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360 - Life360 Inc

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Dona Ferentes

Dona Ferentes

A little bit OC⚡DC
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there doesn't appear to be a thread for this company. Only noticed it because of a bit of news
Shares of ASX-listed phone app Life360 have shot up after the sister of Facebook founder Mark Zuckerberg joined its board, but she says a sale isn't on the cards
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Life360 Inc (360) operates in the digital consumer subscription services market, focused on products and services for digitally native families, where all members of the household are connected by smartphones. The company's core offering is the Life360 App which is developed for families with features that range from communications to driving safety and location sharing .

been around for a year or so. Market cap around $500mill, but what does that mean. Last announced loss was 40c per share.

Since inception; daily
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In its first proposed acquisition since listing on the ASX in 2019, family tracking company Life360 is mulling a buyout of wearable location device maker Jiobit.

Life360 founder and chief executive Chris Hulls said Life360 and Jiobit found that they had both customers and management vision in common.
“Jiobit and Life360 are all about family safety and giving families peace of mind to get through the day. Our approach started with tracking teens through their smartphones, Jiobit started with wearables for younger kids, but if you look at where we were both going over a long term trajectory, we have the same North Star,” Mr Hulls said.
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Jiobit co-founder and chief executive John Renaldi said he was inspired by social exercise company Peloton’s approach of combining a one-off purchase of a physical product (the bike) with an ongoing membership (live-streamed fitness classes).

up on this news ... finally above IPO price and an AT high (back where they started, in a round about fashion?)
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360 has been moving upward, making it to $14 in November, from $4 at start of 2021. Then there has been an acquisition and capital raise, somewhat trimming the trajectory. Today is around $9.60, with a 7% dive today
  • Life360 has entered into a binding agreement to acquire 100% of Tile for a purchase price of up to US$170.0 million plus up to US$35.0 million in retention awards for Tile employees, representing total consideration of up to US$205.0 million (equivalent to approximately A$282.8 million)
  • Founded in 2012 and based in San Mateo, California, Tile is the global leader in finding things and locates millions of unique items every day. Leveraging its vast community that spans 195 countries, Tile’s cloud-based finding platform helps people find the things that matter to them most
  • The combination of Life360, the leading family safety platform, and Tile, the market leader in finding things, creates an integrated market leader in location solutions for all life stages, enabling a seamless experience for families that integrates people, pets and things. Life360 will be the only vertically integrated, cross-platform solution of scale in the market and will be well-placed to take advantage of the growing location solutions category

Funded by a fully underwritten equity raising at A$12.00 a share, comprising:
o an approximately A$119.8 million 1-for-15.64 accelerated non-renounceable entitlement offer of new Life360 CDIs; and
o an approximately A$160.2 million placement of new Life360 CDIs to institutional investors

So the new capital is not ahead!
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James Marlay (Livewire Markets) : Interesting. Life360. I had to look this one up. It helps you keep track of your family. Is it a buy, hold or sell?

Jun Bei Liu (Tribeca) (BUY): It’s absolutely a buy. Tracking is a big theme going forward. This company previously only tracked family members, but now it recently purchased the Tile business. So, now you can track absolutely everything, whether it’s your device or anything else-
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James Marlay: Keys.

Jun Bei Liu: Your keys. I can never find my keys. Your dog and everything else. And then it keeps them in the same ecosystem. This is absolutely where everything’s going. Apple’s got its own ecosystem and this one’s already got that. It has already made over a hundred million dollars. They’re mainly in America at the moment, but other markets are expected to pick up quite quickly. With the purchase of that Tile business, it’s doubled its revenue.
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In the future, the growth is phenomenal. The company grew organically during the pandemic. It has been hit by the pandemic, but even despite that, it grew over 40 per cent. Over the next couple of years, just organically excluding the acquisition, it is growing at 40-50 per cent. So, it’s a very high-growth business and it is still trading at four or five times revenue. It’s not expensive and it’s just started to get a little bit of interest. It’s still at that early stage of its growth. It’s a buy.
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James Marlay: I must say, it slid under the radar for me. James, is Life360 on your radar? Buy, hold or sell?

