Life360 Q2 Earnings Call Highlights

Life360 delivered strong Q2 growth , with revenue up 38% to a record $159 million and monthly active users surpassing 102 million. Paying circles rose 27% year over year, while adjusted EBITDA increased 53% to $31.1 million. International expansion and subscriptions remained key growth drivers: International MAUs grew 20%, subscription revenue rose 31% to $115.6 million, and full-year subscription revenue guidance was raised to $475 million-$480 million. Management reiterated its full-year outlook for revenue of $650 million-$685 million and adjusted EBITDA of $130 million-$140 million, while lowering hardware revenue guidance to $35 million-$45 million. Advertising is gaining traction, but hardware profitability was weak excluding a $3.6 million tariff refund.

Life360 NASDAQ: LIF reported second-quarter revenue growth of 38% to a record $159 million, as the family-safety platform surpassed 100 million monthly active users and posted its strongest second-quarter subscription additions on record. Chief Executive Officer Lauren Antonoff said the company added 4.6 million active members during the quarter, ending with more than 102 million monthly active users. Net subscription additions totaled 185,000 paying circles, while paying circles increased 27% year over year.

International monthly active users rose 20% year over year, while U.S. MAUs grew 14%. Antonoff attributed the growth to improved brand awareness, marketing-funnel efficiencies and the utility Life360 provides to families. U.S. unaided brand awareness rose four percentage points during a quarter in which the company spent less on marketing, Antonoff said. The company also introduced go-to-market initiatives in Brazil and Mexico, where unaided awareness increased from 9% to 14% in Brazil and from 10% to 16% in Mexico. Antonoff said both markets have reached roughly 3% penetration, a level where Life360 has historically seen growth accelerate. The company also cited a partnership with AT&T Mexico, which featured Life360 in a back-to-school campaign across television, radio, cinema, retail and digital channels. In Germany, Life360 launched local campaigns in Berlin and Cologne and said it saw a measurable increase in registrations. Management said the company ended the quarter back on its MAU “glide path” after a slower start to the year. Antonoff pointed to momentum heading into the back-to-school season, while Chief Financial Officer Russell Burke said MAU growth accelerated through the quarter, making the exit rate higher than the quarterly average.

Subscription revenue increased 31% to $115.6 million. Core subscription revenue grew 34%, driven by 27% growth in paying circles and a 5% increase in average revenue per paying circle, or ARPPC. U.S. subscription revenue rose 28%, while international subscription revenue climbed 45%, with strength in the U.K., Australia and New Zealand, and Canada. Life360 raised its full-year subscription revenue outlook to between $475 million and $480 million, from its prior range of $470 million to $475 million. The company is preparing to relaunch its Pet GPS offering with a bundled model that begins at the Silver subscription tier. The Silver Pet GPS bundle will cost $99 annually. Antonoff said the strategy prioritizes subscription scale over near-term monetization, while Burke said Life360 expects Pet GPS devices to initially produce a loss at the device gross-profit leve...