did we catch you? There you are.

James Bales: Next, we'd like to open up the line for James Bales from Morgan Stanley, if you could unmute. James from Morgan Stanley. Well, you're still here.

Speaker Change: Thanks, Mark. Next, we'd like to open up the line for James Bales from Morgan Stanley , if you could unmute.

James Bales: I'm sorry, I'm sorry, I'm sorry.

Mark Kelly: Thank you, Chris. And being better than 8% of drivers sounds about right for me. So that I think you're in the ballpark. Thank you. There you go. I am definitely not going to opt into that. Well, all right. Thanks very much. Thanks, Mark.

Speaker Change: James from Morgan family, well, you're still here.

Speaker Change: I don't know what you're talking about.

James Bales: Next we'd like to open up the line for James Bales from Morgan Stanley if you could unmute. James from Morgan Stanley. Well, you're still here.

Speaker Change: that

James Bales: James, if we don't catch it this round, we'll come back. Next. Oh, do we catch it? There you are. Sorry. I'm having a tough time hearing you. Yes, we are. Could you try speaking a little slower? Catch your question, or we can come back to you at the end. My question is about. I got the first half of that sentence.

Chris: i

Speaker Change: James, if we don't catch you this round, we'll come back.

Speaker Change: Connect. Oh, did we catch it? There you are. Sorry, my line is a little bad. I'm going to move on to somebody's questions. Hey James, I'm sorry to interrupt.

RJ: But there you are. Yeah, maybe. I'm sorry, my line is a little dead, so I'm going to move on to somebody's questions. I'm having a tough time hearing you. Yes, we are.

Chris Hulls: Hey, James. I'm sorry I'm having

James Bales: I really want to understand.

Chris Hulls: I'm having a tough time hearing you.

Speaker Change: I'm having a tough time hearing you. Yes, we are.

Operator: Yes, we are.

James Bales: James, if we don't catch it this round, we'll come back. Next.

RJ: Could you try speaking a little slower and let me catch your question, or we can come back to you at the end?

Chris Hulls: Could you try speaking a little slower?

James Bales: I'd-

Chris Hulls: I might catch your question or we can come back to you at the end.

Speaker Change: Could you try speaking a little slower so we can catch your question, or we can come back to you at the end.

Operator: Oh, do we catch it?

James Bales: Okay. My question is about can we make this.

Operator: There you are. Sorry. I'm having a tough time hearing you. Yes, we are. Could you try speaking a little slower? Catch your question, or we can come back to you at the end.

RJ: Okay, my question is, can the investment be put in front of that kind of profile? I'm sorry, I can't do it.

James Bales: My question is about can you implement best practices for the Canada profile?

Chris Hulls: I'm sorry.

James Bales: How much can we expect?

Speaker Change: I'm so much

RJ: I got the first half of that sentence. Can I suggest we come back to the end and see if your connection improves? I was not able to hear that question. James, you can also send it through by email if we can't.

Chris Hulls: I got the first half of that sentence. Can I suggest we come back to you at the end and see if your connection improves? I was not able to hear that question.

Speaker Change: I got the first half of that sentence. Can I suggest we come back to the end and see if your connection improves? I was not able to hear that question. James. You can also send it through by email. If we can't.

RJ: Can I suggest we come back to the end and see if your connection improves? I was; I was not able to hear that question. James, you can also send it through by email if we can't. But for sure, we'll come back to you. Okay.

RJ: James, you can also send it through by email if we can't. But for sure, we'll come back to you. Okay, next, if Chris is on the line, if you could unmute and ask a question. Okay, Chris, we're going to come back to you. James, excuse me, Rob Anderson from Loop. Rob, are you available? Please unmute your line.

Operator: James, you can also send it through by email if we can't. For sure we'll come back to you.

James Bales: Yeah. Okay.

Speaker Change: But for sure, we'll come back to you.

Operator: My question is about. I got the first half of that sentence.

Speaker Change: Bye. Bye.

Chris: Okay, next if Chris can talk. I see on the line if you could unmute and ask a question.

Operator: Next, if Chris Kantarek is on the line? If you could unmute and ask a question. Okay, Chris, we're gonna come back to you. Excuse me, Rob Sanderson from Loop. Rob, are you available? Please unmute your line.

Speaker Change: Okay, next, if Chris Kintarik, is he on the line? If you could unmute and ask a question.

Operator: Can I suggest we come back to the end and see if your connection improves? I was, I was not able to hear that question. James, you can also send it through by email if we can't. But for sure, we'll come back to you. Okay.

Speaker Change: i

Operator: Okay, next if Chris can talk. I see on the line if you could unmute and ask a question.

Operator: Okay, Chris, we're going to come back to you. James, excuse me.

Speaker Change: i

RJ: Okay, Chris, we're going to come back to you.

Speaker Change: Okay, Chris, we're going to come back to you. James, excuse me, Rob Anderson from Loop. Rob, are you available? Please unmute your line.

Rob Anderson: James, excuse me. Rob Anderson from Loop. Rob, are you available? Please unmute your line. Here we go. Can you hear me, guys? All right. One out of three. So two questions. Going back to just strength and net paid additions, especially on the international side. What do you think the strength attributed to? Is it just more effective marketing? It's feature improvement? Is it sort of downstream of hitting that or approaching that 3% MAU tipping point, or something else? Like what would you just what can you point to better sales execution? What's driving the acceleration? Really all of the above.

RJ: Here we go, can you hear me guys? Loud and clear. All right, one out of three.

Rob Sanderson: Here we go. Can you hear me, guys?

Rob Anderson: Here we go. Can you hear me guys?

Chris Hulls: So, two questions. Going back to just strength and net paid addition, especially on the international side, what do you think the strength is attributed to? Is it just more effective marketing? It's feature improvement? Is it sort of downstream of hitting that or approaching that 3% MAU tipping point, or something else? What would you just, what can you point to? Just better sales execution? What's driving the acceleration, in your view? It's

Operator: Loud and clear. Yeah.

Rob Sanderson: All right. 1 out of 3. 2 questions. Going back to just strength in net paid additions, especially on the international side. Like, what do you think the strength attributed to? Is it just more effective marketing? It's feature improvement? Is it sort of downstream of hitting that or approaching that 3% MAU tipping point or something else? Like, what can you point to? To better sales execution? What's driving the acceleration in your view?

Rob Anderson: Loud and clear.

Speaker Change: All right, one out of three. So, two questions. Going back to just strength and net paid addition, especially on the international side, like,

Speaker Change: What do you think the strength is attributed to? Is it just more effective marketing? It's feature improvement? Is it sort of downstream of hitting that or approaching that 3% MAU tipping point or something else? Like, what would you just, what can you point to to better sales execution? What's driving the acceleration in your view?

Rob Anderson: Rob Anderson from loop. Rob, are you available? Please unmute your line. Here we go. Can you hear me guys? All right. One out of three. So two questions. Going back to just strength and net paid additions, especially on the international side. What do you think the strength attributed to? Is it just more effective marketing? It's feature improvement? Is it sort of downstream of hitting that or approaching that 3% MAU tipping point or something else?

Chris Hulls: Really, all of the above. So, if we go down the overall arc, one is the U.S. usually starts trends first, and then they reverse. So, I think there is a tailwind as the category just grows in awareness, and people are more comfortable with location in general. So, that's point one.

Chris Hulls: Really all of the above. If we go down the overall arc, one is the US usually starts trends first, and then they tip. I think there is a tailwind, as the category just grows in awareness and people are more comfortable with location in general. That's point one. Point two is we just now have invested much more in the free user experience. Our former COO, David Rice, moved to London to launch our international team. We have what we call a T-shaped strategy. The top of the T is like, let's just make the darn thing work well everywhere, so better translations, better infrastructure, making sure we work, monitoring reviews. That's happening everywhere. That drives MAU.

Rob Anderson: Like what would you just what can you point to better sales execution? What's driving the acceleration? Really all of the above. So if we go down the overall arc, one is the US usually starts transfers in the tip. So I think there is a tailwind as the category just grows in awareness and people are more comfortable with location in general. So that's 0.1.2 is we just now have invested much more in the free user experience or former COO data rights to launch our international team.

Chris Holes: So if we go down the overall arc, one is the US usually starts transfers in the tip. So I think there is a tailwind as the category just grows in awareness and people are more comfortable with location in general. So that's 0.1.2. We just now have invested much more in the free user experience or former COO data rights to launch our international team. And so we call it T-shape strategy. The top of the T is like, let's just make the darn thing work well everywhere. So better translations, better infrastructure, making sure we work, monitoring reviews.

Speaker Change: Really, all of the above, so if we go down the overall arc, one is.

Speaker Change: The U.S. usually starts trends first and then they tip, so I think there is a tailwind.

Chris: as the category just grows in awareness and people are more comfortable.

Chris: Bye.

Chris Hulls: Point two is we just now have invested much more in the free user experience. Our former COO, David Rice, launched our international team, and so we have what we call a T-shaped strategy. The top of the T is like, let's just make the darn thing work well everywhere. So, better translations, better infrastructure, making sure we work, monitoring reviews. So, that's happening everywhere. And that drives MAU.

Speaker Change: With location in general.

David Rice: So that's point one. Point two is we just now have invested much more in the free user experience. Our former COO David Rice moved to London to launch our international team, and so we have what we call a T-shaped strategy. The top of the T is like, let's just make the darn thing work well everywhere. So better translations, better infrastructure, making sure we work, monitoring reviews.

Chris Holes: So that's happening everywhere. So that drives MAU. Then we're launching our triple tier features, which is, that's more of a revenue driver than that ad driver because it costs us so much higher. But we've now done that UK, Australian, New Zealand, and Canada. We are now having some very, very basic marketing, but it's honestly very minimal top of funnel. We are doing better product marketing. We're engaging our customers better, and we now are testing some individual upsell optimizations, even in countries you don't. The triple tier, so it's really that entire every step of the funnel plus plus just general tail winds, and we've had a bunch of PR that was a bit of a surprise because it drove more downloads in the US.

David Rice: So that's happening everywhere, so that drives MAU. Then we're launching our triple tier features, which is, that's more of a revenue driver than that ad driver because the cost is so much higher, but we've now done that UK, Australia, New Zealand, and Canada.

Chris Hulls: Then we're launching our triple tier features, which is – that's more of a revenue driver than an ad driver because the cost is so much higher, but we've now done that in the UK, Australia, New Zealand, and Canada. We are now doing some very, very basic marketing, but it's honestly very minimal top of the funnel. We are doing better product marketing. We're engaging our customers better. And we are now testing some individual upsell optimizations, even in countries who don't have the triple tier. So it's really that entire, every step of the funnel, plus just general tailwinds. And we've had a bunch of PR that was a bit of a surprise because it drove more downloads in the U.S.

Chris Hulls: We're launching our triple-tier features, that's more of a revenue driver than net ad driver because the cost is so much higher, but we've now done that UK, Australia, New Zealand, and Canada. We are now having some very basic marketing, but it's honestly very minimal top of funnel. We are doing better product marketing. We're engaging our customers better, and we now are testing some individual upsell optimizations, even in countries who don't have the triple tier. It's really that entire every step of the funnel plus just general tailwinds. We've had a bunch of PR that was a bit of a surprise because it drove more downloads in the US.

Rob Anderson: And so we call it T shape strategy. The top of the T is like, let's just make the darn thing work well everywhere. So better translations, better infrastructure, making sure we work, monitoring reviews. So that's happening everywhere. So that drives MAU. Then we're launching our triple tier features, which is, that's more of a revenue driver than that ad driver because it costs us so much higher, but we've now done that UK Australian New Zealand and Canada.

Chris: We are now having some very, very basic marketing, but it's honestly.

Chris: very minimal top of funnel. We are doing better product marketing, we're engaging our customers better, and we now are testing some individual upsell optimizations, even in countries who don't have the triple tier. So it's really that entire

Chris: every step of the funnel plus just general tailwinds and we've had a bunch of PR that was a bit of a surprise because it's it drove more downloads in the U.S.

Rob Anderson: We are now having some very, very basic marketing, but it's honestly very minimal top of funnel. We are doing better product marketing. We're engaging our customers better and we now are testing some individual upsell optimizations, even in countries you don't. The triple tier, so it's really that entire every step of the funnel plus plus just general tail winds and we've had a bunch of PR that was a bit of a surprise because it drove more downloads in the US.

Rob Anderson: And if I could follow up then on data and licensing, so you know some expanded partnerships in that today, you've got I'm sure many opportunities. Some that you will pursue, others that you won't go after. You know, obviously your members put a lot of trust in your service with sensitive data and a very sacred, valuable position. I know you're well aware of how important and delicate trust is. So how do you determine what partnerships to entertain and which to not? And you know, same question for advertising, really like, but do you make sure ads are not creepy, especially as you engage in third parties like trade debt, asking Google for demand generation? Like how do you control that sort of protect that sacred ground?

