Life360 Reports Record Q1 2025 Results
Monthly Active Users Reached Approximately 83.7 million
Record Q1 Global Net Additions to Paying Circles of 137 thousand - Reaching 2.4 million Total
Total Quarterly Revenue Grew 32% Year-Over-Year to $103.6 million
Annualized Monthly Revenue increased 38% Year-Over-Year to $393.0 million
SAN FRANCISCO, May 12, 2025 (GLOBE NEWSWIRE) -- Life360, Inc. ("Life360" or the "Company") (NASDAQ: LIF, ASX: 360), the San Francisco-based leader in family safety and connection, today announced unaudited financial results for the first quarter ended March 31, 2025. Building on continuing momentum from prior quarters, the Company achieved record-breaking results across key metrics, including Monthly Active Users (MAUs), Paying Circles, Subscription Revenue, and Annualized Monthly Revenue.
"Life360 started 2025 strongly, achieving record highs in MAUs, subscribers, and Q1 net additions, while making meaningful progress against our strategic roadmap," said Life360 Co-founder and Chief Executive Officer Chris Hulls.
"In a more cautious consumer spending environment, our performance reflects both the resilience of our business model and the growing demand for our services that keep families safe, connected, and provide peace of mind. As a trusted daily essential for millions, we are uniquely positioned to support families through uncertain times--and beyond."
Life360 Chief Financial Officer Russell Burke added: "Life360 demonstrated continued strong growth and meaningful margin expansion in Q1, with total revenue of $103.6 million -- up 32% year-over-year -- while keeping total operating expense growth to 23% YoY, This operational discipline drove Net Income of $4.4 million, our tenth consecutive quarter of positive Adjusted EBITDA(1) , and our eighth consecutive quarter of positive Operating Cash Flow. Looking ahead, even as consumer financial pressures intensify, our core subscription business remains resilient and we have largely mitigated the impacts of an uncertain tariff environment, so that the anticipated overall impact is not material. We remain confident in our ability to continue delivering positive Adjusted EBITDA(1) throughout 2025. Our focus on balancing strong top-line growth with expanding profitability positions us well to succeed in increasingly demanding market conditions."
Q1'25 Financial Highlights
-- Total Q1'25 revenue of $103.6 million, a YoY increase of 32%, with total
subscription revenue of $81.9 million, up 33% YoY and Core subscription
revenue2 of $76.2 million, up 37% YoY.
-- Annualized Monthly Revenue $(AMR)$ of $393.0 million, up 38% YoY.
-- Q1'25 Net Income of $4.4 million, which includes other income of
$2.0 million related to dividend and interest income and a benefit from
income tax3 of $0.2 million.
-- Adjusted EBITDA1 of $15.9 million compared to $4.3 million in Q1'24.
-- Positive Operating Cash Flow of $12.1 million, up 13% YoY.
-- Quarter-end cash, cash equivalents and restricted cash of $170.4 million,
an increase of $95.8 million from Q1'24, which was primarily the result
of net capital raised from the U.S. IPO in Q2'24.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
Q1'25 Operating Highlights
-- Q1'25 global MAU net additions were 4.1 million, which picked up
seasonally after a softer Q4'24. Total MAUs increased 26% YoY to
approximately 83.7 million, with significant contribution from organic
growth.
-- Q1'25 global Paying Circle net additions of 137 thousand were up 43% YoY.
Total Paying Circles grew 26% YoY to 2.4 million, supported by improved
retention in the U.S.
-- Average Revenue Per Paying Circle ("ARPPC") increased 8% YoY primarily
due to U.S. price increases for new and existing subscribers and a shift
in product mix toward higher-priced offerings, along with legacy price
increases, the launch of Dual Tier memberships in non-Triple Tier
countries, and continued growth in Triple Tier memberships in the UK and
ANZ.
(1) Adjusted EBITDA is a Non-GAAP measure. For more information,
including the definition of Adjusted EBITDA, the use of this
non-GAAP measure, as well as a reconciliation of Net Income
(Loss) to Adjusted EBITDA, refer to the "Adjusted EBITDA" and
"Supplementary and Non-GAAP Financial Information" sections
below.
