Q1 2025 Life360 Inc Earnings Call

Operator: When we come to the Q&A, please raise your hand by pressing the raise hand icon at the bottom center of your screen and your line will be unmuted in turn.

When we come to the Q&A. Please raise your hand by pressing the raise hand, the icon at the bottom center of your screen and your line will be and muted in turned participants who are joined by telephone will be in a listen only mode throughout.

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

Operator: As a reminder, we will make forward-looking statements regarding future events and potential financial performance during this call, which are subject to material risks and uncertainties that can cause actual results to differ materially from such statements.

As a reminder, we will make forward looking statements regarding future events and potential financial performance. During this call, which are subject to material risks and uncertainties that can cause actual results to differ materially from such statements.

Operator: A summary of these risks may be found in the risk factors section of our Form 10-K filing with the SEC dated February 27, 2025, and in our most recent Form 10-Q.

A summary of these risks may be found in the risk factors section of our Form 10-K filing with the SEC dated February 27, 2025 and in our most recent Form 10-Q.

Operator: These forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, May 12, 2025, and we have no obligation to update these statements as a result of new information or future events, except when required by law.

These forward looking statements are based on assumptions that we believe to be reasonable as of todays date May 12, 2025, and we have no obligation to update these statements as a result of new information or future events, except when required by law. Additionally, we will present, both GAAP and non-GAAP financial measures on today's call. These non-GAAP measures are not intended to be.

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

Operator: 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.

Centered in isolation from a substitute for or superior to our GAAP results and should be read in conjunction with the company's consolidated financial statements prepared in accordance with GAAP.

Operator: A description of these non-GAAP financial measures, as well as a reconciliation to the nearest GAAP financial measures, 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.

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.

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

Have posted an updated investor presentation on the Investor Relations page, which includes additional complementary graphics and data. Please note that it has been provided as an additional reference and that we will not be using the presentation as an exhibit during today's call.

Operator: Please note that it has been provided as an additional reference and that we will not be using the presentation as an exhibit during today's call.

Operator: We will begin with an overview of results from our co-founder and CEO, Chris Hulls, followed by a business update from our Chief Operating Officer, Lauren Antonoff.

We will begin with an overview of results from our co founder and CEO, Chris halls, followed by a business update from our Chief operating Officer Lori <unk>.

Russell Burke: Then, our Chief Financial Officer, Russell Burke, will walk through the Q1 2025 financials.

Then our Chief Financial Officer, Russell Burke will walk through the Q1 2025 financials.

Chris Hulls: Chris will return with comments on our updated 2025 outlook before we open up the call for Q&A.

Chris will return with comments on our updated 2025 outlook before we open up the call for Q&A, we ask that participants please limit themselves to one question to ensure that we can hear from as many of you as possible with that I'll turn the call over to Chris.

Operator: We ask that participants please limit themselves to one question to ensure that we can hear from as many of you as possible.

Chris Hulls: With that, I'll turn the call over to Chris.

Chris Hulls: Good afternoon to everyone joining from the US, and good morning to those tuning in from Australia.

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

Chris Hulls: Thank you for being here for our first quarter results call.

Chris Hulls: Life360 started strong in Q1 2025, achieving record-breaking results across both monthly active users and paying circles, while continuing to advance a broader vision of becoming a super app for everyday. These results underscore the strength of our product market fit, the value of our subscription model and the resilience of our business in an uncertain. Our member base grew 4.1 million new MAUs this quarter, reaching 83.7 million, up 26% year-over-year. We also saw a strong momentum in our subscription business with paying circles growing 26% year over year to 2.4 million, including a record Q1 net increase of $137,000.

<unk> hundred 60, <unk> started strong in Q1 2025, achieving record breaking results across both monthly active users and paying circles, while continuing to advance our broader vision of becoming a super app for everyday family life.

The results underscore the strength of our product market fit the value of our subscription model and the resilience of our business in an uncertain environment.

Our member base grew $4 1 million this quarter, reaching $83 7 million up 26% year over year.

We also saw strong momentum in our subscription business with paying circle is growing 26% year over year to $2 4 million, including a record Q1 net increase of 137000 paying circles.

Chris Hulls: International expansion continues to be a powerful growth International MAUs rose 39% year-over-year, and paying circles were up 33%, even with price changes to legacy subscribers outside of our core triple-tier market. importantly, average revenue per paying circle in international markets grew by 39% year over year. Thanks to our updated premium.

International expansion continues to be a powerful growth driver international <unk> rose, 39% year over year been paying circles, where were up 33%, even with price changes to legacy subscribers outside of our core triple tier markets.

<unk> average revenue per paying circle in international markets grew by 39% year over year, thanks to our updated premium pricing strategy.

Chris Hulls: These improvements are enabling us to further scale our multi-tier approach in international In today's environment, where economic uncertainty is shifting markets and everyday anxieties weigh heavily on families, people are seeking stability and trust more than ever. Wow. Life360 meets. Whether it's knowing your child got home safely, being alerted to a car crash in real time, or simply staying connected across generations, our platform offers peace of mind in a world. Our Q1 performance reflects not only the strength of our model, but the growing demand for services that bring peace of mind in a world that feels increasingly unsafe.

These improvements are enabling us to further scale, our multi tiered approach in international markets.

In today's environment, where economic uncertainty shifting markets and everyday anxieties weigh heavily on families people are seeking stability and trust more than ever by 360 meets that need whether it just knowing your child got home safely being alerted to a car crash in real time or simply staying connected across generations. Our platform offers peace of mind.

In a world that can feel unpredictable.

Our Q1 performance reflects not only the strength of our model, but the growing demand for services that bring peace of mind in a world that feels increasingly uncertain.

As the daily essentially still for millions of families. We're not just helping people through uncertain times, we're building something they can rely on no matter. What lies ahead.

Chris Hulls: Daily Essential for Millions of Families. We're not just helping people through uncertain times, we're building something they can rely on no matter what. That's the kind of value that resonates with consumers today. And it's the kind of reliable durability that investors can feel.

That's the kind of value that resonates with consumers today, and just as a kind of a reliable durability big investors can feel confident about.

Okay.

Chris Hulls: We're also encouraged by recent federal court ruling related to Apple's App Store policies that allows apps to direct users to external payment.

We're also encouraged by recent federal court ruling related to Apple App store policies that allows apps to direct users to external payment platforms. In response, we are implementing web based checkout options with their first updates launching in June.

Chris Hulls: In response, we are implementing web-based checkout options with our first updates launching in June.

Chris Hulls: We're taking a thoughtful compliant approach and we'll test different flows to optimize the user.

We're taking a thoughtful compliant approach and we'll test different close to optimize user experience.

Chris Hulls: While still early, we see this as a meaningful opportunity and are moving quickly to position ourselves for long Before I turn it to Lauren, I want to share a milestone that brings Life360's journey full circle.

I'll start literally we see this as a meaningful opportunity and are moving quickly to position ourselves for long term benefit.

Loren: Before I turn it to Loren I don't want to share milestone that brings like three to six years journey full circle as many of you know the idea for <unk> hundred 60 was born in the wake of Hurricane Katrina when I saw how hard it was for families reconnect after disaster that moment inspired our mission to keep families safe and connected when it matters most.

Chris Hulls: As many of you know, the idea for Life360 was born in the wake of Hurricane Katrina when it saw how hard it was for families to reconnect after disaster.

Chris Hulls: That moment inspired our mission to keep families safe and connected when it mattered.

Chris Hulls: Today, nearly two decades later, we're proud to announce a partnership with AccuWeather, the global leader in weather protection.

Loren: Today nearly two decades later, we're proud to announce the partnership with Accu weather the global leader in weather forecasting. This collaboration will bring real time location specific severe weather alerts for our members is a powerful evolution of our platform combining our core location technology with critical lifesaving information. It's a reminder of the licensed <unk> mission is as relevant.

Chris Hulls: This collaboration will bring real-time, location-specific severe weather alerts.

Chris Hulls: powerful evolution of our platform, combining our core location technology with critical life saving Just a reminder that Life360's mission is as relevant today as when we With that, I'll turn it over to Lauren to share more on what she's seeing.

Loren: Today as when we started.

With that I'll turn it over to Loren to share more on what you're seeing on the front lines.

Loren: Thanks, Chris 2025 is off to a strong start.

Lauren Antonoff: 2025 is off to a strong start. We're creating enduring value by helping families stay connected to the people, pets, and things they love. Most of our growth continues to come organically through word of mouth and referrals. Even in our most mature U.S. regions, we're seeing strong momentum underscoring the meaningful runway ahead. While penetration is increasing, we continue to believe that we're still early in our journey, both in the U.S. and especially in international markets.

We're creating enduring value by helping families stay connected to the people pets and things they love.

Most of our growth continues to come organically through word of mouth and referrals.

Loren: Even in our most mature U S regions, we're seeing strong momentum underscoring the meaningful runway ahead.

Loren: While penetration is increasing we continue to believe that we're still early in our journey both in the U S and especially in international markets.

Lauren Antonoff: As we scale, our clear objective is to create long-term, durable value in a disciplined way, not just short-term wins. We put an emphasis on experimentation so that we're continually learning from our customers and discovering what works. Our results reflect this, consistent subscriber growth, increased engagement, and expanding lifetime value. Internationally, we remain significantly underpenetrated. Given the huge opportunity, we're executing full-funnel marketing campaigns across our focus markets to boost brand awareness and drive malgrowth. We're also increasing the value we deliver to members beyond these regions by expanding emergency dispatch features, including SOS and crash detection to drive global adoption of our premium tier.