Chris Hulls: And if I could follow up on data and licensing, so you have some expanded partnerships enough today. You've got, I'm sure, many opportunities, some that you will pursue, others that you won't go after.

Rob Sanderson: If I could follow up then on data and licensing. You've some expanded partnerships announced today. You've got, I'm sure, many opportunities, some that you will pursue, others that you won't go after. You know, obviously, your members put a lot of trust in your service with sensitive data.

Speaker Change: And if I could follow up then on data and licensing. So you have some expanded partnerships in us today. You've got, I'm sure, many opportunities, some that you will pursue, others that you won't go after.

Chris Hulls: You know, obviously, your members put a lot of trust in your service with sensitive data and a very sacred, valuable position. I know you're well aware of how important and delicate trust is, so how do you determine which partnerships to entertain and which to not? And, you know, same question for advertising really, like, how do you make sure ads are not creepy, especially as you engage third parties like Trade Desk and Google for demand generation? Like, how do you control that, sort of, protect that sacred ground? Yeah, so there's a lot to unpack here, Saul.

Speaker Change: Obviously, your members put a lot of trust in your service with sensitive data and

Chris Hulls: Yeah.

Rob Sanderson: That's a very sacred, valuable position. I know you're well aware of how important and delicate trust is. How do you determine which partnerships to entertain and which to not? You know, same question for advertising, really. Like, how do you make sure ads are not creepy, especially as you engage in third parties like The Trade Desk and Google for demand generation? Like, how do you control that, sort of, protect that sacred ground?

Speaker Change: Yeah. Very.

Speaker Change: sacred, valuable position. I know you're well aware of how important and delicate trust is, so how do you determine what partnerships to entertain and which to not? And you know, same question for advertising really, like how do you make sure ads are not creepy, especially as you engage in third parties like Trade Desk and Google for demand generation, like how do you control that, sort of protect that sacred ground?

Chris Hulls: Yeah, so there's a lot to unpack there, so I'll throw out a few things, starting with core philosophy. So, number one, I would not do anything that I would not feel comfortable using with my own families, and we ask ourselves that around the exec table quite regularly. I have two daughters, and I am fully comfortable with everything we're doing.

Chris Holes: Yeah, so there's a lot to unpack there, so I'll throw out a few things starting with core philosophy. So number one, I would not do anything that I would not feel comfortable using my own families, and we ask ourselves that around the exact table quite regularly. I have two daughters, and I am fully comfortable with everything we're doing. That would be 0.1. 0.2 is when we implement things; a big value is transparency and choice. So we want to let people know we're doing, want to give them opt out. So we want to be very liberal about that because we know 99% of people just don't care.

Chris Hulls: Yes. There's a lot to unpack there, so I'll throw out a few things, starting with core philosophy. Number one, I would not do anything that I would not feel comfortable using with my own families, and we ask ourselves that around the exec table quite regularly. I have two daughters, and I am fully comfortable with everything we're doing. That would be point one. Point two is when we implement things, a big value is transparency and choice. We want to let people know what we're doing, want to give them opt-outs. We want to be very liberal about that because we know 99% of people just don't care. Then we are a little bit sensitive to things that really put us in the hot seat. We did stop raw data sales.

Speaker Change: Yeah, so there's a lot to unpack there, so I'll throw out a few things, starting with core philosophy.

Speaker Change: So, number one, I would not do anything that I would not feel comfortable using with my own families, and we ask ourselves that around the exec table quite regularly. I have two daughters, and I am fully comfortable with everything we're doing. That would be point one. Point two is when we implement things, a big value is transparency and choice.

Rob Anderson: And you know, same question for advertising, really like, but do you make sure ads are not creepy, especially as you engage in third parties like trade debt, asking Google for demand generation, like how do you control that sort of protect that sacred ground?

Chris Hulls: That would be point one. Point two is that when we implement things, a big value is transparency and choice. So, we want to let people know what we're doing, want to give them opt-outs, and we want to be very liberal about that because we know 99% of people just don't care. And then we are a little bit sensitive to things that really put us in the hot seat, so we did stop raw data sales. We had never had even a single instance of misuse, so it was a bit sensationalized, but that was an example for the people who have been following the story for a while.

Chris Holes: Yeah, so there's a lot to unpack there, so I'll throw out a few things starting with core philosophy. So number one, I would not do anything that I would not feel comfortable using my own families and we ask ourselves that around the exact table, quite regularly. I have two daughters and I am fully comfortable with everything we're doing. That would be 0.1. 0.2 is when we implement things, a big value is transparency and choice.

Rob Anderson: So, we want to let people know what we're doing, want to give them opt-outs, we want to be very liberal about that because we know 99% of people just don't.

Chris Holes: And then we are a little bit sensitive to things that really put us in the hot seat. So we did stop raw data sales. We had never had even a single instance of misuse. It was a bit sensationalized, but that was an example for the people who have been following the story for a while. We decided that this revenue line could really be growing, but it's not worth it if it does risk that trust. And that's why we have been a little more flat and indirect over the years, as we gave up significant revenue specifically because of that.

Rob Anderson: care.

Rob Anderson: And then we are a little bit sensitive to things that really put us in the hot seat. So we did...

Rob Anderson: Stop raw data sales.

Chris Hulls: We'd never had even a single instance of misuse, so it was a bit sensationalized, but that was an example for the people who have been following the story for a while. We decided, hey, this revenue line could really be growing, but it's not worth it if it does risk that trust. That's why we have been a little more flat and indirect over the years as we gave up significant revenue specifically because of that. When you think about things like auto insurance, I was giving a fake illustrative example, but we genuinely wanna tell you, like, "Don't give your data if it's bad." We will be able to do that. We wanna actually help you feel like we're making decisions.

Speaker Change: We did.

Speaker Change: Never had even a single instance of misuse. It was a bit sensationalized, but that was an example.

Chris Holes: So we want to let people know we're doing, want to give them opt out. So we want to be very liberal about that because we know 99% of people just don't care. And then we are a little bit sensitive to things that really put us in the hot seat. So we did stop raw data sales. We had never had even a single instance of misuse. It was a bit sensationalized, but that was an example for the people who have been following the story for a while.

Chris Hulls: We decided, hey, this revenue line could really be growing, but it's not worth it if it does risk that trust, and that's why we have been a little more flat and indirect over the years; we gave up significant revenue specifically because of that. And then, when you think about things like auto insurance, I was giving a fake illustrative example, but we genuinely want to tell you, like, don't give your data if it's bad.

Speaker Change: For the people who have been following the story for a while, we decided this revenue line could really be growing.

Speaker Change: But it's not worth it if it does risk that trust, and that's why we have been a little more flat and indirect over the years as we gave up significant revenue specifically because of that.

Chris Holes: And then when you think about things like auto insurance, I wasn't I was giving a fake illustrative example, but we want to be genuinely want to tell you like don't give your data if it's bad. We'll be able to do that. We want to build; we want to actually help you feel like we're making decisions. There is a transition zone right now where we are doing the banners, which I'm not exactly excited about. They're more together sea legs, but we have Russell might know the exact stats. I'm guessing probably you don't, Russell, but we have been very restrictive just in terms of what categories to use.

Chris Hulls: We'll be able to do that. We want to build. We want to actually help you feel like we're making decisions. There is a transition zone right now where we are doing the banners, which I'm not exactly excited about. They're more just to get our sea legs, but we have Russell might know the exact stats.

Speaker Change: And then when you think about things like auto insurance.

Speaker Change: I wasn't, I was giving a fake illustrative example, but we want to be, we genuinely want to tell you, like, don't give your data if it's bad. We'll be able to do that. We want to build, we want to actually help you feel like we're making decisions.

Chris Holes: We decided that this revenue line could really be growing, but it's not worth it if it does risk that trust. And that's why we have been a little more flat and indirect over the years as we gave up significant revenue specifically because of that. And then when you think about things like auto insurance, I wasn't I was giving a fake illustrative example, but we want to be we genuinely want to tell you like don't give your data if it's bad.

Chris Hulls: There is a transition zone right now where we are doing the banners, which I'm not exactly excited about. They're more just to get our sea legs. Russell might know the exact stats. I'm guessing probably you don't, Russell. We have been very restrictive just in terms of what categories to use. We are requiring people to do a native ad unit right now versus the system ad unit. That gives us more control over the branding, the colors, and make sure it doesn't jar. Just a lot of small things down the way, but high level transparency and choice, things we're gonna do ourselves. We really do keep a pulse of the user, and our user is not the average Bay Area or even New York tech person.

Speaker Change: There is a transition zone right now where we are doing the banners, which I'm not exactly excited about. They're more just to get our sea legs, but we have.

Chris Hulls: I'm guessing you probably don't, Russell, but we have been very restrictive just in terms of what categories to use. We are requiring people to do a native ad unit right now versus the system ad unit. That gives us more control over the branding, the colors, to make sure it doesn't jar. And then just a lot of small things down the way, but high levels of transparency and choice, things we're going to do ourselves, and really do keep a pulse on the user. And our user is not the average Bay Area or even New York tech person. It's middle America.

Speaker Change: Russell might know the exact stats. I'm guessing probably you don't, Russell, but we have been very restrictive just in terms of what categories to use. We are requiring people to do a native ad unit right now versus a

Chris Holes: We are requiring people to do a native ad unit right now versus the system ad unit. So that gives us more control over the branding. The colors make sure doesn't jar. And then just a lot of small things down the way, but high level transparency and choice things we're going to do ourselves and really do keep a pulse of the user and our user is not the average Bay Area or even New York tech person. It's Middle America. And so we spend a lot of time just talking to our customers and understanding how they feel about.

Chris Holes: We'll be able to do that. We want to build, we want to actually help you feel like we're making decisions. There is a transition zone right now where we are doing the banners, which I'm not exactly excited about. They're more together sea legs, but we have Russell might know the exact stats. I'm guessing probably you don't Russell, but we we have been very restrictive just in terms of what categories to use.

Speaker Change: The system ad unit, so that gives us more control over the branding, the colors, make sure it doesn't jar. And then just a lot of small things down the way, but.

Speaker Change: High-level, transparency and choice, things we're going to do ourselves, and we really do keep a pulse of the user, and our user is not the average Bay Area or even New York tech person. It's middle America, and so we spend a lot of time just talking to our customers and understanding how they feel about things.

Chris Hulls: And so we spend a lot of time just talking to our customers and understanding how they feel about things. Thanks, Chris.

Chris Hulls: It's middle America, and so we spend a lot of time just talking to our customers and understanding how they feel about things.

Chris Holes: We are requiring people to do a native ad unit right now versus a the system ad unit. So that gives us more control over the branding. The colors make sure doesn't jar. And then just a lot of small things down the way, but high level transparency and choice things we're going to do ourselves and really do keep a pulse of the user and and our user is not the average Bay Area or even New York tech person. It's middle America. And so we spend a lot of time just talking to our customers and understanding how they feel about. Thanks. Thanks Chris.

Chris Hulls: It's middle America, and so we spend a lot of time just talking to our customers and understanding how they feel about things.

Chris Holes: Thanks.

RJ: Thanks, Chris. Welcome. Thanks, Rob.

Rob Sanderson: Yeah. Thanks, Chris.

Chris Hulls: Welcome.

Chris: Thanks, Chris.

Rob Anderson: Welcome.

Speaker Change: Welcome.

RJ: Thanks, Rob. We're going to ask Jennifer from Jeffries to unmute your line and ask your question.

Operator: Thanks Rob.

Operator: Thanks, Rob. We're gonna ask Genevieve from Jefferies to unmute your line and ask your question.

Jennifer: We're going to ask Jennifer from Jeffries to unmute your line and ask your question. Hello. There you go. Yes. Oh, sorry. This is way anyway. Yeah. Thank you. Okay.

Rob Anderson: Thanks, Rob. We're going to ask Jennifer from Jefferies to unmute your line and ask your question.

Jennifer: I'm sorry, I'm sorry, I'm sorry.

Wei: Hello?

Wei Sim: Hello?

Rob Anderson: Hello?

Operator: There you go. Yes.

RJ: Oh sorry, this is Wei. Hey Wei.

Speaker Change: There you go. Yes.

Wei: Oh, sorry. This is Wei.

Wei Sim: Oh, sorry. This is Wei.

Operator: Hey, Wei.

Speaker Change: Oh, sorry. This is Wei. Hey, Wei.

