Sign in
LI

Life360, Inc. (LIF)·Q4 2024 Earnings Summary

Executive Summary

  • Life360 delivered record Q4 and FY 2024 results: Q4 revenue $115.5M (+33% YoY), positive net income ($8.5M, $0.10 diluted EPS), and Q4 Adjusted EBITDA $21.2M (18% margin). FY 2024 revenue reached $371.5M (+22% YoY) and Adjusted EBITDA $45.5M .
  • Momentum was driven by subscriber growth (Global Paying Circles 2.3M, +25% YoY), pricing actions (Dual/Triple Tier), and “Other” revenue (data/advertising) up sharply in Q4 to $13.0M (+$6.9M YoY) .
  • FY’25 guidance points to continued scale: consolidated revenue $450–$480M; subscription $350–$360M; hardware $45–$55M; other $55–$65M; Adjusted EBITDA $65–$75M including ~$8M investment into a pet tracking device .
  • Call commentary emphasized hardware integration (Tile), expansion into GPS pet/elder devices, and ramping advertising as medium-term growth vectors; consensus comparison was not available via S&P Global in-session due to rate limits .

What Went Well and What Went Wrong

  • What Went Well

    • Subscription growth and pricing: Q4 subscription revenue $78.8M (+32% YoY) with Core subscription $73.1M (+36% YoY) supported by Paying Circles growth and ARPPC uplift .
    • Other revenue acceleration: Q4 other revenue $13.0M (+$6.9M YoY) reflecting data partnerships and early advertising traction; gross margin expanded to 74% (vs. 69% LY) helped by higher “Other” mix .
    • Cash and profitability: Q4 positive operating cash flow $12.3M; FY 2024 Adj. EBITDA $45.5M; CEO: “2024 was a transformative year… launched our advertising business… cutting-edge Tile lineup… completed our U.S. IPO” .

  • What Went Wrong

    • Hardware volatility prior quarter: Q3 hardware revenue declined (-24% YoY) due to product launch delays and inventory discounting; Q4 improved (+13% YoY) on reduced returns and better channel mix .
    • Operating expense growth: Q4 OpEx $79.8M (+22% YoY) as commissions and strategic/corporate costs rose; offset by revenue scale but still a focus area .
    • Estimates comparison unavailable: S&P Global consensus was not retrievable during session; investors lack immediate “beat/miss” framing for Q4 until estimates are re-fetched [GetEstimates error: Daily Request Limit Exceeded].

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Total Revenue ($USD Millions)$84.9 $92.9$115.5
Gross Margin (%)N/A75% 74%
Net Income ($USD Millions)$(11.0) $7.7$8.5
Diluted EPS ($USD)N/A$0.09$0.10
Adjusted EBITDA ($USD Millions)$11.0 $8.9 $21.2
Adjusted EBITDA Margin (%)N/A10% 18%
Operating Cash Flow ($USD Millions)$3.3 $6.3 $12.3

Segment revenue

Segment Revenue ($USD Millions)Q3 2024Q4 2024
Subscription$71.8$78.8
Hardware$11.7$23.8
Other$9.3$13.0

KPIs

KPIQ2 2024Q3 2024Q4 2024
Global MAUs (Millions)70.6 76.9 79.6
U.S. MAUs (Millions)40.5 42.2 43.7
International MAUs (Millions)30.1 34.7 36.0
Global Paying Circles (Millions)2.0 2.2 2.3
ARPPC ($)$125.96 $127.57 $131.76
AMR ($USD Millions)$304.8 $336.2 $367.6

Additional revenue geography detail (Q4)

Subscription Revenue ($USD Millions)Q4 2024
U.S.$66.9
International$11.8
Core Subscription$73.1

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Revenue ($USD Millions)FY’25N/A$450–$480 New
Subscription Revenue ($USD Millions)FY’25N/A$350–$360 New
Hardware Revenue ($USD Millions)FY’25N/A$45–$55 New
Other Revenue ($USD Millions)FY’25N/A$55–$65 New
Adjusted EBITDA ($USD Millions)FY’25N/A$65–$75 (incl. ~$8M pet device investment) New
Consolidated Revenue ($USD Millions)FY’24$368–$374 Actual $371.5 Met/high end
Adjusted EBITDA ($USD Millions)FY’24$39–$42 Actual $45.5 Raised/exceeded
EBITDA ($USD Millions)FY’24Loss $(7)–$(10) Actual $(3.8) Better than guided loss
Year-end Cash ($USD Millions)FY’24$150–$160 Actual $160.5 High end

