Life360 (ASX:360) share price drops despite 92% rise in revenue

2 min read | November 14, 2022 09:19 PM EST | By Sonal Goyal

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Image source: © Hisdx15 | Megapixl.com

Key highlights of Life360’s quarterly performance

Global monthly active users increased by 39% over a year to 47.0 million.
The subscription revenue grew by 70% during the quarter.
The consolidated revenue growth was 92% during the quarter, with the total revenue being AU$57.2 million.
Paying Circles increased by 36% over the previous year.
The September annualised monthly revenue (AMR) grew by 53%, demonstrating the subscription performance and addition of Jiobit and Tile subscription revenue.
Adjusted EBITDA loss during the quarter was AU$9.4 million. For comparison, last year (3QFT21), EBITA loss was AU$3.7 million.
The company ended the quarter with a cash balance of AU$58.9 million.

Earnings guidance

Life360 expects to exit calendar year 2022 (CY22) with significant average revenue per paying circle (ARPPC) and AMR because of increased prices. Also, the price increase is expected to result in a one-time increase in churn, due to which net subscriber addition in 4Q is also anticipated to be flat.
In CY22, the company expects to deliver a consolidated revenue of AU$225–240 million for subscription, hardware, and other revenue.
The expected range of EBITDA loss is AU$37–41 million for CY22.
The expected AMR is over AU$215 million (excluding any price change for Android subscribers).
The forecast range of year-end cash and cash equivalent is AU$55–60 million.

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