(2) Core subscription revenue is defined as subscription
revenue derived from the Life360 mobile application
and excludes non-core subscription revenue which relates
to other hardware related subscription offerings.
For more information, including the use of this measure,
refer to the "Core subscription revenue" section below.
(3) The provision for (benefit from) income taxes for
interim quarterly reporting periods is based on the
Company's estimates of the effective tax rates for
the full fiscal year in accordance with ASC 740-270,
Income Taxes, Interim Reporting. ASC 740-270-25-2
requires that an annual effective tax rate be determined
and such annual effective rate be applied to year
to date income (loss) in interim periods. The effective
tax rate in any quarter may be subject to fluctuations
during the year as new information is obtained, which
may positively or negatively affect the assumptions
used to estimate the annual effective tax rate, including
factors such as valuation allowances against deferred
tax assets, the recognition or de-recognition of tax
benefits related to uncertain tax position, if any,
and changes in or the interpretation of tax laws in
jurisdictions where the Company conducts business.
Key Performance Indicators
(in millions, except ARPPC, ARPPS, ASP, and percentages) Q1 2025 Q1 2024 % YoY --------------------------------------- ----------- ----------- ------- Core(4) Monthly Active Users $(MAU.AU)$ - Global(5) 83.7 66.4 26% U.S. 45.3 38.8 17% International 38.4 27.5 39% ANZ 2.9 2.2 33% Paying Circles - Global(6) 2.4 1.9 26% U.S. 1.7 1.4 24% International 0.7 0.5 33% Average Revenue per Paying Circle (ARPPC)(7,8) $ 133.42 $ 123.97 8% Life360 Consolidated Subscriptions(9) 3.0 2.5 19% Average Revenue per Paying Subscription (ARPPS)(8,10) $ 112.98 $ 102.02 11% Net hardware units shipped(11) 0.5 0.5 (8)% Average Selling Price $(ASP.AU)$(12,13) $ 16.99 $ 16.50 3% Annualized Monthly Revenue (AMR) $ 393.0 $ 284.7 38%
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
(4) Core metrics relate solely to the Life360 mobile application.
(5) A monthly active user ("MAU") is defined as a unique
member who engages with our Life360 branded services
each month, which includes both paying and non-paying
members, and excludes certain members who have a delayed
account setup.
(6) A Paying Circle is defined as a group of Life360 members
with a paying subscription that has been billed as
of the end of a period.
(7) ARPPC is defined as annualized subscription revenue
recognized and derived from the Life360 mobile application,
excluding certain revenue
adjustments related to bundled Life360 subscription
and hardware offerings, for the reported period divided
by the Average Paying Circles during the
same period.
(8) Excludes revenue related to bundled Life360 subscription
and hardware offerings of $(0.4) million and $(1.2)
million for the three months ended March 31, 2025
and the three months ended March 31, 2024, respectively.
(9) Subscriptions are defined as the number of paying
subscribers associated with the Life360, Jiobit and
Tile brands who have been billed as of the end of
the period.
(10) ARPPS is defined as annualized total subscription
revenue recognized and derived from Life360, Tile
and Jiobit subscriptions, excluding certain
revenue adjustments related to bundled Life360 subscription
and hardware offerings, for the reported period divided
by the average number of
paying subscribers during the same period.
(11) Net hardware units shipped represent the number of
tracking devices sold during the period, excluding
hardware units related to bundled Life360 subscription
and hardware offerings, net of returns by our retail
partners and directly to consumers.
(12) Excludes revenue related to bundled Life360 subscription
and hardware offerings of $0.4 million and $1.2 million
for the three months ended March 31, 2025 and the
three months ended March 31, 2024, respectively..
(13) To determine the net ASP of a unit, we divide hardware
revenue recognized, excluding revenue related to bundled
Life360 subscription and hardware offerings, for the
reported period by the number of net hardware units
shipped during the same period.
-- Global MAUs increased 26% YoY to approximately 83.7 million, with Q1'25
net additions of 4.1 million. U.S. MAUs increased 17% YoY, with Q1'25 net
adds of 1.7 million. International MAUs increased 39% YoY, with Q1'25 net
adds of 2.4 million. Total MAUs in the Triple Tier markets of the UK,
Canada, and ANZ increased 36% YoY.