Wei: Yeah. Thanks, Andre. My question is just in regards to the ad revenue rollout. Right now, are we doing all US customers at this point in time? Just trying to think about, you know, how this ramps up over time. The rollout into the international user base, you know, how quickly do we expect that to be? Thanks.

Wei Sim: Yeah. Thanks, Andre. My question is just in regards to the ad revenue rollout. Right now, are we doing all US customers at this point in time? Just trying to think about, you know, how this ramps up over time. The rollout into the international user base, you know, how quickly do we expect that to be? Thanks.

Jennifer: So my question is just in regards to the ad revenue rollout. Right now, are we doing all US customers at this point in time and just trying to think about, you know, how this ramp up over time. And that the that the rollout into the international user base, you know, how quickly do we expect that to be. Thanks. So we're on right now with the basic banner is for all US users. We're exploring what goes next internationally.

Wei: Yeah, thanks Aade. So my question is just...

Jennifer: We're going to ask Jennifer from Jeffries to unmute your line and ask your question.

Chris Hulls: Yeah, thanks Ade. So my question is just in regards to the ad revenue rollout right now. Are we doing all US customers at this point in time? And just trying to think about, you know, how this ramps up over time and the rollout into the international user base, you know, how quickly do we expect that to be? Thanks.

Rob Anderson: In regards to...

Speaker Change: the ad revenue rollout right now. Are we doing all US customers at this point in time? And just trying to think about how this ramps up over time.

Jennifer: Hello. There you go. Yes. Oh, sorry. This is way anyway. Yeah. Thank you. Okay.

Rob Anderson: And the rollout into the international user base, you know, how quickly do we expect that to be? Thanks.

Chris Hulls: So we're on right now with the basic banners for all U.S. users; we're exploring what goes next internationally. And to the prior question, we are requiring everyone to do native ads when they get started, which really does restrict our ability to scale it. We could open the floodgates tomorrow and do a lot better, but we do want to be very prudent and cautious about that. The longer the amp, the better as we get different hooks, different things.

Chris Hulls: We're on right now with the basic banners for all US users. We're exploring what goes next internationally. To the prior question, we are requiring everyone to do native ads while we get started, which really does restrict our ability to scale it. Because we could open the floodgates tomorrow and do a lot better, but we do want to be very prudent and cautious about that. The longer ramp will be as we get different hooks, different things. Last question, as you mentioned, things like The Trade Desk and off-site, that implies like off-site advertising, which it'll get a little bit more technical here. But we have a very high opt-in rate to doing cross-app tracking via IDFA. We think there's a huge ability to do off-site advertising using location data with explicitly opted-in users.

Russell Burke: So my question is just in regards to the ad revenue rollout, right now, are we are we doing all US customers at this point in time and just trying to think about, you know, how this ramp up over time. And that the that the rollout into the international user base, you know, how quickly do we we expect that to be. Thanks. So we're on right now with the basic banner is for all US users were exploring what goes next internationally.

Speaker Change: So we're on right now with the basic banners for all U.S. users. We're exploring what goes next internationally. And to the prior question, we are requiring everyone to do native ads while they get started, which really does restrict.

Russell Burke: And to the prior question, we are requiring everyone to do native ads. All you get started, which really does restrict our ability to scale it because we could open the floodgates tomorrow and do a lot better, but we do want to be very prudent and cautious about that. The longer ramp will be as we get different hooks, different things. Last question, I should mention these like Trade Desk and off site that implies like offside advertising, which I will get a little bit more technical here. We have a very high opt-in right to doing cross-app tracking via IDFA.

Speaker Change: Our ability to scale it because we could open the floodgates tomorrow and do a lot better. But we, we, we do want to be very prudent and cautious about that.

Rob Anderson: The longer amp will be

Chris Hulls: Last question, I should mention things like trade desk and offsite. That implies things like offsite advertising, which gets a little bit more technical here, but we have a very high opt-in rate for doing cross app tracking via IDFA. So, we think there's a huge ability to do offsite advertising using location data with explicitly opted-in users. I hope next year, maybe the middle of next year, that starts generating real revenue. We're pioneering something a little bit new here.

Speaker Change: As we get different hooks, different things. Last question, I should mention there's like trade desk and offsite, that's implied like offsite advertising, which

Russell Burke: And to the prior question, we are requiring everyone to do native ads, all you get started, which really does restrict our ability to scale it because we could open the floodgates tomorrow and do a lot better, but we we do want to be very prudent and cautious about that. The longer ramp will be as we get different hooks, different things last question, I should mention these like trade desk and off site that implies like offside advertising, which I will get a little bit more technical here.

Rob Anderson: It'll get a little bit more technical here, but we have a very high opt-in rate doing cross-app tracking via IDFA.

Russell Burke: So we think there's a huge ability to do offside advertising using location data was explicitly opted-in users. I hope next year, maybe middle of next year, that's generating real revenue. We're firing pioneering something a little bit new there.

Speaker Change: So we think there's a huge ability to do off-site advertising using location data with explicitly opted-in users.

Chris Hulls: I hope next year, maybe middle of next year, that's generating real revenue. We're pioneering something a little bit new there. Of course, we have different canvases in the product that are not ads, which I think can get much more contextual relevance, next year as well for that. We have some things that we're excited about and testing, and we feel very good about numbers for this year, even with a more limited approach we're taking.

Rob Anderson: I hope next year, maybe middle of next year, that's generating real revenue.

Chris Hulls: And then, of course, we have different canvases in the product that are not ads, which I think can get much more contextual relevance next year as well for that. But we have some things that we're excited about in testing, and we feel very good about the numbers for this year, even with a more limited approach we're taking.

Rob Anderson: We're pioneering something a little bit new there.

Russell Burke: And then, of course, we have different canvases in the product that are not ads, which I think can get much more contextual relevance. Next year as well for that, but we have some things that we're excited about and testing, and we feel very good about numbers for this year, even with a more limited approach we're taking.

Rob Anderson: And then, of course, we have different canvases in the product that are not ads, which I think can get much more contextual relevance next year as well for that. But we have some things that we're excited about in testing and we feel very good about.

Russell Burke: We have a very high opt in right to doing cross-app tracking via IDFA. So we think there's a huge ability to do offside advertising using location data was explicitly opted in users. I hope next year, maybe middle of next year, that's generating real revenue. We're firing pioneering something a little bit new there. And then of course we have different canvases in the product that are not ads, which I think can get much more contextual relevance. Next year as well for that, but we have some things that we're excited about and testing and we feel very good about numbers for this year, even with a more limited approach we're taking.

Rob Anderson: Numbers for this year, even with a more limited approach we're taking.

Russell Burke: And Wade, just to be sort of specific on international where we're just starting to do some testing in international now and with the plan to roll that out to international territories. That said, we're going to move sort of steadily on that process, and international generally monetizes a little lower than the U.S., as you know. But in the longer term, we're sort of very excited about the areas of the world where we won't necessarily quickly move to a sort of triple tier type launch, and you're being able to monetize those areas more effectively. So it gives us a lot of opportunity for the future.

Russell Burke: And way just to be sort of specific on the international where we're just starting to do some testing in international now and with the plan to roll that out to the international territories. That said, we're going to move sort of steadily on that process, and international generally monetizes a little lower than the US, as you know. But in the longer term, we're sort of very excited about the areas of the world where we won't necessarily quickly move to a sort of triple tier type launch. And you're being able to monetize those areas more effectively. So it'll give us a lot of opportunity for the future.

Russell Burke: Wei, just to be sort of specific on the international, where we're just starting to do some testing in international now and with the plan to roll that out to the international territories. That's said, we're going to move sort of steadily on that process. International generally monetizes a little lower than in the US, as you know.

Rob Anderson: And Wade, just to be sort of specific on the international where we're just starting to do some testing in international now and with the plan to roll that out to the international territories. That said, we're going to move sort of steadily on that process and international generally monetizes a little lower than the US as you know.

Russell Burke: And way just to be sort of specific on the international where we're just starting to do some testing in international now and with the plan to roll that out to the international territories. That said, we're going to move sort of steadily on that process and international generally monetizes a little lower than the US as you know. But in the longer term, we're sort of very excited about the areas of the world where we won't necessarily quickly move to a sort of triple tier type launch. And you're being able to monetize those areas more effectively. So it'll it gives us a lot of opportunity for the future.

Chris Hulls: Mm-hmm

Russell Burke: ... but in the longer term, we're sort of very excited about the areas of the world where, you know, we won't necessarily quickly move to a sort of triple tier type launch, and we're being able to monetize those areas, you know, more effectively. It gives us a lot of opportunity for the future.

Russell Burke: In the longer term, we're sort of very excited about the areas of the world where, you know, we won't necessarily quickly move to a sort of triple tier type launch, and we're being able to monetize those areas, you know, more effectively. It gives us a lot of opportunity for the future.

Rob Anderson: But in the longer term, we're sort of very excited about the areas of the world where we won't necessarily quickly move to a sort of triple-tier type launch.

Rob Anderson: and being able to monetize those areas more effectively. So it gives us a lot of opportunity for the future.

Russell Burke: But, and just in terms of a small clarification, when we do think about ad revenues, you know, dollar per NAU, a good way to think about it. And I don't know if you've got any kind of like early on statistics that you might be able to provide us to, you know, how effectively we are monetizing at this point in time and how we should think about that ramp. Yeah, I think because of the different steps that we're sort of working through, it's a little more difficult to sort of put it down to a specific stat like that in the investor deck.

Russell Burke: And just in terms of a small clarification, when we do think about ad revenues, is a dollar per MAU a good way to think about it? And I don't know if you've got any early on statistics that you might be able to provide as to how effectively we are monetizing at this point in time and how we should think about that ramp going forward. Thanks.

Wei: Got it. Just in terms of a small clarification, when we do think about ad revenues, is dollar per MAU a good way to think about it. I don't know if you've got any kind of like early on statistics that you might be able to provide as to how effectively we are monetizing at this point in time and how we should think about that ramp going forward. Thanks.

Wei Sim: Got it. Just in terms of a small clarification, when we do think about ad revenues, is dollar per MAU a good way to think about it. I don't know if you've got any kind of like early on statistics that you might be able to provide as to how effectively we are monetizing at this point in time and how we should think about that ramp going forward. Thanks.

Speaker Change: Got it. And just in terms of a small clarification, when we do think about ad revenues...

Speaker Change: dollar per MAU, a good way to think about it. And I don't know if you've got any early on statistics that you might be able to provide as to how effectively we are monetizing at this point in time and how we should think about that ramp going forward. Thanks.

Russell Burke: Yeah, I think because of the different steps that we're sort of working through, it's a little more difficult to sort of put it down to a specific stat like that. In the Investor Deck, we included a case study with Uber just to really just sort of demonstrate how, over a period of time, they really built that up. And there are sort of several case studies out there.

Russell Burke: Yeah. I think because of the different steps that we're sort of working through, it's a little more difficult to sort of put it down to a specific stat like that. In the investor deck, we included a case study with Uber just to demonstrate how over a period of time they really built that up. There's sort of several case studies there, out there. As Chris said earlier, you know, we have the advantage really of being able to target deterministic cases. Because of that, we feel that our audience is much more valuable than many others.

Russell Burke: But and just in terms of a small clarification, when we do think about ad revenues, you know, dollar per NAU, a good way to think about it. And I don't know if you've got any kind of like early on statistics that you might be able to provide us to, you know, how effectively we are monetizing at this point in time and how we should think about that ramp. Yeah, I think because of the different steps that we're sort of working through it's it's a little more difficult to sort of put it down to a specific stat like that in the investor deck.

Speaker Change: Yeah, I think because of the...

Speaker Change: different steps that we're sort of working through, it's...

Speaker Change: It's a little more difficult to sort of put it down to a specific stat like that. In the investor deck we included a, and we've done this before, we included a case study with Uber just to really just sort of demonstrate how.

Russell Burke: We included a and we've done this before. We included a case study with Uber just to really just sort of demonstrate how over a period of time they really built that up. And there's sort of several case studies there out there as Chris said earlier, where we have the advantage really of being able to target deterministic cases. And that that because of that we feel that our audience is much more valuable than many others. So, you know, over a period of time, we'll be able to really build that up. But there's various stages as we go through. I think as we get to a level of greater level of maturity for this, we will be able to sort of bring it down to a specific.

Speaker Change: over a period of time, they really built that up. And there's sort of several case studies out there.

Russell Burke: As Chris said earlier, we have the advantage, really, of being able to target deterministic cases. And because of that, we feel that our audience is much more valuable than many others. So, over a period of time, we'll be able to really build that up, but there are various stages as we go through it. I think as we get to a greater level of maturity for this, we'll be able to sort of bring it down to a specific stat.

