Full Year 2024 Life360 Inc Earnings Call

February 27, 2025

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 media release issued earlier today, which has been posted on the Investor Relations page of the company's web site we.

We have posted an updated investor presentation to the Investor Relations page, which includes additional complementary graphics and data.

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.

Speaker Change: We will begin with a business update by co founder and CEO, Chris holes, and then CFO Russell Burke will provide detail on the Q4 and 2020 for financials.

Speaker Change: Chris will then provide some 2025 outlook comments, which will be followed by a Q&A session.

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

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

Chris Holes: Good afternoon to everyone joining us from the U S and good morning to those tuning in from Australia. Thank you for being here for our fourth quarter call results.

Chris Holes: Let's begin with our most recent results.

Chris Holes: 360 made remarkable strides in Q4 2024 capping off the year with our best ever holiday period, and achieving record breaking annual results in both monthly active users and paying circles, all while advancing our overall strategy to be a super app or families that.

Chris Holes: So we did experienced an expected seasonal slowdown in user growth coming out of a very strong Q3, our solid Q4 results underscore our focus on key growth priorities across the board.

Chris Holes: Our member base expanded again this year growing by 2.8 million, new MAA Skus to reach a total of $79 6, million% to 30% year over year increase we also saw solid growth in our paid offerings as our paying circles grew 25% year over year to $2 3 million with a quarterly net increase of 69000.

Chris Holes: Circles.

Chris Holes: International expansion was a key driver with international Emma use up 46% year over year and paying circles, increasing by 33% even amid price adjustments for legacy subscribers outside of our core triple tiered markets.

Chris Holes: Average revenue per paying circle in international markets grew by 42% year over year. Thanks to updates in our legacy premium pricing strategy, which have allowed us to accelerate experimentation with our new dual tier approach.

Chris Holes: 'twenty 'twenty four or was a transformative year for like 360 highlights included the successful launch of our advertising business. The introduction of a cutting edge lineup of power devices and award winning brand campaign, a key strategic partnership and investment in Hubbell and the milestone completion of our U S IPO to become publicly traded on the NASDAQ.

Chris Holes: We also achieved record net additions to our M. A use in subscribers on an annual basis.

Chris Holes: As we enter 2025, we are laser focused on achieving our longer term strategic goals, reaching 150 million Mou, surpassing $1 billion in annual revenue and exceeding a 35% adjusted EBITDA margin.

Chris Holes: To achieve these goals our priorities are to grow our user base scale, our paid offerings create new revenue streams and enhance profitability.

Chris Holes: In 2025, we remain committed to providing our members with enduring value, helping them stay connected with the people pets and things they love the.

Chris Holes: The vast majority of our users come through word of mouth referrals and we remain underpenetrated in the U S and lightly penetrated in international markets.

Chris Holes: Even in our most mature U S regions, we continue to experience strong growth highlighting the significant potential for further expansion.

Our freemium model remains central to our strategy offering free members the opportunity to experience like $3 60, and ultimately recognize the unmatched peace of mind provided by freemium features.

Chris Holes: This year, we will continue to elevate the life 360 experience by improving location accuracy and speed.

Chris Holes: Introducing new premium features tailored to specific needs such as those as pet owners.

Chris Holes: These enhancements will drive increased user engagement and satisfaction, creating opportunities for organic virality and referrals to amplify. This we will strategically invest in marketing to build stronger brand affinity and accelerate conversions from free to paid memberships.

Chris Holes: Internationally, we are significantly underpenetrated and see vast opportunities for growth.

Chris Holes: In 2025, we will execute optimized a full funnel marketing campaigns and triple to your markets to boost brand awareness and drive Mou growth. Additionally.

Raymond Jones: 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. 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 media release issued earlier today, which has been posted on the investor relations page of the company's website. We have posted an updated investor presentation to the investor relations page, 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.

Chris Holes: Additionally, we plan to expand the availability of emergency dispatch services triggered by the Sos in car crash detection to more countries unlocking new regions for triple tier and increasing the value of our offerings on a global scale.

Chris Holes: In Q3, 2024, we launched our redesigned tile device lineup. The first fully designed in house by light $3 60.

Chris Holes: This lineup differentiates us with innovative features like Sos capabilities, a function unmatched by other devices across Google and Apple networks.

Raymond Jones: We have posted an updated investor presentation to the investor relations page, 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.

Chris Holes: During Q4 2020 for tile received widespread acclaim as a top holiday gift and an essential luggage tracker during busy travel periods, which drove noticeable year over year growth in direct to consumer sales.

Chris Holes: Tile is becoming a valuable gateway to a like 360, the subscription business the percentage of U S premium subscribers actively linking tile to their accounts continue to rise in Q4 'twenty four.

Raymond Jones: We will begin with a business update by Co-founder and CEO Chris Hulls, and then CFO Russell Burke will provide detail on the Q4 and 2024 financials. Chris will then provide some 2025 outlook comments, which will be followed by a Q&A session. We request that participants limit themselves to one question so that we can get through as many participants as possible. I would like to now turn the call over to Chris.

Chris Holes: In 2025, we will complete the integration of tile into the light through 60, App, making it the exclusive activation platform for all newtyle devices and exciting step towards streamlining the user experience and further strengthening our ecosystem.

Chris Holes: Looking ahead for the tile integration nearing completion, we are shifting our focus to expanding our GPS hardware lineup designed to make life easier and safer for families.

Chris Hulls: Good afternoon to everyone joining us from the US, and good morning to those tuning in from Australia. Thank you for being here for our Q4 results call. Let's begin with our most recent results. Life360 made remarkable strides in Q4 2024, capping off the year with our best ever holiday period and achieving record-breaking annual results in both monthly active users and paying circles, all while advancing our overall strategy to be a super app for families. Though we did experience an expected seasonal slowdown in user growth coming out of a very strong Q3, our solid Q4 results underscore our focus on key growth priorities across the board. Our member base expanded again this year, growing by 2.8 million new MAUs to reach a total of 79.6 million, a 30% year-over-year increase.

Plan to finalize the development of a pet tracking device and go to market by late 2025, followed by an advanced elder care product. These high growth verticals will drive subscription models during the next wave of subscription growth.

Chris Holes: By delivering purpose driven hardware that spans multiple life stages, we aimed to help families stay connected to what matters most.

Chris Holes: In Q1, 'twenty four we advanced our advertising platform setting the stage for significant growth in 2025, our goal is to deliver contextually relevant ad.

Chris Hulls: Though we did experience an expected seasonal slowdown in user growth coming out of a very strong Q3, our solid Q4 results underscore our focus on key growth priorities across the board. Our member base expanded again this year, growing by 2.8 million new MAUs to reach a total of 79.6 million, a 30% year-over-year increase.

Add enhanced bricks principal offering advertisers unmatched precision powered by our proprietary first party location data.

Chris Holes: Key Q4 milestones include activating global programmatic capabilities, expanding audience segmentation tools and advancing AD measurement and attribution.

Chris Hulls: We also saw solid growth in our paid offerings as our paying circles grew 25% year-over-year to 2.3 million, with a quarterly net increase of 69,000 paying circles. International expansion was a key driver, with international MAUs up 46% year-over-year and paying circles increasing by 33% even amid price adjustments for legacy subscribers outside of our core triple-tier markets. Average revenue per paying circle in international markets grew by 42% year-over-year, thanks to updates in our legacy premium pricing strategy, which have allowed us to accelerate experimentation with our new dual tier approach. 2024 was a transformative year for Life360.

Chris Holes: Okay.

Chris Holes: The life fish feed AD platform and offers an unparalleled access to our engaged audience of families through custom partnerships set of our collaboration with Uber.

Chris Holes: You can create tailored campaigns, including feature sponsorships push notifications and co marketing campaigns.

Chris Holes: For those seeking scale self managed solutions provide programmatic access to in App native and Tory and curated private marketplace deals leveraging thousands of targeted audience segments. These capabilities empower advertisers connect with the right audiences through major DSP and media platforms.

Chris Hulls: Average revenue per paying circle in international markets grew by 42% year-over-year, thanks to updates in our legacy premium pricing strategy, which have allowed us to accelerate experimentation with our new dual tier approach. 2024 was a transformative year for Life360.

This quarter, we quadrupled our engagement pipeline of prospective partners eager to leverage our unique first party location data.

Chris Hulls: Highlights included the successful launch of our advertising business, the introduction of a cutting-edge lineup of Tile devices, an award-winning brand campaign, a key strategic partnership and investment in Hubble, and the milestone completion of our US IPO to become publicly traded on the Nasdaq. We also achieved record net additions to our MAUs and subscribers on an annual basis. As we enter 2025, we are laser-focused on achieving our longer term strategic goals, reaching 150 million MAU, surpassing $1 billion in annual revenue, and exceeding a 35% adjusted EBITDA margin. To achieve these goals, our priorities are to grow our user base, scale our paid offerings, create new revenue streams, and enhance profitability. In 2025, we remain committed to providing our members with enduring value, helping them stay connected to the people, pets, and things they love.

Chris Holes: These partners see value in integrating high visibility signals, such as shopping behaviors retail locations with promotions that drive onsite purchases and loyalty participation.

Chris Holes: While realizing our full advertising vision will take time early results reinforce our confidence that advertising could eventually rival subscriptions as a major revenue stream and we are thrilled to announce the purchase of Phanteks advertising unit and AI platform that empowers smarter advertising through cutting edge machine learning and privacy first technology.

Chris Holes: We are excited to welcome their talented small team to <unk> hundred 60, and look forward to bringing their expertise to accelerate our advertising capabilities driving the execution of our 2020 roadmap.

Chris Hulls: To achieve these goals, our priorities are to grow our user base, scale our paid offerings, create new revenue streams, and enhance profitability. In 2025, we remain committed to providing our members with enduring value, helping them stay connected to the people, pets, and things they love.

Chris Holes: Our data business also grew in Q4 supported by our exclusive partnership with Placer, AI, which positions us for accelerated growth in 2025 and beyond.

Chris Holes: Additionally, our strategic investment in Hubbell secures exclusive access to a promising future enterprise revenue stream once hubbell satellite network scales, they will enhance location capabilities.

Chris Hulls: The vast majority of our users come through word of mouth or referrals, and we remain under-penetrated in the US and lightly penetrated in international markets. Even in our most mature US regions, we continue to experience strong growth, highlighting the significant potential for further expansion. Our freemium model remains central to our strategy, offering free members the opportunity to experience Life360 and ultimately recognize the unmatched peace of mind provided by freemium features. This year, we will continue to elevate the Life360 experience by improving location accuracy and speed while introducing new premium features tailored to specific needs, such as those of pet owners. These enhancements will drive increased user engagement and satisfaction, creating opportunities for organic virality and referrals. To amplify this, we will strategically invest in marketing to build stronger brand affinity and accelerate conversions from free to paid memberships.

Chris Holes: Devices.

Chris Holes: Together these partnerships highlight our ability to expand both our data business and technology offerings as we drive growth and innovation <unk> hundred 60 with that I'll hand, it over to Russell to review the financials and discuss our tried to take priority of increasing profitability.

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

Chris Hulls: This year, we will continue to elevate the Life360 experience by improving location accuracy and speed while introducing new premium features tailored to specific needs, such as those of pet owners. These enhancements will drive increased user engagement and satisfaction, creating opportunities for organic virality and referrals. To amplify this, we will strategically invest in marketing to build stronger brand affinity and accelerate conversions from free to paid memberships.

Russell Burke: As a reminder, Q Paul financials, I will be referencing our unaudited and denominated in U S dosed.

Russell Burke: We are very excited to be presenting record breaking Q4 and full year results today.

Russell Burke: Q4 revenue increased 33% year on year to $115 5 million, a sharp acceleration from the prior quarter driven by positive momentum in subscription and other revenue.

Chris Hulls: Internationally, we are significantly under-penetrated and see vast opportunities for growth. In 2025, we will execute optimized full-funnel marketing campaigns in Tier 3 markets to boost brand awareness and drive MAU growth. Additionally, we plan to expand the availability of emergency dispatch services triggered by the SOS and car crash detection to more countries, unlocking new regions for Tier 3 and increasing the value of our offerings on a global scale. In Q3 2024, we launched our redesigned Tile device lineup, the first fully designed in-house by Life360. This lineup differentiates us with innovative features like SOS capabilities, a function unmatched by other devices across Google and Apple networks. During Q4 2024, Tile received widespread acclaim as a top holiday gift and an essential luggage tracker during busy travel periods, which drove noticeable year-over-year growth in direct-to-consumer sales.

Russell Burke: Overall subscription revenue increased 32% year on year and accelerated from the prior quarter.

Russell Burke: Core <unk>, III, 60, subscription, which excludes hardware subscriptions increased 36% year on year.

Russell Burke: Driven by the 25% increase in global paying circles.

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Russell Burke: Total paying circle's growth was supported by improved conversion and retention in the U S.

Chris Hulls: This lineup differentiates us with innovative features like SOS capabilities, a function unmatched by other devices across Google and Apple networks. During Q4 2024, Tile received widespread acclaim as a top holiday gift and an essential luggage tracker during busy travel periods, which drove noticeable year-over-year growth in direct-to-consumer sales.

Russell Burke: Hardware revenue for the quarter increased 13% year on year to $23 8 million.

Russell Burke: Standalone units shipped.

Russell Burke: Chris 8% year on year, and the average selling price increased by 9%, resulting in improved margins in the quarter.

Russell Burke: While the new total devices.

Russell Burke: Okay.

Chris Hulls: Tile is becoming a valuable gateway to our Life360 subscription business. The percentage of US premium subscribers actively linking Tile to their accounts continued to rise in Q4 2024. In 2025, we'll complete the integration of Tile into the Life360 app, making it the exclusive activation platform for all new Tile devices, an exciting step towards streamlining the user experience and further strengthening our ecosystem. Looking ahead, with the Tile integration nearing completion, we are shifting our focus to expanding our GPS hardware lineup designed to make life easier and safer for families. We plan to finalize the development of a pet tracking device and go to market by late 2025, followed by an advanced eldercare product. These high growth verticals will drive subscription models during the next wave of subscription growth.