-- Q1'25 global Paying Circle net additions of 137 thousand, a Q1 record,
were driven by strong performance in both U.S. and international markets.
U.S. Paying Circles increased 24% YoY on the back of improved retention
metrics. International Paying Circles maintained strong momentum, up 33%
YoY. Total Paying Circles in the Triple Tier markets of the UK, Canada,
and ANZ increased 26% YoY.
-- Q1'25 global ARPPC increased 8% YoY. U.S. ARPPC increased 5% YoY,
benefiting from price increases for new and existing subscribers
implemented in September 2024 and October 2024, respectively, as well as
a shift in product mix towards higher priced products. Q1'25
international ARPPC increased 39% YoY due to legacy subscriber price
increases and the launch of Dual Tier in non-Triple Tier markets, as well
as legacy subscriber price increases in the Triple Tier UK and ANZ
markets.
-- Q1'25 net hardware units shipped decreased 8% YoY primarily due to a
decrease in enterprise channel sales. The Average Selling Price of
hardware units shipped increased 3% YoY primarily due to a shift in
channel mix and fewer returns.
-- March 2025 AMR increased 38% YoY, benefiting from accelerating
subscription revenue momentum and increasing other revenue over the
course of Q1'25.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
Operating Results
Revenue
Three Months Ended March 31,
------------------------------------------------
2025 2024
----------------------- -----------------------
($ millions) (unaudited)
Subscription revenue $ 81.9 $ 61.6
U.S. subscription
revenue 69.6 54.5
International
subscription
revenue 12.2 7.1
Hardware revenue 8.9 10.2
Other revenue 12.8 6.5
---------------------- ----------------------
Total revenue $ 103.6 $ 78.2
-- Q1'25 total subscription revenue increased 33% YoY to $81.9 million,
primarily driven by growth in Paying Circles.
-- Q1'25 hardware revenue decreased 13% YoY to $8.9 million, primarily
driven by a reduction in bundled offerings and an increase in discounts.
-- Q1'25 other revenue increased 99% YoY to $12.8 million due to increases
in data and partnership revenue, which includes advertising revenue.
Core Subscription Revenue
-- Core subscription revenue is defined as GAAP subscription revenue derived
from the Life360 mobile application and excludes non-core subscription
revenue, which we define as GAAP subscription revenue from other hardware
related subscription offerings, for the reported period. Core
subscription revenue represents revenue derived from and the overall
success of our core product offering. Q1'25 core subscription revenue
increased 37% YoY primarily driven by a 26% YoY increase in Paying
Circles and an 8% higher ARPPC.14
Three Months Ended March 31,
----------------------------------------------------
2025 2024
------------------------ --------------------------
($ millions) (unaudited)
Subscription
revenue $ 81.9 $ 61.6
Non-Core
subscription
revenue (5.7) (5.8)
---------------------- ----------------------
Core
subscription
revenue(15) $ 76.2 $ 55.8
(14) Refer to the 'Key Performance Indicators' section
above for additional information regarding the impact
of bundled offerings on KPI calculations for the periods
presented.
(15) Beginning with the second quarter of 2024, this definition
was updated and calculated in accordance with GAAP.
Gross Profit
Three Months Ended March 31,
--------------------------------------------
2025 2024
--------------------- ---------------------
($ millions, except
percentages) (unaudited)
Gross Profit $ 83.5 $ 60.0
Gross Margin 81 % 77 %
Gross Margin (Subscription
Only) 88 % 85 %
-- Q1'25 gross margin increased to 81% from 77% in the prior year period,
primarily due to the increased proportion of other revenue.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
Operating Expenses
Three Months Ended March 31,
--------------------------------------
2025 2024
------------------ ------------------
($ millions) (unaudited)
Research and development $ 30.4 $ 27.3
Sales and marketing 35.3 24.7
General and administrative 15.6 14.4
-------- ---- -------- ----
Total operating expenses $ 81.4 $ 66.4
Total operating expenses as % of
revenue 79 % 85 %
-- Q1'25 operating expenses, excluding commissions, increased 21% YoY
despite revenue growth of 32%, demonstrating continued strong operating
leverage.