Loren: As we scale our clear objective is to create long term durable value in a disciplined way not just short term wins.

Loren: We put an emphasis on experimentation so that we're continually learning from our customers and discovering what work.

Loren: Our results reflect the consistent subscriber growth increased engagement and expanding lifetime value.

Loren: Internationally, we remain significantly underpenetrated given the huge opportunity, we're executing full funnel marketing campaigns across our focused markets to boost brand awareness and drive MAU growth.

Loren: We're also increasing the value we deliver to members beyond these regions by expanding emergency dispatch features including Sos and crash detection.

Loren: To drive global adoption of our premium tiers.

Lauren Antonoff: Our premium model remains the heart of our strategy. We introduce users to the platform and then guide them towards premium features that offer unmatched peace of mind. That's what drives our consistent, compounding subscriber growth.

Loren: Our freemium model remains the heart of our strategy, we introduced users to the platform and then guide them towards premium features that offer unmatched piece.

Loren: Peace of mind.

Loren: That's what drives our consistent compounding subscriber growth.

Lauren Antonoff: Given the importance of our free member base, this year we're focused on elevating the core Life360 app experience. In Q1, we launched a major update to our iOS map, delivering a faster, more intuitive interface and improved location accuracy.

Loren: Given the importance of our free member base. This year, we're focused on elevating the core life 360 App experience.

Loren: In Q1, we launched a major update to our iOS map delivering a faster more intuitive interface and improved location accuracy.

Lauren Antonoff: We're working on a similar update for Android for later this year. We're also making progress on new premium experiences tailored towards specific use cases like pet safety, to deepen engagement and broaden our value proposition. These enhancements, paired with targeted marketing, are designed to accelerate conversion of free users into long-term subscribers.

Loren: Working on a similar update for Android for later this year.

Loren: We're also making progress on new premium experiences tailored towards specific use cases, like pet safety to deepen engagement and broaden our value proposition.

Loren: These enhancements paired with targeted marketing are designed to accelerate conversion of free users into long term subscribers.

Lauren Antonoff: Speaking of marketing, I want to make sure you all caught the latest iteration of our Family Proof Your Family Brand campaign, which launched a couple of weeks ago. It confronts a hard truth that most brands would shy away from. We want to destigmatize the anxieties and intrusive thoughts that occur whenever our kids step out the door.

Loren: Speaking of marketing I want to make sure you all caught the latest iteration of our family proof Your family brand campaign, which launched a couple of weeks ago.

Loren: It can Brent the hard truth that most brands would shy away from.

Loren: We wanted to Destigmatize anxieties and intrusive thoughts that occur whenever our kids step out the door.

Lauren Antonoff: The hero creative aptly named, I think of you dying, illustrates a mother's worst fears in a morbidly comedic way, by imagining all the horrible ways she worries about how her daughter could die. Most of us who are mothers aren't eager to admit that we worry about the people we love and imagine all the worst case scenarios about how they might get hurt. But it's one of those shared experiences that hits home and is really resonating. We took an innovative approach and tapped into a real human truth, albeit one that's almost too taboo to say out loud.

Loren: The hero creative aptly named I think of you dying.

Loren: Illustrates the mother's worst fears and have morbidly comedic way by imagining all the horrible ways. He worries about how her daughter could die.

Speaker Change: Most of US who are mothers aren't eager to admit that we worry about the people, we love and imagine all the worst case scenarios about how they might get hurt.

Speaker Change: But it's one of those shared experiences that hits home and is really resonating.

Speaker Change: We took an innovative approach and tapped into a real human truth, albeit one thats almost two taboo to say out loud.

Lauren Antonoff: to highlight the power at the core of the Life360 experience, peace of mind, and the love we have for our family. Families trust us because we show up for them every day. That trust and our relationship with our members is how we've won the right to build a family super app as the foundation of a business that lasts and scales far into the future.

Speaker Change: To highlight the power at the core of the life 360 experience peace of mind and the love we have for our families.

Speaker Change: Families Trust us because we show up for them every day.

Speaker Change: That trust and our relationship with our members is how we've won the right to build a family's super App as the foundation of the business that Lasse.

Speaker Change: And scale far into the future.

Lauren Antonoff: Hardware is the key part of how we go beyond the phone to make everyday family life better. Over the past quarter, we've made huge strides in our hardware strategy, which is designed to drive Life360 subscription growth. I'm thrilled to share that you can now activate and use tile within Life360 without a separate tile app. This lets our BLE trackers serve as an entry point to the Life360 ecosystem. We're nearing full integration of Tile into the Life360 app, which will soon become the default activation platform for all new devices. a major step in streamlining the experience and driving engagement.

Speaker Change: Hardware is the key part of how we go beyond the ability to make everyday family life better.

Speaker Change: For the past quarter, we've made huge strides in our hardware strategy, which is designed to drive life through the <unk>.

Speaker Change: Ascription growth.

Speaker Change: I'm thrilled to share that you can now activate and use tile within life <unk> without a separate tile out.

Speaker Change: This less our BLA trackers serve as an entry point to the life reflects the ecosystem.

Speaker Change: We're nearing full integration that piled into the life 360, App, which will soon become the default activation platform for all new devices.

Speaker Change: A major step in streamlining the experience and driving engagement.

Lauren Antonoff: In Q1, we saw continued growth in the number of U.S. premium subscribers linking tile devices to their account, despite challenging environments for consumers. further reinforcing how hardware enhances our broader subscription model. We expect member growth to accelerate as Life360 becomes the primary on-ramp for Tile customers.

Speaker Change: In Q1, we saw continued growth in the number of U S premium subscribers linking tile devices to their account despite challenging environment for consumers.

Speaker Change: Further reinforcing how hardware enhances our broader subscription model.

Speaker Change: We expect the number that we expect member growth to it.

Speaker Change: Great as library 60 becomes the primary onramp for tile customers.

Lauren Antonoff: As you know, we're also preparing to expand our hardware lineup to better serve evolving family needs. Our first GPS-enabled tracking device for pets remains on track for a Q4 launch. Some of you may have already seen early beta versions in the app. Well, initially, we planned to launch within the US. But in light of recent tariff impacts on devices made in China, we made a call to shift the focus of our initial rollout to key international markets. This strategic pivot mitigates tariff exposure and accelerates our entry into new global markets ahead of broader distribution in 2026.

Speaker Change: As you know we're also preparing to expand our hardware lineup to better serve evolving family needs are first GPS enabled tracking device for pets remains on track for a Q4 launch.

Speaker Change: Some of you may have already seen early beta versions of the App.

Speaker Change: Well initially we plan to launch in the U S. But in light of recent tariff impacts tariff impacts on device is made in China, We made a call to shift the focus of our initial rollout to key international markets.

This strategic pivot mitigate tariff exposure and accelerates our entry into new global markets ahead of broader distribution in 2026, I'm Super proud of the team for leveraging a challenge to expedite our international plans, while mitigating risks.

Lauren Antonoff: I'm super proud of the team for leveraging a challenge to expedite our international plans while mitigating risk. This flexibility is another way that we're leveraging the value of our expanding global presence.

Speaker Change: This flexibility is another way that we're leveraging the value of our expanding global presence.

Lauren Antonoff: Q1 was also an exciting time for our advertising platform.

Speaker Change: Q1 was also an exciting time for our advertising platform.

Lauren Antonoff: We launched a successful case study with Uber showcasing how our airport landing notifications drove a 12% click-through rate and over 60,000 rides, well above industry benchmarks.

Speaker Change: We launched a successful case study with Uber showcasing how our airport landing notifications drove a 12% click through rate and over 60000 rise well above industry benchmarks.

Lauren Antonoff: We started alpha testing our first native ad format, Geo Contextual Notifications, which we plan to test launch with new partners in Q2.

Speaker Change: We started alpha testing, our first native AD format, Geo contextual notifications, which we plan to test launch with New partners. In Q2, you can think of this as a way to alert members when someone in their circle stopped by a local grocery store or a coffee shop.

Lauren Antonoff: You can think of this as a way to alert members when someone in their circle stops by a local grocery store or coffee shop.

Lauren Antonoff: It's a great opportunity to add something to the shopping list.

It's a great opportunity to add something to the shopping list. These.

Lauren Antonoff: These ads allow brands to reach families at relevant real-world moments while delivering value to our members.

Speaker Change: These ads allow brands to reach families at relevant real world moments, while delivering value to our members.

Lauren Antonoff: We're designing ad experiences with the explicit goal of making everyday family life better.

Speaker Change: Or does that any AD experiences with the explicit goal of making everyday family life better.

Lauren Antonoff: The experiences we've created with Uber and AccuWeather are great examples of this mindset in action.

Speaker Change: The experiences we've created with Uber and <unk> are great. Examples of this mindset in action.

Lauren Antonoff: I'll add that we see AI as a critical component of delivering uniquely relevant connections between advertisers and consumers.

I'll add that we see AI as a critical component of delivering uniquely relevant connections between advertisers and consumers.

Lauren Antonoff: The integration of the Phanteks team expands our personalization tools and accelerates our delivery of smarter, privacy-first audience insights.

Speaker Change: The integration of the <unk>.

Speaker Change: <unk> expands our personalization tools and accelerates our delivery of smarter privacy first audience insight.

Lauren Antonoff: We recognize that tariffs may weigh on our ad budget near term, particularly in retail and BTC, but the capabilities we gained by bringing ad expertise in-house strengthen our long-term position.

Speaker Change: We recognize that tariffs may weigh on our an AD budget near term, particularly in retail of DTC, but the capabilities, we gained by bringing add expertise in house strengthen our long term position.