Russell Burke: Yeah.

Russell Burke: Okay.

Russell Burke: Consumer direct and online sales was strong during the holiday period, while the performance in physical retail stores was softer and consistent with performance observed for consumer electronics, and online and brick and mortar retailers in the fourth quarter.

Russell Burke: Other revenue in Q4 increased 113% to $13 9 million.

Russell Burke: Due to the combination of increases in data and partnership revenue, which includes advertising revenue.

Chris Hulls: We plan to finalize the development of a pet tracking device and go to market by late 2025, followed by an advanced eldercare product. These high growth verticals will drive subscription models during the next wave of subscription growth.

Russell Burke: December annualized monthly revenue reached $367 6 million and increased 34% year on year accelerating from the 30% growth in September.

Chris Hulls: By delivering purpose-driven hardware that spans multiple life stages, we aim to help families stay connected to what matters most. In Q4 2024, we advanced our advertising platform, setting the stage for significant growth in 2025. Our goal is to deliver contextually relevant ads, enhance the member experience while offering advertisers unmatched precision powered by our proprietary first-party location data. Key Q4 milestones include activating global programmatic capabilities, expanding audience segmentation tools, and advancing ad measurement and attribution. The Life360 Ad Platform now offers brands unparalleled access to our engaged audience of families. Through custom partnerships like our collaboration with Uber, we can create tailored campaigns including feature sponsorships, push notifications, and co-marketing campaigns. For those seeking scale, self-managed solutions provide programmatic access to in-app native inventory and curated private marketplace deals, leveraging thousands of targetable audience segments.

Russell Burke: Collecting the strong performance of <unk>.

Russell Burke: <unk> and other recurring revenue.

Russell Burke: Q4, gross profit of $85 5 million increased 42% year on year with gross margins higher at 74%.

Russell Burke: Thanks.

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Russell Burke: Yes.

Chris Hulls: The Life360 Ad Platform now offers brands unparalleled access to our engaged audience of families. Through custom partnerships like our collaboration with Uber, we can create tailored campaigns including feature sponsorships, push notifications, and co-marketing campaigns. For those seeking scale, self-managed solutions provide programmatic access to in-app native inventory and curated private marketplace deals, leveraging thousands of targetable audience segments.

Russell Burke: Okay.

Russell Burke: Yeah.

Russell Burke: Okay.

Russell Burke: Expenses.

Russell Burke: Thanks, Tony.

Russell Burke: Okay.

Russell Burke: Yeah.

Russell Burke: Okay.

Russell Burke: Hi.

Russell Burke: Yes.

Russell Burke: Okay.

Russell Burke: SaaS.

Chris Hulls: These capabilities empower advertisers to connect with the right audiences through major DSPs and media platforms. This quarter, we quadrupled our engagement pipeline of prospective partners eager to leverage our unique first-party location data. These partners see value in integrating high visibility signals such as shopping behaviors, retail locations, with promotions that drive on-site purchases and loyalty participation. While realizing our full advertising vision will take time, early results reinforce our confidence that advertising could eventually rival subscriptions as a major revenue stream. We are thrilled to announce the purchase of Fantix's advertising unit, an AI platform that empowers smarter advertising through cutting-edge machine learning and privacy-first technology. We are excited to welcome their talented small team to Life360 and look forward to leveraging their expertise to accelerate our advertising capabilities, driving the execution of our 2025 roadmap.

Russell Burke: Great.

Russell Burke: Yeah.

Russell Burke: Okay.

Russell Burke: Let's jump right in line with the 32% increase in subscription revenue.

Russell Burke: Paid acquisition costs were flat year on year.

Russell Burke: Due to an intentional shift of allocation of spend to other marketing activity in creative and production supporting our brand campaigns and holiday sales of the tile hardware product line.

Russell Burke: General and administrative expenses in Q4 increased 29% year on year, primarily driven by company growth.

Chris Hulls: We are thrilled to announce the purchase of Fantix's advertising unit, an AI platform that empowers smarter advertising through cutting-edge machine learning and privacy-first technology. We are excited to welcome their talented small team to Life360 and look forward to leveraging their expertise to accelerate our advertising capabilities, driving the execution of our 2025 roadmap.

Russell Burke: We continue to make considerable progress in expanding profitability.

Okay.

Russell Burke: Thanks.

Russell Burke: Yeah.

Russell Burke: $3 1 million net loss for the prior year.

Chris Hulls: Our data business also grew in Q4, supported by our exclusive partnership with Placer.ai, which positions us for accelerated growth in 2025 and beyond. Additionally, our strategic investment in Hubble secures exclusive access to a promising future enterprise revenue stream. Once Hubble satellite network scales, it will enhance the location capabilities of hardware devices. Together, these partnerships highlight our ability to expand both our data business and technology offerings as we drive growth and innovation at Life360. With that, I'll hand it over to Russell to review the financials and discuss our strategic priority of increasing profitability.

Next adjusted EBITDA was positive for the ninth consecutive quarter, increasing to $21 2 million in Q4, 'twenty four from $8 9 million in the prior year.

Russell Burke: And positive EBITDA of $8 4 million improved from negative $2 8 million in the prior year as a result of continued strong subscription revenue growth and improved operating leverage.

Chris Hulls: With that, I'll hand it over to Russell to review the financials and discuss our strategic priority of increasing profitability.

Russell Burke: The difference between adjusted EBITDA and EBITDAR in the quarter consisted of stock based compensation expense.

Russell Burke: Thanks, Chris, and thanks everyone for joining the call today. As a reminder, the Q4 financials I will be referencing are unaudited and denominated in US dollars. We are very excited to be presenting record-breaking Q4 and full year results today. Q4 revenue increased 33% year-on-year to $115.5 million, a sharp acceleration from the prior quarter, driven by positive momentum in subscription and other revenue. Overall, subscription revenue increased 32% year-on-year and accelerated from the prior quarter. Core Life360 subscription, which excludes hardware subscriptions, increased 36% year-on-year, driven by the 25% increase in global paying circles and 6% higher ARPPC. Total paying circles growth was supported by improved conversion and retention in the US. Hardware revenue for the quarter increased 13% year-on-year to $23.8 million.

Russell Burke: Final U S IPO transaction costs.

Russell Burke: We expect to see this expansion of Bottomline margin continue in 'twenty.

Russell Burke: 25.

Russell Burke: Got it.

Russell Burke: Yes.

Russell Burke: Sure.

Russell Burke: Okay.

Okay.

Russell Burke: Okay.

Russell Burke: 22% year on year to $371 5 million.

Russell Burke: Gross profit increased 25% year on year to $279 million in gross margins was 75% two percentage points higher than 2023.

Russell Burke: Total operating expenses grew 14% year on year.

Russell Burke: Core Life360 subscription, which excludes hardware subscriptions, increased 36% year-on-year, driven by the 25% increase in global paying circles and 6% higher ARPPC. Total paying circles growth was supported by improved conversion and retention in the US. Hardware revenue for the quarter increased 13% year-on-year to $23.8 million.

Russell Burke: While decreasing six percentage points as a percentage of revenue.

Russell Burke: Driving outperformance.

Russell Burke: Yes.

Russell Burke: Yeah.

Russell Burke: Okay.

Russell Burke: Thanks.

Russell Burke: Thank you.

Russell Burke: In 2019.

Russell Burke: Yes.

Russell Burke: Okay.

Russell Burke: Increased.

Russell Burke: Yes.

Russell Burke: Standalone units shipped increased 8% year-over-year, and the average selling price increased by 9%, resulting in improved margins in the quarter. While the new Tile devices have been well received, the key US holiday retail period results were mixed. Consumer direct and online sales were strong during the holiday period, while performance in physical retail stores was softer and consistent with performance observed for consumer electronics in online and brick-and-mortar retailers in Q4. Other revenue in Q4 increased 113% to $13.0 million due to the combination of increases in data and partnership revenue, which includes advertising revenue. December annualized monthly revenue reached $367.6 million and increased 34% year-over-year, accelerating from the 30% growth in September, reflecting the strong performance of subscription and other recurring revenue.

Russell Burke: Terrific.

Russell Burke: Alright.

Russell Burke: I didn't say that.

Russell Burke: Sure.

Russell Burke: Adjusted EBITDA.

Russell Burke: Thank you.

Russell Burke: Okay.

Russell Burke: Thank you.

Russell Burke: Okay.

Russell Burke: Right.

Russell Burke: Yes.

Russell Burke: Okay.

Russell Burke: Other revenue in Q4 increased 113% to $13.0 million due to the combination of increases in data and partnership revenue, which includes advertising revenue. December annualized monthly revenue reached $367.6 million and increased 34% year-over-year, accelerating from the 30% growth in September, reflecting the strong performance of subscription and other recurring revenue.

Russell Burke: Okay.

Russell Burke: [laughter].

Russell Burke: Hi.

Russell Burke: Okay.

Russell Burke: <unk>.

Russell Burke: The EBITDA metric that we've been providing can be manually calculated by excluding stock base stock based compensation from adjusted EBITDA using figures, we will disclose in our reconciliations to net income.

Russell Burke: Looking ahead, we are confident in our ability to grow positive adjusted EBITDA throughout 2025, as we continue balancing robust revenue growth with expanding profitability.

Russell Burke: Q4 gross profit of $85.5 million increased 42% year-on-year, with gross margins higher at 74% compared with 69% in the prior year, due to the increase in the mix of higher margin other revenue. As total revenue grew 33% and gross profit increased 42% year-on-year, Q4 operating expenses increased only 22%, excluding commissions, demonstrating continued operating leverage. R&D costs increased 20% year-on-year and are driven by higher personnel related costs, technology and outside services spend. Sales and marketing costs increased 31% year-on-year primarily due to higher commissions, which increased in line with the 32% increase in subscription revenue.

Russell Burke: Turning now to the balance sheet and cash flow.

Russell Burke: <unk> 360 ended 2024 with cash cash equivalents.

Russell Burke: Okay.

Russell Burke: Yeah.

Russell Burke: Okay.

Russell Burke: Yeah.

Russell Burke: Okay.

Russell Burke: [laughter].

Russell Burke: Sales and marketing costs increased 31% year-on-year primarily due to higher commissions, which increased in line with the 32% increase in subscription revenue.

Russell Burke: Gotcha.

Russell Burke: Okay.

Russell Burke: Paid acquisition costs were flat year-on-year due to an intentional shift of allocation of spend to other marketing activity in creative and production, supporting our brand campaigns and holiday sales of the Tile hardware product line. General and administrative expenses in Q4 increased 29% year-on-year, primarily driven by company growth. We continue to make considerable progress in expanding profitability. First, we recorded positive net income in Q4 of $8.5 million versus a $3.1 million net loss for the prior year. Next, adjusted EBITDA was positive for the ninth consecutive quarter, increasing to $21.2 million in Q4 2024 from $8.9 million in the prior year. Positive EBITDA of $8.4 million improved from negative $2.0 million in the prior year as a result of continued strong subscription revenue growth and improved operating leverage.

Russell Burke: Thank you.

Russell Burke: Right.

Russell Burke: Yeah.

Russell Burke: Okay.

Russell Burke: Yes.

Russell Burke: $8 million related to the $5 million investment in Hubbell and payments for internally developed software.

Russell Burke: Net cash used in financing activities of $5 2 million related primarily to taxes paid for the net settlement of Rs use and final IPO transaction costs.

Russell Burke: Thanks for your attention and I'll hand back to Chris to discuss further details on our earnings guidance.

Russell Burke: Next, adjusted EBITDA was positive for the ninth consecutive quarter, increasing to $21.2 million in Q4 2024 from $8.9 million in the prior year. Positive EBITDA of $8.4 million improved from negative $2.0 million in the prior year as a result of continued strong subscription revenue growth and improved operating leverage.

Russell Burke: As we enter 2025 the opportunities before us remains vast and full of potential as we drive to become the number one brand that makes everyday family life better.

Russell Burke: Our team is focused on creating value for our members and increasing our impact in their lives.

Russell Burke: Much of our focus for 2025 will be on fully integrating our hardware experiences and extending the peace of mind we offer.

Russell Burke: To the pets and their families.

Russell Burke: We will continue to drive growth into international markets, both doubling down in existing markets and expanding into new markets, particularly in Europe.

Russell Burke: The difference between adjusted EBITDA and EBITDA in the quarter consisted of stock-based compensation expense and final US IPO transaction costs. We expect to see this expansion of bottom line margins continue in 2025, as you'll see from the guidance that Chris will discuss shortly. Looking briefly at the full year results for 2024. Total revenue increased 22% year-over-year to $371.5 million. Gross profit increased 25% year-over-year to $279 million, and gross margins were 75%, two percentage points higher than 2023. Total operating expenses grew 14% year-over-year, while decreasing six percentage points as a percentage of revenue, driving outperformance against our guidance ranges.

Russell Burke: Meanwhile, we continue to gain momentum and increase our investment in advertising aided by the purchase of Phanteks ads business unit. The small team joining us from Phanteks brings a wealth of AI expertise that will help us accelerate our vision for targeting measuring and delivering unique and high performing AD formats at scale, all leveraging life 360 years.

Russell Burke: Unique first party data.

Russell Burke: As we nurture multiple new product lines, including Patterson ads, we expect an increase in seasonality and we plan to make significant upfront investments that will strengthen our growth in subsequent years. This effect is particularly pronounced in pet tracking where hardware sales will function as an acquisition vehicle for our subscription product as.

Russell Burke: Total operating expenses grew 14% year-over-year, while decreasing six percentage points as a percentage of revenue, driving outperformance against our guidance ranges.

Russell Burke: As tile becomes a more core part of the life through 60 experience.

We are continuing to lean into hardware as a key part of our subscription ecosystem and we will trade off hardware revenue for increased adoption.

Russell Burke: With that let's turn to our 2025 outlook, which includes the following.