-- Q1'25 research and development costs increased 12% YoY, primarily driven
by higher personnel-related costs, technology, and outside services spend
due to Company growth.
-- Q1'25 sales and marketing costs increased 43% YoY, primarily due to an
increase in commissions, in line with the increase in subscription
revenue, and an increase in growth media spend.
-- Q1'25 general and administrative expenses increased 9% YoY, primarily
driven by Company growth.
Cash Flow
Three Months Ended March 31,
----------------------------------------------------
2025 2024
------------------------ --------------------------
($ millions) (unaudited)
Net cash
provided by
operating
activities $ 12.1 $ 10.7
Net cash used in
investing
activities (4.3) (1.1)
Net cash
provided by
(used in)
financing
activities 2.2 (5.7)
---------------------- ----------------------
Net Increase in
Cash, Cash
Equivalents,
and Restricted
Cash 9.9 3.9
Cash, Cash
Equivalents,
and Restricted
Cash at the End
of the Period $ 170.4 $ 74.6
-- Life360 ended Q1'25 with cash, cash equivalents and restricted cash of
$170.4 million, an increase of $9.9 million from Q4'24.
-- Q1'25 operating cash flow was $12.1 million. An additional $2.2 million
was provided by financing activities, primarily from the exercise of
stock options. Additionally, $4.3 million was used for investing
activities, which includes a $2.8 million payment in connection with the
Fantix asset acquisition and payments for internally developed software.
-- Q1'25 net cash provided by operating activities of $12.1 million was
lower than Adjusted EBITDA of $15.9 million primarily due to the timing
of receipts and payables. See the Adjusted EBITDA section below for the
definition and reconciliation of Adjusted EBITDA.
Adjusted EBITDA
To supplement our condensed consolidated financial statements prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to facilitate analysis of our financial and business trends and for internal planning and forecasting purposes. For more information, see the "Supplementary and Non-GAAP Financial Information" section below.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
Non-GAAP financial measures include adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") and Adjusted EBITDA Margin. Adjusted EBITDA is defined as net income (loss), excluding (i) convertible notes and derivative liability fair value adjustments, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization, (iv) other income, net, (v) acquisition-related transaction costs, (vi) stock-based compensation, and (vii) workplace restructuring costs. These items are excluded from Adjusted EBITDA because they are non-cash in nature, because the amount and timing of these items are unpredictable, or because they are not driven by core results of operations and render comparisons with prior periods and competitors less meaningful.
The following table presents a reconciliation of Net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA:
Three Months Ended March 31,
2025 2024
------------------- ---------------
($ thousands, except percentages)
Net income (loss) $ 4,378 $ (9,777)
Net income (loss) margin 4 % (12)%
Add (deduct):
Convertible notes fair value
adjustment(16) -- 608
Derivative liability fair value
adjustment(16) -- 1,707
Provision for (benefit from) income
taxes (214) 1,394
Depreciation and amortization(17) 2,862 2,295
Other income, net (1,975) (311)
Acquisition-related transaction
costs(18) 993 --
Stock-based compensation 9,889 8,261
Workplace restructuring costs(19) -- 105
Adjusted EBITDA $ 15,933 $ 4,282
========== === ========= ===
Adjusted EBITDA margin 15 % 5 %
(16) To reflect the change in fair value of the September 2021
Convertible Notes and derivative liability associated with
the July 2021 Convertible Notes.
(17) Includes depreciation on fixed assets and amortization
of intangible assets.
(18) Relates to costs incurred in connection with the asset
acquisition of Fantix, Inc., including one-time bonus
payments.
(19) Relates to non-recurring personnel and severance related
expenses.
-- Q1'25 delivered a positive Adjusted EBITDA contribution of $15.9 million
versus $4.3 million in Q1'24 as a result of continued strong subscription
and other revenue growth and improved operating leverage.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
2025 Earnings Guidance(20)
For FY'25, Life360 expects to deliver the following metrics:
-- Consolidated revenue of $450 million - $480 million comprised of:
-- Subscription revenue of $355 million - $365 million;
-- Hardware revenue of $40 million - $50 million;
-- Other revenue of $55 million - $65 million; and
-- Positive Adjusted EBITDA21 of $65 million - $75 million.