James Gerrish (Money Matters) (BUY): It’s on our radar. It’s a buy. I’d caution it, in terms of - obviously its share price is down from where it made the acquisition of Tile. It raised capital at $12. It’s now under $10. On that metric, it’s a buy.
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The one aspect I’d be cautious about is the monetization of data. That’s going to be a really politically-charged area over the next couple of years. So, that could be a risk for the business in how they monetize data and how they deal with consumers’ data on their platform. For me, it’s a buy, for all the reasons Jun Bei pointed out, it’s a phenomenal growth stock, it’s inexpensive for what you get, but there is regulatory risk around it.
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Life360 is one of my tips for the 2022 competition

The SP has retreated as the market digests the Tile acquisition. Now $9.69. I don't profess to advocate for such gee-whiz tech n app stuff, but it is likely I am in a minority. People want end to end solutions, and there is scalability of the product. Being based in USA and merely flying the ASX flag of convenience is a benefit (although why couldn't they list on NY exchanges??!!? )

(DNH)
 
I agree with your concerns about most tech. Their early shine dims very quickly.
360 defied that trend and has been a standout performer in 2021. I understand that people want to track their family but will they want to track their things that keenly. Cars, boats, trailers, jet skis and other large costly items, maybe.

At 9.71, investors in the last SPP (12.00) are all losing money. 360 is on my reversal watch list as the potential R:R is acceptable.
 
Livewire readers love small caps. That said, your most-tipped smalls for 2021 took quite the tumble. These reader favourites fell 14% in a year when the benchmark, the S&P/ASX Small Ordinaries, lifted 12.75%....
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... we surveyed thousands of Livewire readers in December to see how you are thinking about markets in 2022. So in this episode, we'll be taking a look at one of the interesting findings from that survey. Of course, it wouldn't be Buy Hold Sell without us asking our pros to analyse some of your favourite stocks. In this case, it's your top-tipped small caps 2022....
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Ally Selby ( Livewire Markets ) : Next up we have Life360, a family tracking app based in the US. Josh, I'll stay with you. Is it a buy, hold or sell?

Josh Clark ( QVG Capital ) (BUY) : My opinion would be Life360 is a buy. There are a few things to like about the business. 40% plus revenue growth rates is obviously nice. There are a few tailwinds in there at the moment. It's proved that the business can generate some operating leverage should they choose to pull back on the reinvestment within the business. So that's also positive.

And I think the other thing that I like about it is the founder management seems to understand how to create value in that stock and that is to create value for customers. So adding more features, benefits and products into the bundle should reduce churn. And then churn gives you a couple of nice things - it reduces marketing spend to acquire more customers and also creates greater lifetime customer value. So I think that one's heading in the right direction and I'd call that one a buy.

Ally Selby: Over to you John. Life360 just acquired location tracking hardware provider, Tile, and it also wrangled its way into the ASX 200. Is it on its way up? Is it a buy, hold or sell?

John Deniz ( Paragon Funds Mgmt. ) (HOLD) : Ally, it's a hold for us. We owned 360 and it was quite a good winner for the fund. However, we largely exited the position ahead of the recent acquisition. We like the business a lot. They've developed the leading family tracking services platform. They've got a large market and they've delivered very strong growth of over 40%, even through COVID. However, rising rates cycle with no earnings, we just think it'll face headwinds. It's a hold for us.
 
despite the hopes, the reality is not pretty

Shares in Life360 shed a quarter of their value in the opening minutes of trade, after the company announced its loss had doubled despite growing revenues.
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Opening ASX site, noticed two big reds. Early morning I prefer tea or coffee and no reds.
Those two are APX and 360. Read the financial results. Starting with increased revenue significantly but losses were also increased significantly.
Every one can read the details so no rambling here.
What intrigued me to read the complacent statement from the co founder and CEO-
If a land mark year with ticking off the metrics has given such a result then what will happen when the company does not tick off the metrics?
Could the metrics are wrong or measured not aligned to benefit shareholders. (DNH)
It gives me some speculative alignment with NXL performance or lack of it.

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LIFE360 INC. 360​

LAST PRICE / TODAY'S CHANGE4.850 -1.720 (-26.180%)VOLUME2,635,919BID / OFFER RANGE$4.890 - $4.900MARKET CAPITALISATION1.25B
Software & Services
Listed on 10 May 2019
 
from a low base, 360 has turned around on its Annual report, out today. $5.50 to $6.10

Life360 finished 2021 with a cash balance of $231.3 million. Following the close of the Tile acquisition in January 2022, the cash balance was approximately $94.0 million, ...
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Life360 Key Features:
• Real-time location sharing
• Smart notifications
• Roadside assistance
• Crash detection
• Ambulance dispatch
• SOS alerts
• ID theft protection
• Family safety assist

By integrating Tile and Jiobit, our members will be able to find, connect and protect everything that matters to them most including people, pets and things. We expect the integration work to take place in the first half of 2022, ready to take advantage of the back-to-school peak seasonality launch
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360 still drifting lower, some 30% down.... must have provided some ambiguity in the numbers/ outlook

Life360 is now able to provide guidance for the CY22 year, and expects to deliver:

▪ Core Life360 subscription revenue (excluding Tile and Jiobit) growth in excess of 50%;
▪ Consolidated revenue of US$245 - 275 million for subscription, hardware and indirect revenue;
▪ Consolidated Non-GAAP Underlying EBITDA loss (excluding Stock Based Compensation and non-recurring items) in the range of US$(32)-(38) million. This includes incremental investment to rapidly integrate the Life360, Tile and Jiobit businesses of approximately US$13 million.