Russell Burke: Net loss for the year was $4.6 million, a significant improvement of $23.6 million from the $28.2 million loss in 2023. Adjusted EBITDA increased by $24.9 million year-over-year to reach $45.5 million and exceeded our outlook range. Adjusted EBITDA as a percentage of sales increased from 7% in 2023 to 12% in 2024. Finally, EBITDA loss improved by $17.1 million year-over-year from -$20.8 million in 2023 to a -$3.8 million in 2024, and also exceeded our outlook range. One note for everyone, in 2025, we will transition to showing only adjusted EBITDA in our outlook and results, and in our strategic goals in order to create consistency and alignment across.

Russell Burke: Consolidated revenue of 450 million to $480 million subscription revenue of $350 million to $360 million hardware revenue of $45 million to $55 million.

Russell Burke: Other revenue, which includes partnerships and advertising of $55 million to $65 million and positive adjusted EBITDA of $65 million to $75 million inclusive of an initial $8 million investment in the 2025 launch of our pet tracking initiatives.

Russell Burke: One note for everyone, in 2025, we will transition to showing only adjusted EBITDA in our outlook and results, and in our strategic goals in order to create consistency and alignment across. Capital listing environments

Russell Burke: We anticipate we anticipate adjusted EBITDA will be weighted towards the back half of 2025, as we shift forward some sales and marketing expenses to earlier in the year in order to leverage the efficiency, we achieved in 2024 and to support global growth initiatives that concludes our prepared remarks, and I'll now turn the call over to RJ will manage the question and.

Raymond Jones: Capital listing environments

Russell Burke: The EBITDA metric that we've been providing can be manually calculated by excluding stock-based compensation from adjusted EBITDA using figures we will disclose in our reconciliations to net income. Looking ahead, we are confident in our ability to grow positive adjusted EBITDA throughout 2025 as we continue balancing robust revenue growth with expanding profitability. Turning now to the balance sheet and cash flow. Life360 ended 2024 with cash equivalents, and restricted cash of $160.5 million, a slight increase from Q3. Operating cash flow was positive for the seventh consecutive quarter. Q4 net cash provided by operating activities of $12.3 million was lower than adjusted EBITDA of $21.2 million, primarily due to an increase in working capital balances driven by increased activity. Net cash used in investing activities.

RJ: And answer portion of our call today.

RJ: Thanks, Chris.

RJ: As a reminder to everyone to participate in the Q&A. Please raise your hand by pressing the raise hand icon at the bottom of your screen within the zoom App you will need to on mute yourself to ask your question.

RJ: Okay.

RJ: So for our first.

RJ: Unless we're looking at a pure from UBS are you there.

UBS person: I'm here Raj I can hear me absolutely.

RJ: Absolutely.

RJ: Hey, guys. Thanks for taking the time.

RJ: I guess one question.

RJ: Just on the 2025 EBITDA guidance at the midpoint.

Russell Burke: Q4 net cash provided by operating activities of $12.3 million was lower than adjusted EBITDA of $21.2 million, primarily due to an increase in working capital balances driven by increased activity. Net cash used in investing activities. MAUs of 6.8 million.

RJ: It implies about a 15% EBITDA margin.

RJ: Now, even if we add back the $8 million of pet device assessment, yes, you're looking at about a 17% EBITDA margin at the midpoint and I guess, if I just compare that to the fourth quarter of 'twenty for what you've done about 18% very strong margin. There now I appreciate there's probably some seasonality benefit in the fourth quarter margins, but just maybe it's definitely through why calendar year.

Raymond Jones: MAUs of 6.8 million.

Russell Burke: Related to the $5 million investment in Hubble and payments for internally developed software. Net cash used in financing activities of $5.2 million related primarily to taxes paid for the net settlement of RSUs and final IPO transaction costs. Thanks for your attention, and I'll hand back to Chris to discuss further details on our earnings guidance.

RJ: 25 margins wouldn't expand slightly from that Q4 run rate of 18, 4%.

Speaker Change: Like is it a function of marketing investment new people hires or perhaps you're just being a bit conservative just keen to hear your thoughts there.

Ross: Ross do you want take that one sure no problem.

Chris Hulls: As we enter 2025, the opportunities before us remain vast and full of potential as we drive to become the number one brand that makes everyday family life better. Our team is focused on creating value for our members and increasing our impact in their lives. Much of our focus for 2025 will be on fully integrating our hardware experiences and extending the peace of mind we offer to the pets and our families. We'll continue to drive growth into international markets, both doubling down in existing markets and expanding into new markets, particularly in Europe. Meanwhile, we continue to gain momentum and increase our investment in advertising, aided by the purchase of Fantix Ads business unit.

Ross: It's a combination of effect is the we are definitely investing more in marketing in 'twenty five and that's partly related to the sort of expansion of international partly related to pit tracking and partly related to just the efficiencies.

Ross: We have seen in 'twenty, four and a real so bringing forward in our payback period. So we can.

Ross: Confidently invest more and that will be sort of in the in the first half of the period.

Chris Hulls: Meanwhile, we continue to gain momentum and increase our investment in advertising, aided by the purchase of Fantix Ads business unit.

Ross: So between that and looking at.

Ross: And investment in pet tracking really ahead of substantial sales in 2006 is probably the main reason for that that we do.

Chris Hulls: The small team joining us from Fantix brings a wealth of AI expertise that will help us accelerate our vision for targeting, measuring, and delivering unique and high-performing ad formats at scale, all leveraging Life360's unique first-party data. As we nurture multiple new product lines, including pets and ads, we expect an increase in seasonality, and we plan to make significant upfront investments that will strengthen our growth in subsequent years. This effect is particularly pronounced in pet tracking, where hardware sales will function as an acquisition vehicle for our subscription product. As Tile becomes a more core part of the Life360 experience, we are continuing to lean into hardware as a key part of our subscription ecosystem, and we'll trade off hardware revenue for increased adoption.

Ross: I don't expect that this will change our overall path that we've talked about in terms of bell EBITDA goals.

Okay. Thanks, guys appreciate it.

Speaker Change: Great with our next question, we'd like to open it up to ways Sim from Jefferies.

Speaker Change: Where are you there.

Sim: Yes, I'm here.

Speaker Change: Thanks, Chris Ross and RJ.

Chris Hulls: As Tile becomes a more core part of the Life360 experience, we are continuing to lean into hardware as a key part of our subscription ecosystem, and we'll trade off hardware revenue for increased adoption.

Speaker Change: Yeah away from Jefferies. Congratulations on a great result, and a strong outlook.

Speaker Change: So my one question is you May know, we did a proprietary survey of over 1000 U S consumers in January which generated many interesting insights in July 360 <unk>.

Chris Hulls: With that, let's turn to our 2025 outlook, which includes the following: consolidated revenue of $450 million to $480 million. Subscription revenue of $350 million to $360 million. Hardware revenue of $45 to 55 million. Other revenue, which includes partnerships and advertising, of $55 to 65 million. Positive adjusted EBITDA of $65 to 75 million, inclusive of an initial $8 million investment in the 2025 launch of our pet tracking initiative. We anticipate adjusted EBITDA will be weighted towards the back half of 2025 as we shift forward some sales and marketing expenses to earlier in the year in order to leverage the efficiency we achieved in 2024 and to support global growth initiatives.

Speaker Change: One of them, which was really on the material upside from pet tracking into the sub servicer.

Speaker Change: Service addressable market expansion and upside opportunities for monetization.

So this is an area, which I'm very excited about him I'd like to get a bit more color as to.

Speaker Change: Outside of the investment when we can.

Speaker Change: Be launching in the kind of monetization with which we could expect into calendar year 'twenty six.

Speaker Change: Sure let me recap.

Speaker Change: The the Big Vision and then we can talk about launch and rollout. So because we have long share our entire strategy is predicated on building a huge free user base, bringing in your family people you care about building that trust and once we have that then we can layer on different services.

Chris Hulls: We anticipate adjusted EBITDA will be weighted towards the back half of 2025 as we shift forward some sales and marketing expenses to earlier in the year in order to leverage the efficiency we achieved in 2024 and to support global growth initiatives.

Chris Hulls: That concludes our prepared remarks, and I'll now turn the call over to RJ, who will manage the question and answer portion of our call today.

Speaker Change: Pet tracking be an obvious being an obvious one.

Speaker Change: And we're so excited about it because it's essentially half of our customers have a dog.

Raymond Jones: Thanks, Chris. As a reminder to everyone to participate in the Q&A, please raise your hand by pressing the Raise Hand icon at the bottom of your screen within the Zoom app. You will need to unmute yourself to ask your question. For our first analyst, we're looking at Apoorv from UBS. Are you there?

Speaker Change: And if you think about dog you don't you don't love them quite as much as your kids, but it sometimes pretty.

Speaker Change: Pretty darn close and if you look at the lifecycle of a dog they they're around 12 years and even after your kids leave home, you're often getting a new one so we're so excited that.

Speaker Change: By having this additional feature we can get people into the premium tiers, it's going to be best in the market theyre going to be a bunch of things that leverage like 360 that others can't do like a pet finding network.

Apoorv Wasan: I'm here, RJ. Can you hear me?

[Analyst] (UBS): I'm here, RJ. Can you hear me?

Raymond Jones: Absolutely.

Apoorv Wasan: Good evening, guys. Thanks for taking the time. I guess one question. Just on the 2025 EBITDA guidance at the midpoint, it implies about a 15% EBITDA margin. Now even if we add back the $8 million of pet device investment, you're looking at about a 17% EBITDA margin at the midpoint. I guess if I just compare that to the Q4 2024, you've done about 18%, very strong margin there. I appreciate there's probably some seasonality benefit in your Q4 margins, but just maybe step me through why calendar year 2025 margins wouldn't expand slightly from that Q4 run rate of 18% or so. Is it a function of marketing investment, new people hires, or perhaps you're just being a bit conservative? Just keen to hear your thoughts there.

[Analyst] (UBS): Good evening, guys. Thanks for taking the time. I guess one question. Just on the 2025 EBITDA guidance at the midpoint, it implies about a 15% EBITDA margin. Now even if we add back the $8 million of pet device investment, you're looking at about a 17% EBITDA margin at the midpoint. I guess if I just compare that to the Q4 2024, you've done about 18%, very strong margin there. I appreciate there's probably some seasonality benefit in your Q4 margins, but just maybe step me through why calendar year 2025 margins wouldn't expand slightly from that Q4 run rate of 18% or so.

Speaker Change: Unlike people in the market now our CAC for existing customers will be zero. So we will be able to have what I think will be the best device in the market at the lowest cost and it will directly drive subscription revenue.

Speaker Change: And going back to some of them are as we are leaning into hardware more and more it's not to sell devices to drive subscriptions and drive membership.

Speaker Change: If you look at timing.

Speaker Change: We have a bit of a longer staggered rollout because there are some software features but the the main launch will start very much towards the end of the year.

Speaker Change: Our stretches the holiday season, but you will definitely see pet features this year and just right around the end of that year timeframe.

[Analyst] (UBS): Is it a function of marketing investment, new people hires, or perhaps you're just being a bit conservative? Just keen to hear your thoughts there.

Chris Hulls: Russell, do you wanna take that one?

Speaker Change: The device will be on the market in the coming quarters, we're going to share a little bit more about what exactly it will do and how it will differentiate it from everything else in the market today.

Russell Burke: Sure. No, no problem. It's a combination of factors. We are definitely investing more in marketing in 2025, and that's partly related to the international expansion, partly related to pet tracking, and partly related to just the efficiencies that we've seen in 2024 and a real sort of bring forward in our payback period. We can, you know, confidently invest more, and that will be sort of in the first half of the period. Between that and looking at an investment in pet tracking really ahead of substantial sales in 2026 is probably the main reason for that. We don't expect that this will change our overall path that we've talked about in terms of our EBITDA goals.

Speaker Change: Great. That's perfect. Thank you so much for that Chris.

Speaker Change: Welcome.

Speaker Change: So for next we'd like to open up the call to either David or Mark from Evercore.

Speaker Change: Okay.

Speaker Change: Hey, guys can you hear me.

Speaker Change: It Hasnt glare.

Speaker Change: Hey, this is David on for Mark.

David: I wanted to ask a little bit about your tariff exposure on the hardware side can.

David: Can you maybe talk a little bit about how much of your Cogs are are from China and any exposure to the other.

Russell Burke: We don't expect that this will change our overall path that we've talked about in terms of our EBITDA goals.

Other countries at risk of <unk>.

David: Tariffs and then on the pet seasonality can you just talk a little bit more about pet tracking seasonality is that a greater seasonality during the summer months. Thank you.

Apoorv Wasan: Okay. Thanks, guys. Appreciate it.

[Analyst] (UBS): Okay. Thanks, guys. Appreciate it.

Raymond Jones: Great. With our next question, we'd like to open it up to Wei Sim from Jefferies. Wei, you there?

Speaker Change: Why don't I take the first half of that and then Russell can answer tariffs, so seasonality where were not entirely sure yet. It's a it is a new product lineup I I have a hunch there will be some level of this being a gifting type products, particularly within family itself I imagine.

Wei Sim: Yeah, I'm here. Thanks, Chris, Ross, and RJ. Yeah, Wei from Jefferies. Congratulations on a great result, and a strong outlook. My one question is, you may know we did a proprietary survey of over 1,000 US consumers in January, which, you know, generated many interesting insights into Life360. One of them, which was really on the material upside from pet tracking, into the service addressable market expansion and the upside opportunities for monetization. This is an area which I'm very excited about. I'd like to get a bit more color as to, you know, outside of the investment, you know, when we think this might be launching and, you know, the kind of monetization which we could expect, into calendar year 2026. Thanks.

David: Anthony.

David: I had one more holiday oriented probably not nearly as pronounced as the Bluetooth devices, because theyre more stocking stuffer presence, but we'll have to roll it out to find out.

David: And then in tariffs Russell can answer that but I was just a reminder, we're all about driving people to the subscription so it's gonna be less material for us than companies really relying on the hardware to drive the underlying margin because it is all about getting people into those membership tiers.