(20) With respect to forward looking non-GAAP guidance,
we are not able to reconcile the forward-looking non-GAAP
adjusted EBITDA measure to the closest corresponding
GAAP measure without unreasonable efforts because
we are unable to predict the ultimate outcome of certain
significant items, which are fluid and unpredictable
in nature. In addition, the Company believes such
a reconciliation would imply a degree of precision
that may be confusing or misleading to investors.
These items include, but are not limited to, litigation
costs and fair value adjustments. These items may
be material to our results calculated in accordance
with GAAP.
(21) Adjusted EBITDA is a non-GAAP measure. For more information,
including the definition of Adjusted EBITDA, the use of this
non-GAAP measure, as well as a reconciliation of Net Income
(Loss) to Adjusted EBITDA, refer to the "Adjusted EBITDA"
section above and the "Supplementary and Non-GAAP Financial
Information" section below.
Investor Conference Call
A conference call will be held today as follows:
US PDT: Monday 12 May 2025 at 3 p.m.
US EDT: Monday 12 May 2025 at 6 p.m.
AEST: Tuesday 13 May 2025 at 8 a.m.
The call will be held as a Zoom audio webinar.
Participants wishing to ask a question should register and join via their browser here. Participants joining via telephone will be in listen only mode.
Dial in details
U.S.: +1 669 444 9171
Australia: +61 2 8015 6011
Other countries: details
Meeting ID: 994 2971 6688
A replay will be available after the call at https://investors.life360.com.
Authorization
Chris Hulls, Director, Co-Founder and Chief Executive Officer of Life360 authorized this announcement being given to ASX.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
About Life360
Life360, a family connection and safety company, keeps people close to the ones they love. The category-leading mobile app and Tile tracking devices empower members to stay connected to the people, pets, and things they care about most, with a range of services, including location sharing, safe driver reports, and crash detection with emergency dispatch. As a remote-first company based in the San Francisco Bay Area, Life360 serves approximately 83.7 million monthly active users (MAU), as of March 31, 2025, across more than 170 countries. Life360 delivers peace of mind and enhances everyday family life in all the moments that matter, big and small. For more information, please visit life360.com.
Contacts
For U.S. investor inquiries: For U.S. media inquiries: Raymond (RJ) Jones Lynnette Bruno rjones@life360.com press@life360.com For Australian investor inquiries: For Australian media inquiries: Jolanta Masojada, +61 417 261 367 Giles Rafferty, +61 481 467 903 jmasojada@life360.com grafferty@firstadvisers.com.au
Forward-looking statements
This announcement and the accompanying presentation and conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Life360 intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements regarding Life360's intentions, objectives, plans, expectations, assumptions and beliefs about future events, including Life360's expectations with respect to the financial and operating performance of its business, including subscription revenue, hardware revenue, other revenue and consolidated revenue and ability to create new revenue streams; the resiliency of Life360's core subscription business; the ability of Life360 to adapt to and mitigate the impact of macroeconomic considerations including tariffs and trade barriers; its ability to deliver contextually relevant advertisements that enhance the user experience by leveraging its extensive first-party location data; Adjusted EBITDA, and operating cash flow; expectations regarding MAUs and other member metrics; its capital position; future growth and market opportunities; plans to launch new features and products; the impact of price increases and expansion of product offerings in the UK, Australia and New Zealand on future results of operations; its expectations of growth in its data business; its expectation of a new enterprise revenue stream and enhanced location capabilities of its hardware devices as a result of its partnership with Hubble; its focus on developing a GPS lineup, built on Jiobit technology, the timing of new devices, and the potential for the next generation of hardware to drive a new wave of subscription growth; as well as Life360's expectations of any changes to the information disclosed herein. The words "anticipate", "believe", "expect", "project", "predict", "will", "forecast", "estimate", "likely", "intend", "outlook", "should", "could", "may", "target", "plan" and other similar expressions can generally be used to identify forward-looking statements. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements. Investors and prospective investors are cautioned not to place undue reliance on these forward-looking statements as they involve inherent risk and uncertainty (both general and specific) and should note that they are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. There is a risk that such predictions, forecasts, projections and other forward-looking statements will not be achieved. Subject to any continuing obligations under applicable law, Life360 does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement, to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
