Life360 . Common Stock Stock Earnings Reports

Life360 reported a strong Q1 with revenue up 38% to $143.1M driven by subscription growth and a newly scaled advertising business after the Nativo acquisition. Key operational points: subscription revenue rose 32% to $108.2M (core subscription +36%), paying circles increased 27% to 3M, ARPPC reached an all-time high, and March AMR was a record $517.9M (+32% YoY). Advertising revenue was disclosed separately for the first time at $19.7M (up 329%), with management expecting a steep ramp and long-term advertising scale to rival subscriptions. MAU growth was +17% YoY but below plan due to technical issues (fraud-detection partner change and Android/onboarding problems) that suppressed registrations; fixes are in and management expects recovery back to plan by Q3 and full-year MAU growth of 17–20%. Gross margin was 77% (subscription margin 87%, advertising 60% in Q1 but expected to normalize toward ~70% as scale improves). Operating expenses were up 46% due to R&D (including AI investments and Nativo headcount) and increased sales & marketing. Adjusted EBITDA guidance was raised and the company expects FY revenue of $650M–$685M (up from $640M–$680M), subscription revenue $470M–$475M, advertising $98M–$115M, hardware $40M–$50M, other $42M–$45M, and adjusted EBITDA $130M–$140M (~20% margin). Management emphasized AI as a strategic enabler (developer productivity +50% YoY) and highlighted product initiatives for pets and aging parents. Cash and liquidity remain strong (~$459M cash and equivalents).