Life360 reports CY 2022 results.

SAN FRANCISCO: San Francisco area-based Life360, Inc. (Life360 or the Company) (ASX: 360) today reported unaudited financial results for the year ended December 31, 2022. Life360 Chief Executive Officer Chris Hulls said: "2022 has been a tremendous year of progress for Life360. Our largest ever annual Global MAU growth to almost 50 million cements our position as the market-leading family safety membership service. We finished the year with a 61% YoY uplift in December AMR; this has accelerated to 64% in January4 with the full month benefit of the significant price increases implemented across our monthly U.S. iOS membership base in late 2022. As previously foreshadowed, Q4 Paying Circles were in line with Q3, while achieving an almost 50% price increase for existing monthly iOS subscribers. Our January 2023 monthly ARPPC increased 42% YoY in the U.S.; we see further upside with the rollout of U.S price increases for our existing monthly Android subscribers expected to take effect during the second quarter of CY23.

"The churn impact from the November 2022 iOS price increase performed better than expected, showcasing our strong value proposition, as well as the loyalty and engagement of our member base. We are back to subscriber growth in the U.S. in January and February, and International subscriber trends remain very strong. Tile Membership bundling has launched and is scaling up over the course of March as we optimize the user experience. The early signals are positive, and we are excited about the opportunity to improve paid user conversion and retention, and deploy upsell strategies over the longer term following encouraging results from our 'Gift with Membership' trials in CY22.

"Tile's Q4 hardware unit sales delivered a seasonal uplift, however continued to be impacted by headwinds in the U.S. consumer electronics markets. Retailers adopted a very cautious approach, resulting in much lower inventory in retail channels. We also saw aggressive competition from Apple, which is nonetheless driving the category forward. While hardware sales were below previous expectations, we have taken a prudent approach to managing hardware inventory, limiting the impact on our Adjusted EBITDA and operating cash flow. While we are excited about the potential for long-term category growth, Tile's primary strategic value remains the opportunity to drive subscription revenue.

"Looking forward to CY23, we are very optimistic about our ability to continue to deepen our user engagement and reinforce our competitive position by ongoing investment to improve the core user experience. We have delivered impressive subscription revenue growth in CY22, and see the opportunity to further leverage our proven pricing power and ongoing Membership enhancements to deliver continued strong growth momentum. For Tile we see opportunities to leverage category creation with product use case orientation, and differentiation such as the recently launched Anti-Theft Mode. This new feature is designed to protect valuables from theft by increasing the chances of recovery, providing a key point of differentiation with AirTags. We are also excited about our International opportunity, based on the successful playbook deployed in Canada, and impressive CY22 performance in major territories. The full membership offering is expected to launch in the UK during the second half, as previously advised.

"We are approaching CY23 with an appropriate balance of fiscal responsibility and prudent investment to position the business for long-term success, and make the most of the many exciting growth options available to us. As we announced in January, we have streamlined our workforce to drive a sharpened focus on our key strategic product initiatives, with annualized savings of at least $15 million. We also see opportunities for additional operating cost savings, including for platform commissions to continue reducing over time, and greater marketing efficiency. In CY22 we implemented a multi-year strategy to reduce our cloud infrastructure costs, with significant efficiency improvements achieved during the year. We anticipate further efficiencies in CY23 through operational optimization and a long-term agreement with our preferred provider. These positive initiatives benefit the cost base, and together with strong revenue growth will allow us to leverage scale, and deliver our first full year of positive Adjusted EBITDA3 and operating cash flow in CY23. And in a time of continued macro uncertainty, we have a strong balance sheet, with cash, restricted cash and cash equivalents of more...

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