Although Life360 believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, Life360 can give no assurance that such expectations and assumptions will prove to be correct and, actual results may vary in a materially positive or negative manner. Forward-looking statements are subject to known and unknown risks, uncertainty, assumptions and contingencies, many of which are outside Life360's control, and are based on estimates and assumptions that are subject to change and may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include risks related to the preliminary nature of financial results, risks related to Life360's business, market risks, Life360's need for additional capital, and the risk that Life360's products and services may not perform as expected, as described in greater detail under the heading "Risk Factors" in Life360's ASX and SEC filings, including its Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2025, Quarterly Reports on Form 10-Q, and other reports filed with the SEC. To the maximum extent permitted by law, responsibility for the accuracy or completeness of any forward-looking statements whether as a result of new information, future events or results or otherwise is disclaimed. This announcement should not be relied upon as a recommendation or forecast by Life360. Past performance information given in this document is given for illustrative purposes only and is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward-looking statements, forecast financial information, future share price performance or any underlying assumptions. Nothing contained in this document nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Life360.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
Condensed Consolidated Statements of Operations and
Comprehensive Income (Loss)
(Dollars in U.S. $, in thousands, except share and
per share data)
(unaudited)
Three Months Ended March 31,
----------------------------------------------------------
2025 2024
Subscription revenue $ 81,874 $ 61,579
Hardware revenue 8,907 10,188
Other revenue 12,843 6,460
----------------------- -----------------------
Total revenue 103,624 78,227
Cost of subscription
revenue 10,141 9,315
Cost of hardware
revenue 8,597 8,012
Cost of other revenue 1,337 887
----------------------- -----------------------
Total cost of
revenue 20,075 18,214
Gross profit 83,549 60,013
Operating expenses:
Research and
development 30,403 27,258
Sales and
marketing 35,308 24,733
General and
administrative 15,649 14,401
----------------------- -----------------------
Total operating
expenses 81,360 66,392
----------------------- -----------------------
Income (loss) from
operations 2,189 (6,379)
Other income
(expense):
Convertible
notes fair
value
adjustment -- (608)
Derivative
liability fair
value
adjustment -- (1,707)
Other income,
net 1,975 311
----------------------- -----------------------
Total other income
(expense), net 1,975 (2,004)
----------------------- -----------------------
Income (loss) before
income taxes 4,164 (8,383)
Provision for
(benefit from)
income taxes (214) 1,394
----------------------- -----------------------
Net income (loss) 4,378 -- (9,777)
======================= =======================
Net income (loss) per
share, basic $ 0.06 (0.14)
Net income (loss) per
share, diluted 0.05 (0.14)
Weighted-average
shares used in
computing net income
(loss) per share,
basic 75,699,493 68,535,626
Weighted-average
shares used in
computing net income
(loss) per share,
diluted 83,445,337 68,535,626
Comprehensive income
(loss)
Net income (loss) 4,378 (9,777)
Change in foreign
currency translation
adjustment 1 1
----------------------- -----------------------
Total
comprehensive
income (loss) $ 4,379 $ (9,776)
======================= =======================
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
Condensed Consolidated Balance Sheets
(Dollars in U.S. $, in thousands)
(unaudited)
March 31, December 31,
2025 2024
------------------------ --------------------------
Assets
Current Assets:
Cash and cash