Wei Sim: This is an area which I'm very excited about. I'd like to get a bit more color as to, you know, outside of the investment, you know, when we think this might be launching and, you know, the kind of monetization which we could expect, into calendar year 2026. Thanks.

David: Roughly.

Speaker Change: What I'd say, David just sort of very specifically is that we we have built in an increase in an assumed increase in tariffs into into the plan.

Chris Hulls: Sure. Let me recap just the big vision, and then we can talk about launch and rollout. As we have long shared, our entire strategy is predicated on building a huge free user base, bringing in your family, people you care about, building that trust. Once we have that, then we can layer on different services, pet tracking being an obvious one. We're so excited about it 'cause essentially half of our customers have a dog. If you think about dogs, you don't love them quite as much as your kids, but they're sometimes pretty darn close. If you look at the life cycle of a dog, they're around 12 years, and even after your kids leave home, you're often getting a new one.

Speaker Change: Yeah, we like most most other hardware manufacturers are looking at the at the logistics.

Speaker Change: At the moment.

Speaker Change: We do have a limited amount of exposure to China, but as it's relatively easily moved.

Speaker Change: So where we're continuing to look at that we feel that the costs that we've got built into the plan at this point should be should be okay.

Chris Hulls: If you look at the life cycle of a dog, they're around 12 years, and even after your kids leave home, you're often getting a new one.

Speaker Change: Great. Thank you.

Speaker Change: Great. Thank you next we'd like to open up the call to James Bales from Morgan Stanley If you're on.

Chris Hulls: We're so excited that by having this additional feature, we can get people into the premium tiers. It's gonna be best in the market. There are gonna be a bunch of things that leverage Life360 that others can't do, like a pet-finding network. Unlike people on the market now, our CAC for existing customers will be zero, so we will be able to have what I think will be the best device in the market at the lowest cost, and it will directly drive subscription revenue. Going back to some of the numbers, we are leaning into hardware more and more. It's not to sell devices, it's to drive subscriptions and drive membership.

Speaker Change: Okay.

Speaker Change: James can you on mute you there.

Speaker Change: James It looks like we're going to have well.

Larry: Larry you are UN muted.

Larry: Okay can you hear me, okay, yes, okay.

Larry: Okay.

Larry: So I just had to ask a follow up on.

Chris Hulls: If you look at timing, we have a bit of a longer staggered rollout 'cause there are some software features, but the main launch will start very much towards the end of the year. Our stretch is the holiday season, but you will definitely see pet features this year. Just right around the end of that year timeframe, the device will be on the market. In incoming quarters, we're gonna share a little bit more about what exactly it'll do and how it will differentiate from everything else in the market today.

Larry: The pet tracking side, so you've had the experience with tile and Gi bit.

Larry: Not optimizing for sales, but for customer acquisition.

Larry: Use of help us understand how the difference that that's made with engagement for people who've taken that offer up in terms of conversion to paid retention or other right why is that it's creating value.

Larry: And then secondly, I had a question on the other revenue outlook, there was an incremental $3 $7 million in either in the fourth quarter. How much of that is that and is the garden the uplifting guidance versus that fourth quarter run rate how much of that is due to advertising.

Wei Sim: Great. That's perfect. Thank you so much for that, Chris.

Chris Hulls: Welcome.

Larry: This is some of the other.

Raymond Jones: Next, we'd like to open up the call to either David or Mark from Evercore.

Larry: Data led products that you've that you're scaling into 'twenty five.

Speaker Change: I'll take the first half of the question and Russell can take the second so on the first half.

Raymond Jones: Hey, guys. Can you hear me?

[Analyst] (Evercore): Hey, guys. Can you hear me?

Chris Hulls: Yes.

Raymond Jones: Loud and clear.

Raymond Jones: Hey, this is David on for Mark.

[Analyst] (Evercore): Hey, this is David on for Mark.

Speaker Change: So how how has tile in G O bit impacted things.

[Analyst] (Evercore): I wanted to ask a little bit about your tariff exposure on the hardware side. Can you maybe talk a little bit about how much of your costs are from China and any exposure to other countries at risk of tariffs? Then on the pet seasonality, can you just talk a little bit more about pet tracking seasonality? Is that greater seasonality during the summer months? Thank you.

Russell Burke: In particular around engagement and conversion retention first one clarifying things so G O bit after we did that acquisition, we'd had the market downturn and we did make the extremely frustrating moved to largely put that on ice until the market came back. So in many respects. This is a the.

Russell Burke: Pet tracking device. We're launching now is the true launch of G O, but what we wanted to do significantly earlier, there was a more frustrating period of time Maria just on those those acquisitions and then early 2022 happened when we look at tile though.

Chris Hulls: Why don't I take the first half of that, and then Russell can answer tariffs. Seasonality, we're not entirely sure yet. It is a new product lineup. I have a hunch there will be some level of this being a gifting type product, particularly within families. I'd imagine that does mean we're a little more holiday-oriented, probably not nearly as pronounced as the Bluetooth devices because they're more stocking stuffer presents. We'll have to roll it out to find out. In tariffs, Russell can answer that, but as just a reminder, we're all about driving people to the subscription. It's gonna be less material for us than companies really relying on the hardware to drive the underlying margin because it is all about getting people into those membership tiers. Russell?

Russell Burke: It's very hard as of now to say X behaviors related to tie all while I is related to other improvements because we've been out of the testing phase for a while but I will remind everyone that went to the testing phase when we did the generic promo paired with a generic promo that said upgrade and get a free tier L. We had something like a 30% uplift and.

Russell Burke: Significantly improve retention over time.

Russell Burke: But now tile is part and parcel with everything else.

Russell Burke: It's very hard to have a holdout group when everything else has been changing but clearly we've been hitting record net adds in tile is a big part of that so I'm very confident that if it weren't for Thai oil, we would not be nearly as far along.

Chris Hulls: It's gonna be less material for us than companies really relying on the hardware to drive the underlying margin because it is all about getting people into those membership tiers. Russell?

Russell Burke: Yeah. What I'd say, David, just to sort of very specifically, is that we have built in an assumed increase in tariffs into the plan. Yeah, we, like most other hardware manufacturers, are looking at the logistics at the moment. We do have a limited amount of exposure to China, but it's relatively easily moved. We're continuing to look at that. We feel that the cost that we've got built into the plan at this point should be okay.

Russell Burke: As we are on on the core subscription business. So it has felt very vindicating and even from a qualitative standpoint. If you look at where we are now versus even three years ago or two years ago.

Russell Burke: In terms of attitudes to location devices. They are becoming ubiquitous. So the fact that we are we are the only company other than a pool and where it should be alerted the only cross platform company that has this offer has the hardware. It makes it really really really hard for others to compete with us So I'm feeling.

Russell Burke: Extremely good about them.

Russell Burke: In terms of looking at behavior.

Russell Burke: One thing that is again hard to quantify the impact on this but we are getting a pretty significant number of our premium subs linking tiles out we don't disclose the number because a.

[Analyst] (Evercore): Thank you.

Raymond Jones: Great. Thank you. Next, we'd like to open up the call to James Bales from Morgan Stanley, if you're on. James, can you unmute? You there? Oh, there you are. You've unmuted.

Russell Burke: We've been told it needs to be an audible on that stuff and soon all of <unk> and the activated to life through 60, so there would not be a apples to apples benchmark very soon anyway, but we just see it in the reviews you see how people use it we just saw.

Russell Burke: See the reaction from customers just the magic of seeing.

Russell Burke: Your family with there are keys and people put them on dogs. That's a lightweight version of validates us the GPS tracker do well and you can just tell that it does really round out like 360 and makes US look so much of a more of a platform than an app and a lot of what we're trying to do as we become the Super App for families is helping our customers understand.

James Bales: Okay. Can you hear me okay?

Raymond Jones: Yes.

James Bales: Okay. Perfect. I'd just like to ask a follow-up on the pet tracking side. You've had the experience with Tile and Jiobit, not optimizing for sales but for customer acquisition. Can you sort of help us understand how the difference that that's made with engagement for people who've taken that offer up in terms of conversion to paid, retention, or other ways that it's creating value? Secondly, I had a question on the other revenue outlook. There was an incremental $3.7 million in other in Q4. How much of that is ads? Is the guidance, the uplift in guidance versus that Q4 run rate, how much of that is due to advertising versus some of the other data-led products that you're scaling into 2025?

Russell Burke: Yes, we're not just this app, we are something more akin to a platform and we are a very natural conduit for other goods and services. So.

Russell Burke: That's that's sort of what's driving that optimism that we can see it.

Russell Burke: And we do have those early results that showed that the bundling is extremely powerful then and as you can see we have been performing extremely well, even better than internal expectations and that sub ads.

James: And James in terms of the second part of your question.

Russell Burke: The incremental <unk>.

Russell Burke: Revenue for in sort of other revenue in Q4 was really largely.

James Bales: How much of that is ads? Is the guidance, the uplift in guidance versus that Q4 run rate, how much of that is due to advertising versus some of the other data-led products that you're scaling into 2025?

Russell Burke: Advertising, driven and I'd have to say that wave. So we're very happy with the way the way that progress in the quarter. It was very much alone.

Russell Burke: Along the lines of what we expected and then looking at the 25 guidance. It's a it's essentially a similar story well, while we do expect.

Chris Hulls: I'll take the first half of the question and Russell can take the second. On the first half, so how has Tile and Jiobit impacted things, in particular around engagement and conversion retention? First one, clarifying things. Jiobit, after we did that acquisition, we had the market downturn, and we did make the extremely frustrating move to largely put that on ice, until the market came back. In many respects, this is the pet tracking device we're launching now, the true launch of Jiobit, what we wanted to do significantly earlier, and that was a more frustrating period of time where we had just done those acquisitions, and then early 2022 happened.

Russell Burke: Good growth in data revenues.

Russell Burke: The majority of the growth in other revenue will be driven by <unk>.

Russell Burke: The thing is we see that really sort of a ramp up over the course of the year.

Russell Burke: And <unk>.

Russell Burke: Generally it's very much following the sort of the roadmap that we expected.

Russell Burke: And that includes the addition of <unk>.

Chris Hulls: In many respects, this is the pet tracking device we're launching now, the true launch of Jiobit, what we wanted to do significantly earlier, and that was a more frustrating period of time where we had just done those acquisitions, and then early 2022 happened.

Russell Burke: The data science and AI capabilities through the vantage acquisition that we that we made today.

Russell Burke: Perfect perfect.

Russell Burke: Alright, great.

Speaker Change: Next I'd like to open it up to Andrew Boone with JMP, if you're available Andrew can you mute.

Chris Hulls: When we look at Tile, though, it's very hard as of now to say X behavior is related to Tile, Y is related to other improvements, because we've been out of the testing phase for a while. I will remind everyone that when we did the testing phase, when we did a generic promo paired with a generic promo that said upgrade and get a free Tile, we had something like a 30% uplift and significantly improved retention over time. Now Tile is part and parcel with everything else. It's very hard to have a holdout group when everything else has been changing. Clearly, we've been hitting record net adds, and Tile is a big part of that.

Russell Burke: Yeah.

Russell Burke: Hi, guys, it's Matt on for Andrew Thanks for taking my question.

Russell Burke: My first one is just on the U S. <unk> growth very consistent 2024, how should we just think about the persistent growth in 2025 and what are the key levers there and then can you give us an update on international Triple care launches in 2025, what's the timing there and any color just on the duals here and what Youre seeing there as well.

Russell Burke: Thank you so much.

Russell Burke: So if you take the U S numbers first.

Chris Hulls: Clearly, we've been hitting record net adds, and Tile is a big part of that.

Chris Hulls: I'm very confident that if it weren't for Tile, we would not be nearly as far along as we are on the core subscription business. It has felt very vindicating. Even from a qualitative standpoint, if you look at where we are now versus even three years ago or two years ago in terms of attitudes to location devices, they are becoming ubiquitous. The fact that we are the only company other than Apple, and we're actually literally the only cross-platform company that has the software, has the hardware, it makes it really hard for others to compete with us. I'm feeling extremely good about it.

Speaker Change: Is there any hard to know when we slow down I always tell people I'm a very.

Speaker Change: Optimistic aggressive founder and also I think have built a reputation to help with you all being very reasonable not drinking our own Kool aid so to start with a crazy founder vision why can't we have 90% penetration in the U S.

Speaker Change: Everyone has a family doesn't always that'd be having teenage kids I have an aging parent right now who I really need the the elder care product for our lots of people use life through 60, when they have boyfriends girlfriends.

Speaker Change: Have been a little bit stunned how even.

Chris Hulls: In terms of looking at behavior, one thing that is, again, hard to quantify the impact on this, but we are getting a pretty significant number of our premium subs linking Tiles. We don't disclose the number 'cause, A, we've been told it needs to be audited, and that's happening soon. All Tiles are gonna get activated through Life360, so there would not be an apples to apples benchmark very soon anyway. We just see it in the reviews. We see how people use it. We just see the reaction from customers, just the magic of seeing your family with their keys, and people put them on dogs. That's a lightweight version that validates that the GPS tracker will do well.

Speaker Change: College women in particular, making circles for their friends to stay safe on dates so are our Tam is arguably.

Speaker Change: Everybody.

Speaker Change: Hi.

Speaker Change: Is it likely to get to 90% penetration probably not but if you told me 10 years ago, we'd have states with over 25% penetration.

Speaker Change: I would've had pinch myself about possibly dreaming as well so what we instead try to.

Speaker Change: Say, let us look at the numbers and because so much of our growth is organic which is obviously extremely high class problem. We really have to go by based on on trends.

Chris Hulls: That's a lightweight version that validates that the GPS tracker will do well.

Speaker Change: And if you look at trends.

