Life360’s family safety and location sharing app grows to 61 million global users

Information technology company Life360 (ASX: 360) is forecasting 20% CY 2024 year-on-year (YoY) growth in subscription revenue after reporting positive financial results for the quarter and year ended December 31 2023.

The provider of location-based services recorded a 33% increase in YoY revenue to around $470 million for CY2023, in line with its previously forecast guidance.

The company’s flagship Core Life360 subscription revenue jumped 52% YoY to around $308m, while its positive adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of around $32m was well above guidance of $18m to $25m.

Co-founder and chief executive officer Chris Hulls said the revenue growth comes at a time when the California–based company has attracted more than 61 million monthly active users (MAU) globally.

“In CY23 we made significant strides in our member experience, showing our users what their family members are up to, whether they’re driving, walking or biking,” Mr Hulls said.

“At the same time, we made meaningful progress on our path to profitability as we significantly reduced our net loss and achieved a major milestone by delivering our first full year of positive adjusted EBITDA and operating cash flow.”

Positive outlook

Life360 is forecasting further positive revenue growth in calendar year 2024.

While set-up costs from establishing the company’s newly-announced advertising business are expected to have an impact, Life360 is forecasting its CY24 consolidated revenue will hit between $560m and $578m, with YoY core Life360 subscription revenue growth of at least 20%.

“We are excited to continue building on our leading global position in location sharing and see exciting opportunities in CY24 and beyond to broaden our reach and deepen engagement with our members,” Mr Hulls said.

“We look forward to bringing the benefits of our subscriptions to more markets globally and creating new revenue streams that utilise the scale and quality of our member base.”

“In 2023, we delivered on our commitment to balance fiscal responsibility and prudent investment to position the business for long-term success.”

“We delivered YoY revenue growth of 33%, while GAAP (generally accepted accounting principles) operating expenses increased only 4% YoY.”

“We met or exceeded all of the guidance metrics we provided to the market for CY23.”

Advertising revenue stream

Mr Hulls said the new advertising revenue stream will offer partners access to Life360’s free user base and more than 20 million daily active users.

“We have consistently spoken of the potential that our investment in the core user experience and the scaling of our MAU base would provide for the future.”

“We are encouraged by the success of early testing and see the opportunity to deliver an attractive platform to advertisers, while continuing to provide a great user experience.”