equivalents $ 168,852 $ 159,238
Accounts
receivable,
net 52,009 57,997
Inventory 9,571 8,057
Costs
capitalized
to obtain
contracts,
net 1,178 1,098
Prepaid
expenses and
other current
assets 18,499 14,599
---------------------- ----------------------
Total current assets 250,109 240,989
Restricted
cash,
noncurrent 1,503 1,221
Property and
equipment,
net 2,598 1,779
Costs
capitalized
to obtain
contracts,
noncurrent 1,000 1,049
Prepaid
expenses and
other assets,
noncurrent 21,951 21,611
Operating
lease
right-of-use
asset 598 683
Intangible
assets, net 43,044 40,574
Goodwill 134,619 133,674
---------------------- ----------------------
Total Assets $ 455,422 $ 441,580
====================== ======================
Liabilities and
Stockholders'
Equity
Current Liabilities:
Accounts
payable 5,212 $ 5,463
Accrued
expenses and
other current
liabilities 27,065 32,015
Deferred
revenue,
current 41,757 39,860
---------------------- ----------------------
Total current
liabilities 74,034 77,338
Deferred
revenue,
noncurrent 4,845 5,338
Other
liabilities,
noncurrent 263 359
---------------------- ----------------------
Total Liabilities $ 79,142 $ 83,035
====================== ======================
Commitments and
Contingencies
Stockholders' Equity
Common Stock 76 75
Additional
paid-in
capital 661,479 648,124
Accumulated
deficit (285,320) (289,698)
Accumulated
other
comprehensive
income 45 44
---------------------- ----------------------
Total stockholders'
equity 376,280 358,545
====================== ======================
Total Liabilities
and Stockholders'
Equity $ 455,422 $ 441,580
====================== ======================
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
Condensed Consolidated Statements of Cash Flows
(Dollars in U.S. $, in thousands)
(unaudited)
Three Months Ended March 31,
--------------------------------------------
2025 2024
-------------------- ----------------------
Cash Flows from
Operating Activities:
Net income (loss) $ 4,378 $ (9,777)
Adjustments to reconcile
net income (loss) to net
cash provided by
operating activities:
Depreciation and
amortization 2,862 2,295
Amortization of
costs capitalized
to obtain
contracts 283 341
Amortization of
operating lease
right-of-use
asset 84 81
Stock-based
compensation
expense, net of
amounts
capitalized 9,889 8,261
Non-cash interest
expense, net -- 128
Convertible notes
fair value
adjustment -- 608
Derivative
liability fair
value adjustment -- 1,707
Non-cash revenue
from investments (367) (446)
Provision for
credit losses 339 --
Changes in operating
assets and liabilities,
net of acquisition:
Accounts
receivable, net 5,648 5,144
Prepaid expenses
and other assets (4,238) 3,272
Inventory (1,514) (2,239)
Costs capitalized
to obtain
contracts, net (314) (398)
Accounts payable (139) 3,492
Accrued expenses
and other current
liabilities (6,526) (3,073)
Deferred revenue 1,771 1,381
Other liabilities,
noncurrent (96) (89)
------------------ ------------------
Net cash provided
by operating
activities 12,060 10,688
------------------ ------------------
Cash Flows from
Investing Activities:
Cash paid for
acquisition (2,825) --
Internally
developed
software (1,398) (1,089)
Purchase of
property and
equipment (124) --
Net cash used in
investing
activities (4,347) (1,089)
------------------ ------------------
Cash Flows from
Financing Activities:
Proceeds related
to tax
withholdings on
restricted stock
settlements and
the exercise of
stock options and
warrants 12,770 2,401
Taxes paid related
to net settlement
of equity awards (10,587) (8,110)
Net cash provided
by (used in)
financing
activities 2,183 (5,709)
------------------ ------------------
Net Increase in Cash,
Cash Equivalents, and
Restricted Cash 9,896 3,890
------------------ ------------------
Cash, Cash Equivalents
and Restricted Cash at
the Beginning of the
Period 160,459 70,713
------------------ ------------------
Cash, Cash Equivalents,
and Restricted Cash at
the End of the Period $ 170,355 $ 74,603
================== ==================
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
Supplementary and Non-GAAP Financial Information
We report our financial results in accordance with GAAP, however, management believes that certain non-GAAP financial measures, such as Adjusted EBITDA, and the other measures presented in the tables below provide useful information to investors and others in understanding and evaluating our results of operations, as well as providing useful measures for period-to-period comparisons of our business performance. Moreover, we have included non-GAAP financial measures in this media release because they are key measurements used by our management team internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.
