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- [00:02]
State Street Investment Management Advertiser
Hear that? That's me in Tokyo learning to make sushi from a master. How did I get here? I invested wisely. Now the only thing I worry about is using too much wasabi. Get where you're going with spy, the world's most traded etf. Getting there starts here with State Street Investment Management. Before investing, consider the fund's investment objectives, risks, charges and expenses. Visit state street.comim for prospectus containing this and other information.
- [00:24]
Lauren Antonoff
Read it carefully. Spy subject to risks similar to those of stocks. All ETFs are subject to risk, including possible loss of principal. Alps Distributors, Inc.
- [00:30]
State Street Investment Management Advertiser
Distributor
- [00:32]
Ann Berry
for Friday, March 13 it's Brew Markets Daily and I'm Ann Berry. Tracking apps are everywhere, but it wasn't always so, and certainly not in the early 2000s. No checking if your kids really made it to their tennis lesson or whether they stayed out past curfew. And in 2008, Life360 helped change that, entering the market as one of the first mainstream tracking apps. And now the kids who grew up with Life360 are using it to track their parents. How the tables have turned well, today I speak with Lauren Antonhoff, CEO of Life 360. We discuss what sets the company apart in a market that's being actively targeted by Apple, its new offerings aimed at keeping your furry friends safe, and how life360 has its sights set on the International Android opportunity. Hopefully a conversation that takes the edge off those Friday the 13th Scaries. But first, a word from our presenting sponsor, CME Group. No matter what the market is doing, managing risk and finding new opportunities is top of mind. And John, that's where CME Group comes in.
- [01:31]
John Croteau
CME Group is the world's leading derivatives marketplace, enabling its clients to trade futures, options, cash and OTC markets. As a CME Group client, you can capitalize on around the clock access to liquid, global futures and options markets across all major asset classes.
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Ann Berry
CME Group provides a wide range of global benchmark products based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals.
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John Croteau
Get started@cmegroup.com podcast that's cmegroup.com podcast and
- [02:01]
Ann Berry
now my conversation with Lauren Antonhoff, CEO of Life360.
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Lauren Antonoff
So Life360 is a family connection and safety app and we help members with things like location tracking, item tracking, and a wide variety of safety services that help make everyday family life easier and better.
- [02:23]
Ann Berry
The inevitable parallels are drawn with Apple products and just to sort of put some specifics around it, I did hop onto the Life360 website. Literally right before we started recording, I went to your shop section and just to take an example, I see the Tile Pro. There's a four pack for 69. 99, so that's a discount. I did then go and check out the price of Apple AirTags, a four pack first gen. It's the exact same price on Best Buy. So to folks. So just looking at it from a consumer perspective, why do I choose life 360 instead of using Airtags or find my phone?
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Lauren Antonoff
So the first thing is that Life360 isn't just about your devices. It really is about your family and connecting families together. It's designed for a full family use, so it's not one person and their devices. It is this family circle and it works across platforms, which is really important for families. Often as we see families get bigger, almost half of our families have people using both Apple and Android devices. So that's an important mix. The experiences that we have, though, are also designed for that ongoing use, for conversations around safety, for feelings of connection. And that's very different than Apple. That's designed just to help you find your devices. You know, if you've lost something.
- [03:41]
Ann Berry
So talk about the safety features. You've got a driving safety product, as one example. Describe, if you don't mind, Lauren, with specificity what that service does.
- [03:50]
Lauren Antonoff
Yeah, so this is a really classic scenario. One of the main things that helped us build the momentum that we have. A lot of people get life360 when they have teen drivers. And you want to understand, is my teenager driving safely and how will I know if there's a crisis? What do I do if something goes wrong? So our driver reports show things like whether they're speeding, whether they're doing hard braking, whether they're using their phone. And that report helps you understand how that person's behaving over time. So parents can sit down with their teen and have a conversation about drive safety. Now, the interesting thing, and this is one of the things that's so fun about life360 is our app is reciprocal. Reciprocal. It is not a monitoring app. We are not a parenting app. We're a family app. You'll hear us talk about that a lot.
- [04:37]
Ann Berry
It does monitoring, I will say, as
- [04:40]
Lauren Antonoff
you just described, does. You should check out our social channels because you'll see some of the ways in which it's really, really different. This is one of the ways that we're so successful. What we know from the data is that parents speed more than Kids parents can see the kids driving patterns but kids can also see their parents. It makes for a lot of fun, a lot of good conversations. That isn't really a one way thing like other safety apps. And it's one of the reasons why we take hold in families and why people embrace us long after kids leave nest. We sometimes see see a pattern where kids will stop. You know I, I have the right not to use Life360 but then they're away at college and they sort of don't know what's going on back at home and what their parents are up to and they'll turn it back on. So we see a lot of people sort of take a break and come back.