Lauren Antonoff: With enhanced offsite targeting and measurement offerings, we're well positioned to drive better ROI for advertisers alongside experiences designed for our members.

Speaker Change: With enhanced.

Speaker Change: Offsite targeting and measurement offerings, we are well positioned to drive better ROI for advertisers alongside experiences designed for our members.

Lauren Antonoff: This is a huge opportunity, though we recognize that it will take time to scale.

Speaker Change: This is a huge opportunity, but we recognize that it will take time to scale.

Lauren Antonoff: In parallel, our data business continues to grow.

Speaker Change: In parallel our data business continues to grow we're seeing consistent progress with its about AI and early progress at Hubbell, which we believe has long term potential to enhanced device discovery and unlock future enterprise revenue opportunities.

Lauren Antonoff: We're seeing consistent progress with Placer.ai and early progress at Hubble, which we believe has long-term potential to enhance device discovery and unlock future enterprise revenue opportunities.

Lauren Antonoff: We recently formed a strategic partnership with Aura, expanding our reach through their employee benefits channel and creating new opportunities.

We recently formed a strategic partnership with aura, expanding our reach through their employee benefits channel and creating new opportunities.

Speaker Change: At life 360.

Lauren Antonoff: We're not just delivering growth, we're executing on a strategic plan to deliver consistent long term growth.

Speaker Change: We're not just delivering growth we're executing on our strategic plan to deliver consistent long term growth, we're innovating with purpose to make everyday family life better and we're executing with consistency. That's how we plan to win not just in 2025, but over the long term.

Lauren Antonoff: We're innovating with purpose to make everyday family life better.

Lauren Antonoff: And we're executing with consistency.

Lauren Antonoff: That's how we plan to win not just in 2025, but over the long term.

Russell Burke: With that, I'll hand it over to Russell to walk through the financials and our continued focus on increasing profitability.

Speaker Change: With that I'll hand, it over to Russell to walk through the financial and our continued focus on increasing profitability.

Russell Burke: Thanks Lauren.

Russell Burke: and thank you all for joining us today.

Russell Burke: And thank you all for joining us today.

Russell Burke: As a reminder, the Q1 financials I'll be referencing are unaudited and denominated in US dollars.

Russell Burke: As a reminder, the Q1 financials I'll be referencing our unaudited and didn't nominated in U S dollars.

Russell Burke: Yeah.

Russell Burke: We are really pleased to report record-breaking Q1 results. driven by continued strength in our subscription business and growing contributions from our other revenue streams. Q1 revenue increased 32% year-on-year to $103.6 million, reflecting strong momentum in both subscription and other recurring revenue. Subscription revenue grew 33% year-on-year, accelerating from Q4. Core Life360 subscription, which excludes hardware subscriptions, increased 37% driven by 26% global paying circle growth and 8% higher ARPPC. This performance reflects improved retention across U.S. markets supported by targeted marketing and deeper product engagement.

Russell Burke: We are really pleased to report record breaking Q1 results driven by continued strength in our subscription business and growing contributions from all of the revenue streams.

Russell Burke: Q1 revenue increased 32% year on year to $103 6 million, reflecting strong momentum in both subscription and other recurring revenue.

Russell Burke: Subscription revenue grew 33% year on year accelerating from Q4.

Russell Burke: <unk> hundred six the subscription, which excludes hardware subscriptions increased 37% driven by 26% global paying circle growth.

Russell Burke: 8% higher PPC.

Russell Burke: This performance reflects improved retention across U S markets supported by targeted marketing and deeper product engagement.

Russell Burke: Hardware revenue declined 13% year-over-year to $8.9 million, primarily due to softness at physical retail and increased discounts. Gross margin in hardware was impacted by fixed cost to leverage. While direct-to-consumer and online sales remain solid, retail store performance continues to be soft, in line with broader consumer electronic trends.

Russell Burke: Hardware revenue declined 13% year over year to $8 9 million, primarily due to softness of physical retail and increased discounts.

Russell Burke: This margin in hardware was impacted by fixed cost deleverage.

Russell Burke: While direct to consumer online sales remained solid retail store performance continues to be soft in line with broader consumer electronic trends.

Russell Burke: Looking ahead, we anticipate these demand patterns to persist. While we anticipate partial tariff exemptions for our devices, we do expect tariffs to impact both revenue and costs in the near term. We've already adjusted our strategy based on current conditions and remain prepared to adapt further as the landscape evolves. Importantly, hardware continues to serve as a strategic on-ramp into our subscription ecosystem, supporting long-term value creation even as short-term demand fluctuates.

Russell Burke: Looking ahead, we anticipate these demand patterns to persist.

Russell Burke: While we anticipate partial tariff exemptions for our devices, we do expect tariffs to impact both revenue and costs in the near term.

Russell Burke: We've already adjusted our strategy based on current conditions and remain prepared to adapt further as the landscape evolves.

Importantly, <unk> continues to serve as a strategic on ramp into a subscription ecosystem supporting long term value creation, even as short term demand fluctuates.

Russell Burke: Other revenue grew 99% year-over-year to $12.8 million. driven by strong contributions from advertising and data partnerships, which are both performing in line with expectations.

Russell Burke: Other revenue grew 19, 9% year over year to $12 8 million.

Russell Burke: Driven by strong contributions from advertising and data partnerships.

Russell Burke: Which are both performing in line with expectations.

Russell Burke: March annualised monthly revenue reached $393 million, up 38% year-over-year, underscoring the strength and durability of our high-quality recurring revenue stream. Gross profit grew 39% year-over-year to $83.5 million, with gross margin expanding to 81%, up from 77% in the prior year. This improvement was driven by a favorable revenue mix, including higher margin of other revenue.

Russell Burke: March annualized monthly revenue reached $393 million up 38% year over year, underscoring the strength and durability of our high quality recurring revenue streams.

Russell Burke: Gross profit grew 39% year over year to $83 5 million with gross margin expanding to 81% up from 77% in the prior year.

Russell Burke: This improvement was driven by favorable favorable revenue mix, including higher margin to other revenue.

Russell Burke: Operating expenses, excluding commissions, increased 21% year-over-year, demonstrating continued operating leverage as revenue and gross profit outpace spend. RMD increased 12%, primarily reflecting investments in people, technology and third-party service. Sales and marketing rose 43% due to investments in brand and acquisition campaigns ahead of key product launches. Commissions grew in line with subscription revenue, and G&A grew 9%, consistent with overall company growth and continued organizational scaling. We continue to deliver meaningful progress on profitability.

Russell Burke: Operating expenses, excluding commissions increased 21% year end of the year, demonstrating continued operating leverage as revenue and gross profit.

Russell Burke: <unk> spend.

Russell Burke: R&D increased 12%, primarily reflecting investments in people technology and third party services.

Russell Burke: Sales and marketing rose, 43% due to investments in brand and acquisition campaigns ahead of key product launches.

Russell Burke: Emission square or in line with subscription revenue and G&A grew 9% consistent with overall company growth and continued organizational scaling.

Russell Burke: We continue to deliver meaningful progress on profitability.

Russell Burke: Net income was $4.4 million, a sharp improvement from a $9.8 million loss in Q1 of last year. Adjusted EBITDA rose to $15.9 million, up from $4.3 million in Q1'24. Our 10th consecutive quarter of positive adjusted EBITDA driven by strong subscription growth and disciplined cost management.

Russell Burke: Net income was $4 4 million a sharp improvement from a $9 8 million loss in Q1 of last year.

Russell Burke: Adjusted EBITDA rose to $15 9 million up from $4 3 million in Q1 24.

Russell Burke: Our 10th consecutive quarter of positive adjusted EBITDA, driven by strong subscription growth and disciplined cost management.

Russell Burke: For modeling purposes, investors should expect that Q2 this year will include higher sales and marketing investments.

Russell Burke: For modeling purposes investors should expect the Q2. This year will include higher sales and marketing investment.

Russell Burke: along with the impact of some personnel costs shifting from Q1 and Q3.

Russell Burke: Along with the impact of some personnel costs shifting from Q1 and Q3.

Russell Burke: As a result, Q2 will represent a trough for adjusted EBITDA in 2025, with profitability expected to rebound in the second half as earlier investments support global growth initiatives.

Russell Burke: As a result, Q2 will represent a trough for adjusted EBITDA in 2025 with profitability expected to really be found in the second half as earlier investments support global growth initiatives.

Russell Burke: Looking briefly at the balance sheet and cash flow in Q1, we ended the quarter with $170.4 million in cash, cash equivalents and restricted cash. up 9.9 million from Q4. Operating cash flow was positive for the eighth consecutive quarter at $12.1 million, slightly below adjusted EBITDA due to the timing of receipts and payables.

Russell Burke: Looking briefly at the balance sheet and cash flow in Q1, we ended the quarter with $174 million in cash cash equivalents and restricted cash.

Russell Burke: Up $9 9 million from Q4.

Russell Burke: Operating cash flow was positive for the eighth consecutive quarter at $12 1 million slightly below adjusted EBITDA due to the timing of receipts and payables.

Russell Burke: Investing outflows of $4.3 million were primarily related to cash paid for the Fantex asset acquisition and internal software development. financing inflows with $2.2 million, and related mainly to net proceeds of option exercises and RSU settlements.

Russell Burke: Investing outflows of $4 3 million were primarily related to cash paid for the Phanteks asset acquisition and internal software development.

Russell Burke: Financing inflows with $2 2 million and related mainly to net proceeds of option exercises and <unk> settlements.

Russell Burke: Thanks for your attention I'll now hand back to Chris to walk through our updated earnings guidance.