Chris Hulls: You can just tell that it does really round out Life360 and makes us look so much more of a platform than an app. A lot of what we're trying to do as we become this super app for families is helping our customers understand that, yes, we're not just this app. We are something more akin to a platform, and we are a very natural conduit for other goods and services. That's part of what's driving that optimism, is that we can see it, and we do have those early results that showed that the bundling is extremely powerful. As you can see, we've been performing extremely well, even better than internal expectations in net sub adds.

Speaker Change: We can take our most penetrated states that are still growing just as quickly if not faster than our least penetrated states.

Speaker Change: If our least penetrated states if that were to catch up to our most penetrated states in there. We didnt. We didnt have continued growth in the most penetrated ones, which we don't have we would be doubling miu already and those trends are continuing the things I am looking forward to say when we that we have hit a saturation point because we will at some point I don't know when and that.

Speaker Change: That would be a change in strategy and will be a fine one because we've really been growing the base versus trying to harvest the base, but we have a big back to school bump at some point that probably fades and that probably says something about penetration, we usually have a big spike after Christmas that's more of a one off but it does show when people get new phones as <unk> hundred 61 of those.

Chris Hulls: As you can see, we've been performing extremely well, even better than internal expectations in net sub adds.

Russell Burke: James, in terms of the second part of your question, the incremental revenue in sort of other revenue in Q4 was really largely advertising driven. I'd have to say that we were sort of very happy with the way that progressed in the quarter. It was very much along the lines of what we expected. Then looking at the 2025 guidance, it's essentially a similar story. While we do expect good growth in sort of data revenue, the majority of the growth in other revenue will be driven by advertising as we see that really sort of ramp up over the course of the year. You know, generally, it's very much following the sort of the roadmap that we expected.

Speaker Change: Things they immediately turn to an install.

Speaker Change: And then I would just look at what's happening in general on trends on a region by region level and try to see where we asymptote out but the great news for US is that we haven't seen that really in any region, yet and we are now seeing international regions follow a similar curve.

Speaker Change: And there is possible reason to believe that in areas like Europe, we might even do better than the U S. Because the cross platform such a bigger differentiator there and Counterintuitively historically, you've done better in iOS every regions and I think that's because Apple has helped make location sharing not creepy, which it once was so all of them.

Russell Burke: You know, generally, it's very much following the sort of the roadmap that we expected.

Russell Burke: That includes the sort of addition of, you know, the data science and AI capabilities through the Fantix acquisition that we made today.

Speaker Change: Might take a little bit longer to get going in Europe.

Russell Burke: That includes the sort of addition of, you know, the data science and AI capabilities through the Fantix acquisition that we made today.

Speaker Change: Given the majority of people are in Android phones, and Google's really pulled away for most of the initiatives and space, maybe they do get everyone.

Speaker Change: Because there has not been a region where people have said Wow. This just doesn't work for Germans or Swedish or whoever is it seems like we are hitting this very very universal value prop.

Chris Hulls: Perfect. Appreciate the call.

James Bales: Perfect. Appreciate the call.

Raymond Jones: All right. Great. Next, I'd like to open it up to Andrew Boone with JMP, if you're available. Andrew, can you unmute?

Speaker Change: That resonates with everyone and I and so I think we have a long long way to go and we'll be very open about what the trends look like.

[Analyst] (JMP Securities): Hi, guys. It's Matt on for Andrew. Thanks for taking my questions. My first one is just on the US MAU growth. It's been very consistent in 2024. How should we just think about the persistence of growth in 2025, and what are the key levers there? Can you just give us an update on international triple-tier launches in 2025? What's the timing there? Any color just on the dual tier and what you're seeing there as well. Thank you so much.

[Analyst] (JMP): Hi, guys. It's Matt on for Andrew. Thanks for taking my questions. My first one is just on the US MAU growth. It's been very consistent in 2024. How should we just think about the persistence of growth in 2025, and what are the key levers there? Can you just give us an update on international triple-tier launches in 2025? What's the timing there? Any color just on the dual tier and what you're seeing there as well. Thank you so much.

Speaker Change: To your question of Dewalt here and tripled here and one we're doing different rollouts in different regions, we're taking a more iterative approach this year.

Speaker Change: When things are a vision oriented or product oriented that's when I work very closely with the team and it's less and less about the immediate data, it's more about where we believe the world's leading ago, but when we're looking at something that really is more around.

Speaker Change: Optimizing scarce resources the team does a very good job of deciding what that right next lever to pull is so under internal management meetings, we of course challenge and we push on different assumptions.

Chris Hulls: If you take the US numbers first, it's very hard to know when we slow down. I always tell people I'm a very optimistic, aggressive founder. Also, I think I've built a reputation, I hope with you all of being very reasonable, not drinking our own Kool-Aid. To start with a crazy founder vision, why can't we have 90% penetration in the US? Everyone has a family. Doesn't always have to be having teenage kids. I have an aging parent right now who I really need the elder care product for. Lots of people use Life360 when they have boyfriends and girlfriends. I've been a little bit stunned how even college women in particular are making circles for their friends to stay safe on dates. Our TAM is arguably everybody.

Speaker Change: But we are taking more quarter by quarter approach around do we launch a new triple T. A region, which is obviously a lot more work do we optimize more and dewalt here. While he has seen with dewalt here to your question and just for everyone's benefit Dewalt here is just a very lightweight version of it doesn't have things like the tow truck dispatch, which which just takes a lot more integration work and just infrastructure.

Speaker Change: It's just letting us move more quickly to start monetizing undermining under monetize countries and then we can get paid acquisition going which is a very new muscle for us outside of the U S.

Chris Hulls: I've been a little bit stunned how even college women in particular are making circles for their friends to stay safe on dates. Our TAM is arguably everybody.

Speaker Change: So we're working on the plans for the back half of the year now over the next few months, it's a very dual tier optimization focus out of quarters, but we'll know more probably in Q Q1 earnings definitely Q2 earnings will we'll be able to share a little bit more specifics in terms of what the next few steps of the roadmap looks like.

Chris Hulls: Is it likely that we get to 90% penetration? Probably not. If you told me 10 years ago, we'd have states with over 25% penetration, I would have had to pinch myself about possibly dreaming as well. What we instead try to say is, "Let's just look at the numbers." Because so much of our growth is organic, which is obviously an extremely high-cost problem, we really have to go by, based on trends. If you look at trends, we can take our most penetrated states, and they're still growing just as quickly, if not faster than our least penetrated states.

Speaker Change: Because we'll have some data from some of these dual tier regions.

Chris Holes: And just just to add to that Chris.

Chris Holes: I think the the successful launch of dual T. A lot last year sort of given us a lot of information, where we can take this sort of more nuanced more sophisticated approach to that Chris referred to.

Chris Holes: And that means that ultimately that there'll probably be a greater level of customization.

Chris Hulls: If our least penetrated states, if they were to catch up to our most penetrated states and we didn't have continued growth in the most penetrated ones, which we don't have, we would be doubling MAU already. Those trends are continuing. The things I am looking for to say that we have hit a saturation point, 'cause we will at some point. I don't know when, and that would be a change in strategy, and it'll be a fine one 'cause we've really been growing the base versus trying to harvest the base. We have our big back-to-school bump. At some point, that probably fades, and that probably says something about penetration. We usually have a big spike after Christmas.

Chris Holes: On a territory by territory basis, but in a way that gives us some higher scalability. So.

Chris Holes: As we move forward the year.

Chris Holes: The lines between Triple theater in jewelry and might be.

Chris Holes: Great So that where we've seen great success in international we expect a lot of expansion in international in 'twenty five.

Chris Holes: And that's what will drive this.

Chris Hulls: At some point, that probably fades, and that probably says something about penetration. We usually have a big spike after Christmas.

Chris Holes: Okay.

Chris Holes: Very helpful. Thank you so much.

Chris Hulls: That's more of a one-off, but it does show when people get new phones, is Life360 one of those things they immediately turn to and install? Then I would just look at what's happening in general on trends on a region-by-region level and try to see where we asymptote out. The great news for us is that we haven't seen that really in any region yet, and we are now seeing international regions follow a similar curve. There's possible reason to believe that in areas like Europe, we might even do better than the US because cross-platform is such a bigger differentiator there. Counterintuitively, historically, we've done better in iOS-heavy regions, and I think that's because Apple has helped make location sharing not creepy, which it once was.

Speaker Change: Alright, we'd like to open it up to laugh at MST, if he can amuse.

Speaker Change: I appreciate the opportunity to ask a question.

Speaker Change: Sort of follow up on the advertising revenue and in partnership specifically, so last year, we earned about Uber and arity.

Speaker Change: Can you just talk us talk to what kind of conversations you're having now with other partners and can you give us detail around categories.

Speaker Change: There are a lot of conversations.

Chris Hulls: Counterintuitively, historically, we've done better in iOS-heavy regions, and I think that's because Apple has helped make location sharing not creepy, which it once was.

Speaker Change: Just following up in the international market, we noticed there is no ads.

Speaker Change: In Australia is it broadly now available.

Speaker Change: In all the international markets.

Chris Hulls: While it might take a little bit longer to get going in Europe, given the majority of people are on Android phones and Google has really pulled away from most of the initiatives in this space, maybe we do get everyone, because there has not been a region where people have said, "Wow, this just doesn't work for Germans or Swedish," or whoever. It seems like we are hitting this very universal value prop that resonates with everyone. I think we have a long way to go, and we'll be very open about what these trends look like. To your question of dual tier, triple tier, and when we're doing different rollouts in different regions, we're taking a more iterative approach this year.

Speaker Change: And are you already having any conversations you need international markets about.

Speaker Change: Partnerships or is it just in the U S at the moment.

Speaker Change: I'll start with the last part of the question, Yes were turned out in Australia.

Speaker Change: Hi.

Speaker Change: I, we're not in all regions, yet we want to make sure there's enough volume and we're starting that process, but again. This is where the international team has limited resources and we asked them to prioritize the highest ROI activities.

Chris Hulls: To your question of dual tier, triple tier, and when we're doing different rollouts in different regions, we're taking a more iterative approach this year.

We have many discussions ongoing.

Speaker Change: Starting to go to lots of conferences talking to advertisers, we hired Brian Macdevitt, who came from Google.

Chris Hulls: When things are vision-oriented or product-oriented, that's when I work very closely with the team, and it's less about the immediate data. It's more about where we believe the world's gonna go. But when we're looking at something that really is more around optimizing scarce resources, the team does a very good job of deciding what that right next lever to pull is. Under internal management meetings, we of course challenge and we push on different assumptions, but we are taking a more quarter-by-quarter approach around. Do we launch a new triple-tier region, which is obviously a lot more work? Do we optimize more in dual tier? What we've seen with dual tier to your question, and just for everyone's benefit, dual tier is just a very lightweight version.

Speaker Change: Over a decade of doing a similar role there. So our pipeline is long I could name drop lots and lots of companies.

Speaker Change:

Speaker Change: I don't know the specifics outside of the U S. But over time, we will of course give a much deeper look at that when you look at the pipeline and why we're excited about it and I think why we are getting this demand aside from.

Having Brian come over with a very deep rolodex.

Speaker Change: The Uber partnership has been extremely powerful one to be able to just show someone with a contextual ads really looks like.

Chris Hulls: Do we optimize more in dual tier? What we've seen with dual tier to your question, and just for everyone's benefit, dual tier is just a very lightweight version.

Speaker Change: Because we can talk about hey, we're going to meet people, where they are we're not just into the banner now we can actually show something that's really outperformed and we're looking for other similar ad units.

Chris Hulls: It doesn't have things like the tow truck dispatch, which just takes a lot more integration work and just infrastructure. It's just letting us move more quickly to start monetizing under-monetized countries, and then we can get paid acquisition going, which is a very new muscle for us outside of the US. We're working on the plans for the back half of the year now. Over the next few months, it's a very dual tier optimization focus set of quarters. We'll know more probably in Q1 earnings. Definitely Q2 earnings we'll be able to share a little bit more specifics in terms of what the next few steps of the roadmap looks like. 'Cause we'll have had some data from some of these dual tier regions.

Speaker Change: When I think of specific categories retail is an obvious one.

Speaker Change: That will be tied in with things like off site advertising, where we use our first party location data to do targeting attribution and that does tie in with the Phanteks acquisition, because they they can help with that.

Speaker Change: Understanding who these customers are bearing different data sources together doing that in a way where raw data doesn't leave our system.

Speaker Change: So.

Speaker Change: Everything targeting was just gets better that way.

Speaker Change: There are conversations and cyber security there are conversations and device protection. So.

Chris Hulls: 'Cause we'll have had some data from some of these dual tier regions.

Russell Burke: Just to add to that, Chris, you know, I think the successful launch of dual tier last year has sort of given us a lot of information where we can take this sort of more nuanced, more sophisticated approach that Chris referred to. That means that ultimately there'll probably be a greater level of customization on a territory by territory basis, but in a way that gives us higher scalability. You know, as we move forward, you know, the lines between triple tier and dual tier might be a little grayer. We've seen great success in international. We expect a lot of expansion in international in 2025, and that's what will drive this.

Speaker Change: It's a pretty wide range of companies that we're talking to.

Speaker Change: We'll have deals.

Speaker Change: With our more generic banners going to rolling out in real time, we wont be announcing all of those so that's just more business as usual, but we are working on how to find the next Uber style custom placements that will drive that real outperformance versus banners, which are more brand oriented versus performance oriented and don't leverage our secret sauce is.

Speaker Change: As much.

Speaker Change: Great. Thank you next thanks, Lev next we'd like to open up to Rob at loop capital.

Rob: Okay. Thank you I've also got a few questions on the advertising sort of go to market.

Speaker Change: Lots of Optionality around here.

Speaker Change: First on the on the first party opportunities and specifically the.

Chris Hulls: Very helpful. Thank you so much.

[Analyst] (JMP): Very helpful. Thank you so much.

Speaker Change: <unk>.

Raymond Jones: All right. We'd like to open it up to Lav at MST, if he can unmute.

Speaker Change: AD tech with Fedex that seems to make sense. It sounds like this is mostly to help on targeting.