Speaker Change: As Chris said earlier, we have the advantage, really, of being able to target deterministic cases, and because of that, we feel that our audience is much more valuable than many others. So over a period of time, we'll be able to really build that up, but there's various stages as we go through. I think as we get to a greater level of maturity for this, we'll be able to sort of bring it down to a specific stat.

Russell Burke: We included a and we've done this before we included a case study with with Uber just to really just sort of demonstrate how over a period of time they really built that up. And there's sort of several case studies there out there as Chris said earlier where we have the advantage really of being able to target deterministic cases. And that that because of that we feel that our audience is much more valuable than than many others.

Russell Burke: You know, over a period of time, we'll be able to really build that up. There's various stages as we go through. I think, as we get to a greater level of maturity for this, we'll be able to sort of bring it down to a specific stat.

Russell Burke: That's very helpful. Thanks, Russ. Thanks, Chris. Thanks, RJ. Thank you.

RJ: That's very helpful. Thanks, Ross, Chris, Ajay, thank you. Thank you. Next, I'd like to go to Andrew with Citizens JM.

Wei: That's very helpful. Thanks, Ross. Thanks, Chris. Thanks, RJ.

Wei Sim: That's very helpful. Thanks, Ross. Thanks, Chris. Thanks, RJ.

Speaker Change: That's very helpful. Thanks, Ross. Thanks, Chris. Thanks, RJ.

James Bales: Thank you.

Chris Hulls: Thank you.

Russell Burke: So, you know, over a period of time, we'll be able to really build that up. But there's various stages as as we go through I think as as we get to a level of greater level of maturity for this will be able to sort of bring it down to a specific.

Speaker Change: Thank you.

RJ: Thank you. Next, I'd like to go to Andrew with Citizens JMP.

Chris Hulls: Thank you. Next, we'd like to go to Andrew with Citizens JMP.

Operator: Thank you. Next, we'd like to go to Andrew with Citizens JMP.

Andrew: Next I'd like to get to Andrew with citizens, JMP. Thanks so much for taking my question. I wanted to ask, but internationally, how accelerated for forced rate quarters, is that certain markets tipping that 3% or can you help explain what is the driver of that acceleration? Thanks. Yeah, so it's honestly an identical answer to what I gave you with net ads. That's a different part of the funnel. I think, as we have just shown that we can make the product work overseas, because it really was a poor user experience, even 18 months ago. I've shared this example with some of you where our premium driving features are called Driver Protect.

Speaker Change: Thank you. Next, I'd like to go to Andrew with Citizens JMP.

Andrew: Thanks so much for taking my question. I wanted to ask about international MAU. It's accelerated for 4 straight quarters. Is that certain markets tipping that 3 percent? Or can you help explain what is the driver of that acceleration? Thanks so much.

[Analyst] (Citizens JMP): Thanks so much for taking my question. I wanted to ask about international MAU. It's accelerated for 4 straight quarters. Is that certain markets tipping that 3 percent? Or can you help explain what is the driver of that acceleration? Thanks so much.

Andrew: Thanks so much for taking my question. I wanted to ask about International Mao. It's accelerated for four straight quarters. Is that certain markets tipping that 3% or can you help explain what is the driver of that acceleration? Thanks so much.

Russell Burke: That's very helpful. Thanks, Russ. Thanks, Chris. Thanks, RJ.

Chris Hulls: Yeah, so it's an identical answer to what I gave you with net ads. It's just that it's a different part of the funnel.

Chris Hulls: Yeah. It's honestly an identical answer to what I gave you with net ads. It's just that's a different part of the funnel. I think as we have just shown that we can make the product work overseas because it really was a poor user experience even 18 months ago. I've shared this example with some of you where our premium driving features are called Driver Protect, and in some regions we were literally translating as Protect My Chauffeur, because if you translate that without the localisms, that's what you get quite literally. That's one example. There's just a bunch of low-hanging fruit that we picked up to make the experience better. We are seeing more category awareness, and we're really the only game in town, in particular cross-platform.

Speaker Change: Yeah, so it's honestly an identical answer to what I gave you with net ads, it's just that's a different part of the funnel. I think as we have just shown that we can make the product work overseas, because it really was.

Russell Burke: Thank you.

Operator: Next I'd like to get to Andrew with citizens, JMP. Thanks so much for taking my question. I wanted to ask, but internationally, how accelerated for forced rate quarters, is that certain markets tipping that 3% or can you help explain what is the driver of that acceleration? Thanks Yeah, so it's honestly an identical answer to what I gave you with net ads. That's a different part of the funnel. I think as we have just shown that we can make the product work overseas, because it really was a poor user experience, even 18 months ago.

Chris Hulls: I think, as we have just shown that we can make the product work overseas because it really was a poor user experience. Even 18 months ago, I shared this example with some of you where our premium driving features are called driver protect, and in some regions, we were literally translating it as "protect my chauffeur." If you, if you translate that without the localizations, that's what you get quite literally.

Speaker Change: a poor user experience even 18 months ago. I've shared this example with some of you where our premium driving features are called Driver Protect.

Chris Holes: And in some regions, we were literally translating as "protect my chauffeur." If you translate that without the localisms, that's what you get quite literally. So that's one example, but there's just a bunch of low-hanging fruit that we picked up to make the experience better. And we are seeing more category awareness, and we're really the only game in town in particular cross-platform. Google has pulled back on a lot of their location issues, while Apple's helped popularize this space. So we are just seeing that growth. And I'm excited about that. It's largely organic, and we're not surprised, per se, but it's nice to see that it feels like that pattern and assumption we had that it's really a tipping point thing is holding true everywhere.

Speaker Change: And in some regions, we were literally translating as protect my chauffeur. If you translate that without the globalisms, that's what you get quite literally. So that's one example, but there's just a bunch of low-hanging fruit that we picked up to.

Chris Hulls: So that's 1 example, but there's just a bunch of low hanging fruit that we picked up to make the experience better, and we are seeing more category awareness, and we're really the only game in town, in particular cross platform. Uh, Google's pulled back on a lot of their location issues while Apple's helped popularize the space. So we, we are just seeing that growth, and I, I, I'm excited about that. It's largely organic and

Speaker Change: to make the experience better.

Speaker Change: And we are seeing more category awareness, and we're really the only game in town, in particular, cross-platform.

Operator: I've shared this example with some of you where our premium driving features are called driver protect. And in some regions, we were literally translating as protect my chauffeur. If you translate that without the localisms, that's what you get quite literally. So that's one example, but there's just a bunch of low-hanging fruit that we picked up to make the experience better. And we are seeing more category awareness and we're really the only game in town in particular cross-platform.

Chris Hulls: Google's pulled back on a lot of their location initiatives while Apple's helped popularize the space. We are just seeing that growth. I'm excited about that. It's largely organic and we're not surprised per se, but it's nice to see that it feels like that pattern and assumption we had that it's really a tipping point thing is holding true everywhere.

Rob Anderson: Google has pulled back on a lot of their location initiatives.

Rob Anderson: while Apple's helped popularize the space.

Rob Anderson: We are just seeing that growth and I'm excited about that. It's largely organic and.

Chris Hulls: We're not surprised per se, but it's nice to see that the pattern and assumption we had that it's really a tipping point thing is holding true everywhere. And Andrew, just to amplify something, Chris...

Rob Anderson: We're not surprised per se, but it's nice to see that it feels like that pattern and.

Rob Anderson: Assumption we had that it's really a tipping point thing is holding true everywhere.

Russell Burke: And Andrew, just to amplify something Chris said earlier, I think we're seeing that growth in both the territories that we've focused the triple tier launch on. We're seeing really good growth in both MAUN paying circles. But also well beyond that in areas where we hadn't seen significant growth before, but the user experience is clearly translating into a really strong growth in those areas, whether that's Europa, South America, or in particular.

Russell Burke: And, Andrew, just to amplify something Chris said earlier, I think we're seeing that growth in both the territories that we've focused the triple-tier launch on. We're seeing really good growth in both MAU and paying circles. But also, well beyond that, in areas where we hadn't seen significant growth before, but the user experience is clearly translating into really strong growth in those areas, whether that's Europe or South America in particular.

Russell Burke: Andrew, just to amplify something Chris said earlier, I think we're seeing that growth in both the territories that we've focused the triple tier launch on. We're seeing really good growth in both MAU and paying circles. Also, you know, well beyond that, in areas where we hadn't seen significant growth before, but that the user experience is clearly translating into, you know, really strong growth in those areas, whether that's Europe or South America in particular.

Operator: Google has pulled back on a lot of their location issues while Apple's helped popularize this space. So we are just seeing that growth. And I'm excited about that. It's largely organic and we're not surprised per se, but it's nice to see that it feels like that pattern and assumption we had that it's really a tipping point thing is holding true everywhere. And Andrew, just to amplify something Chris said earlier, I think we're seeing that growth in both the territories that we've focused the triple tier launch on.

Andrew: And Andrew, just to amplify something Chris said earlier, I think we're seeing that growth in both the territories that we've focused the triple-tier launch on, we're seeing really good growth in both MAU and paying circles.

Andrew: But also, you're well beyond that in areas where we hadn't seen...

Andrew: significant growth before but the user experience is clearly translating into a really strong growth in those areas, whether that's Europe or South America in particular.

Operator: We're seeing really good growth in both MAUN paying circles. But also well beyond that in areas where we hadn't seen significant growth before, but the user experience is clearly translating into a really strong growth in those areas, whether that's Europa, South America, or in particular.

Andrew: Thank you.

James Bales: Thank you.

Andrew: Thank you.

Speaker Change: Thank you.

RJ: Thank you. Next, we'd like to... Unmute the line of Wei Wang from RBC.

Chris Hulls: Thank you. Next, we'd like to unmute the line of Wei-Weng Chen from RBC.

Weigh-Winning: Next, we'd like to unmute the line of weigh-winning from RBC. Hey guys, you guys on the good result. Just a question on net ads. So if I think about two things that you historically said, the first thing is historically Q3 is your peak period for net ads. And then the second thing is after periods of significant net ads, the following quarter can be a bit more muted. So how do we reconcile these two comments in the context of, I guess, a record net ad in Q2? And do you attribute any of the strength in Q2 to the IPO?

Speaker Change: Thank you. Next we'd like to unmute the line of Wei Wang from RBC.

Wei-Weng Chen: Hey guys, congrats on the good result. Just a question on net adds. If I think about two things that you've historically said. First thing is, historically Q3 is your peak period for net adds, and then the second thing is after periods of significant net adds, the following quarter can be a bit more muted. How do we reconcile these two comments in the context of, I guess a record net add in Q2? And do you attribute any of the strength in Q2 to the IPO?

Chris Hulls: Guys, congrats on the good result. Just a question about net ads. So if I think about two things that you've historically said, the first thing is that, historically, Q3 is your peak period for net ads. And then the second thing is, after periods of significant net ads, the following quarter can be a bit more muted. So how do we reconcile these two comments in the context of, I guess, a record net ad revenue in Q2?

Wei Wang: Hey guys, congrats on the good result. Just a question on net ads. So if I think about two things that you've historically said, the first thing is...

Wei Wang: Historically Q3 is your peak period for net ads. And then the second thing is after periods of significant net ads.

Chris Holes: Next we'd like to unmute the line of weigh-winning from RBC. Hey guys, you guys on the good result. Just a question on net ads. So if I think about two things that you historically said, the first thing is historically Q3 is your peak period for net ads. And then the second thing is after periods of significant net ads, the following quarter can be a bit more muted. So how do we reconcile these two comments in the context of I guess a record net ad in Q2?

Speaker Change: The following quarter can be a bit more muted, so how do we reconcile these two comments in the context of, I guess, a record net add in Q2, and do you attribute any of the strength in Q2 to the IPO?

Chris Hulls: And do you attribute any of the strength in Q2 to the IPO? Yeah, so I'll take the easiest part first, like zero to the IPO. We're a mass market consumer business, as much as I'd love to explode on Wall Street, but that has not happened yet. So we are, I don't think any of our customers really knew anything about that.

Chris Holes: Yeah, so I'll take the easiest part first. Zero to the IPO. We're a mass market consumer business; as much as I would love to explode on Wall Street Bets, that has not happened yet. So I don't think any of our customers really knew anything about that, and the PR in terms of stuff that drive stuff for us was quite minimal. So I think that I can say confidently. In terms of the kind of the chunkiness in that ads on as one lever and the back to school as another. Yeah, historically, when we have a high quarter, it kind of gets pulled down a little bit, and vice versa.

Chris Hulls: And the PR, in terms of stuff that drives stuff for us, was quite minimal. So, I think that I can say confidently in terms of the kind of the chunkiness in that adds on as one lever and the back to school as another. Yeah, historically, when we have a high quarter, it kind of can get pulled down a little bit and vice versa. But again, it's a little bit stochastic in the sense that we don't really can't predict that, but I'm excited about going back to school because.