Chris Hulls: I'll now hand back to Chris to walk through our updated earnings guidance. As we look ahead, we remain confident in the durability of our business, which delivers peace of mind to families and is built to perform. Despite ongoing economic pressures and cautious consumer spending, description growth remains strong. We're actively managing the impact of new tariffs on our hardware products and have already adapted our strategy. Shifting the launch of our Pets device to focus initially on international markets, where we continue to see strong This pivot reflects both the strength and flexibility of our model and our commitment to optimizing return.

Russell Burke: As we look ahead, we remain confident in the durability of our business, which delivers peace of mind to families and is built to perform through cycles, despite ongoing economic pressures and cautious consumer spending our subscription growth remained strong and consistent.

Speaker Change: We're actively managing the impact of new tariffs and our hardware products and have already adapted our strategy shifting the launch of our pets device to focus initially on international markets, where we continue to see strong performance.

Speaker Change: This pivot reflects both the strength and flexibility of our model and our commitment to optimizing return on investments.

Chris Hulls: We remain on track for a Q4 2025 Pet Tracker launch and continue to view hardware as a strategic. One that drives long-term subscription growth and deepens engagement. We're executing with focus, expanding internationally, scaling our connected device portfolio, and growing our advertising business with discipline, while closely monitoring evolving market. Across all areas, we remain disciplined on cost and committed to long-term value. We are a durable, high-impact business serving families today and creating meaningful value.

Speaker Change: We remain on track for a Q4 2025 pet tracker launch and continue to view hardware as a strategic differentiator one that drives long term subscription growth and deepens engagement across our ecosystem.

Speaker Change: We're executing with focus expanding internationally scaling our connected device portfolio and growing our advertising business with discipline, while closely monitoring evolving market dynamics across all areas, we remain disciplined on cost and committed to long term value creation.

Speaker Change: We are a durable high impact business, serving families today and creating meaningful value for the future.

Chris Hulls: The Resilience of our Subscription Model and Proactive Mitigation of Tariff-Related Cost Pressures.

Speaker Change: With the resilience of our subscription model and proactive mitigation of tariff related cost pressures, we are updating our full year 2025 guidance.

Chris Hulls: We are updating our full year 2021. reaffirming consolidated revenue of $450 million to $450 million. description revenue of $355,000 to $365,000.

Speaker Change: Reaffirming consolidated revenue of 450 million to $480 million.

Speaker Change: Subscription revenue of $355 million to $365 million raising the range by $5 million from our previous outlook based on our strong start to the year.

Chris Hulls: Raising the range by 5 million from our previous outlook based on our strong hardware revenue of $40 to $50 million, adjusting the range $5 million from our previous outlook to account for consumer. Other revenue, which includes partnership and advertising, at $55,000. positive adjusted EBITDA of $65,000.

Hardware revenue of $40 million to $50 million adjusting the range $5 million from our previous outlook to account for consumer demand sensitivity.

Speaker Change: Other revenue, which includes partnership in advertising of $55 million to $65 million and positive adjusted EBITDA of $65 million to $75 million.

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

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

RJ: Thanks, Chris.

Operator: As a reminder 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.

RJ: As a reminder to participate in the Q&A. Please raise your hand by pressing the raise hand, the icon at the bottom of your screen within the zoom App.

Operator: You will need to unmute yourself to ask a question.

RJ: You will need to mute yourself to ask a question.

RJ: Okay.

Mark Mahaney: With that, we can start with Mark Mahaney from Evercore.

Speaker Change: But that we can start with Mark Mahaney from Evercore Mark are you there.

Mark Mahaney: Mark, are you there? Yes, I am.

Mark Mahaney: Yes, I am thanks RJ.

Mark Mahaney: Okay, two questions, please. The U.S.

Mark Mahaney: Okay. Two questions. Please the U S price increases you refer to them your learnings from those price increases in terms of maybe your long term kind of.

Chris Hulls: price increases, you refer to them, your learnings from those price increases in terms of maybe your long-term value proposition, the gap you have between the prices you're currently charging and what you're offering to customers. So, learnings from the price increase.

Mark Mahaney: Proposition.

Speaker Change: You have between the prices, you're currently charging and what you're offering to your customers. So some learnings from the price increase and then secondly could you talk about as you've gotten a little bit more into this AD revenue generation. It looks like growth is pretty good there your thoughts about the long term like how do you think about how big that could be.

Lauren Antonoff: And then secondly, you talk about, as you've gotten a little bit more into this ad revenue generation, looks like growth is pretty good there. Your thoughts about the long-term, like, how do you think about how big that could be, you know, three to five years down the road and any new learnings that give you greater insight into how much advertising revenue potential there is for the business long-term.

Speaker Change: Three to five years down the road any new learnings that gives you greater insight into how much advertising revenue potential there is for the business long term. Thank you very much sure I will take the first question and then I'll, let Lauren take the second.

Chris Hulls: I will take the first question and then I will let Lauren take the second.

Chris Hulls: and they're somewhat tight.

Speaker Change: And there are somewhat tied together.

Chris Hulls: So if you look at pricing, I think what you can see very clearly is we're leaving a lot on the table. Every time we've raised price, it's been taken very, very well by our consumers. And it's not surprising because we are a very low cost product in relation to what we offer, in particular, in relation to legacy competitors, if you're to buy similar premium products. And the vision, which we've been consistent about, is build an amazing product, give a strong value surplus so people feel really good about what they're getting. And while we're growing. not the right move to harvest to the maximum.

Speaker Change: So if you look at pricing I think what you can see very clearly is we're leaving a lot on the table every time, you've raised price it's been taken very very well by our consumers.

Speaker Change: And it's not surprising because we are a very low cost product in relation to what we offer in particular in relation to legacy competitors. If you were to Biosimilar premium products and the vision, which you've been consistent about is building amazing product you have a strong value surplus so people feel really good about what they're getting and while we're growing.

Speaker Change: The right move to harvest to the maximum at some point when growth slows down and we are more mature, yes, sure we might take up price and we can see there's a.

Chris Hulls: At some point when growth slows down, and we are more mature, yeah, sure, we might take up price. And we can see there's, we have not yet even once really chipped away at retention. But that's down the road, but I do think it should give investors and quite frankly, the entire team, we take a lot of confidence that we do have, we do have a long way. and I think we've also seen just even more broadly. Many have been surprised by just how much resilience consumer subscriptions have once they become part of people's daily routines, which we clearly are.

Speaker Change: We have not yet even once really kind of.

Speaker Change: Chipped away at retention, but that's down the road, but I do think it should give investors in and quite frankly, the entire team. We take a lot of confidence that we do have we do have a long way to go and.

Speaker Change: And I think we've also seen just even more broadly.

Speaker Change: Many have been surprised by just how much a resilient consumer subscriptions have once they become part of People's daily routines, which we clearly are.

Chris Hulls: So we don't see any short term huge price increases in particular in the US, we're more focused on adding value. As we launch some of these new hardware products, we have like pets will eventually have seniors. That's ways that we can push people to higher price points, but we really want to make sure that no matter what, our customers are getting that really good feeling of what they're paying for us, because it is a differentiator for many of our legacy competitors who really have Part of how we want to enable ourselves to keep the price low is through ads, because if we have tasteful ads, that's a whole nother revenue stream.

Speaker Change: So we don't see any short term huge price increases in particular in the U S were more focused on adding value as we launch some of these new hardware products. We have like Pat said, we'll eventually have seniors.

Speaker Change: That's the way that we can push people to higher price points, but we really want to make sure that no matter what our customers are getting that really good feeling of what they are paying for us because it is a differentiator for many of our legacy competitors, who who really have priced to perfection.

Speaker Change: Part of how we want to enable ourselves to keep the price low is through ads because we have tasteful ads. That's a whole another revenue stream and so I'll, let Lauren quickly hit on that because and she really has been the mastermind behind the AD business. So.

Lauren Antonoff: And so I'll let Lauren quickly hit on that because and she really has been the mastermind behind the ad business.

Lauren Antonoff: It's something that she's fully set up since she's been here.

Lauren: It's something that she is fully set up since he's been here so over to you Lauren.

Lauren Antonoff: Thanks, Chris. We have said before that we think that the ads business has the potential to scale sort of on the same level as our subscription business and we continue to be really bullish about the potential. We also recognize that we're super early. We're seeing really good progress, both good signals and then actually realizing the kind of results that we are hoping to see as we as we ramp the business. So feeling really bullish.

Lauren: Thanks, Chris.

Lauren: We have said before that we think that the AD business has the potential to scale sort of on the same level as our.

Lauren: And does that then we continue to be really bullish about the potential. We also recognize that we're super early.

Lauren: We're seeing really good progress both good signals and then actually realizing the kind of results that we are hoping to see as we as we ramp the business.

Lauren: So feeling really bullish I think what makes us special with ads that we see this relationship between the value, we're delivering advertisers and the value that we're delivering customer who designed and that mindset that really connects customer value and advertiser value.

Lauren Antonoff: I think what makes us special with ads is that we see this relationship between the value we're delivering advertisers and the value that we're delivering customers. And that mindset that really connects customer value and advertiser value is a big unlock and makes us feel good about the investments we're making and the potential to create magical experiences that are ad powered.

Lauren: <unk> is a big unlock and makes us feel good about the investments, we're making and the potential to create magical experiences that our AD powered.

Lauren: Thank you Lauren and thank you Chris.

Chris Hulls: Mark, just circling back to your comment referencing the US price increases, just so we're clear on that. We adjusted our annual plan prices in the early part of this year. As you will remember, the annual plan was at a significant discount from the monthly plan, so we've just made some adjustments to that. But that's the effective price increase for the US in this quarter.