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Advertising platformEarly launch; infrastructure build; data partnership expansion (Placer.ai) Uber landing notifications outperform banners; scaling sales/offsite; long-term ARPU opportunity Expect “significant growth in 2025”; building direct/offsite; “trade-off hardware revenue for adoption” Accelerating from pilot to scale
Hardware (Tile)Refresh planned for Q4 seasonality New lineup launched; delays (certification/labeling/supply chain) impacted Q3 revenue/margins Q4 hardware +13% YoY on reduced returns, better channel mix; integration nearing completion Recovery/improving execution
International pricing/tier expansionDual Tier planning; groundwork in non-Triple Tier markets UK/ANZ Triple Tier; legacy price increases; ARPPC +53% International Dual Tier launches and legacy increases drove International ARPPC +42% YoY Sustained ARPPC uplift
New devices (Pet/Elder GPS)Hubble partnership in process; GPS lineup strategy Plan: pet late 2025; elder 2026; subscription attach Reaffirmed pet device in 2025 with ~$8M investment; elder thereafter Moving toward execution
Partnerships (Uber, Placer.ai, Hubble)Expanded Placer.ai; Hubble formalization underway Uber contextual ads; Placer.ai exclusive; Hubble enterprise/location capabilities Continued focus on ads/data and Hubble-enhanced device capabilities Deepening ecosystem
MAU growth & seasonalityMAUs 70.6M (+31% YoY) Record back-to-school; MAUs 76.9M (+32% YoY) Q4 net adds 2.8M; MAUs 79.6M (+30% YoY); Q&A on U.S. MAU persistence/levers Continued organic growth

Management Commentary

  • CEO Chris Hulls: “2024 was a transformative year… we successfully launched our advertising business, introduced a cutting-edge lineup of Tile devices… and completed our U.S. IPO to become publicly traded on Nasdaq” .
  • CFO Russell Burke: “In Q4 2024, we achieved positive Net Income of $8.5 million, and our ninth consecutive quarter of positive Adjusted EBITDA and seventh consecutive quarter of positive Operating Cash Flow” .
  • Outlook: “Positive Adjusted EBITDA of $65–$75 million [FY’25], which includes $8 million of investment to developing and launching a new pet device in 2025” .

Q&A Highlights

  • U.S. MAU growth persistence and levers; update on international tier launches: Management discussed consistent U.S. MAU growth, 2025 focus on tier expansion, and continued rollout of Dual/Triple Tier internationally .
  • Hardware strategy: “As Tile becomes a more core part of the Life360 experience… we’ll trade off hardware revenue for increased adoption,” reinforcing hardware’s role as a subscription acquisition vector .
  • Revenue mix and outlook: Management reiterated FY’25 segment guidance and emphasis on advertising/partnerships for “Other” revenue growth .

Estimates Context

  • S&P Global consensus estimates were unavailable during this session due to API request limits; as a result, beat/miss vs. Street cannot be assessed here. Investors should re-check SPGI consensus to calibrate revenue/EPS/EBITDA comparisons for Q4 2024 (values were not retrieved; default source S&P Global) [GetEstimates error: Daily Request Limit Exceeded].

Key Takeaways for Investors

  • Subscription engine remains robust with disciplined pricing: Q4 subscription +32% YoY; International ARPPC up sharply from tier/pricing actions, supporting 2025 revenue quality .
  • Advertising is emerging as a meaningful second leg: “Other” revenue acceleration and strong call tone on 2025 ads growth suggest optionality in ARPU and margin mix over time .
  • Hardware integrated to drive subscriptions: Q4 hardware rebound and strategic willingness to trade near-term hardware revenue for user adoption bolster LTV dynamics .
  • Profitability trajectory strengthening: Q4 gross margin expansion (74%), Q4 Adj. EBITDA 18% margin, and FY 2024 Adj. EBITDA above guidance underpin FY’25 guidance ($65–$75M) .
  • Liquidity intact: Year-end cash $160.5M, providing flexibility to invest in GPS pet device and advertising ramp without stressing balance sheet .
  • Watch near-term catalysts: 2025 pet device launch progress, ad sales/offsite partnerships, international tier rollouts, and MAU conversion/retention metrics as key drivers of estimate revisions and sentiment .
  • Reassess Street models: With FY’25 guidance disclosed and Q4 results strong, sell-side estimates may need upward adjustments, particularly for “Other” revenue and Adjusted EBITDA; confirm SPGI consensus once accessible .