Chris Hulls: I'll take the easiest part first. Like zero to the IPO, we're a mass-market consumer business. As much as I would love to explode on Wall Street, that has not happened yet. I don't think any of our customers really knew anything about that. The PR in terms of stuff that drives stuff for us was quite minimal. I think that I can say confidently. In terms of the kind of the chunkiness in net adds on campaigns as one lever and the back to school as another, yeah, historically, when we have a high quarter, it kind of can get pulled down a little bit, and vice versa. Again, it's a little bit stochastic in the sense that we really can't predict that.

Speaker Change: So I'll take the easiest part first, like zero to the IPO. We're a mass market consumer business as much as I would love to explode on Wall Street, but that has not happened yet. So we are, I don't think any of our customers really knew anything about that and the PR in terms of stuff that drives stuff.

Chris Holes: And do you attribute any of the strength in Q2 to the IPO? Yeah, so I'll take the easiest part first. Zero to the IPO. We're a mass market consumer business as much as I would love to explode on Wall Street bets that has not happened yet. So I don't think any of our customers really knew anything about that and the PR in terms of stuff that drive stuff for us was quite minimal.

Speaker Change: For us was quite minimal. So, so I think that that I can say confidently in terms of.

Speaker Change: The kind of the chunkiness and that adds on as one lever and the back to school as another. Yeah, historically, when we have a high quarter, it kind of can't get pulled down a little bit and vice versa. But again, it's.

Chris Holes: But again, it's a little bit stochastic in the sense that we don't, we really can't predict that, but I'm excited about back to school because it's a positive lever. So I don't know how those two forces might cancel out, and again, it's not always the case that good net ads quarter means the next one not good because some of it is fundamental improvements just as much as it is just the organic noise. And as we said on the core, we're putting more marketing resources into sort of back to school campaigns, not only in the US, but also to a limited extent in the UK and Canada.

Speaker Change: It's a little bit stochastic in the sense that we don't, we really can't predict that, but I'm excited about back to school because.

Chris Holes: So I think that I can say confidently. In terms of The kind of the chunkiness in that ads on as one lever and the back to school as another. Yeah, historically when we have a high quarter, it kind of get pulled down a little bit and vice versa. But again, it's a little bit stochastic in the sense that we don't we really can't predict that, but I'm excited about back to school because it's a positive lever.

Chris Hulls: I'm excited about back to school because it's a positive lever. I don't know how those two forces might cancel out. Again, it's not always the case that good net add quarter means the next one's not good because some of it is fundamental improvements, just as much as it is just the organic noise.

Chris Hulls: It's a positive lever. So I don't know how those two forces might cancel out. And again, it's not always the case that a good net add quarter means the next one is not good, because some of it is fundamental improvements, just as much as it is just organic noise.

Speaker Change: It's a positive lever, so I don't know how those two forces might cancel out. And again, it's not always the case that good net add quarter means the next one is not good, because some of it is fundamental improvements, just as much as it is just the organic noise.

Russell Burke: And as we said on the call, we're putting more marketing resources into sort of back-to-school campaigns, not only in the US but also to a limited extent in the UK and Canada. So yeah, we are pretty excited about that period.

Russell Burke: As we said on the call, we're putting more marketing resources into sort of back to school campaigns, not only in the US but also to a limited extent in the UK and Canada. You know, we are pretty excited about that period.

Rob Anderson: And as we said on the call, we're putting more marketing resources into sort of back-to-school campaigns, not only in the US but also to a limited extent in the UK and Canada. So yeah, we are pretty excited about that period.

Chris Holes: So I don't know how those two forces might cancel out and again, it's not always the case that good net ads quarter means the next one not good because some of it is fundamental improvements just as much as it is just the organic noise. And as we said on the core, we're putting more marketing resources into sort of back to school campaigns, not only in the US, but also to a limited extent in the UK and Canada. So we are pretty excited about that period. Thanks so much. Thank you.

Chris Holes: So we are pretty excited about that period.

Rob Anderson: i

Chris Holes: Thanks so much. Thank you.

RJ: Okay, thanks so much.

Wei-Weng Chen: Okay. Thanks so much.

Speaker Change: Okay, thanks so much.

RJ: Thank you. Next, I'd like to go to Chris from UBS, who I think is on Alex's line. Let's try unmuting Alex.

Operator: Thank you. Next, I'd like to go to Chris from UBS, who I think is on Alex's line. Let's try unmuting Alex's line. Chris, are you there?

Chris: Next, I'd like to go to Chris from UBS, who I think is on Alex's line. Let's try unmuting Alex's line. Chris, are you there? Hey, can you hear me? Yes. All right. Thanks for taking the question.

Speaker Change: Thank you. Next, I'd like to go to Chris from UBS, who I think is on Alex's line. Let's try unmuting Alex's line.

Speaker Change: Thank you so much for watching this video.

Speaker Change: i

Speaker Change: Chris, are you there?

RJ: Hey, can you hear me? Okay. Yes. All right. Thanks for taking the question. Maybe just one for Russell.

Chris Kantarek: Hey, can you hear me okay?

Chris Kuntarich: Hey, can you hear me okay?

Speaker Change: i

Operator: Yes.

Chris: Hey, can you hear me okay? Yes.

Russell Burke: Would be great if you could just kind of level set us on your annual guidance philosophy. Just more specifically, are you targeting the midpoint of the annual guide, rad or above, and then just more specifically to the fiscal year 24 guide. Just curious about what's implied at the high end versus the low end. Thanks.

Chris Kantarek: All right. Thanks for taking the question. Maybe just one for Russell. Would be great if you could just kind of level set us on your annual guidance philosophy. Just more specifically, are you targeting the midpoint of the annual guide or at or above? Then just more specifically to the fiscal year 2024 guide, just curious kind of what's implied at the high end versus the low end. Thanks.

Chris Kuntarich: All right. Thanks for taking the question. Maybe just one for Russell. Would be great if you could just kind of level set us on your annual guidance philosophy. Just more specifically, are you targeting the midpoint of the annual guide or at or above? Then just more specifically to the fiscal year 2024 guide, just curious kind of what's implied at the high end versus the low end. Thanks.

Speaker Change: All right, thanks for taking the question. Maybe just one for Russell. It would be great if you could just kind of level set us on your annual guidance philosophy. Just more specifically, are you targeting the midpoint of the annual guide, or at or above, and then just more specifically to the fiscal year 24 guide?

Russell Burke: Maybe just one for Russell would be great if you could just kind of level set us on your annual guidance philosophy. Just more specifically, are you targeting the midpoint of the annual guide rather above than then just more specifically to the fiscal year 24 guide. Just curious, kind of what's implied at the high inverse low end. Thanks. Yeah, I look at our approach is to try and be as transparent as possible so that that range sort of really does recognize the range is in terms of your potential outcomes and potential risk from our point of view.

Chris: Next I'd like to go to Chris from UBS, who I think is on Alex's line. Let's try unmuting Alex's line. Chris, are you there? Hey, can you hear me? Yes. All right. Thanks for taking the question.

Speaker Change: Just curious kind of what's implied at the high end versus the low end. Thanks.

Russell Burke: Yeah, look, our approach is to try and be as transparent as possible so that range sort of really does recognize the ranges in terms of potential outcomes and potential risks from our point of view. That said, we're well aware that typically people take the midpoint, so that is what we work along as well. What I would say is, as we looked at this, we looked at it sort of very carefully in terms of the trends, both in the subscription business, but also the fact that a lot of our business this year is, or a lot of our revenue, as we've said before, is weighted towards the second half, and Q4 in particular, as we build up both the advertising business and then the hardware retail business is very much focused on the holiday Q4 period, somewhat even exacerbated this year by the fact that we're launching a new product for tile into that period.

Russell Burke: Yeah. Look, our approach is to try and be as transparent as possible so that that range sort of really does recognize the ranges in terms of your potential outcomes and potential risks from our point of view. You know, that said, you know, we're well aware that typically people take the midpoint. You know, that is what we work along as well.

Speaker Change: Amen.

Russell: Yeah, look, our approach is to try and be as transparent as possible so that that range sort of really does recognize the ranges in terms of your potential outcomes and potential risks from our point of view. Yeah, that said, you know, we're well aware that

Russell Burke: Maybe just one for Russell would be great if you could just kind of level set us on your annual guidance philosophy. Just more specifically, are you targeting the midpoint of the annual guide rather above than then just more specifically to the fiscal year 24 guide. Just curious kind of what's implied at the high inverse low end. Thanks. Yeah, I look at our approach is to try and be as transparent as possible so that that range sort of really does recognize the range is in terms of your potential outcomes and potential risk from our point of view.

Russell Burke: That said, you know, we're well aware that typically people take the midpoint. So that is what we work along as well. What I would say is, as we looked at this, we looked at it sort of very carefully in terms of the trends that both in the subscription business. But also the fact that a lot of our business this year is, or a lot of our revenue, as we've said before, is weighted towards the second half and Q4 in particular, as we build up both the advertising business and then the hardware retail business is very much focused on the holiday Q4 period.

Speaker Change: Typically, people take the midpoint, so that is what we work with.

Speaker Change: along as well. Yeah, what I would say is, you know, as we as we looked at this we looked at it sort of very carefully in terms of the trends that both in the subscription business

Russell Burke: You know, what I would say is, you know, as we looked at this, we looked at it sort of very carefully, in terms of the trends, both in the subscription business but also the fact that, a lot of our business this year is or a lot of our revenue, as we've said before, is weighted towards the second half and Q4 in particular, as we build up both the advertising business and then the hardware retail business, is very much focused on the holiday Q4 period. Somewhat, you know, even exacerbated this year by the fact that you're launching a new product for Tile into that period.

Russell Burke: That said, you know, we're well aware that typically people take the midpoint. So that is what we work along as well. What I would say is as we looked at this, we looked at it sort of very carefully in terms of the trends that both in the subscription business. But also the fact that a lot of our business this year is or a lot of our revenue as we've said before is weighted towards the second half and Q4 in particular as we build up both the advertising business and then the hardware retail business is very much focused on the holiday Q4 period.

Speaker Change: But also the fact that a lot of our business this year is, or a lot of our revenue, as we've said before, is weighted towards the second half, and Q4 in particular, as we build up both the advertising business.

Rob Anderson: And then the hardware retail business is very much focused on the holiday Q4 period. Somewhat, you know, even exacerbated this year by the fact that we're launching a new product for Tile into that period.

Russell Burke: Somewhat, you know, even that exacerbated this year by the fact that we're launching a new product for tile into that period. To add just a little bit to that.

Chris Hulls: To add just a little bit to that, since we have some newer people on the call, we've obviously been public for five years now on the ASX. And if you look at our ability to forecast subscriptions in particular, I am proud that, I hope, we've developed a reputation. We don't sandbag, nor do we oversell. And the only time we were really far off was during COVID when we lost 70% of our downloads overnight.

Chris Hulls: To add just a little bit to that, since we have some newer people on the call. We've obviously been public for five years now on the ASX, and if you look at our ability to forecast subscriptions in particular, I am proud that I hope we've developed a reputation. We don't sandbag nor do we oversell. The only time we were really far off was during COVID, when we lost 70% of our downloads overnight. I don't like making excuses, but I do think we should get a bit of a hall pass on that one. The only other area where we've been a little choppier is hardware, 'cause there's a lot of unknown, and we really didn't buy Tile to sell hardware. We did it to drive membership.

Speaker Change: To add just a little bit to that.

Chris Holes: Some newer people on the call, we've always been public for five years now on the ASX, and if you look at our ability to forecast subscriptions in particular. I am proud that I hope we've developed a reputation. We don't sandbag, nor do we oversell, and the only time we were really far off was during COVID when we lost 70% of our downloads overnight. I don't like making excuses, but I do think we should get a bit of a hot pass on that one. And the only other area where we've been a little chopper is hardware because there's a lot of unknown, and we really didn't buy tile to sell hardware; we did it to drive membership.

Speaker Change: Since we have some newer people on the call, we've obviously been public for five years now on the ASX, and if you look at.

Rob Anderson: Our ability to forecast subscriptions in particular, I am proud that I hope we've developed a reputation. We.

Russell Burke: Somewhat, you know, even that exacerbated this year by the fact that we're launching a new product for for tile into that period. To add just a little bit to that. Some newer people on the call, we've always been public for five years now on the ASX and if you look at our ability to forecast subscriptions in particular. I am proud that I hope we've developed reputation. We don't sandbag nor do we oversell and the only time we were really far off was during COVID when we lost 70% of our downloads overnight.

