Life360 reports record quarter, strengthens key partnerships with Arity and Placer.ai
On the same day it announced a record quarterly financial performance, Life360 (ASX: 360) has unveiled updated partnerships with Arity and Placer.ai.
Life360 co-founder and chief executive officer Chris Hulls said the updated partnership with Arity sets up potential for future advertising pathways, while the updated Placer agreement extends the existing sales arrangement with opportunities for increased revenue over time.
Life360 generates indirect revenue from aggregated data sales and through ads within its platform that complement the user experience and is accelerating growth based on new markets and technologies.
Key partners
Mr Hulls said the partnerships provide important support for the company’s strategy to deliver Life360 mobile applications on iOS and Android devices.
“We are excited to expand our working relationships with two key partners who enable us to enhance our offering for consumers and pursue opportunities that create new revenue streams.”
“Life360 has worked with Arity to help keep families safe since 2018 and we have worked with Placer since 2022 on improving public safety.”
“These partnerships allow us to invest in premium features and essential services for our members – including crash detection and place alerts – and to contribute to greater road safety.”
Record quarterly
The company’s strategy paid off in the June quarter, when it achieved record quarterly results in monthly active users (MAUs), paying circles and subscription revenue.
“Our positive results in Q2’24 continued across our strategic growth priorities,” Mr Hulls said.
“We grew our free members base by 4.3 million MAUs and reached 70.6 million overall; we [also] increased net paying circles by 132,000 in Q2’24 compared to the 96,000 increase in Q1’24, a new quarterly record for global net additions.”
“We believe that we are very early on in penetrating our global market opportunity and that we have significant headroom to grow as we expand to new regions and launch new safety, connection and location features.”
The period also saw Life360 complete an initial public offering (IPO) in the United States and begin trading on the NASDAQ Global Select market.
New opportunities
As part of its future growth strategy, Life360 launched a new advertising offering earlier this year that has since gone live for US members and is currently being rolled out globally.
“Revenue from our ad offering has continued to expand in Q2’24, and we have been actively engaging with multiple prospective large advertisers and potential partners which align well with our loyal user base of families.”
The company is forecasting consolidated revenue of $370 million to $378m in its updated 2024 guidance, with estimated core subscription revenue growth of more than 25% year on year, a positive adjusted EBITDA of $36m to $41m and a year-end cash balance of $150m to $160m.