Lauren: Just circling back to your comment referencing the U S price increases just so we're clear on that we adjusted our annual plan and prices in the early part of this year as you will remember the annual plan was at a significant discount from the monthly plan. So we've just made some adjustments to that but thats.

Lauren: The effective price increase for <unk> for the U S. In this quarter.

Ross: Thank you Ross.

Speaker Change: Great. Thanks, Mark I'd like to turn now to laugh from MFS seed left are you available.

Mark Mahaney: Thanks, Mark.

Laf: I'd like to turn now to Laf from MSC.

Laf: Laf, are you available?

Laf: I am and I appreciate the opportunity to ask a question.

Ross: I appreciate it.

Ross: Can you do ask a question I just wanted to follow up on a couple of these new.

Laf: I just wanted to follow up on a couple of these new partnerships slash investment with Aura as well as AccuWeather. Can you, is there revenue associated with either of these over time? Are you paying anything for career weather?

Speaker Change: Partnerships slush investment with Ora and as well as the curve.

Ross: Well, whether sorry.

Ross: Is there a revenue associated with either of these over time are you paying anything for the crew whether whats the ultimate strategy, there and if you could just talk us.

Chris Hulls: What's the ultimate strategy there? And if you could just talk us with the employment benefit channel for what is, what does that mean? Where do you guys fit in and how is there, how's the revenue gonna work?

Ross: <unk>.

Ross: Appointment benefit channel four.

Speaker Change: What is what does that mean, where do you guys fit in and how is the how is the revenue you're going to work.

Lauren Antonoff: Sure, I will take Aura and I'll let Lauren do AccuWeather because that is very much in her domain.

Speaker Change: Sure I will take or on I'll, let Lorne do accu other because that is very much in her domain.

Lorne: It was a deal she she led with the team.

Chris Hulls: on Aura. It's a company that a long standing personal relationship with just getting to know them because they're also in the family safety space. They grow very differently than us. They have a number of channels that we haven't developed. The one that we're working with them on is B2B. through Employee Benefit.

Lorne: Ora is the company that are long standing personal relationship with just getting to know them because theyre also in the family safety space.

Lorne: They grow very differently than us they have a number of channels that we haven't developed.

Lorne: The one that we're working with them on is b to B to C through employee benefit so I'm not sure since we have some Australians on the call and I'm not sure how similarly, it works for Australia employers, but.

Chris Hulls: So I'm not sure, since we have some Australians on the call, I'm not sure how similarly it works for Australian employers, but if you are part of a U.S. Medium or large corporation, you usually get benefits offered to you as part of your annual election of benefits. And that is an opportunity for companies to sell products and services. Usually how it works is you get a little bit of a discount, but once people are on, you get very, very low churn because it comes directly out of your paycheck.

Lorne: You are part of a U S.

Lorne: Medium or large corporation, you usually get benefits offered to you as part of your annual election of benefits and that is an opportunity for.

Lorne: Companies to sell products and services, usually how it works is you get a little bit of a discount but once people around you get very very low churn because it comes directly out of your paycheck.

Chris Hulls: We have long wanted to look at that channel. But we're not a sales org, we're really a consumer products org. That is changing as Lauren builds out the ad. But Aura has a great in already to that channel, and they're selling a similar-ish product. And when I say similar-ish, the features aren't the same, but it's family safety. They're more taking online and digital safety side of things, whereas everyone knows what we do. So very complimentary. So they have essentially a plug and play. Salesforce that can. mark market our product through that channel. And it's essentially a rev share, we haven't disclosed specifics, but there there should be going to take some time to ramp up.

Lorne: Have long wanted to look at that channel.

Lorne: But we're not a sales org really a consumer products or is that is changing as loren builds out the ads team.

Lorne: The aura has a great.

Lorne: <unk> already to that channel and they're selling a similar ish product when I say similar rash. The features on the same but its family safety. They are more taking the consumers online and digital safety side of things, where as everyone knows what we do so very complementary so they have a essentially a plug and play.

Our sales force that can.

Lorne: Market our products through that channel.

Lorne: And it's essentially a Rev share, we haven't disclosed specifics, but there should be revenue associated with it it's going to take some time to ramp up.

Lauren Antonoff: And they will also be an advertiser on the platform, but we're very excited about the long So I'll take the AccuWeather angle.

Lorne: And there will also be an advertiser on the platform, but we're very excited about the long term potential to sell that way.

Lorne: Okay.

Speaker Change: I'll take that accu weather angle.

Lauren Antonoff: The idea, actually, for working for AccuWeather started when we were re-envisioning the app and really thinking about what we wanted to do for members. And Chris mentioned the full circle nature of thinking about weather emergencies and those kinds of things. And so we approached them about how we could deliver that kind of value for our customers, and then also what we could do for them in terms of letting them reach our audience. And we have made sort of a good relationship and a good foundation. We're starting with delivering customer value and really figuring out how to make the mechanics work.

Speaker Change: That idea actually for working for Accu weather started when we were re envisioning the app and really thinking about what we wanted to do for our members and Chris mentioned that full circle nature.

Speaker Change: Thinking about weather emergency isn't those types of things and so we approached them about how we could deliver that kind of value for our customers and then also what we could do for them in terms of letting them reach our audience and we have made sort of a good relationship and a good foundation where store.

Speaker Change: <unk> with delivering customer value and really figuring out how to make the mechanics work. There were a lot of new capabilities, we had to build in order to deliver those kind of alert state.

Lauren Antonoff: There were a lot of new capabilities we had to build in order to deliver those kind of alerts to members in certain areas and certain times. So we're focused on that first. And we think that there's a lot of value to be delivered on this from both sides, including commercial value over time. But we're starting simply by making the right experiences work, building the foundation.

Speaker Change: Members in certain areas and certain times. So we're focused on that first and we think that there are a lot of value to be delivered on this from both thought I'd, including commercial value over time, but we're starting to simply by making the right experiences work building the foundation.

Lauren Antonoff: And Laf, just in terms of the revenue flow for Aura, we do expect to start seeing some advertising revenue within the current year and the employee benefits starting next year. But there's definitely a good level of expectation in terms of revenue flow there and the advertising piece is part of our roadmap and part of what we look for for 25.

Speaker Change: And Les just on in.

Speaker Change: In terms of the revenue flow for Ora, we we do expect to start seeing some advertising revenue within the current year and the employee benefits.

Speaker Change: <unk> starting next year, but there is definitely a good good level of expectation in terms of revenue flows there and the <unk>.

Speaker Change: Advertising pieces part of our roadmap and part of what we look for for 25.

Got it thank you.

Speaker Change: Okay.

Speaker Change: Great. Thanks, a lot.

Maria: Now I'd like to turn to Maria with Canaccord.

Speaker Change: I would like to turn to Maria <unk> with Canaccord Maria are you available.

Maria: Maria, are you available?

Maria: Yes. Thanks, so much. Thanks, so much for taking my question. So just wanted to ask about your subscription business, which continues to do really well I guess have you seen any sort of any changes in consumer behavior with consumers opting for less expensive Bryan so maybe downgrading.

Maria: So I just wanted to ask about your subscription business, which continues to do really well. I guess, have you seen any sort of any changes in consumer behavior, whether sort of consumers opting for less expensive plans, or maybe downgrading? I mean, obviously, the business continues to do well, I just want to emphasize that. And sort of what's, what's been sort of the main reason behind a full year increase in guidance? for the subscription segment.

Maria: The business continues to do well I, just want to emphasize that and that sort of what's what's the main reason.

Maria: And behind.

The increase in guidance.

Maria: With the subscription.

Chris Hulls: So we have not seen any slowdown, if anything, the Our view, which I hope doesn't get battle tested when the terrorists were raging, we thought it might, is that when people get anxious, what are the categories that and home security. firearm don't like to be in those buckets. They do do well, and I think we are a peace of mind product. We've been stress tested before during COVID, even though we lost 70% of our downloads for a few weeks when everyone was locked down. We did not get much. So I think what we see is when people get anxious.

Maria: So we have not seen any slowdown if anything the opposite which is great.

Maria: Our our view, which I hope doesn't get battle tested when the terrorists were raised and we thought it might is it when people get anxious what are the categories that do well and home security.

Maria: Firearms as much as I don't like to be in those buckets. They do do well and I think we are a peace of mind product or a very low cost.

Maria: <unk> been stress tested before during COVID-19, even though we lost 70% of our downloads for a few weeks when everyone's locked down we did not get much subscription churn. So I think what we see is when people get anxious.

Chris Hulls: Life360 is considered more of an essential item and it's not very expensive. We're optimistic that even if there is a recession, we will. do better than our peers. I'm sure if there's something extremely bad. I'm here, but as of now, we're really not.

Maria: <unk> 360 is considered more of an essential item and it's not very expensive.

Maria: So.

Maria: We are optimistic that even if there is a recession, we will do.

Maria: Do better than our peers I'm sure if there is something extremely bad.

Maria: We'll take some of it but as of now we're really not seeing anything.

Chris Hulls: So as it relates to guidance, we had a record quarter. We were not necessarily expecting that early on. And oftentimes we have a good quarter, it bounces down, but it was well ahead of what our expectations were and we're updating guidance as a result. Um, no, I mean, that's that that's the rationale and you know, because it's a Because we're essentially adding to paying circles early in the year, just the nature of the subscription model is that that flows, tends to flow through the balance of the year. So we've got a good level of visibility on subscription revenue, and thus the increase in, or the raise to our guidance for subscription.

Maria: So as it relates to guidance.

