360 – Life360 Inc | Aussie Stock Forums

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.


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