Rob Anderson: We don't sandbag, nor do we oversell.

Rob Anderson: And the only time we were really far off was during COVID when we lost 70% of our downloads overnight. I don't like making excuses, but I do think we should get a bit of a hall pass on that one.

Chris Hulls: I don't like making excuses, but I do think we should get a bit of a hall pass on that one. And the only other area where we've been a little choppier is hardware, because there's a lot of unknowns, and we really didn't buy tile to sell hardware. We did it to drive membership. So when we pulled back during the downturn and all that, that's where we leaned in. So, in general, I had a lot of confidence that when we have narrower timeframes with subscription, we're going to – we're largely going to be kind of smack dab because that builds more predictably, falls more predictably, and there is more unknown with anything hardware, especially when it's new, because it's a choppier business, one we're less expert in and also a little bit less important.

Rob Anderson: And the only other area where we've been a little choppier is hardware, because there's a lot of unknown, and we really didn't buy tile to sell hardware. We did it to drive membership.

Chris Holes: So when we pulled back in the downturn and all that, that's where we leaned in. So in general, I've had a lot of confidence that when we have narrower time friends with subscription, we're going to we're largely going to be kind of smack dab because that builds more predictably, falls more predictably. And there is more unknown with anything hardware, especially when it's new because the chopper your business, one were less expert in and also a little bit less important.

Chris Hulls: When we pulled back in the downturn and all that's where we leaned in. In general, I've had a lot of confidence that when we have narrower time frames with subscription, we're largely gonna be kind of smack dab because that builds more predictably, it falls more predictably. There is more unknown with anything hardware, especially when it's new, because it's a choppier business, one we're less expert in, and also a little bit less important.

Rob Anderson: When we pulled back in the downturn and all that, that's where we leaned in. So, in general, I had a lot of confidence that when we have narrower timeframes with subscription, we're largely going to be kind of smack dab, because that

Russell Burke: I don't like making excuses, but I do think we should get a bit of a hot pass on that one. And the only other area where we've been a little chopper is hardware because there's a lot of unknown and we really didn't buy tile to sell hardware we did it to drive membership. So when we pulled back in the downturn and all that, that's where we leaned in. So in general, I've had a lot of confidence that when we when we have narrower time friends with subscription, we're going to we're largely going to be kind of smack dab because that builds more predictably falls more predictably. And there is more unknown with anything hardware, especially when it's new because the chopper your business, one were less expert in and also a little bit less important.

Rob Anderson: Builds more predictably, falls more predictably, and there is more unknown with anything hardware, especially when it's new, because it's a choppier business, one we're less expert in, and also a little bit less important.

Chris Holes: I got it very helpful and maybe just one follow up just on thinking about the back half of the year from an international versus the US perspective. Could you just maybe lay out some of those priorities and some of those road drivers for those two buckets and kind of how we should be thinking about the contribution on those two fronts. Thanks.

Chris Hulls: Got it. Very helpful. And maybe just one follow-up, just on thinking about the back half of the year from a global versus US perspective, could you just maybe lay out some of those priorities and some of those growth drivers for those two buckets and kind of how we should be thinking about the contribution on those two fronts?

Chris Kantarek: Got it. Very helpful. Maybe just one follow-up, just on thinking about the back half of the year from a international versus a US perspective. Could you just maybe lay out some of those priorities and some of those growth drivers for those two buckets and kind of how we should be thinking about the contribution on those two fronts? Thanks.

Chris Kuntarich: Got it. Very helpful. Maybe just one follow-up, just on thinking about the back half of the year from a international versus a US perspective. Could you just maybe lay out some of those priorities and some of those growth drivers for those two buckets and kind of how we should be thinking about the contribution on those two fronts? Thanks.

Speaker Change: Got it. Very helpful. And maybe just one follow-up, just on thinking about the back half of the year from a international versus the U.S. perspective. Could you just maybe lay out some of those priorities and some of those growth drivers for those two buckets and kind of how we should be thinking about the contribution on those two fronts? Thanks.

Russell Burke: So international is more incremental. There's no new major feature, per se. It's continuing to improve the core. We have a couple optimizations, and we're going to try to see if we can push people convert more in our non-triple tier markets.

Chris Hulls: So international is more incremental, there's no new major feature per se, it's continuing to improve the core. We have a couple of optimizations, and we're going to try to push people to convert more in our non-triple-tier markets. Russell, I'm not sure if we have an exact date that we've announced yet for our next triple-tier launches. An open question for us is whether this is going to be one of our first bigger years around back to school.

Chris Hulls: International is more incremental. There's no new major feature per se. It's continuing to improve the core. We have a couple optimizations, and we're gonna try to see if we can push people to convert more in our non-triple tier markets. Russell, I'm not sure if we have an exact date that we've announced yet for our next triple tier launches. An open question for us is gonna be one of our first bigger years around back to school. We haven't done that back-to-school marketing, nor have we had scale in back to school in most of the world. Obviously, Northern Hemisphere syncs to the US relatively nicely. I'm hopeful and also curious that there is a back-to-school effect overseas as well that will start becoming more pronounced. We'll know more in a quarter on that one.

Speaker Change: So international is more incremental. There's no new major feature per se. It's continuing to.

Chris Holes: I got it very helpful and maybe just one follow up just on thinking about the back half of the year from a international versus the US perspective. Could you just maybe lay out some of those priorities and some of those road drivers for those two buckets and kind of how we should be thinking about the contribution on those two fronts. Thanks. So international is more incremental. There's no new major feature per se.

Rob Anderson: improve the core. We have a couple optimizations and we're going to try to see if we can push people to convert more in our non-triple-tier markets. Russell, I'm not sure we have an exact date that we've announced yet for our next triple-tier launches. An open question for us is going to be one of our first bigger years around back-to-school.

Russell Burke: Russell, I'm not sure if we have an exact date that we've announced yet for our next triple tier launches. An opening question for us is going to be one of our first figure years around back to school. We haven't done that back to school marketing, or if we had scale and back to schools, most of the world, obviously northern hemisphere, sinks to the US relatively nicely. So I am hopeful and also curious that there is a back to school effect overseas as well that will start becoming more pronounced. But we'll we'll know more and a quarter on that one.

Chris Hulls: We haven't done that back-to-school marketing, nor have we had scaled back-to-school programs in most of the world. Obviously, the Northern Hemisphere syncs to the U.S. relatively nicely, so I am hopeful and also curious that there is a back-to-school effect overseas as well that will start becoming more pronounced, but we'll know more in a quarter on that one. We'll know more in a couple weeks, but we'll be able to share it in a quarter.

Speaker Change: We haven't done that back-to-school marketing or if we had scale and back-to-schools in most of the world, obviously Northern Hemisphere.

Chris Holes: It's continuing to improve the core. We have a couple optimizations and we're going to try to see if we can push people convert more in our non triple tier markets. Russell, I'm not sure if we have an exact date that we've announced yet for our next triple tier launches. An opening question for us is going to be one of our first figure years around back to school. We haven't done that back to school marketing or if we had scale and back to schools most of the world, obviously northern hemisphere sinks to the US relatively nicely.

Russell: syncs to the U.S. relatively nicely, so I'm...

Speaker Change: I am hopeful and also curious that there is a back-to-school effect overseas as well that will start becoming more pronounced.

Chris Holes: So I'm I am hopeful and also curious that there is a back to school effect overseas as well that will start becoming more pronounced. But we'll we'll know more and a quarter on that one. We'll know more in a couple weeks, but we'll do a share in quarter. And I think Chris, you know, where we are remain very excited about international there's there's no let up in the in the growth there.

Russell Burke: We'll know more in a couple of weeks, but we'll do a share in quarter. And I think Chris, you know, where we are, remain very excited about international. There's no let up in the in the growth there. You know, we're really seeing a really successful triple tier launch in the Australian New Zealand region. That that that will start to flow through more where we're getting, as we said earlier, on your overall very strong growth internationally. So yeah, we our expectation is we will get consistent increasing growth there.

Speaker Change: But we'll know more in a quarter on that one. We'll know more in a couple of weeks, but we'll be able to share in a quarter. And I think, Chris, we remain very excited about international. There's no let up in the growth there. We're really seeing a really successful triple-tier launch in the Australian New Zealand region. That will start to flow through more.

Chris Hulls: We'll know more in a couple of weeks, but we'll be able to share in a quarter.

Russell Burke: And I think Chris, we remain very excited about international growth; there's no letup in the growth there. We're really seeing a really successful triple-tier launch in the Australian and New Zealand region, that will start to flow through more. We're getting, as we said earlier on, overall very strong growth internationally. So our expectation is that we will get consistent, increasing growth there.

Russell Burke: I think, Chris, you know, we remain very excited about international. There's you know, there's no letup in the growth there. You know, we're really seeing a really successful triple-tier launch in the Australian New Zealand region, that will start to flow through more, where we're getting, as we said earlier on, you know, overall very strong growth internationally. Yeah, our expectation is we will get consistent increase in growth there.

Speaker Change: We're getting, as we said earlier on, overall very strong growth internationally. So yeah, our expectation is we will get consistent increasing growth there.

Chris Holes: You know, we're really seeing a really successful triple tier launch in the Australian New Zealand region. That that that will start to flow through more where we're getting as we said earlier on your overall very strong growth internationally. So yeah, we our expectation is we will get consistent increasing growth there.

RJ: Thank you very much for help. Thanks, Chris, for every cell site analyst that's in attendance. If you'd like to ask a follow-up question, please raise your hand, queue up, and we'll get to as many as we can.

RJ: Thank you very much, Beth. It was very helpful.

Wei-Weng Chen: Thank you very much, both. Very helpful.

Chris Kuntarich: Thank you very much, both. Very helpful.

Chris: Thank you very much, Beth. Very helpful.

Operator: Thanks, Chris. For every sell-side analyst that's in attendance, if you'd like to ask a follow-up question, please raise your hand, queue up, and we'll get to as many as we can. Next, we'd like to open a line for Julian, if you could unmute and ask your question.

RJ: Chris, for every Southside analyst that's in attendance, if you'd like to ask a follow-up question, please raise your hand, queue up, and we'll get to as many as we can. Next, we'd like to open the line to Julian. If you could unmute, ask your question.

Chris: Thanks, Chris.

Speaker Change: For every Southside analyst that's in attendance, if you'd like to ask a follow-up question, please raise your hand, queue up, and we'll get to as many as we can.

Julian: Next we'd like to open a line of Julian. If you could unmute and ask your question. Yep, hi, hi Chris. I like my question relates to the advertising business. So you've started with banner ads, and I understand you're selling in clusters of sort of 10,000 names at a pop. Well, what's the timeline to sort of moving to you know video and maybe carousel ads to the whole screen is taking over and speak more effectively than and how they plan to sell on a more targeted basis in that sort of 10,000 nine cluster. The 10,000 name cluster.

Speaker Change: Next, we'd like to open a line of Julian. If you could unmute and ask your question.

Operator: Thank you very much for help. Thanks Chris for every cell site analyst that's in attendance. If you'd like to ask a follow up question, please raise your hand, queue up and we'll we'll get to as many as we can.

RJ: Yep, hi Chris, my question relates to the advertising business. So you've started with banner ads, and I understand you're selling in clusters of sort of 10,000 names that have popped up. What's the timeline for sort of moving to video, maybe carousel ads, so the whole screen is taken over, and it's a bit more effective? And are there plans to sell on a more targeted basis in that sort of 10,000 name

Julian: Yep. Hi. Hi, Chris. My question relates to the advertising business. You've started with banner ads, and I understand you're selling in clusters of sort of 10,000 names at a pop. What's the timeline to sort of moving to, you know, video, maybe carousel ads, so the whole screen is taken over and it's a bit more effective? Are there, you know, plans to sell on a more targeted basis than that sort of 10,000 name cluster?

[Analyst 2]: Yep. Hi. Hi, Chris. My question relates to the advertising business. You've started with banner ads, and I understand you're selling in clusters of sort of 10,000 names at a pop. What's the timeline to sort of moving to, you know, video, maybe carousel ads, so the whole screen is taken over and it's a bit more effective? Are there, you know, plans to sell on a more targeted basis than that sort of 10,000 name cluster?

Julian: Hi Chris, my question relates to the advertising business.

Julian: So you've started with banner ads and I understand you're selling in clusters of 10,000 names that have popped. What's the timeline for moving to video, maybe carousel ads?

Julian: Next we'd like to open a line of Julian. If you could unmute and ask your question. Yep, hi, hi Chris. I like my question relates to the advertising business. So you've started with banner ads and I understand you're selling in clusters of sort of 10,000 names at a pop. Well, what's the time line to sort of moving to you know video and maybe carousel ads to the whole screen is taking over and speak more effectively than and how they plan to sell on more targeted basis in that sort of 10,000 nine cluster.