Maria: We had a record quarter, we were not necessarily expecting that early on and oftentimes you have a good quarter it bounces down but it was it was a.

Maria: Well ahead of what our expectations were and we're updating guidance as a result, and Russell I know if you have anything to add to that.

Maria: No.

Maria: That's the rationale and because it is.

Maria: Because we're essentially adding two paying circles early in the year just the nature of the subscription model lives of that flows tends to flow through the balance of the year. So.

Maria: We've got a good level of visibility on subscription revenue.

Maria: The increase in the raised guidance for subscription.

Chris Hulls: And then one very small addition, international and U.S. is doing very well and we're an organic business. And so international is sometimes very hard to forecast, but that is really on track, which is a huge driver.

Maria: And then one one very small addition international and U S is doing very well and now we're in organic business and so international is sometimes very hard to forecast, but that is really on track which is.

Maria: A huge driver of the long term outlook.

Maria: Thank you so much.

Maria: Yeah.

Maria: Thanks Maria.

Wei Sim: Next, we'd like to turn to Wei Sim from Jeffries.

Speaker Change: Next we would like to turn to weigh Sim from Jefferies, where are you available.

Wei Sim: Wei, are you available?

Wei Sim: Can you guys hear me?

Weigh Sim: Can you guys hear me.

Speaker Change: Yep.

Speaker Change: Okay great.

Wei Sim: I just wanted to ask a question, just on the Aura partnership. So I noticed that they also have some, I guess, deal with MetLife going on. So is the idea that, you know, we will get access to, you know, the MetLife channel on a look-forward basis, and it's essentially kind of like a hunting license for them, and we get a rev share for that.

Speaker Change: I just wanted to ask a question just on the or a partnership so I noticed.

Speaker Change: They also have some.

Speaker Change: I guess deal with Metlife going on so is the idea that.

Speaker Change: We will get.

Speaker Change: This too.

Speaker Change: The Metlife channel on a look forward basis in.

Speaker Change: It's essentially kind of like a hunting license for them and we get a rev share for that.

Chris Hulls: And then Sorry, just the other one is on the financial side of the Aura thing. The $25 million that we announced, does that give us equity in Aura? How much? And is that cash or is that kind of like offset for advertising credits? How does that part work?

Speaker Change: And then so.

Speaker Change: Alright.

Speaker Change: The one is on the financial side of the oral thing.

Speaker Change: $25 million that we.

Speaker Change: Is that.

Speaker Change: Does that give us equity in.

Speaker Change: Or how much and is that cash or is that kind of like offset for advertising credits how does that work.

Chris Hulls: I'll take the first half and I'll let. You basically said it as well as I can, MetLife is the biggest benefits provider. or has spent a lot of time establishing a channel and we will have access to it exactly like you said.

Speaker Change: I'll take the first half and I'll, let <unk>.

Russell Burke: Russell answer the investment related questions.

Speaker Change: You basically said it as well as I can Matt life is the biggest benefits provider.

Speaker Change: <unk> has spent a lot of time, establishing that channel and we will have access to it exactly like you said and then we will have a portion of the Rev share Theres. Some complexity in terms of how we price and all that we're very optimistic because we don't do very well, but the first year will be a learning year and it will scale from there.

Chris Hulls: portion of RevShare, there's some complex... how we price and all that.

Chris Hulls: We're very very well, but the first year will be a learning experience. And Wayne, in terms of the revenue side, yeah, we do have high expectations over a period of time for the revenue flow from this partnership. But again, it'll be sort of starting to establish those pieces.

Speaker Change: And the way in term.

Speaker Change: The revenue side, yes, we do have high expectations over a period of time for the revenue flow from from this partnership.

Speaker Change: Again, it will it'll be sort of a starting to establish those pieces.

Chris Hulls: The investment itself you will see is in the form of a convertible note, but we would absolutely expect it to flow into equity at some point in the future.

Speaker Change: The investment itself you will see us.

Speaker Change: Is in the form of a convertible note that we would absolutely expect it to flow into equity at some point in the future.

Speaker Change: Okay got it thank you.

Andrew: Thanks Wei next we'd like to invite Andrew from citizens Jmp's Andrew are you there.

Andrew: Next, we'd like to invite Andrew from Citizens JMP.

Andrew: Andrew, are you there?

Andrew: Thanks, so much for taking the question we've been seeing in beta.

Andrew: We've been seeing PET and beta in our own usage.

Andrew: Can you talk about any early results from PET tracking? And then what are kind of the expectations of that as PET does go live in 4Q and 2026? Thanks so much.

Speaker Change: Our own usage can you talk about any early results from pet tracking and then what are kind of the expectation is that it.

Andrew: It does go live in poor Q in 2026, thanks, so much.

Lauren Antonoff: Well, I will let Lauren answer that one.

Andrew: Well I will let Laurent answer that one.

Lauren Antonoff: A, because she's been spearheading it, and B, she has this tiny little dog who got lost.

Andrew: Because she has been spearheading it and be she has this tiny little dog, who got law. It's part of the reason she joined to begin with I call. It a rat, but yeah. It.

Lauren Antonoff: That's part of the reason she joined to begin with.

Lauren Antonoff: I call it a...

Lauren Antonoff: save, we saved the rat.

We still save save there at Lawrence since Youre, so passionate about it why don't you.

Speaker Change: Why don't you chime in on that one okay I will do that.

Lauren Antonoff: Okay, I will do that. So the things that you're seeing in beta are not really performance testing, they're small scale in order for us to basically put water through the pipes and make sure that we can deliver a great end to end experience for our customers. So they help us refine the experience, we use it ourselves, we do a lot of, well, in tech, we call it dogfooding, it makes a lot of sense here when we're talking about pets. But we use our own product, and we let other customers use it, we find issues we need to refine, we find problems before we ship.

So the things that you're seeing in beta or not really performance testing, they're small scale in order for us to basically put water through the pipes to make sure that we can deliver a great end to end experience for our customers.

Speaker Change: So they help us refine the experience that we use it ourselves we do a lot of Ah well intact, we call. It downloading it makes a lot of sense here when we're talking about pets.

Speaker Change: We use our own product and we let other customers is that we find issues, we need to refine we find problems before we ship.

Lauren Antonoff: So we don't really have performance insights or those kinds of things. The product is on track, we're excited about what it's going to do, we are we're being a little bit, we're taking a little bit more conservative approach, I think, in the world of tariffs that we might have otherwise, just in terms of volume, pulling back from retail a bit, and really focusing on direct to consumer in part, because it gives us the most flexibility to be responsive as the external environment changes. But this year is really a great learning experience, we're planning to get some decent volume.

Speaker Change: So we don't really have a.

Speaker Change: Performance insights or those kinds of.

Speaker Change: Thanks.

Speaker Change: That the product is on track we're excited about what it's going to do we are we're being a little bit we're taking a little bit more conservative approach I think in the world of tariffs that we might have otherwise just in terms of volume.

Speaker Change: Pulling back from retail a bit and really focusing on direct to consumer in part because it gives us the most flexibility to be responsive.

Speaker Change: As that external environment changes.

Speaker Change: But this year is really a great learning experience for planning to get some decent volume.

Russell Burke: I'll let Russell talk about specific numbers if he wants to add anything. But all things are looking good. We're excited. Yeah, I don't think we're talking about sort of specific numbers yet. You know, there's a as we've said, we've pivoted our plan somewhat. So but this year is going to be a good test. And we we expect to see some some good flows there.

Russell Burke: I'll, let Russell talk about specific numbers, if he wants to add anything.

Russell Burke: But that all things are looking good right.

Russell Burke: We're excited.

Russell Burke: Yes.

Speaker Change: I don't think we are talking about sort of specific numbers yet.

Russell Burke: As a as we've said with.

Russell Burke: Pivoted health plan somewhat so.

Russell Burke: But this year is going to be a good test and we will expect to see some some good flows there.

Russell Burke: Thank.

Speaker Change: Thank you.

Speaker Change: Thanks Center next I'd like to turn to weigh wing from RBC are you there.

Wei Wing: Next, I'd like to turn to Wei Wing from RBC.

Wei Wing: Are you there?

Wei Wing: Hi, guys.

Weigh Wing: Hi, guys, Yeah I'm here. Thanks.

Wei Wing: Yeah, I'm here.

Wei Wing: Yeah, just my question is around the Apple App Store changes. How do you expect them to play out for 360? Do we see it? Should we expect to see an immediate step up, you know, in margins? Or is it going to be more gradual? Like, how do we think about this?

Speaker Change: My question is around the Apple App store changes, how do you expect them to play out for 360 <unk> do we see should we expect to see an immediate step up.

Speaker Change: In in margins or is it going to be more gradual like how do we think about this.

Chris Hulls: I would say, take a long-term lens, not a short-term. For those who have known us a while, we Slowly Proven Right that over time. The reason I'm saying. don't make any short-term is going to get a little esoteric, but they're different types. credit card processing, including Apple Pay, which is very different than an app purchase. And it's unclear how much we can use Apple Pay, which is what we really need to have lower friction. And I would be getting very esoteric if I went fully into it, but. If I get a little more abstract, we're testing a number of flows, we're trying to see what we can get away with.

Speaker Change: I would say take a long term lens is not a short term lens.

Speaker Change: For those who have known us a while we've been pretty consistent and I think we're being slowly proven right that over time, Apple will lose more and more leverage for a number of reasons, namely antitrust and government scrutiny.

Speaker Change: What's happening much more overseas now it's come to the U S with arguably the biggest ruling that is beneficial for us the reason I am saying.

Speaker Change: Don't make any short term assumptions.

Speaker Change: This is going to get a little esoteric, but there are different types of credit card processing, including Apple pay which is very different than.

