Life360 Achieves Record Q2 2024 Results and Upgrades Financial Guidance
360 (360) Share Update August 2024 Thursday 8th
Life360 Reports Record Q2 2024 Results with 20% Revenue Growth
Life360, Inc. (NASDAQ: LIF) has reported record-breaking financial results for Q2 2024, highlighting significant growth in monthly active users, paying circles, and total revenue. The company also upgraded its financial guidance for the rest of the year.
Instant Summary:
- Monthly Active Users (MAUs) reached approximately 71 million.
- Paying Circles surpassed 2 million with a record for global net additions.
- Total revenue grew 20% year-over-year to $84.9 million.
- Positive Adjusted EBITDA of $11.0 million.
- Guidance upgraded for total revenue and adjusted EBITDA.
Q2 2024 Financial Highlights
Life360 reported a total Q2 2024 revenue of $84.9 million, marking a 20% year-over-year increase. Subscription revenue alone reached $65.7 million, up 25% YoY. The company also reported an annualized monthly revenue (AMR) of $304.8 million, a 23% increase YoY.
Despite incurring IPO-related transaction costs of $5.8 million, Life360 achieved a positive adjusted EBITDA of $11.0 million. The net loss for the quarter was $(11.0) million, impacted by IPO-related costs and higher income tax provisions.
Operational Achievements
Life360 saw a 31% YoY increase in global MAUs, reaching approximately 70.6 million. U.S. MAUs increased by 20% YoY, while international MAUs surged by 48% YoY. The company also set a new record for global Paying Circle net additions, with 132 thousand added in Q2 2024, bringing the total to 2.0 million.
Average Revenue Per Paying Circle (ARPPC) increased nearly 6% YoY, driven by price increases and new membership tiers in the UK and ANZ regions. The company also reported positive operating cash flow of $3.3 million, despite IPO-related costs.
Future Outlook
Life360 upgraded its 2024 financial guidance, now expecting consolidated revenue between $370 million and $378 million, with core subscription revenue growth of 25%+ YoY. The company also anticipates positive adjusted EBITDA of $36 million to $41 million for the year.
The strong Q2 2024 results and upgraded financial guidance are likely to positively impact Life360's stock price. The company's ability to grow its user base and revenue streams, particularly through new advertising offerings and international expansion, positions it well for future growth. Investors may view the positive adjusted EBITDA and operational cash flow as indicators of financial stability and growth potential.
Investor Reaction:
Analysts are likely to react positively to Life360's strong Q2 2024 performance and upgraded guidance. The company's ability to grow its user base and revenue streams, despite IPO-related costs, demonstrates robust business fundamentals. However, some analysts may express caution regarding the net loss and the impact of IPO-related expenses on short-term profitability.
Conclusion:
Investors should consider Life360's strong Q2 2024 results and upgraded financial guidance as positive indicators of the company's growth potential. The continued expansion of its user base and revenue streams, particularly through new advertising offerings and international markets, positions Life360 well for future success. Investors are encouraged to monitor the company's progress and consider its long-term growth prospects.