Life360, the family safety and location-sharing app, has announced its first annual net profit, reporting a net income of $US150.8 million ($212 million) for the year ended December 31. The company provides a platform for families to stay connected and safe with features like location sharing, driving safety, and emergency assistance. Life360 operates on a freemium model, offering both free and subscription-based services.
According to the company’s report, the annual income was significantly boosted by a one-off, non-cash tax benefit of $US118.4 million. Adjusting for this benefit, the net income would be $US32.5 million, a substantial improvement compared to the $US4.5 million loss recorded in the previous year. Revenue also saw considerable growth, increasing by 32 per cent year-over-year to $US489.5 million. The adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) amounted to $US93.2 million.
Life360 chief executive Lauren Antonoff said that 2023 was a landmark year, marking the first time the company achieved annual net income. This milestone reflects the strength of their freemium model and the operating discipline built over several years. Antonoff also highlighted the potential of artificial intelligence, stating that AI presents an opportunity to accelerate their path and strengthen their competitive advantage.
Despite the positive financial results, Life360’s stock performance has been volatile. Shares initially surged to $33.99 in January following an upgrade to the company’s full-year revenue and earnings guidance, driven by stronger-than-expected customer numbers. However, the stock has since declined to $24.72. Antonoff noted that the company’s core use case remains strong because it is based on real-world data generated by people moving through the physical world.