Speaker Change: In App purchase.

Speaker Change: And it's unclear how much we can use apple pay which is what we really need to have lower friction.

Speaker Change: Hi.

Speaker Change: And I would I would be getting very esoteric if I weren't fully into it but.

Speaker Change: But.

Speaker Change: If I get a little more abstract we're testing a number of flows we're trying to see what we can get away with were watching very carefully the appeal process. Because there have been many starts and stops if I'm a betting man apples actually you have to make the app store more competitive with credit card because they know their monopoly is going away. So.

Chris Hulls: watching very carefully the appeal. If I'm a betting man, apples I should... store more competitive.

Chris Hulls: So in the long term, I'd say this ad is validation. processing will be going down. I definitely would not. benefit unless we get and Apple Pay, but as of now, we don't.

Speaker Change: In the long term I would say just add as validation that.

Speaker Change: That 22, and a half or whatever percentages that we pay for payment processing will be going down I definitely would not see an immediate benefit unless we get some pretty big news and Apple pay but as of now we don't know so we have not changed our forecast or our guidance based on this decision yet and of course, if things change, we'll we will announce that would be very excited this year.

Chris Hulls: Okay, thanks so much. Thanks for being.

Speaker Change: Okay. Thanks, very much that's helpful.

Speaker Change: Great.

Speaker Change: Thanks for having me.

Mark: Next, I'd like to turn it over to Mark from Stiefel.

Mark Mahaney: I'd like to turn it over to Mark from Stifel Mercury available.

Mark: Mark, are you available?

Mark: Yeah, hey guys, thank you very much. I wanted to ask you, just on the advertising side, I know, obviously, very uncertain times for all businesses. But given that you're a newer ad platform, are you still seeing the interest in testing out the platform, or are you seeing people kind of saying, hey, let's wait until things kind of get sorted out on the tariff front? How are those conversations going bigger picture?

Mark Mahaney: Yeah, Hey, guys. Thank you very much.

Speaker Change: I wanted to ask you just on the advertising side I know, obviously very uncertain times for for all businesses, but you know.

Mark Mahaney: Given that your.

Mark Mahaney: Newer ad platform.

Mark Mahaney: Are you still seeing.

Mark Mahaney: The interest in testing out the platform.

Mark Mahaney: Or are you seeing people kind of saying, hey, let's wait until things kind of.

Mark Mahaney: It gets sorted out on the tariff front I just how are those conversations going bigger picture and I know the long term view is intact.

Chris Hulls: And I know the long-term view is intact to what Lauren said earlier, but just near-term, we'd love to know how those conversations are going. Sure. I think this is where we may benefit by our early and small scale. You know, we have very few salespeople to start. We can only have so many conversations. And so we're always picking and choosing what conversations we want to have. So, you know, in that sense, we were able to sort of focus on those partnerships that are ready. There's a lot of brands that continue to do well and want to talk with us.

Speaker Change: To what Laurence said earlier, but just near term would love to know how those conversations are going.

Laura: Laura you want to take that one.

Mark Mahaney: Sure.

Mark Mahaney: I think this is where we made benefit by our early and small scale. You know we have very few salespeople to start we can only have so many conversations and so we're always picking and choosing what conversations we want to have so in that sense. We are.

Mark Mahaney: We're able to sort of focus on those partnerships that are already there's a lot of brands that continue to do well and when I talk with that so it hasnt hit us yet there is there's some risk, but we haven't really experienced a big change yet.

Chris Hulls: So it hasn't hit us yet. There's there's some risk, but we haven't really experienced a big change yet.

Mark Mahaney: Okay. Thank you and then maybe one more just on the App refresh.

Lauren Antonoff: And then maybe one more just on the app refresh. Can you just remind us, you know, the main benefit of that is just making the signup flow, you know, to subscriptions a little bit easier. Is that kind of the gist of it? Or maybe I'm... Yeah, sure.

Mark Mahaney: Can you just remind us.

Mark Mahaney: The main benefit of that is just making the sign up flow to subscriptions, a little bit easier or is that does that kind of the gist of it or maybe I'm Chuck yeah sure.

Lauren Antonoff: I'll take this. You know, if you think about why Life360 has been successful in the way it has, it's because we really, we earn this enthusiastic membership. You know, people try us, they hear about us from someone, they try us out. Once they try us, we have a very high stick rate in our free member base, and people enthusiastically tell other people. And that's based on the value they get in that free member experience. We think of it as the engine that powers everything else. The problem is, if that experience stays the same, the rest of the world moves on, you know, other apps add features and capabilities to bar the expectations that customers have rise.

Speaker Change: I'll take that if you think about why life 360 has been successful in the way. It has it because we really we earn that enthusiastic membership you know people try it they hear about us from someone they try us out once they try as we have a very high stick rate.

Speaker Change: In our member base and people enthusiastically tell other people and that's based on the value they get in that free member experience, we think of it as the engine that powers everything out.

Speaker Change: The problem is if that experienced stays the same the rest of the world moves on you know other apps add features and capabilities the bar the expectations that customers have right and so if you're going to if we're going to keep that affects that powered our business working well, we have to continually add value and create the light in that free experience.

Lauren Antonoff: And so if you're going to, if we're going to keep that effect that powered our business working well, we have to continually add value and create the light in that free experience. So that's one of the main focuses of investing in our free member experience, just to make sure that we're nurturing this sort of this fuel source that powers the business. The other is that, you know, we're doing more and more sort of expanding the scenarios, adding things like eventually aging parents, working with more and more partners, and that can put pressure against the user experience.

Speaker Change: So that's one of the main focuses of investing in our free member experience just to make sure that we're nurturing that's sort of the this fuel source that powers the business.

Speaker Change: Other is that you know, we're doing more and more a sort of expanding the scenarios, adding things like pets are eventually aging parents are working with more and more partners and that can put pressure against these are experiencing where do you put the next feature you know how does it fit in.

Lauren Antonoff: You know, where do you put the next feature? You know, how does it fit in? And so when we designed the app, originally we had a smaller set of use cases, you know, and now that we're adding so much more value, it's hard sometimes to figure out how do you show that in a way that customers can really find it in a way that you're unlocking that value. So as we're thinking about this refresh, as we're thinking about this redesign, we really think about creating space, creating an interface that allows for customers to be more engaged in different parts of the app experience to hopefully have more dwell time, which will benefit advertising and create space for more and more features that we create, as well as integrations with third parties.

Speaker Change: And so when we designed the App originally we had a smaller set of use cases.

Speaker Change: And now that we're adding so much more value it's hard sometimes.

Speaker Change: To figure out how do you show that in a way that customers can only find it in a way that you're unlocking that value. So as we're thinking about this refresh as we're thinking about this redesign we really think about creating space.

Speaker Change: Creating an interface that allows for customers to be more engaged in different parts of the app experience to hopefully have more dwell time with real benefit advertising and create space for more and more features that we create as well as integrations with third parties.

Speaker Change: Perfect. Thank you very much.

Speaker Change: Thank you next we'd like to invite changed for Morgan Stanley ask question change either.

James: Next, we'd like to invite James from Morgan Stanley to ask a question.

James: James, are you there?

James: I am.

Speaker Change: Thanks.

Lauren Antonoff: So I guess I wanted to ask about PETS. Could you maybe help us understand the difference between the product that's live on the GeoBit site and what you plan to launch in Q4? Maybe also some of the differentiating features versus competition and then help us understand how to think about the pricing strategy here, whether this is completely bundled, minimum terms, hardware purchases?

Speaker Change: Attunity, so I guess how.

Speaker Change: I wanted to ask about pits could you maybe help us understand the difference between the products that live on the <unk> side and what you plan to launch in Q4.

Speaker Change: Maybe ill so some of the differentiating features versus competition.

Speaker Change: And then help us understand how to think about the pricing strategy here, whether this is completely bundled minimum terms hardware purchases et cetera.

Lauren Antonoff: Lauren, probably another good one for you.

Speaker Change: Laura and find another good one for you.

Lauren Antonoff: Okay, I'm a big fan of the pups. So, the guts of Geobit, a lot of the same, similar technology is used in the Pet Tracker. There's a lot of overlap in the tech and the platform that we're using.

Speaker Change: Okay, I'm, a big fan of the pups.

So that the guts of G O bit a lot of the same similar technology is used in the pet tracker. There is a lot of overlap in that the tech and the platform that we're using.

Lauren Antonoff: But we built, basically from the ground up, a new device that is designed from a Life360 sort of family point of view. It's designed to work seamlessly as part of the Life360 ecosystem. We've been using, the reason that we're sort of pushing Geobit right now is that we're sort of using it to, again, test some of those pipes to test the underlying connection to Life360 is the same. We started with Geobit to build those connections between the Pet Tracking capabilities and Life360.

Speaker Change: But we felt basically from a ground up a new device that is designed from a life through 16 family point of view, it's designed to do.

Speaker Change: Work seamlessly as part of our life 360, <unk> ecosystem, we've been using the reason that were sort of pushing Geo bet right. Now is that we're sort of using it to test some of those tied to test the the underlying connection to like 360 is the family. We started with deal bed to build those connections between that pet tracking capabilities and library.

Lauren Antonoff: But the new device is. You know, I think one of the biggest changes is it's really built to work for pet scenarios, it is more durable, it is longer lasting has a longer battery life. But the most important thing I think is how it works to show up as part of your your family. And because of that, you know, it obviously will it will be a bundle product. We think there's a lot of opportunity, particularly with the free user base, to, you know, help that sort of conversion. And and therefore it will be a bundle product.