Rob Anderson: So the whole screen is taken over and it's a bit more effective and are there plans to sell on a more targeted basis than that sort of 10,000 name cluster?

Chris Hulls: The 10,000 name cluster, there's a little more complexity in that, and you need to unpack that a bit more. With you, and I'm not up to speed fully on how we're chunking in that regard. Russell can chime in if you have more specifics there.

Chris Hulls: The 10,000 name cluster, there's a little more complexity in that, and to unpack that a bit more with you. I'm not up to speed fully on how we're chunking in that regard. Russ will chime in if you have more specifics there. As it relates to video and things, that is not the direction we're going. Going back to the question of user trust, our lifeblood is our core free user base. Before we launched ads, I forced everyone in the company, even if you had a paid account, to live with them and try them. Any Life360 employee, although they have premium accounts, they see the ads, too.

Speaker Change: The 10,000 name cluster, there's a little more complexity in that, and you need to unpack that a bit more.

Chris Holes: There's a little more complexity in that, and it's unpacked a bit more with you, and I'm not up to speed fully on how we're chunking in that regard. Russell, chime in with you. The more specifics there is, a relative video and things that is not the direction we're going. Going back to the question of user trust. Our lifeblood is our core free user base. Before we launched ads, I forced everyone in the company to even get a paid account to live with them and try them. So any life through 60 employee. Although they have premium accounts, that they see the ads to and doing things like interstitials and videos.

Speaker Change: With you, and I'm not up to speed fully on how we're chunking in that regard. Russell chime in if you have more specifics there.

Chris Hulls: As it relates to video and things, that is not the direction we're going. Going back to the question of user trust, our lifeblood is our core user base. Before we launched ads, I forced everyone in the company, even if you had a paid account, to live with them and try them. So, any Light360 employee, although they have premium accounts, they see the ads too.

Speaker Change: As it relates to video and things, that is not the direction we're going, going back to the question of user trust.

Julian: The 10,000 name cluster. There's a little more complexity in that and it's unpacked a bit more with you and I'm not up to speed fully on how we're chunking in that regard. Russell chime in with you the more specifics there is a relative video and things that is not the direction we're going. Going back to the question of user trust. Our lifeblood is our core free user base. Before we launched ads, I forced everyone in the company to even get a paid account to live with them and try them.

Speaker Change: Our lifeblood is our core free user base. Before we launched ads, I forced everyone in the company, even if you had a paid account, to live with them and try them. So any Light360 employee.

Speaker Change: Although they have premium accounts, they see the ads too. And doing things like interstitials and videos.

Chris Hulls: And doing things like interstitials and videos. While our MAU base is still growing, that would be a bridge too far for us. At some point, that flattens out. We get in harvest mode.

Chris Hulls: Doing things like interstitials and videos, while our MAU base is still growing, that would be a bridge too far for us. At some point, that flattens out, we get in harvest mode. One thing I'm very, very confident on is when we're less focused on top-of-funnel growth, we will be able to massively drive bottom-line performance. Right now, that's not where we're going. We really wanna go on things that improve the user experience. We mean that seriously. It's not corporate speak. When we can actually match you with products and services that are really good for you using your data, I think that will be both more effective and it will be additive to the user experience versus taking it away.

Chris Holes: While our MA US base is still growing, that would be a bridge too far for us. At some point, that flattened out. We get in harvest mode, and one thing I'm very, very confident on is when we're less focused on top of funnel growth, we will build a massively dry bottom line performance. But right now, that's not where we're going. We really want to go and things that improve the user experience. And we mean that seriously; it's not corporate speak when we can actually match you with products and services that are really good for using your data.

Rob Anderson: While our MAU is...

Rob Anderson: base is still growing, that would be a bridge too far for us. At some point that flattens out, we get in harvest mode and one thing I'm very, very confident on is when we're less focused on top of funnel growth, we will be able to massively drive bottom line performance. But right now, that's not where we're going. We really want to go in things that improve the user experience. And we mean that seriously, it's not corporate speak, when we can actually match you with products.

Chris Hulls: And one thing I'm very, very confident about is when we're less focused on top of the funnel growth, we will be able to massively drive bottom line performance. But right now, that's not where we're going. We really want to invest in things that improve the user experience, and we mean that seriously. It's not corporate speak. When we can actually match you with products and services that are really good for you using your data, I think that'll be both more effective, and it will be additive to the user experience versus taking it away.

Julian: So any life through 60 employee. Although they have premium accounts that they see the ads to and doing things like interstitials and videos. While our MA US base is still growing that would be a bridge too far for us. At some point that flattened out. We get in harvest mode and one thing I'm very, very confident on is when we're less focused on top of funnel growth we will build a massively dry bottom line performance.

Rob Anderson: and services that are really good for using your data, I think that'll be both more effective and it will be additive to the user experience versus taking it away. And last, can I comment on that? We look at what is the job to be done and how do we not get in the way of the workflow. If you're something like a Facebook and someone's using you in line when they're bored or

Chris Holes: I think that will be both more effective and it will be additive to the user experience versus taking it away. And last time I comment on that, we look at what is the job to be done and how do we not get in the way of the workflow. There's something like a Facebook, and someone's using you in line when they're bored or trying to zone out. They don't really mind that. But with Life360, you're much more in and out. So we need to think about it a little bit differently. So that means the advertising rating is going to be more about that sort of silly insurance that sort of commission and partnership thing rather than traditional advertising which you see on other sort of platforms. It's a bit more complicated than that.

Chris Hulls: And last, can I comment on that? We look at what the job to be done is and how we don't get in the way of the workflow. If you're something like Facebook and someone's using you in line when they're bored or trying to zone out, they don't really mind that, but with i360, you're much more in and out, so we need to think about it a little bit differently.

Chris Hulls: Lastly, I comment on that. We look at what is the job to be done and how do we not get in the way of the workflow. If you're something like a Facebook and someone's using you online when they're bored or trying to zone out, they don't really mind an ad. With Life360, you're much more in and out, so we need to think about it a little bit differently.

Julian: But right now that's not where we're going. We really want to go and things that improve the user experience. And we mean that seriously it's not corporate speak when we can actually match you with products and services that are really good for using your data. I think that will be both more effective and it will be additive to the user experience versus taking it away. And last time I comment on that we look at what is the job to be done and how do we not get in the way of the workflow.

Speaker Change: trying to zone out. They don't really mind that, but with i360 you're much more in and out, so we need to think about it a little bit differently.

Chris Hulls: So that means like advertising revenue is going to be more about that sort of selling insurance, that sort of commission partnership thing rather than traditional advertising which is still on other platforms? It's a bit more complex.

Julian: That means like the advertising revenue is gonna be more about that sort of, is it selling insurance, that sort of commission partnership thing rather than traditional advertising, which you'd see on other sort of platforms?

[Analyst 2]: That means like the advertising revenue is gonna be more about that sort of, is it selling insurance, that sort of commission partnership thing rather than traditional advertising, which you'd see on other sort of platforms?

Speaker Change: So that means like the advertising revenue is going to be more about that sort of selling insurance, that sort of commission partnership thing, rather than traditional advertising which you'd see on other sort of platforms?

Julian: There's something like a Facebook and someone's using you in line when they're bored or trying to zone out. They don't really mind that. But with Life360 you're much more in and out. So we need to think about it a little bit differently.

Chris Hulls: It's a bit more complicated than that. There's the whole piece around off-site advertising, which for people who are not as familiar, it's a little bit harder to understand, but basically, we will help target ads off the platform by doing IDFA matching for users who have opted in. That's actually something that Apple really helped us with, counterintuitively, because now I'm sure everyone's seeing the "Will you allow this app to track you across websites?" pop-up that is ubiquitous.

Chris Hulls: It's a bit more complicated than that. There's the whole piece around off-site advertising, which for people who are not as familiar, it's a little bit harder to grok. Basically, we will help target ads off the platform by doing IDFA matching for users who have opted in. That's actually something that Apple really helped us with, counterintuitively, because now I'm sure everyone's seen the "Will you allow this app to track you across websites?" pop up that is ubiquitous. That might have in the past been an area we thought would be a little hot to get into because of the trust and privacy concerns. We're seeing huge, huge opt-in rates that far exceed industry averages. We do have this ability for that cross-app and cross-site tracking that users will not even feel the experience.

Chris Holes: There's a whole piece around offside advertising, which for people who are not as familiar is a little bit harder to grok, but basically we will help target ads off the platform by doing IDFA matching for users who have opted in. That's actually something that Apple really helped us with, counterintuitively, because now I'm sure everyone's seeing the way you allow this app to track you across websites pop up that is you pick what is that might have it in the past scenario we thought would be a little hot to get into because of the trust and privacy concerns.

Speaker Change: It's a bit more complicated than that. There's the whole piece around off-site advertising, which for people who are...

Speaker Change: Not as familiar, it's a little bit harder to grok, but basically, we will help target ads off the platform by doing IDFA matching for users who have opted in. That's actually something that Apple really helped us with, counterintuitively, because now, I'm sure everyone's seeing the, will you allow this app to track you across websites pop-up that is

Chris Holes: So that means the advertising rating is going to be more about that sort of silly insurance that sort of commission and partnership thing rather than traditional advertising which you see on other sort of platforms. It's a bit more complicated than that. There's a whole piece around offside advertising which for people who are not as familiar as little bit harder to grok but basically we will help target ads off the platform by doing IDFA matching for users who have opted in.

Chris Hulls: That might have in the past been an area we thought would be a little hot to get into because of trust and privacy concerns, but we're seeing huge, huge opt-in rates that far exceed industry averages. So we do have this ability for that cross-app and cross-site tracking where users will not even feel the experience. We're just using their data in a very privacy-safe way to help target ads, and this is very different from raw data because instead of us giving a third party raw GPS points, you could imagine a party saying, "hey, these opted-in IDFAs, can you show me people who have been to Target in the last seven days?"

Rob Anderson: Ubiquitous, that might have in the past been an area we thought would be a little hot to get into because of the trust and privacy concerns, but we're seeing huge, huge opt-in rates that far exceed industry averages, so we do have this ability for that cross app and cross site tracking that users will not even

Chris Holes: But we're seeing huge, huge often rates that far exceed industry averages. So we do have disability for that cross app and cross site tracking that users will not even feel the experience. We're just using their data in a very privacy safe way to help target ads and very different than raw data because instead of us giving a third party raw GPS points, you could imagine a party saying, "Hey, these opted in IDFA, can you show me people have been to Target in the last seven days?" Or we can even get to a real time component at some point, and those are things will be completely neutral and invisible to these experience.

Chris Holes: That's actually something that Apple really helped us with counterintuitively because now I'm sure everyone's seeing the way you allow this app to track you across websites pop up that is you pick what is that might have it in the past scenario we thought would be a little hot to get into because of the trust and privacy concerns. But we're seeing huge, huge often rates that far exceed industry averages. So we do have disability for that cross app and cross site tracking that users will not even feel the experience we're just using their data in a very privacy safe way to help target ads and very different than raw data because instead of us giving a third party raw GPS points you could imagine a party saying hey these opted in IDFA can you show me people have been to target in the last seven days or we can even get to a real time component at some point and those are things will be completely neutral and invisible to these experience. Yeah and of course transparency and joy as we went opt out you can opt out. Cool thanks Chris.

Chris Hulls: We're just using their data in a very privacy-safe way to help target ads and very different than raw data because instead of us giving a third party raw GPS points, you could imagine a party saying, "Hey, these opted-in IDFAs, can you show me people who have been to Target in the last seven days?" We could even get to a real-time component at some point. Those are the things will be completely neutral and invisible to the user experience. Again, of course, transparency and choice. If you want to opt out, you can opt out.

Rob Anderson: feel the experience, we're just using their data in a very privacy-safe way to help target ads and very different than raw data because instead of us giving a third-party raw GPS points,

Rob Anderson: You could imagine a party saying, hey, these opted-in IDFAs, can you show me people who have been to Target in the last seven days? Or we could even get to a real-time component at some point.

Chris Hulls: Or we could even get to a real-time component at some point. And those are things that will be completely neutral and invisible to the user experience. And, of course, transparency and choice. If you want to opt out, you can opt out. Cool. Thanks, Chris.

Rob Anderson: And those are things that will be completely neutral and invisible to the user experience. And of course, transparency and choice. If you want to opt out, you can opt out.

Chris Holes: Yeah, and of course transparency and joy as we went opt out. You can opt out.

Chris Holes: Cool thanks, Chris.

Julian: Cool. Thanks, Chris.