Our non-GAAP financial measures are presented for supplemental informational purposes only, may not be comparable to similarly titled measures used by other companies and should not be used as substitutes for analysis of, or superior to, our operating results as reported under GAAP. Additionally, we do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP. As such, you should consider these non-GAAP financial measures in addition to other financial performance measures presented in accordance with GAAP, including various cash flow metrics, net loss and our other GAAP results.
Non-GAAP cost of revenue is presented to understand margin economically and non-GAAP operating expenses are presented to understand operating efficiency. Non-GAAP cost of revenue and Non-GAAP operating expenses present direct and indirect expenses adjusted for non-cash expenses, such as stock-based compensation, depreciation and amortization, and non-recurring expenses, such as workplace restructuring costs, and acquisition-related transaction costs. A reconciliation of GAAP financial information to Non-GAAP financial information for cost of revenue and operating expenses has been provided as supplementary information below.
GAAP Cost of Revenue to Non-GAAP Cost of Revenue Reconciliation(22)
Three Months Ended March 31,
----------------------------------------------------
2025 2024
------------------------ --------------------------
(in millions)
Cost of
subscription
revenue, GAAP $ 10.1 $ 9.3
Less:
Depreciation
and
amortization,
GAAP (0.8) (0.3)
Less:
Stock-based
compensation,
GAAP (0.2) (0.2)
Total cost of
subscription
revenue,
Non-GAAP $ 9.2 $ 8.9
====================== ======================
Cost of hardware
revenue, GAAP $ 8.6 $ 8.0
Less:
Depreciation
and
amortization,
GAAP (1.0) (0.9)
Less:
Stock-based
compensation,
GAAP (0.2) (0.2)
Total cost of
hardware
revenue,
Non-GAAP $ 7.4 $ 6.9
====================== ======================
Cost of other
revenue, GAAP $ 1.3 $ 0.9
Less:
Depreciation
and
amortization,
GAAP (0.1) --
Total cost of
other revenue,
Non-GAAP $ 1.3 $ 0.9
====================== ======================
Cost of revenue,
GAAP $ 20.1 $ 18.2
Less:
Depreciation
and
amortization,
GAAP (1.8) (1.2)
Less:
Stock-based
compensation,
GAAP (0.4) (0.3)
Total cost of
revenue,
Non-GAAP $ 17.9 $ 16.6
====================== ======================
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
(22) For the definition of cost of revenue, Non-GAAP, refer to
the Supplementary and Non-GAAP Financial Information
section above.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
GAAP Operating expenses to Non-GAAP Operating Expenses Reconciliation(23)
Three Months Ended March 31,
----------------------------------------------------
2025 2024
---------------------- ----------------------
(in millions)
Research and
development
expense, GAAP $ 30.4 $ 27.3
Less:
Stock-based
compensation,
GAAP (5.7) (5.3)
Less: Other,
GAAP (0.7) --
---------------------- ----------------------
Total Research
and
development,
Non-GAAP $ 23.9 $ 21.9
====================== ======================
Sales and
marketing
expense, GAAP $ 35.3 $ 24.7
Less:
Depreciation
and
amortization,
GAAP (1.1) (1.1)
Less:
Stock-based
compensation,
GAAP (1.3) (0.6)
Total Sales and
marketing
expense,
Non-GAAP $ 32.9 $ 23.0
====================== ======================
General and
administrative
expense, GAAP $ 15.6 $ 14.4
Less:
Stock-based
compensation,
GAAP (2.5) (2.0)
Less: Other,
GAAP (0.3) (0.1)
---------------------- ----------------------
Total General
and
administrative
expense,
Non-GAAP $ 12.9 $ 12.3
====================== ======================
Total Operating
expenses, GAAP $ 81.4 $ 66.4
Less:
Depreciation
and
amortization,
GAAP (1.1) (1.1)
Less:
Stock-based
compensation,
GAAP (9.5) (7.9)
Less: Other,
GAAP (1.0) (0.1)
Total Operating
expenses,
Non-GAAP $ 69.8 $ 57.3
====================== ======================
(23) For the definition of operating expenses, Non-GAAP,
refer to the Supplementary and Non-GAAP Operating
Information section above.
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollars.
(END) Dow Jones Newswires
May 12, 2025 16:30 ET (20:30 GMT)
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