- [05:28]
Ann Berry
Well, we should also talk about aging parents but which we'll come to in a moment because that's, it's actually sort of the reverse to your point. It's sort of going full circle. But before I go there, when I think about the amount of very insightful data that this must provide, let's take this driving example and I couldn't help but remember there was an interview I did with the co founder and CEO of Lemonade which does auto insurance and one of the ways in which their insurance product was devised was to literally try and let an individual hand over some data on their own driving and their own speed. Watching out that speed limits. Have you thought at Life360 about adjacencies like that if you're capturing that data anyway, Partnerships with insurers or similar.
- [06:12]
Lauren Antonoff
Yeah, we actually do have a partnership with Arity which is a subsidiary of Allstate and they power our crash detection. This is one of our most important safety services is crash detection. So the models allow us to understand if something has gone wrong and then we alert your family. And for subscribers we can also alert the authorities and send emergency assistance. We also have services like roadside assistance. If it's not a bad accident, you've just had a tire problem, we can offer roadside assistance. So those models in that partnership, by default that data is all private. There's statistical data that's used for things like understanding if there's an emergency or who's at risk. But customers can choose if they want to opt in. So it's never by default. But if customers want to opt in and share their data with Arity to get a lower rate, they can do that right now through Life360.
- [07:05]
Ann Berry
And in terms of the composition of your revenue as it relates to this, Lauren, again you hit just under $490 million in revenue for the last fiscal year. What proportion of that is revenue derived from referral fees or these adjacent product revenue lines?
- [07:24]
Lauren Antonoff
Yes. So the majority of our revenue is from our subscriptions, from families who choose to subscribe to those safety services. And that continues to be growing, especially as we expand international. Our newest growth in revenue is coming from advertising. And this allows us to offer more and more services, more and more rich thing, more and more rich capabilities to our broad base of free users. It helps us really invest in that freemium model that has helped us grow and keeps families around the world safe and connected. A smaller part of that is from things like these partnerships and referral fees. It's a relatively small part.
- [08:06]
Ann Berry
Well, let's talk about how you moved into the advertising piece of this, Lauren. So Life 360 acquired Fantix and is it and nativo to try and move into this space. Talk about that, if you don't mind. Talk about the decision to buy versus build and how you selected these two targets in particular.
- [08:23]
Lauren Antonoff
Well, you know, I have to say, we, when we started in advertising, you know, we knew we had this broad base of users. We really believed that this would help us invest and continue to grow and serve a wider range of users. And so we decided to build. We didn't decide to buy, we decided to build and we started building and it was pretty easy to develop those core capabilities. But the deeper we got in, the more we understood the sort of complexity and robustness of the advertising market. For example, our early ad product, we could show an ad, but we couldn't tell you how that ad performed. And you know, that was obviously the first thing that customers, that advertising customers wanted to know, like is this really moving needle? And that's sort of came. That was the impetus to acquire Fantix. They really had expertise in data modeling and understanding the impact of advertising. And we bought them early in 2025 and they helped us introduce, among other things, a measurement product. The, you know, we went from there and now we had, you know, better measurement, sort of better products. But there's a lot of capabilities that you need when you're bringing in advertisers. You're trying to connect them with publishers. There's a lot of mo pieces and we sort of, the more progress we made, the more we could see that there was a lot of work to do. And the more we understood that scaling a salesforce and creating relationships takes a lot of time. So between the platform that we needed to build and that momentum that we wanted to See, in the market, that's what brought us to the Nativo acquisition.
- [09:56]
Ann Berry
And from a CEO perspective. Laurent, talk about that because you've just described a business life360, which is B2C, right? Consumer relationship. And then you've just touched on something which is now you've got a sales team going to advertisers, so you've got a B2B element of this too, or B2B set of relationships. For you as a CEO, was that a completely new muscle? Talk to us a little bit about how you approached building that out in your organization.
- [10:21]
Lauren Antonoff
In many ways it felt like a familiar muscle. I grew up in office and you know, office, as everybody knows, is very much of an enterprise business. But it's an enterprise business that uniquely is successful because of the consumer like relationship that it has with people within enterprises. You know, you have to, you know, it can't. It's not just that your IT department tells you to use these things, it's that you really have a need for the products and services that Microsoft offers. And so that duality, that relationship where you have sort of one purchaser sort of complementing another user and those kind of dualities has something that has long existed in my past. And so it was interesting, you know, when I started here it was 100% focused on consumer, but it wasn't long before you could see the opportunity. We already had a couple of really strong partnerships and you know, the obviousness to me that we could go, we could go so much farther and really open this up.