Speaker Change: I assume this is intended to just outperformance of your of the adds that you can serve but maybe can you expand on what the acquisition might enable from a product perspective that was not possible before and then I've got a couple of follow ups on some of the third party opportunities sure. So a lot of what vantage of VIX is building.

Lafitani Sotiriou: Hey, guys. Appreciate the opportunity to ask a question. May I sort of follow up on the advertising revenue and partnerships specifically? You know, late last year we heard about Uber and Arity. Can you just talk to what kind of conversations you're having now with other partners? Can you give us detail around categories that there are live conversations? Just following up in the international market, we noticed there's now ads in Australia. Is it broadly now available ads on in all the international markets? Are you already having any conversations in the international markets about partnerships, or is it just in the US at the moment?

Speaker Change: Out of the team.

Speaker Change: With people are deeply experienced in the AD tech space.

Speaker Change: It was a relatively small acquisition so that the biggest thing we're getting our people with deep experience in advertising and AI and yes, you are correct that a lot of it is the targeting and attribution, but there's a lot more there in terms of building out customer profiles.

Lafitani Sotiriou: Are you already having any conversations in the international markets about partnerships, or is it just in the US at the moment?

Chris Hulls: Well, I'll start with the last part of the question. Yes, we're turned on in Australia. We're not in all regions yet. We wanna make sure there's enough volume, and we're starting that process. Again, this is where the international team has limited resources, and we ask them to prioritize the highest ROI activities. We have many discussions ongoing. We're starting to go to lots of conferences, talking to advertisers. We hired Brian MacDivitt, who came from Google. He had over a decade of doing a similar role there. Our pipeline is long. I could name drop lots and lots of companies. I don't know the specifics outside of the US, but over time, we'll of course give a much deeper look at that.

Speaker Change: I'll get a little bit technical for the moment, but when you think about targeting attribution you have deterministic insights where you actually can track a device and see what happened. After that was served in AD and that could be even outside of the <unk> hundred 60 ecosystem with people, who gave us permission and our opt in rates do idea Fei sharing extremely high way over industry averages.

Speaker Change: And that deterministic data that.

Speaker Change: That's something that doesn't need the the kind of the deep machine learning as much but a lot of what the industry does is synthetic data, which is probabilistic where you don't exactly know where someone went or what they did but you you take.

Speaker Change: Ah different insights and create these profiles and target. These synthetic profile, we're very unique because we have.

Chris Hulls: I don't know the specifics outside of the US, but over time, we'll of course give a much deeper look at that.

Chris Hulls: When you look at the pipeline and why we're excited about it, and I think why we are getting this demand, aside from having Brian come over with a very deep Rolodex, the Uber partnership has been an extremely powerful one to be able to just show someone what a contextual ad really looks like. Because we can talk about, "Hey, we're gonna meet people where they are. We're not just gonna do the banner." Now we can actually show something that's really outperformed, and we're looking for other similar ad units. When I think of specific categories, retail is an obvious one. Some of that will be tied in with things like off-site advertising, where we use our first-party location data to do targeting attribution.

Speaker Change: Bigger deterministic datasets than almost anyone outside of the Internet Giants, who obviously don't let.

Speaker Change: Theyre very wall closed off ecosystem, but we can also build our own synthetic profiles. So we can make inferences about other.

Speaker Change: User attributes based on their location familial connections and other things, we know and that is a very specific skill set which is is not one that we've had in the company. So we're really excited about this because we now have a team that's deeply experienced and that he didn't usually companies have very specific DNA and I'd say, we were our DNA is consumer.

Speaker Change: Products and we're excited that we've now brought on a team that expands its pretty quickly.

Chris Hulls: Some of that will be tied in with things like off-site advertising, where we use our first-party location data to do targeting attribution.

Speaker Change: Thank you for that so yes.

Speaker Change: Yes, the deterministic measurement, but even beyond that.

Chris Hulls: That does tie in with the Fantix acquisition because they can help with that, understanding who these customers are, pairing different data sources together, doing that in a way where raw data doesn't leave our system. Everything targeting-wise just gets better that way. There are conversations in cybersecurity, there are conversations in device protection. It's a pretty wide range of companies that we're talking to. We'll have deals with our more generic banners kind of rolling out in real time. We won't be announcing all of those because that's just more business as usual. We are working on how to find the next Uber style custom placements that will drive that real outperformance versus banners, which are more brand oriented versus performance oriented and don't leverage our secret sauce quite as much.

Speaker Change: You can just.

Speaker Change: The high level the valuable the data seems very valuable to a lot of I can imagine a lot of applicability across the AD ecosystem at large so when you talk about quadrupling. The engagement pipeline has that sort of mostly like brands like Uber that you could go to market with or are we talking about potentially.

Speaker Change: Other sort of partnerships and with that.

Speaker Change: You could that pipeline include what we might consider mega scale AD platforms or even the next tier of large scale our platforms because.

Chris Hulls: We are working on how to find the next Uber style custom placements that will drive that real outperformance versus banners, which are more brand oriented versus performance oriented and don't leverage our secret sauce quite as much.

Speaker Change: Im sure Theres a lot of ways to leverage this type of data if done in a privacy safe way and et cetera et cetera. So there have been a maybe you could expand on that a little bit yeah. It. It's it's been all of the above.

Speaker Change: I am not involved in most of each of the conversations but when I've got the briefing, where we're talking to the retail media networks interesting retailers, who are interested in having ads on the map that pop up and if you went to a certain store and we can call. It out and give you a coupon that's kind of fun and actually feel is great for our customers. So it really is all.

Raymond Jones: Great.

Lafitani Sotiriou: Thank you.

Raymond Jones: Next. Thanks, Lav. Next, we'd like to open up to Rob at Loop Capital.

[Analyst] (Loop Capital): Okay, thank you. I've also got a few questions on the advertising sort of go-to-market. Lots of optionality around here. First on the first party opportunities and, specifically, you know, the acquisition of ad tech with Fantix, which seems to make sense. It sounds like this is mostly to help on targeting. I assume this is intended to just help performance of the ads that you can serve. Maybe can you expand on what the acquisition might enable from a product perspective that was not possible before. Then I've got a couple of follow-ups on some of the third-party opportunities.

Rob Sanderson: Okay, thank you. I've also got a few questions on the advertising sort of go-to-market. Lots of optionality around here. First on the first party opportunities and, specifically, you know, the acquisition of ad tech with Fantix, which seems to make sense. It sounds like this is mostly to help on targeting. I assume this is intended to just help performance of the ads that you can serve. Maybe can you expand on what the acquisition might enable from a product perspective that was not possible before. Then I've got a couple of follow-ups on some of the third-party opportunities.

Speaker Change: All of the above.

Speaker Change: And as we progress I think we'll probably at some point do a break out and it's a little more AD focused in particular, we can.

Speaker Change: We can give a little bit more color I'm not trying to be cagey on it but it is sort of lots and lots of opportunities in front of us and then where we're picking the next one you'll you'll see a slow steady drumbeat of new things here.

Obviously, you're very early in the business development journey here, but if.

Speaker Change: If we think about first party versus third party.

Speaker Change: What do you think is the larger opportunity sort of where are you putting the bigger focus maybe over the next two or three years.

Chris Hulls: Sure. A lot of what Fantix is building out the team with people who are deeply experienced in the ad tech space. It was a relatively small acquisition, so the biggest thing we're getting are people with deep experience in advertising and AI. Yes, you are correct that a lot of it is the targeting and attribution, but there's a lot more there in terms of building out customer profiles. I'll get a little bit technical for the moment, but when you think about targeting attribution, you have deterministic insights where you actually can track a device and see what happened after it was served an ad, and that ad could be even outside of the Life360 ecosystem with people who gave us permission, and our opt-in rates to IDFA sharing are extremely high, way over industry averages.

Speaker Change: Yeah.

Speaker Change: When we think of first versus third party.

Speaker Change: It's hard to know exactly it's going to be both.

Speaker Change: I'd love to be able to get you a little more specific answered your question in coming months. Because again. We are we are figuring this out so I'll I'll I'll talk a little bit about both <unk> and.

Speaker Change: I've heard people use first party and third party in different context here, but I'll just give a few examples so when I think about AD placements within our App off.

Chris Hulls: I'll get a little bit technical for the moment, but when you think about targeting attribution, you have deterministic insights where you actually can track a device and see what happened after it was served an ad, and that ad could be even outside of the Life360 ecosystem with people who gave us permission, and our opt-in rates to IDFA sharing are extremely high, way over industry averages.

Speaker Change: First party data, but bringing these partners, that's where we're going to see a lot of these really high performance really relevant ads that don't feel like ads in those make me very excited.

Speaker Change: When I think about off site, which is more third party in the sense that where were we.

Chris Hulls: That deterministic data, that's something that doesn't need the kind of deep machine learning as much. A lot of what the industry does is synthetic data, which is probabilistic, where you don't exactly know where someone went or what they did, but you take different insights and create these profiles and target these synthetic profiles. We're very unique because we have bigger deterministic data sets than almost anyone outside of the internet giants who obviously don't let. They're very walled, a closed-off ecosystem. We can also build our own synthetic profiles, so we can make inferences about other user attributes based on their location, familial connections, and other things we know. That is a very specific skill set, which is not one that we've had in the company.

Speaker Change: We're going to be working with third party networks, who can do targeting and attribution and other properties.

Speaker Change: Intuitively that feels like it could be big in Oregon, just dominate because the big guys completely wall themselves off from other people.

Speaker Change: And we'll be I think the largest company with a first party location data set of this size.

Speaker Change: Doing anything like this one thing to be clear on though is we're not getting out into raw data sales or allowing non service provider.

Chris Hulls: We can also build our own synthetic profiles, so we can make inferences about other user attributes based on their location, familial connections, and other things we know. That is a very specific skill set, which is not one that we've had in the company.

Speaker Change: Entities to access customer data directly so a lot of what we're trying to do with the system is more around user opted in idea far matching to just get us outside of the kind of the regulatory.

Chris Hulls: We're really excited about this because we now have a team that's deeply experienced and usually companies have a very specific DNA. I'd say our DNA is consumer products, and we're excited that we've now brought on a team that expands this pretty quickly.

Speaker Change: At.

Speaker Change: Issues that were a bit challenging a few years ago.

Speaker Change: Kind of causing a little bit of ongoing anxiety.

Speaker Change: We don't think we need to go back that direction to monetize in some of the developments such as like the ATT pop up actually are helping us because it really gives us a good framework in which to operate and know what's going to keep us safe both from a regulatory and ideally press standpoint as well.

[Analyst] (Loop Capital): Thank you for that. Yeah, the deterministic measurement. Even beyond that, I mean, you can just, you know, at a high level, the data seems very valuable, too. I can imagine a lot of applicability across, you know, the ad ecosystem at large. When you talk about quadrupling the engagement pipeline, is that sort of mostly like brands like Uber that you could go to market with? Or you know, are we talking about potentially, you know, other sort of partnerships? Would that, you know, could that pipeline include what we might consider, you know, mega scale ad platforms or even, you know, the next tier of large scale app platforms?

Rob Sanderson: Thank you for that. Yeah, the deterministic measurement. Even beyond that, I mean, you can just, you know, at a high level, the data seems very valuable, too. I can imagine a lot of applicability across, you know, the ad ecosystem at large. When you talk about quadrupling the engagement pipeline, is that sort of mostly like brands like Uber that you could go to market with? Or you know, are we talking about potentially, you know, other sort of partnerships?

Speaker Change: Okay. Thanks, Chris excited to see how this comes together for you. Thank you.

Julian: Next we'd like to open it up for Julian that E&P. Please.

Julian: Chris I'll just to ask you about your subscription growth forecast is it's pretty strong for this year.

Speaker Change: Given that what the conversion rate in the U S synthesis tool in that one quarter in.

Rob Sanderson: Would that, you know, could that pipeline include what we might consider, you know, mega scale ad platforms or even, you know, the next tier of large scale app platforms?Because, you know, I'm sure there's a lot of ways to leverage this type of data if done in a privacy-safe way and et cetera, et cetera.

Speaker Change: The rest of the World Vincent a decline was the price increase are you banking on a instead of a big kick up in their conversion right or is it purely matches miu growth being pretty strong still.

[Analyst] (Loop Capital): Because, you know, I'm sure there's a lot of ways to leverage this type of data if done in a privacy-safe way and et cetera, et cetera.

Chris Hulls: There have been.

[Analyst] (Loop Capital): Maybe you could expand on that a little bit.

Rob Sanderson: Maybe you could expand on that a little bit.

Speaker Change: We're not forecasting any sort of step function.

Chris Hulls: Yeah. It's been all of the above. I am not involved in most of each of the conversations, but when I've got the briefing, we're talking to the retail media networks, interesting retailers who are interested in having ads on the map that pop up, and if we know you went to a certain store and we can call that out and give you a coupon, that's kind of fun and actually feels great for a customer. It really is all of the above. As we progress, I think we'll probably at some point do a breakout. It's a little more ad focused in particular. We can give a little bit more color.

Speaker Change: If you look at the numbers and just how it stacks and with Mou growth and international that does add up to the numbers you get and looking even at the first couple months of the year.

Feel confident about how all of that is trending.

Speaker Change: International obviously is a very big lever.

Speaker Change: And.

Speaker Change: I do believe over time, the the majority of the revenue is going to become from these international regions and we are seeing that in.

Speaker Change: Reasons are similar kind of demographic and socioeconomic status, we're seeing similar results to the U S. So I think we just have a lot of headroom there and the team does do.

Chris Hulls: Not trying to be cagey on it, but it is sort of lots and lots of opportunities in front of us, and then we're picking the next one. You'll see a slow, steady drumbeat of new things here.

Speaker Change: Our bottoms up model, taking us guessing trends and run rates and then we look at what has to happen and so now you do not need a step function in any of our metrics for us to hit our numbers, but miu does have to continue to grow healthily.

[Analyst] (Loop Capital): Yeah, I know obviously you're very early in the business development journey here, but you know, if we think about first party versus third party, you know, what do you think is the larger opportunity? Sort of where are you putting the bigger focus maybe over the next, like, 2 or 3 years?