Speaker Change: <unk>.

Speaker Change: But the new device is.

Speaker Change: You know I think one of the biggest changes is it's really built to work for pet scenarios. It is more durable it is longer lasting has a longer battery life, but the most important thing I think is how it works you show up as part of your family.

Regardless of that sum.

Speaker Change: It obviously will it will be a bundled product we think there's a lot of opportunity, particularly with the free user base.

Speaker Change: To help that sort of conversion.

Speaker Change: And.

Speaker Change: And therefore, it will be a bundled product it will be also available sort of separately, but with a subscription. So all of this is really geared towards continuing to boost subscription revenue.

Lauren Antonoff: It will be also available sort of separately, but with a subscription. So all of this is really geared towards you're continuing to boost subscription revenue. Perfect.

Speaker Change: Perfect. Thanks, guys.

Lauren Antonoff: Thanks, guys.

Speaker Change: Yeah.

Speaker Change: Okay.

Lauren Antonoff: Thanks, James.

Chris: Next, I'd like to open it up to Chris from UBS.

Speaker Change: Thanks, James next I'd like to open it up to Chris from UBS, Chris are you available.

Chris: Chris, are you available?

Speaker Change: Chris.

Speaker Change: Hopefully you're there.

Speaker Change: We're still not hearing them, how can we move on and come back yeah.

Operator: Still not hearing him.

Operator: How about we move on and come back, RJ?

Operator: Okay, we'll open it up to Rob from Loop.

Speaker Change: Okay, We will open it up to Rob from loop, Rob are you available.

Rob: Rob, are you available?

Rob: I am here.

Rob: Hi, I'm here. Thanks R. J, thanks for taking my questions everyone.

Rob: Thanks for taking my questions, everyone. I wanted to go back to the changes on the App Store fees, if we could. I mean, it's such a significant cost driver. You commissioned 53% of, sorry, 53 million in revenue last year. So is there anything you can give us to just help calibrate sort of the expectations on sort of the potential outcomes? Is this like something that could potentially shave like a couple hundred basis points from that 20-plus percent? Could it be meaningfully more? Is it just, you know, too many moving pieces and too early to even have, to say too much more than just that's clearly directionally positive?

Rob: I wanted to go back to the changes on the Astra refuse if we could I mean, it's such a significant cost driver.

Speaker Change: Commission is 53%.

Speaker Change: $353 million in revenue last year. So is there anything you can give us to just help calibrate.

Speaker Change: Expectations on sort of the potential outcomes is this like something that could potentially save a couple of hundred basis points from the 20 plus percent could it be meaningfully more is it just too.

Speaker Change: Many moving pieces and too early to even have to say too much more than just thats clearly directionally positive and then ahead I'll call on advertising if I could ask maybe you can answer that first and I'll come back on advertising, Yeah, I'll take that one and I'll, let Laura answer Ed's question.

Rob: And then I had a follow-up on advertising, if I could ask.

Chris Hulls: Maybe we can answer that first, and I'll come back on advertising.

Lauren Antonoff: Yeah, I'll take that one, and I'll let Lauren answer your ads question.

Chris Hulls: Let me first explain why it's a little bit more complicated than it sounds. It's not just the cost, there's the conversion impact and the The thing that's really good about in-app purchase is click, click, click. The downside of that is you pay the big fees. And it's also very easy to cancel because I know many consumers, including myself. I just go into the App Store, iTunes, and cancel all my subscriptions, even as a pretty well-off person. It's just so easy to cancel everything. And so people do that on Apple, and we don't keep that relationship with the consumer.

Speaker Change: Let me first explain why it's a little bit more complicated than it sounds.

Speaker Change: It's not just the cost there is the conversion impact and the retention of that.

Speaker Change: That's really good about in App purchases click click click you've converted.

Speaker Change: The downside of that is you pay the big fees and it's also very easy to cancel because I I know many consumers, including myself I just go into the App store itunes and cancel all my subscriptions, even as a pretty well off person.

Speaker Change: It's just so easy to cancel everything and so people do that on Apple and we don't keep that relationship with the consumer.

Chris Hulls: So, if you move to credit card, the only thing you know is that the payment process The other thing we essentially know is conversion will also go down unless you can use Apple Pay, which has credit card pricing, but with the same click, click, click conversion. And that, if we knew we could use Apple Pay, I would put my reputation on the line to say it's saving more than a few hundred basis points. It would be a massive, massive savings.

Speaker Change: So if you move to credit card. The only thing you know is that the payment processing is going down the.

Speaker Change: The other thing we essentially know as conversion will also go down unless you can use apple pay which has credit card pricing, but with the same click click click conversion and that if we knew we could use Apple pay I would put my reputation on the line to say, it's saving more than a few hundred basis points. There's a lot there would be a massive massive savings that.

Chris Hulls: That still remains unknown, which is why I've being a little bit more cautious around our If you take what we know we can do... which is do our own credit card collections, there are ways to reduce the friction.

Speaker Change: Still remains on known which is why I am.

Speaker Change: Being a little bit more.

Cautious around our optimism.

Speaker Change: If you take what we know we can do.

Speaker Change: Which is do our own credit card collections, there are ways to reduce the friction.

Chris Hulls: How, what does that do to. We know we're gonna take a conversion impact, but are we gonna make that up because we can have our own Dunning strategies, we can have our own process of, and not that we're gonna trick users to stay, but like. Apple just doesn't even let you talk. And that takes a long time for the data to come through.

Speaker Change: How what does that do to retention, we know we're going to take a conversion impacts but are we going to make that up because we can have our own dunning strategies. We can have our own process of another been a trick users to stay but like.

Speaker Change: People just don't even let you talk to them and that takes a long time for that day to come through.

Chris Hulls: So the team already has experiments out, which are gonna test all of. with the only exception being the big one.

Speaker Change: So the team already has experiments out what youre going to test all of these things with the only exception being the big one we just don't know if we're allowed to use apple pay and so there could be a very good benefit today from what's already happened.

Chris Hulls: We just don't know if we're allowed to use Apple Pay. And so there could be a very good benefit today from what's already happened. probably not, still could be a couple hundred basis points, but still a little bit unknown.

Speaker Change: Probably not so it could be a couple hundred basis points, but still a little bit unknown.

Lauren Antonoff: We will report back and if we get word about being able to use Apple Pay, then. So, and just to add to that, Rob, you know, as Chris said before, in the long term, we absolutely see a benefit from this, you know, this will only flow in one direction, it will benefit our costs in the longer term. But because of these complexities and the fact that, you know, we've seen before that, you know, Apple will make different moves, we're certainly not jumping to, you know, include that in any forecasts or guidance for the time being.

Speaker Change: We will report back in if we get worried about being able to use apple pay them and that's a huge game changer.

Speaker Change: So.

Speaker Change: And Jim just to add to that Rob as Chris said before in the long term, we absolutely see.

Speaker Change: Benefit from this.

Speaker Change: This will only.

Speaker Change: Flow in one direction it will benefit all our costs in the longer term.

Speaker Change: Because of these complexities and the fact that we've seen before that.

Speaker Change: Apple will make different moves.

Speaker Change: Certainly not jumping to <unk>.

Speaker Change: Include that in any in a forecast so guidance for the time being.

Lauren Antonoff: But we will pursue it and let you know when that starts to become meaningful.

Speaker Change: We will we will pursue it and let let you know when when that starts to become meaningful.

Chris Hulls: Thanks, Chris.

Speaker Change: Okay. Thanks, Thanks, guys. So thanks, Chris So Lauren advertising, just thinking about maybe a two or three or locker year timeframe do you see bigger opportunity from like retail and local commerce or do you think.

Lauren Antonoff: So, Lauren, advertising, just thinking about maybe a two or three or longer year time frame, do you see bigger opportunity from like retail and local commerce? Or do you think the more near term, like two or three year time frame is a little more focused on insurance and acquisition channel for other services and other sort of maybe vertical type opportunities? I think we're still exploring what the best opportunities are. I would say we're in exploration mode and really looking at all sorts of different partnerships as brands come to us. So anybody who wants to reach consumers, I think we're an attractive way to do that and we'll use the learnings from early partners to decide where to double down.

Speaker Change: The more near term that sort of two to three year timeframe is a little.

Speaker Change: More focused on insurance acquisition channel for other services and other sort of maybe vertical type opportunities.

Speaker Change: I think where we're still exploring what the best opportunities are I would say, we're in exploration mode and really.

Speaker Change: Looking at all sorts of different partnerships and as brands come to us So anybody who wants to reach consumers I think were attractive an attractive way to do that and well use the learnings from early partners to decide where to double down.

Speaker Change: Okay. Thanks, a lot.

Speaker Change: Yeah.

Speaker Change: Great. Thanks, Rob.

Chris: OK, we'll turn it back over to Chris from UBS if he's available.

Speaker Change: I will turn it back over to Chris from UBS, if he's available Chris either.

Chris: Chris, are you there?

Speaker Change: Yeah.

Operator: Chris, last call.

Speaker Change: Chris last cough.

Speaker Change: Okay.

Speaker Change: Yeah.

Operator: That is the end of our questions that are in the queue.

Chris Halls: That is the end of our questions that are in the queue I'll turn it back over to Chris to close this out.

Chris Hulls: I'll turn it back over to Chris to close us out.

Chris Hulls: Don't have any closing remarks, very excited to meet with you all over coming days and have a great day.

Chris Halls: I don't have any closing remarks are very excited to meet with you all over coming days and have a great day.

Speaker Change: Thanks Al.

Speaker Change: Okay.

Chris Hulls: Goodbye.

Speaker Change: Goodbye.