[Analyst 2]: Cool. Thanks, Chris.

Chris: Cool. Thanks, Chris.

Rob Anderson: i

RJ: Thanks. Let's try and go back to James Bales from Morgan Stanley. So if we can unmute his line and see, James, you can ask your question. You are still choppy if you ask the question very slowly. If I, if I can hear it, and now if I'll try my best to answer. Otherwise, won't you shoot RJ? Or I do have his question, so we can ask it. And then if there's, but James, keep if you want to try one more time. If then I can ask your question. So my question is about the role that's going to be required from the public hospital business to scale our next six or three years. How much size effort and how much engineering is required to get that business where you made it today.

RJ: Thanks. Let's try and go back to James Bales from Morgan Stanley so we can unmute his line and see, James, you can ask your question.

Operator: Thanks. Let's try and go back to James Bales from Morgan Stanley, see if we can unmute his line and see if, James, you can ask your question.

Speaker Change: Thanks. Let's try and go back to James Bales from Morgan Stanley so we can unmute his line and see if, James, you can ask your question.

RJ: There you go; there you go.

James Bales: Hey, what's up?

RJ: You are still choppy. If you ask the question very slowly, if I can hear it enough, I'll try my best to answer. Otherwise, why don't you shoot RJ or Russell? I do have his question, so we can ask it. And then if there's... But James, if you want to try one more time, then I can ask your question.

Chris Hulls: You are still choppy. If you ask the question very slowly, if I can hear it enough, I'll try my best to answer. Otherwise, why don't you shoot RJ or Russell a note?

Speaker Change: You are still

Rob Anderson: choppy

Rob Anderson: If you ask the question very slowly, if I can hear it enough, I'll try my best to answer. Otherwise, why don't you shoot RJ or Russell? I do have his question, so we can ask it and then if there's, but James, if you want to try one more time, then I can ask your question.

James Bales: Thanks let's try and go back to James Bales from Morgan Stanley so if we can unmute his line and see James you can ask your question. You are still choppy if you ask the question very slowly if I if I can hear it and now if I'll try my best to answer otherwise won't you shoot RJ or I do have his question so we can ask it and then if there's but James keep if you want to try one more time if then I can ask your question.

Operator: I do have his question, so we can ask it. James, if you wanna try one more time, then I can ask your question.

James Bales: Well, my question is about the real investment you put in to get your advertising business to scale over the next, say, three years. How much sales effort and how much engineering are required to get that business where you need it to be?

Russell Burke: My question is about the real investment required for, you know, advertising business to scale over the next, say, 3 years. How much sales effort and how much engineering is required to get that business where you need it to be?

James Bales: My question is about the real investment required for, you know, advertising business to scale over the next, say, 3 years. How much sales effort and how much engineering is required to get that business where you need it to be?

James Bales: My question is about the real investment required for advertising business to scale over the next, say, three years. How much sales effort and how much engineering is required to get that business where you need it to be?

Chris Hulls: So, I think I understood about 80% of what you said, and it was largely, if I were to repeat it back to you, I didn't hear the first half of the sentence, but essentially how much investment in engineers, people, timing to ramp up advertising is that essentially the essence of it? Thank you for having me.

James Bales: So I think I got about 80% of what you said, and it was largely, if I were to repeat it back to you, I didn't hear the first half of the sentence. But essentially, how much investment in engineers, people, timing to ramp up advertising, is that essentially the essence of it. And I see RJ just paced with a question in chat for everyone who didn't see it. And he's specifically about reinvestment. So on the reinvestment topic, one day I will share as we we we are aligned with the team and also the market that anything with advertising will be contribution margin positive from year one.

Chris Hulls: I think I got about 80% of what you said, and it was largely hard to repeat it back to you. I didn't hear the first half of the sentence, but essentially, how much investment in engineers, people, timing to ramp up advertising, is that essentially the essence of it? That's right. Yeah. I see RJ just pasted the question in chat for everyone who didn't see it, and I see it's specifically about reinvestment. On the reinvestment topic, one thing I will share is we are aligned with the team and also the market that anything with advertising will be contribution margin positive from year one. We're definitely gonna live up to that for this year.

Speaker Change: So, I think I got about 80% of what you said, and it was largely, if I were to repeat it back to you, I didn't hear the first half of the sentence, but essentially how much investment in engineers, people, timing to ramp up advertising, is that essentially the essence of it?

James Bales: So my question is about the role that's going to be required from the public hospital business to scale our next six or three years how much size effort and how much engineering is required to get that business where you made it today.

James Bales: That's right.

Chris Hulls: Yeah. I see RJ just pasted the question in chat for everyone who didn't see it, and I see it's specifically about reinvestment. On the reinvestment topic, one thing I will share is we are aligned with the team and also the market that anything with advertising will be contribution margin positive from year one. We're definitely gonna live up to that for this year.

Speaker Change: Thank you very much.

Chris Hulls: And I see RJ just pasted a question in chat for everyone who didn't see it, and I see it specifically about reinvestment. So, on the reinvestment topic, one thing I will share is we are aligned with the team and also the market that anything with advertising will be contribution margin and positive from year one. And we're definitely going to live up to that for this year.

Speaker Change: And I see RJ just pasted a question in chat for everyone who didn't see it, and I see it specifically about reinvestment. So, on the reinvestment topic, one thing I will share is we, we, we are,

Chris Holes: So I think I got about 80% of what you said and it was largely if I were to repeat it back to you I didn't hear the first half of the sentence but essentially how much investment in engineers people timing to ramp up advertising is that essentially the essence of it. And I see RJ just paced with a question in chat for everyone who didn't see it. And he's specifically about reinvestment.

Speaker Change: Aligned with the team and also the market that.

Speaker Change: Anything with advertising will be.

Speaker Change: Contribution margin and positive from year one, and we're definitely gonna live up to that for this year. It's very different than a lot of projects where we build it for a year. 2nd year. We kind of launch it and fairly break even. It takes the 3rd year to become profitable.

Chris Holes: And the redeveloping it will live up to that for this year. It's very different than a lot of projects where we build it for 30 years; second year we kind of launch it and barely break even. It takes the third year to become profitable. That is not the case with advertising. So it is going to have to ramp up, but we are going to take that approach where I can say we're on a contribution margin basis. We will never be in the red on advertising. And of course, things could change, and we would tell the market if that would happen.

Chris Hulls: It's very different than a lot of projects where we build it for a year, second year, we kinda launch it and barely break even, and it takes the third year to become profitable. That is not the case with advertising. It is gonna have to ramp up, but we are gonna take that approach where I can say we're on a contribution margin basis, we will never be in the red on advertising. Of course, things could change, and we would tell the market if that were to happen. We have line of sight and a roadmap that says, as advertising ramps up, we reinvest it, but we will stay in the black. It will be a very long game. I think it's

Chris Holes: So on the reinvestment topic, one day I will share as we we we are aligned with the team and also the market that anything with advertising will be contribution margin positive from year one. And the redeveloping it will live up to that for this year. It's very different than a lot of projects where we build it for 30 year, second year we kind of launch it and barely break even it takes the third year to become profitable.

Chris Hulls: It's very different than a lot of projects where we build it for a year, the second year we kind of launch it and barely break even, and it takes the third year to become profitable. That is not the case with advertising. So it is going to have to ramp up, but we are going to take that approach where I can say we're on a contribution margin basis; we will never be in the red on advertising.

Rob Anderson: That is not the case with advertising.

Speaker Change: So it is going to have to ramp up, but we are going to take that approach where I can say we're on a contribution margin basis. We will never be in the red on advertising. And of course, things could change and we would tell the market if that were to happen. But we have line of sight and a road map that says as advertising ramps up, we reinvest it, but we will stay in the black.

Chris Hulls: And, of course, things could change, and we would tell the market if that were to happen, but we have a line of sight and a roadmap that says as advertising ramps up, we reinvest it, but we will stay in the black. And it will be a very long game.

Russell Burke: But we have line of sight in a road map that says, as advertising ramps up, we reinvest it, but we will stand the black. And it will be a very long game. I think it's you look at Uber. There has been accelerating, but really started accelerating in years three and four. And James, to the second part of your question, really goes back to what I was saying before. Yes, advertising definitely opens up opportunities in international. So if we look at territories where we actually do have pretty significant in the MAU, whether it's like territories like Brazil or India, where we wouldn't necessarily think about moving into a triple tier type product in the near future, it definitely gives us a major opportunity to start to monetize those users.

Chris Hulls: I think it's, you can look at Uber; their rent has been accelerating, but it really started accelerating in years three and four. And James, to the second part of your question,

Speaker Change: And it will be a very long game. I think it's, you can look at Uber, their ramp has been accelerating, but it really started accelerating in years three and four.

Chris Hulls: You can look at Uber, their ramp has been accelerating, but it really started accelerating in years 3 and 4.

Chris Holes: That is not the case with advertising. So it is going to have to ramp up, but we are going to take that approach where I can say we're we're on a contribution margin basis. We will never be in the red on advertising. And of course things could change and we would tell the market of that would happen. But we have line of sight in a road map that says as advertising ramps up, we reinvest it, but we will stand the black.

Russell Burke: And James, to the second part of your question, it really goes back to what I was saying before. Yes, advertising definitely opens up opportunities in international. So if we look at territories where we actually do have pretty significant MAU, whether it's territories like Brazil or India where we wouldn't necessarily think about moving into a triple-tiered type product in the near future, it definitely gives us a major opportunity to start to monetize those users.

Russell Burke: James, to the second part of your question, really goes back to what I was saying before. Yes, advertising definitely opens up opportunities in international. If we look at territories where we actually do have pretty significant MAU, whether it's like territories like Brazil or India, where we wouldn't necessarily think about moving into a triple tier type product in the near future, it definitely gives us a major opportunity to start to monetize those users.

Rob Anderson: And James, to the second part of your question, it really goes back to what I was saying before. Yes, advertising definitely opens up opportunities in international. So if we look at territories where we actually do have pretty significant MAU, whether it's like...

Russell Burke: And it will be a very long game. I think it's you look at Uber. There has been accelerating, but really started accelerating in years three and four. And James to the second part of your question really goes back to what I was saying before. Yes, advertising definitely opens up opportunities in international. So if we look at territories where we actually do have pretty significant in the MAU, whether it's like territories like Brazil or India, where we wouldn't necessarily think about moving into a triple tier type product in the near future, it definitely gives us a major opportunity to start to monetize those users.

James Bales: Thanks, James.

Speaker Change: territories like Brazil or India, where we wouldn't necessarily think about moving into a triple tier type product in the near future, it definitely gives us a major opportunity to start to monetize those users.

Rob Anderson: i

Russell Burke: Thanks, James.

Chris Hulls: Thanks, guys. Thanks, James. With that, concludes all the questions that are in the queue. Chris, I'll turn it over to you to conclude. I have nothing beyond what's already been shared, and I'm very excited that we finished our first quarter as a dual-listed company. Thank you all for the time, and looking forward to connecting with many of you in the days, weeks, and months to come.

Chris Hulls: Thanks, guys. Thanks, James.

Operator: With that, concludes all the questions that are in the queue. Chris, I'll turn it over to you to conclude.

RJ: With that, that concludes all the questions that are in the queue. So, Chris, I'll turn it over to you to conclude.

James Bales: Thanks, James.

RJ: With that, that concludes all the questions that are in the queue.

James Bales: With that, that concludes all the questions that are in the queue. So, Chris, I'll turn it over to you to conclude.

Chris Holes: So, Chris, I'll turn it over to you to conclude. I have nothing beyond was already been shared, and I'm very excited that we've finished our first quarter as a dualisted company. And thank you all for the time and looking forward to connecting with many of you in the days, weeks, and months ago.

Chris Hulls: I have nothing beyond what's already been shared, and I'm very excited that we've finished our first quarter as a dual-listed company and thank you all for your time. I'm looking forward to connecting with many of you in the days, weeks, and months to come.

Chris Hulls: I have nothing beyond what's already been shared, and I'm very excited that we finished our first quarter as a dual-listed company. Thank you all for the time, and looking forward to connecting with many of you in the days, weeks, and months to come.

Chris: I have nothing beyond what has already been shared, and I'm very excited that we've finished our first quarter as a dual listed company, and thank you all for the time and looking forward to connecting with many of you in the days, weeks, and months to come.

Operator: With that, that concludes all the questions that are in the queue.

Chris Holes: So Chris, I'll turn it over to you to conclude. I have nothing beyond was already been shared and I'm very excited that we've finished our first quarter as a dualisted company.

Goodbye.

James Bales: Goodbye.

Chris Holes: And thank you all for the time and looking forward to connecting with many of you in the days, weeks and months ago.

Operator: Goodbye.

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