Rob Sanderson: Yeah, I know obviously you're very early in the business development journey here, but you know, if we think about first party versus third party, you know, what do you think is the larger opportunity? Sort of where are you putting the bigger focus maybe over the next, like, 2 or 3 years?

Speaker Change: Just just very quickly Julien we are seeing really strong continued growth in the U S.

Chris Hulls: When we think of first versus third party, it's hard to know exactly. It's gonna be both. I'd love to be able to get you a little more specific answer to your question in coming months, 'cause again, we are figuring this out. I'll talk a little bit about both and then I've heard people use first party and third party in different contexts here, but I'll just give a few examples. When I think about ad placements within our app, all first party data, but bring in these partners, that's where we're gonna see a lot of these really high performance, really relevant ads that don't feel like ads, and those make me very excited.

Speaker Change: With international sort of coming back to good growth.

Speaker Change: Having digested the price increases that you referenced.

Russell Burke: One I think in Russell keep me honest I'm getting this wrong, we actually saw the price increases being absorbed better than in the U S. I think we actually had a backwards.

Russell Burke: Net adds quarter, we did that price increase in the U S and we when we did not have that overseas, which is a pretty good home in a moment.

Russell Burke: Cool thanks, guys.

Speaker Change: Next I'd like to open it up to Maria <unk> from Canaccord Genuity.

Okay.

Speaker Change: Yeah. Thanks, so much for taking my question actually following up on the prior question one of your core subscription business. How should we think about sort of your approach to price increases in 2025, given that you've been system. So successfully taken prices up in key markets over the past couple of years and again, how much sort of like.

Chris Hulls: When I think about off-site, which is more third party in the sense that we're gonna be working with third party networks who can do targeting and attribution in other properties, intuitively, that feels like it could be big and where we could just dominate because the big guys completely wall themselves off from other people. We'll be, I think, the largest company with a first party location data set of this size, doing anything like this. One thing to be clear on though is we're not getting out into raw data sales or allowing non-service provider entities to access customer data directly.

Speaker Change: Price increases that are in more developed markets is factored into your full year guidance.

Speaker Change: Russell can you start with the the back half and then I'll talk to the more strategic piece, Yeah, absolutely Maria what what I would say is that we are apart from.

Speaker Change: Some optimization in terms of the jewel team started G that we talked about before we haven't necessarily built price increases into well into our plan.

Chris Hulls: A lot of what we're trying to do with the system is more around user opted in IDFA matching to just get us outside of the kind of the regulatory issues that were a bit challenging a few years ago and were kind of causing a little bit of ongoing anxiety. We don't think we need to go back that direction to monetize, and some of the developments such as like the ATT pop-up actually are helping us because it really gives us a good framework in which to operate and know what's gonna keep us safe both from a regulatory and, ideally, press standpoint as well.

Speaker Change: We will be opportunistic and if we if we see that that makes sense, we will do that but we're not necessarily counting on that in 'twenty five.

Speaker Change: And go into the more strategic piece.

Speaker Change: A very important thing for us while we continue to see the user base growing as quickly as it is is not to prematurely move into harvest mode.

Speaker Change: I'm highly confident that we could double revenue extremely quickly honestly within weeks or months.

Speaker Change: If we got more aggressive, but I I I want us to play the long game and so we we really want to have a very big value surplus.

[Analyst] (Loop Capital): Okay. Thanks, Chris. I'm excited to see how this comes together for you.

Rob Sanderson: Okay. Thanks, Chris. I'm excited to see how this comes together for you.

Chris Hulls: Thank you.

Speaker Change: So people really loved the brand and feel like they're getting a very good deal and at some point again that will change, but we're not at that point in our strategy. When we look at the U S numbers.

Raymond Jones: Next, we'd like to open it up for Julian at E&P, please.

[Analyst] (E&P): Chris, I just to ask about your subscription growth forecast. It's pretty strong for this year. Given that, like, the conversion rate in the US seems to sort of stall in that Q4 and, you know, the rest of world's been sort of declining with the price increase, are you banking on a sort of a big kick up in the conversion rate, or is it purely about just MAU growth being, you know, pretty strong still?

Speaker Change: It has been a couple of years and he's done a price increase but I don't anticipate we're going to do one in the near future.

Speaker Change: Is a pretty big process or I shouldn't say big process, but a noisy process because users get a notification via itunes.

Speaker Change: And even if you increase prices or sent you would probably get a significant churn event. So when you arent doing direct credit card billing, where you can just do it on the backend there'd be more incremental.

Chris Hulls: We're not forecasting any sort of step function. If you look at the numbers and just how it stacks and with MAU growth and international. It does add up to the numbers you get. Looking even at the first couple months of the year, I feel confident about how all that's trending. International obviously is a very big lever. I do believe over time, the majority of the revenue is gonna be coming from these international regions, and we are seeing that in regions of similar kind of demographic and socioeconomic status, we're seeing similar results to the US. I think we just have a lot of headroom there. The team does do a bottoms-up model, taking existing trends and run rates, and then we look at what has to happen.

Speaker Change: It's better to do bigger bites more infrequently and I am very customer focused so I want to make sure that its matched with real big step function improvements in the value we give.

Speaker Change: When you look internationally, we have had very low pricing and that does tie in to the whole dual tiered triple tier tradeoff, where if we can do moderate price increases very quickly to get people in dewalt here that might be a better option and going right to the triple tier.

Speaker Change:

Speaker Change: Set up which obviously is the highest in our P. P. CS that being said we are looking at where we might be underpriced internationally.

Speaker Change: And trying to more match the U S in and figure out how we can.

Chris Hulls: The team does do a bottoms-up model, taking existing trends and run rates, and then we look at what has to happen.

Speaker Change:

Speaker Change: Kind of from almost a purchasing parity standpoint.

Chris Hulls: No, you do not need a step function in any of the metrics for us to hit our numbers, but MAU does have to continue to grow healthily.

Speaker Change: I have similar value in similar pricing.

Speaker Change: So we probably will have some even triple T Rowe price increases in international regions. This year.

Russell Burke: Just very quickly, Julian, we are seeing really strong continued growth in the US, with international sort of coming back to good growth, having digested the price increases that you referenced.

Speaker Change: That's very helpful. Thank you.

Speaker Change: Next we'd like to open up to weigh wing from RBC.

Speaker Change: Hi, guys. Thanks for taking the question.

Speaker Change: Can you maybe speak to the acquisition that you guys announced today.

Chris Hulls: Probably one I think. Russell, keep me honest if I'm getting this wrong. We actually saw the price increases being absorbed better than in the US. I think we actually had a backwards net adds quarter. We did that price increase in the US, and when we did not have that overseas, which is a pretty good omen in my mind.

Speaker Change: What have you bought there is it more of a product or are you buying equal and capabilities.

Can you maybe give a practical example of what this acquisition kind of unlocks for you guys.

Speaker Change: And then can you also speak to whether this was a cash or equity based transaction.

Russell Burke: Cool. Thanks, guys.

[Analyst] (E&P): Cool. Thanks, guys.

Speaker Change: So I can take the first half of that.

Raymond Jones: Next, I'd like to open it up to Maria from Canaccord Genuity.

Speaker Change: Although we did buy assets. This is primarily getting the team and this is a team that has worked together for a very long time, the founder of the company is someone we had worked with in the past when he was running another company in the data space. So we know that people well and this has really been able to get us top tier talent.

[Analyst] (Canaccord Genuity): Yeah. Thanks so much for taking my question. Actually, following up on the prior question on your core subscription business, how should we think about sort of your approach to price increases in 2025, given that you've been so successfully sort of taking prices up in key markets over the past couple of years? I guess, how much of sort of like-for-like price increases sort of in more developed markets is factored into your full year guidance?

Speaker Change: Very very quickly and I'd say, that's the the majority of what makes us excited.

Speaker Change: That being said there are some assets are there some M.

Speaker Change: M L. AI models that help us segment, our customers very quickly.

Chris Hulls: Russell, can you start with the back half, and then I'll talk the more strategic piece?

Speaker Change: Some of the.

Speaker Change: Infrastructure to plug in with third parties and do segmentation is prebuilt. So it's moving a roadmap along a little faster than if we were to do it ourselves, but with a much better talent.

Russell Burke: Yeah. Absolutely. Maria, what I would say is that we, apart from some optimization in terms of the dual tier strategy that we talked about before, we haven't necessarily built price increases into our plan. We will be opportunistic, and if we see that makes sense, we will do that. We're not necessarily counting on that in 25.

Speaker Change: Talent bench and more and more starting on third base versus hiring up Bob.

Speaker Change: Unknown entities that may or may not be successful. So it really de risks in our mind the infrastructure, we need to build.

Speaker Change: And way just on the specifics of your question.

Speaker Change: We've said that it's a small acquisition, it's as Chris said, it's mainly about the sort of people in the in the models.

Chris Hulls: Going to the more strategic piece, a very important thing for us while we continue to see the user base growing as quickly as it is not to prematurely move into harvest mode. I am highly confident that we could double revenue extremely quickly, honestly, within weeks or months if we got more aggressive. I want us to play the long game, and so we really wanna have a very big value surplus, so people really love the brand and feel like they're getting a very good deal. At some point, again, that will change, but we're not at that point in the strategy. When we look at the US numbers, it has been a couple of years since we've done a price increase, but I don't anticipate we're gonna do one in the near future.

Speaker Change: Very specifically, it's a four and a half million asset acquisition with a mix between cash and equity.

Speaker Change: Thanks, so much.

Speaker Change: Yeah.

Speaker Change: Alright. The next question will be from Mark from Stifel.

Speaker Change: Great. Thanks, very much guys.

Speaker Change: Chris can you clarify the comment you made.

Speaker Change: Earlier about an.

Speaker Change: An increase in seasonality was that is that just focused on the hardware side or is that a broader statement.

Speaker Change: My first question and then the second one.

Speaker Change: Appreciate the commentary on pets, I guess can you give us maybe an update on.

Chris Hulls: It is a pretty noisy process because users get a notification via iTunes, and even if you increase prices a cent, you would probably get a significant churn event. When you aren't doing direct credit card billing, where you can just do it on the back end and be more incremental, it's better to do bigger bites more infrequently. I am very customer-focused, so I wanna make sure that it's matched with real big step function improvements in the value we give.

Speaker Change: The product roadmap or just general thoughts about elder care that'll be great. Thank you sure on the seasonality piece do you remember the context in which comment that was.

Speaker Change: It was part of the wrap up to the guidance I believe in your prepared remarks.

Speaker Change: Got it.

Speaker Change: This seasonality is it Russell do you remember the exact specific.

Speaker Change: Hi.

Speaker Change: Marty is there any point were making there is that you know as as we move forward, we are becoming a little more seasonal with obviously, we've had the seasonality with hardware.

Chris Hulls: When you look internationally, we have had very low pricing, and that does play into the whole dual tier, triple tier trade-off, where if we can do moderate price increases very quickly to get people in dual tier, that might be a better option than going right to the triple tier setup, which obviously is the highest ARPC. That being said, we are looking at where we might be underpriced internationally, and trying to more match the US and figure out how we can, kind of from almost a purchasing parity standpoint, have similar value and similar pricing. We probably will have some even triple tier price increases in international regions this year.

Speaker Change: Advertising is as it ramps up.

Speaker Change: Is it.

Speaker Change: Seasonal both in terms of the ramp up but also in terms of obviously, there's more activity and into the holiday seasons et cetera. So.

Speaker Change: That's that was the.

Speaker Change: The gist of the comment.

Speaker Change: But the other aspect to which.

Speaker Change: I, specifically talked about is that we are increasing marketing spend a little a little more this year.

Speaker Change: And that's a little bit.

[Analyst] (Canaccord Genuity): That's very helpful. Thank you.

Speaker Change: First half weighted in order to really help drive subscription over the course of the year.

Raymond Jones: Next, we'd like to open up to Wei-Weng Chen from RBC.

Russell Burke: Okay perfect. Thank you Russell.

Wei-Weng Chen: Hi, guys. Thanks for taking the question. Can we maybe speak to the acquisition that you guys announced today? What have you bought there? Is it more of a product, or are you buying people and capabilities? Can you maybe give a practical example of what this acquisition kind of unlocks for you guys? And then can you also speak to whether this was a cash or equity-based transaction?

Speaker Change: And on the elder care front.

Speaker Change: I'll start with it a personal anecdote so I am working on this feature.

Speaker Change: Feature with our former CFO, David Rice is running international and also doing special projects with me.

Speaker Change: We unfortunately, both have moms, who are going to be users of what we're building.

Chris Hulls: I can take the first half of that. Although we did buy assets, this is primarily getting the team. This is a team that has worked together for a very long time. The founder of the company is someone we had worked with in the past when he was running another company in the data space, so we know the people well. This has really been able to get us top-tier talent very, very quickly, and I'd say that's the majority of what makes us excited. That being said, there are some assets. There's some ML AI models that help us segment our customers very quickly. Some of the infrastructure to plug in with third parties and do segmentation is pre-built.

Speaker Change: My mom is dementia and David's mom is just getting to that age where brain sharper really need a lot of help. So we are we are both experiencing the products in the market today and we are hardest. This this should be the easiest lay up in the world because they all suck.

Speaker Change: They are low quality, nobody likes them and they're exorbitant priced and if you look at what we can do in many regards it's the same advantage. We already have which is we already have the customers and we often already have the seniors who are using life through 60 Standalone.

Chris Hulls: Some of the infrastructure to plug in with third parties and do segmentation is pre-built.

Speaker Change: But now need a little bit of extra help and they don't feel threatened by life 360 <unk> in particular.

Speaker Change: More frail seniors non memory care ones.

Chris Hulls: It's moving our roadmap along a little faster than if we were to do it ourselves, but with a much better talent bench and more starting on third base versus hiring up unknown entities that may or may not be as successful. It really de-risks, in our mind, the infrastructure we need to build.

