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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.
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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.