Given the strong results from early Tile bundling trials, and ongoing supply chain issues impacting hardware, the Company intends to prioritise hardware inventory allocation towards bundled subscription offers over retail sales. While this strategy may have an adverse impact on the Company’s consolidated revenue near term, we believe the benefits to higher margin subscription revenue, as well as improved customer retention and lifetime value, make this a sound strategic decision.

The guidance range reflects the greater quarter-to-quarter volatility in the newly enlarged consolidated businesses, especially with respect to hardware sales. Positive Underlying EBITDA and Operating cash flows are anticipated in Q4 as a result of continued strong subscription growth, and the impact of the holiday season on hardware revenue.

We anticipate Life360 to move towards consistently positive Operating cash flow by late CY23, such that we record positive operating cashflow for CY24.
 
in there in the 693 page filing:

Life360, Inc. announced today that it has filed a Form 10 Registration Statement, dated 26 April 2022, with the U.S. Securities and Exchange Commission (SEC) and the Australian Securities Exchange.

Section 12(g) of the Securities and Exchange Act (Exchange Act) requires an issuer with total assets in excess of US$10 million and more than 2,000 holders of record on the last day of its fiscal year to register within 120 days of the fiscal year. Life360 exceeded the holder thresholds as of December 31, 2021 primarily due to equity issuances of common stock and CDIs in connection with the Tile and Jiobit acquisitions, and is therefore required under US law to file the Form 10.

The Form 10 is not being used to conduct a U.S. initial public offering or U.S. stock exchange listing and does not raise any additional capital for Life360. The Company’s previously announced plans for a US dual listing process via IPO have ceased due to the change in market conditions since the process commenced in Q4 2021. The Company maintains a very strong capital position, with more than US$98 million of cash and cash equivalents on the balance sheet................

.. and a further slide, 9% on Friday, now $3.31 (peaked at $14 last Nov)

(DNH)
 
Chairman's Address and Presentation out. ... seems to have arrested the plunging performance, and SP has lifted 10% from $3.61

Our CY22 earnings expectations are unchanged from the April 2022 guidance:
▪ Core Life360 subscription revenue (not including Tile and Jiobit) growth in excess of 50%;
▪ Consolidated revenue of US$245 - 275 million for subscription, hardware and indirect revenue;
▪ Consolidated Non-GAAP Underlying EBITDA loss (excluding Stock Based Compensation and non-recurring items)* in the range of US$(32)-(38) million. This includes efficiencies flowing in the second half from the Tile integration and restructuring.

Life360 expects to finish CY22 with cash and cash equivalents in the range of US$65-70 million. This includes financing related cash outflows of approximately US$8 million.

This is a strong capital position to fund future growth. In addition, as demonstrated in the COVID19 period in CY20, Life360 has a flexible expense model, with discretionary marketing spend of approximately US$44 million currently projected in the period from July 2022 to December 2023. While we are currently committed to driving growth, this provides an additional buffer to support the balance sheet.

We expect Life360 to be on a trajectory to consistently positive Operating Cash Flow by late CY23, such that we record positive operating cashflow for CY24

I think they have said that before. Maybe some think its cheap enough, on whatever metrics they utilise?

(DNH)
 
up 25% today. fair volume.

but then, when the fall has been from $14 to $2.40 in eight months, then hitting $3.01 isn't too special
 
Dona Ferentes said:
up 25% today. fair volume.
.....but then, when the fall has been from $14 to $2.40 in eight months, then hitting $3.01 isn't too special
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pushing North/ back from the dead/ made it through tax-loss selling/ dispelling the tech gloom?

No announcements of late (apart from filing SEc and 4C stuff), but made it to $4.15 on Friday.... which was about where it was in late May when the Chairman's Address came out.
 
May I ask, in the admittedly rare case in American and Australian society where a subscriber wishes to have a "bit of nookie", deal in illicit substances, decide in a moment of religious fervour to meet one's maker while taking 10-100 unbelievers with one, or any of a number of other actions ; is it possible to depart from the gaze of the "Perfect Family" as encompassed in the Life360 App.

While I still maintain in my public moments a "Father Knows Best" demeanour, many of my fellow Australians according to press reports are up to all kinds of conniptions and may not necessarily delight in being tracked.

As our Chinese cousins said to the Uyghur cousins, "The innocent have nothing to fear".

What about the guilty.?

On fundamentals I believe this stock peaked some time ago and it may plod along, but will depend on a buyout from AAPL or META for a good profit.