Speaker Change: Because.

Speaker Change: They were already in the ecosystem and so if you look at what we can do more.

Speaker Change: We're going to start with software only features which are very simple ones like.

Speaker Change: His mom or dad or whoever when's the last time, they picked up the phone or are they taking steps.

Speaker Change: So for my mom a lot of the time she's just in the house and she does pick up a phone, but I don't I don't know she has been active and I have done all of these weird hacks like a checker video doorbell check different cameras in the house side of this thing called the Jubilee television, which is actually quite good which sensors presence in the room. We can do that all from the phone. We can also do that when we have a device like mom was lost.

Russell Burke: Wei-Weng Chen, just on the specifics of your question, we've said it's a small acquisition. As Chris Hulls said, it's mainly about the sort of people and the models. Very specifically, it's a $4.5 million asset acquisition with a mix between cash and equity.

Speaker Change: Active an hour ago can't really get that from like three six today because all you know is where the fone is so we can do that purely.

Chris Hulls: Thanks so much.

Wei-Weng Chen: Thanks so much.

Speaker Change: In software than where the hardware we have a huge network of people I live in a small town and that's very helpful where people were actually a couple of times a mom has wandered and they've helped bring her home and that's been very nice, but imagine if you didn't have that personal tie you can notify the nearby life through six years of members around you that hey, this person's wandered in years, where they are can you <unk>.

Raymond Jones: All right, the next question will be from Mark from Stifel.

Speaker 16: Great. Thanks very much, guys. Chris, can you clarify the comment you made earlier about an increase in seasonality? Is that just focused on the hardware side, or is that a broader statement? That's my first question. The second one, you know, appreciate the commentary on pets. I guess, can you give us maybe an update on the product roadmap or just general thoughts about elder care? That would be great. Thank you.

[Analyst] (Stifel): Great. Thanks very much, guys. Chris, can you clarify the comment you made earlier about an increase in seasonality? Is that just focused on the hardware side, or is that a broader statement? That's my first question. The second one, you know, appreciate the commentary on pets. I guess, can you give us maybe an update on the product roadmap or just general thoughts about elder care? That would be great. Thank you.

Speaker Change: Out I have a bit of that community feeling and then from a hardware standpoint.

Speaker Change: A lot of what exists in the market and it's usually those I've fallen and I can't get up alarm services.

Chris Hulls: Sure. On the seasonality piece, do you remember the context or which comment that was?

Speaker Change: They're really more marketing companies because they they they were not targeting the millennials and younger Gen. Xers, who are now the buyers of these products of their aging parents. They were going through late night T V. In doctors' offices, and they were not winning on product quality is a bad battery life bad industrial design not very comfortable.

Speaker 16: It was part of the wrap-up to the guidance, I believe, in your prepared remarks.

[Analyst] (Stifel): It was part of the wrap-up to the guidance, I believe, in your prepared remarks.

Chris Hulls: Got it. The seasonality is, Russell, do you remember the exact specifics on that one?

Russell Burke: Yeah. Look, Mark, the only point we're making there is that, you know, obviously, we've had that seasonality with hardware. Advertising as it ramps up is seasonal both in terms of the ramp-up, but also in terms of, obviously there's more activity in sort of holiday seasons, et cetera. That was the gist of the comment. But the other aspect, which I specifically talked about is that, you know, we are increasing marketing spend a little more this year, and that's a little bit first half weighted in order to really help drive subscription over the course of the year.

Speaker Change: None of the technology, we have and so if you look at what we can do we'll be able to pair a hardware device to the phone will be able to to really have good battery life is going to be seamlessly integrated in like 360. So so not a whole new product and that same story of we will not have a customer acquisition cost when we market to warn customers and we can pick up signals.

Speaker Change: People now say their roles in the family, we know exactly who's a grandparent me now how old they are they can start surfacing. These different features to you. If we see a senior moves to a new home that often might mean, there theyre moving to a senior residential neighborhood. That's a great time for us to start helping our customers out so.

Speaker Change: The.

Speaker Change: That will be 'twenty 'twenty six.

Speaker Change: I wish we could do it sooner as just scarce resources, but they're really cool thing about our hardware strategy is if you take the pet device and the senior device. It's kind of the same thing just with a different shell around it so.

Speaker 16: Okay, perfect. Thank you, Russell.

[Analyst] (Stifel): Okay, perfect. Thank you, Russell.

Chris Hulls: On the elder care front, I'll start with a bit of a personal anecdote. So I am working on this feature with our former COO, David Rice, who's running international and also doing special projects with me. We unfortunately both have moms who are gonna be users of what we're building. My mom has dementia, and David's mom is just getting to that age where her brain's sharp, but really needs a lot of help. We are both experiencing the products in the market today, and we are just. This should be the easiest layup in the world because they all suck. They are low quality, nobody likes them, and they're exorbitantly priced.

Speaker Change: The technology is very extensible and even some of the software features are going to be similar or we're going to have the pet finding network, which are our competitors can't really have because I don't really have the customer base we do.

Speaker Change: Pat La Senior lost Kid units, it's really all the same features so I'm excited to start this drumbeat of launching out into these different services that lineup to their core and build out that people pets things ecosystem that I think is really just starting to come to life right now.

Chris Holes: Thanks, a lot Chris I appreciate that.

Chris Holes: Where we've come to the end of our time. This last question is from Chris Savage at Bell Potter and then we'll close out the call.

Chris Holes: Thanks to a very quick so bit obscure, but you're suggesting hardware revenue will go backwards to see and that's obviously the spot the the relaunch of the new product launch of tile. So what's driving that are you basically going to keep more way to drive subscription all the job it'll tile or what's the story there.

Chris Hulls: If you look at what we can do, in many regards, it's the same advantage we already have, which is we already have the customers, and we often already have the seniors who are using Life360 standalone, but now need a little bit of extra help, and they don't feel threatened by Life360, in particular, just more frail seniors, non-memory care ones, because they're already in the ecosystem. If you look at what we can do, we're gonna start with software-only features, which are very simple ones like, is mom or dad or whoever, when's the last time they picked up the phone? Are they taking steps? I know for my mom, a lot of the time she's just in the house and she does pick up her phone, but I don't know she's been active.

Chris Holes: Sure. So we're focused on first and giving them away and driving subscriptions. That's the reason we did the acquisition, we know hardware revenue isn't particularly exciting.

Chris Holes: Great business to be in per se, but driving subscriptions is a great business. So that's continuing to be more of the theme, we actually will be deprecating. The tile Apple we'll all be through life. You 60, and every time you buy a title device youll be activating your account online through 60, which gives us that swing it up sell so we would definitely prefer lower pricing, giving more away.

Chris Hulls: I know for my mom, a lot of the time she's just in the house and she does pick up her phone, but I don't know she's been active.

Chris Hulls: I have done all these weird hacks, like I check her video doorbell, I check different cameras in the house. I have this thing called the JubileeTV, which is actually quite good, which senses presence in the room. We can do that all from the phone. We can also do that when we have a device. Like, mom was last active an hour ago. Can't really get that from Life360 today because all you know is where the phone is. We can do that purely in software rather than with the hardware. We have a huge network of people. I live in a small town, and it's very helpful where people actually a couple of times my mom has wandered, and they've helped bring her home, and that's been very nice.

Chris Holes: All of that is going to drive subs.

Chris Holes: We should also be open that retail has been.

Chris Holes: Challenging.

Chris Holes: I think at some point, especially with pets and all that when we're gonna be very differentiated it will help but we.

Chris Holes: We need to be open that Apple really does dominate this space right now and.

Chris Holes: When retailers already have air tags, and Theres been a kind of a declining brick and mortar foot traffic presence in consumer electronics anyway, that's been that's been frustrating.

Chris Hulls: We have a huge network of people. I live in a small town, and it's very helpful where people actually a couple of times my mom has wandered, and they've helped bring her home, and that's been very nice.

Chris Holes: But.

Chris Holes: Not really impacting that core and as we differentiate and if this Hubble partnership works and I'm very excited to give updates on that but we will have will leapfrog ear tags, and maybe we can bully everybody out because if.

Chris Hulls: Imagine if you didn't have that personal tie, you could notify the nearby Life360 members around you that, "Hey, this person's wandered, and here's where they are. Can you help them out?" Have a bit of that community feeling. Then from a hardware standpoint, a lot of what exists on the market is usually those, "I've fallen and I can't get up," alarm services. They're really more marketing companies because they were not targeting the millennials and younger Gen Xers who are now the buyers of these products for their aging parents. They were going through late-night TV and doctor's offices, and they were not winning on product quality. Bad battery life, bad industrial design, not very comfortable, none of the technology we have.

Chris Holes: If we have the satellite compatible.

Chris Holes: Title devices.

Chris Holes: The only benefit the V Seattle, having will go away and we're cross platform and we don't have any of the onerous controls, but that will probably be more of a 'twenty six thing, but for now I'm focused on driving subscriptions lowering costs, giving them away.

Chris Hulls: They were going through late-night TV and doctor's offices, and they were not winning on product quality. Bad battery life, bad industrial design, not very comfortable, none of the technology we have.

Chris Holes: Some admitted weakness in retail as we still are.

Chris Holes: Fighting those headwinds of just the broader trends and Apple still being this behemoth, we're chipping away at sure. Thank you.

Chris Hulls: If you look at what we can do, we'll be able to pair a hardware device to the phone. We'll be able to really have good battery life. It's gonna be seamlessly integrated in Life360, so it's not a whole new product. That same story of we will not have a customer acquisition cost when we market to our own customers. We can pick up signals. People now say their roles in the family. We know exactly who's a grandparent. We know how old they are. We can start surfacing these different features to you. If we see a senior moves to a new home, that often might mean they're moving to a senior residential neighborhood. That's a great time for us to start helping our customers out. That will be 2026.

Chris Holes: Yeah.

Chris Holes: This concludes our call Chris I'll turn it back over to you real quick for parting remarks, I have no parting remarks, very excited about the year to come and spending some time with some of you in coming weeks.

Chris Holes: Thank you all.

Chris Holes: Thanks, Adam.

Chris Holes: Mhm.

Chris Hulls: That's a great time for us to start helping our customers out. That will be 2026.

Chris Hulls: I wish we could do it sooner. It's just scarce resources. The really cool thing about our hardware strategy is if you take the pet device and the senior device, it's kind of the same thing just with a different shell around it. The technology is very extensible, and even some of the software features are gonna be similar. We're gonna have the pet-finding network, which our competitors can't really have because they don't really have the customer base we do. Lost pet, lost senior, lost kid, you know, it's really all the same feature. I'm excited to start this drumbeat of launching out into these different services that line up to the core and build out that people, pets, things ecosystem that I think is really just starting to come to life right now.

Chris Hulls: I'm excited to start this drumbeat of launching out into these different services that line up to the core and build out that people, pets, things ecosystem that I think is really just starting to come to life right now.

Raymond Jones: Thanks a lot, Chris. Appreciate that. We've come to the end of our time. This last question is from Chris Savage at Bell Potter, and then we'll close out the call.

[Analyst] (Stifel): Thanks a lot, Chris. Appreciate that.

Raymond Jones: We've come to the end of our time. This last question is from Chris Savage at Bell Potter, and then we'll close out the call.

Speaker 17: Thanks, RJ. Very quick. A bit obscure, but you're suggesting hardware revenue will go backwards this year, and that's obviously despite the relaunch or the new product launch of Tile. What's driving that? Are you basically gonna give more away to drive subscription, either Jiobit or Tile, or what's the story there?

Chris Savage: Thanks, RJ. Very quick. A bit obscure, but you're suggesting hardware revenue will go backwards this year, and that's obviously despite the relaunch or the new product launch of Tile. What's driving that? Are you basically gonna give more away to drive subscription, either Jiobit or Tile, or what's the story there?

Chris Hulls: Sure. We're focused on first, as you mentioned, giving them away and driving subscriptions. That's the reason we did the acquisition. We know hardware revenue isn't particularly exciting. It's not a great business to be in per se, but driving subscriptions is a great business. That's continuing to be more of the theme. We actually will be deprecating the Tile app. It will all be through Life360, and every time you buy a Tile device, you will be activating your account on Life360, which gives us that swing at upsell. We would definitely prefer lower pricing, giving more away, all that if it's gonna drive subs. We should also be open that retail has been challenging. I think at some point, especially with pets and all that, when we're gonna be very differentiated, it will help.

Chris Hulls: We should also be open that retail has been challenging. I think at some point, especially with pets and all that, when we're gonna be very differentiated, it will help.

Chris Hulls: We need to be open that Apple really does dominate this space right now. When retailers already have AirTags, and there's been a kind of a declining brick-and-mortar foot traffic presence in consumer electronics anyway, that's been frustrating, but not really impacting that core. As we differentiate, and if this Hubble partnership works, and I'm very excited to give updates on that, we will leapfrog AirTags, and maybe we can bully everybody out because if we have the satellite-compatible Tile devices, the only benefit that we see Apple having will go away, and we're cross-platform, and we don't have any of the onerous controls. That will probably be more of a 2026 thing.

Chris Hulls: As we differentiate, and if this Hubble partnership works, and I'm very excited to give updates on that, we will leapfrog AirTags, and maybe we can bully everybody out because if we have the satellite-compatible Tile devices, the only benefit that we see Apple having will go away, and we're cross-platform, and we don't have any of the onerous controls. That will probably be more of a 2026 thing.

Chris Hulls: For now, focused on driving subscriptions, lowering costs, giving them away, with some admitted weakness in retail, as we still are fighting those headwinds of just the broader trends and Apple still being this behemoth we're chipping away at.

Speaker 17: Sure. Thank you.

Chris Savage: Sure. Thank you.

Raymond Jones: This concludes our call. Chris, I'll turn it back over to you real quick for parting remarks.

Chris Hulls: I have no parting remarks. Very excited about the year to come and spending some time with some of you in coming weeks. Thank you all.

Raymond Jones: Thanks, everyone.

Full Year 2024 Life360 Inc Earnings Call

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