Or the Australian Federal Police, the FBI and Interpol, as they did so well recently with their delightful exclusive messaging app for criminals.

gg
 
this may be interesting?

Life360 announces changes to monthly pricing

"The Company began testing price increases for new monthly subscriptions and given the positive results decided to make those changes permanent.... "

Need to be mindful of churn, but they seem to think it can be managed. In other words, are users 'grafted on'?
Guidance update
Given that changes to monthly pricing have been implemented late in the year, and the anticipated early-stage impact on churn, no meaningful impact on subscription revenues is expected in CY22. Additionally, due to this prioritization change made to accommodate the price increase, Q4 CY22 incremental revenue previously anticipated from the Tile bundled launch will be delayed until Q1 CY23. A more significant positive impact on subscription revenues along with the impact on subscriber churn from the price increase is anticipated in CY23 and beyond.
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Q3 numbers out , and a holder dumps (expectations not met?) but price recovers

• Largest ever quarterly growth in Global Monthly Active Users of more than 5 million, up 39% YoY, with record net additions in both the U.S. and International markets
• Q3 consolidated revenue growth of 92% to $57.2 million, with Q3 Paying Circles up 36% YoY
• October 2022 Average Revenue Per Paying Circle up 47% YoY for new U.S. subscribers, reflecting early benefits of higher pricing
• Anticipated CY22 year-end Annualized Monthly Revenue (excluding hardware) of more than $215 million, up >50% YoY
• Quarter-end cash, cash equivalents and restricted cash of $58.9 million, including financing related cash outflows of approximately $4 million
• Strong revenue growth from the price increase, and lower than expected initial churn, along with prudent financial management, result in acceleration of our targeted positive Adjusted EBITDA and Operating Cash Flow to CY23 Q3 versus prior guidance of CY23 Q4

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Monthly pick.
Just think a little publicity would cause a bit of a price crise this month.
Looks like a good company.
 
oh, my ... 15 page Media release, 143 page Annual Report , 54 page Investor Presentation
..
no wonder the company is the last to report. Should go higher, though

CY23 Financial Highlights
• Revenue of $305 million, a YoY increase of 33%, in line with guidance of $300 million - $310 million;
• Core Life360 subscription revenue of $200 million, up 52% YoY, ahead of guidance for more than a 50% YoY increase;
• Net loss of $28.2 million, a $63.5 million improvement from CY22;
• Positive Adjusted EBITDA of $20.6 million ahead of guidance of $12 million - $16 million, with consistent Positive Adjusted EBITDA delivered in each quarter of CY23;
• Positive Operating Cash Flow of $7.5 million, a $64.6 million improvement versus CY22;
• Year-end cash, cash equivalents and restricted cash of $70.7 million up from $63.7 million at the end of Q3’23

CY23 Operating Highlights and CY24 Outlook
• Significant CY23 operating leverage with revenue growth of $76.2 million on an operating expense increase of $9.6 million, yielding increasing Adjusted EBITDA margins and positive Adjusted EBITDA in each quarter.
• Global Monthly Active Users grew nearly 13 million or 26% to 61.4 million, driven by ongoing investment in our core location sharing experience.
• International MAU grew 7 million, or 40% YoY to 24.6 million as we increased the speed and responsiveness of the app, and achieved international feature parity with the U.S.
• Global Paying Circles grew to 1.8 million, up 21% YoY, despite significant price increases implemented in Q3/Q4’22 and Q2’23, underscoring the value our subscribers perceive in the Life360 services. Q4’23 net subscriber additions were 54 thousand.
• U.S. Average Revenue Per Paying Circle increased 32% YoY, driven by price increases.
• International Paying Circles increased 43% YoY to 474 thousand, benefiting from strong growth in both the UK and Australia.
• Triple Tier Membership launched in the UK in October, with an Australian launch planned for Q2’24.
• Looking forward to CY24, we are pursuing new value-added revenue streams including advertising, utilizing Life360’s enormous free user base. We expect some set-up costs in the first half of CY24, and a modest revenue contribution in the second half of the year.
• CY24 guidance: Consolidated revenue of $365-$375 million; Adjusted EBITDA of $30 million - $35 million; EBITDA loss of $(8) million - $(13) million; year-end cash balance of $80 million - $90 million.

__________
1 Adjusted EBITDA is a Non-GAAP measure. For the definition of Adjusted EBITDA and the use of this Non-GAAP measure, as well as a reconciliation of Net Loss to Adjusted EBITDA, refer to the Non-GAAP Financial Measures section below.
2 Core Life360 subscription revenue is defined as subscription revenue derived from the Life360 mobile application, excluding certain revenue adjustments related to bundled Life360 subscription and hardware offerings, for the reported period.
 
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