- [11:16]
Ann Berry
Let's take a break and when we come back, more of my conversation with Lauren Antonhoff. John, what if I told you you could turn any idea into an investable index?
- [11:24]
John Croteau
I might accuse you of wizardry.
- [11:26]
Ann Berry
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- [11:39]
John Croteau
on public, head to public.com brewmarkets and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com brewmarkets paid for by Public Investing.
- [11:49]
Palmolive Advertiser
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- [12:23]
Ann Berry
conversation with Lauren Antonoff, CEO Life360. Let's go back to something we touched on earlier, Lauren, which is aging parents or aging family members. What are you seeing in terms of take up of that particular offering? And it was funny. I'm reminded of some of the rideshare apps, you know, really trying to appeal to a certain demographic. Are families, are the kids asking for this for the parents or are the parents raising their hand and actually coming to this proactively?
- [12:53]
Lauren Antonoff
Okay, so first of all, I'll say aging parents is just a space that we're starting to get into now. So we haven't formally introduced aging parents products, but we've signaled that that's what's coming. The strategy is that we really want to extend the benefits that we have to address all life stages. And actually, if you look at our usage today within the free base, we really see families at all life stages. We see a crazy number of young couples who just use it to keep in touch. We had one customer family panel where a young woman was describing that she mostly uses Life 360 when she's on her phone with her long distance boyfriend when he's commuting. So he's in the car, she's at home on her phone and she's watching him drive. And it's just this feeling of being more connected because of that extra symbol, that extra being able to see him on the road, seeing where he is. And this is the thing that's kind of magical about life360. So we had a number of aging parents in our user base. And when I say aging parents, typically, you know, we've got this base of people who are parents of teens, but they also have living parents. And as their teens are growing up and getting more confident in the world, their parents are maybe living alone, wanting to stay living alone and staying independent. And so there's more of a conversation that they're having with their parents so their next generation up. And so over the last two years, we've seen that population of older adults almost double in our app. And so we're leaning into this notion of all life stages and taking something that's happening, happening organically and saying what do we need to do to serve this population better? There's unique privacy concerns. The aging population didn't grow up sharing their location in the way that that kids who are growing up now are kind of accustomed to it. They take it for granted. And certainly there's just different services that are of interest. So we're looking at that now.
- [14:46]
Ann Berry
Let's, let's talk a little bit more about those other services that again, are not location based. And I'll explain why I found this particularly interesting. I'm looking at your website right now, Lauren, and there's a piece on here for the full family safety, talking about digital safety, where there's an opportunity to set digital alert so that if you find breaches of passwords have been leaked, if there's a risk of identity theft, then there are notifications. And this really resonated with me because I think about my grandmother, who's not particularly digitally savvy, and the idea that perhaps I can sort of take care of her from afar using this tool really spoke to me. How much take up are you getting of that kind of service since you have it now?
- [15:25]
Lauren Antonoff
Yeah, I would say classically, this is something that's been in our subscription suite for a long time. It is more of an insurance policy and we find that people like to have it, but they don't use it as much. And my experience in business says that the more people use things, the more that they actually realize that value, the stronger that affinity is, the stronger that retention is. And so we're looking at ways to get people to sort of tune that package to provide more services that will be part of everyday usage.
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Ann Berry
Can we talk about pets? Let's not forget our furry family members. Talk about your services there, Lauren.
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Lauren Antonoff
Yeah, so pets is no. And this is the same concept of extending to more of the family. And I actually came to life360 after a close call with my dog. And I had done a little research on GPS trackers for dogs and decided not to buy it because I really thought that I wouldn't have it charged and ready when I needed it. And so I thought, you know, this isn't really ready for prime time. And I made it an offhand comment to my husband that like, I should go work on something like that to get it ready for prime time. And about A month later, Life360 called and sure enough, they owned one of the devices that I considered buying. And so now we have done a lot of work to make that a primetime device. Battery life was one of the major things that we worked on. We wanted it to be something that you didn't always have to chase over and that even if you forgot and didn't charge it for a couple of weeks, that there'd still be a level of safety. And so we've introduced pet GPS to the market late last year. And, you know, that's something that is part of our subscription suites and brings your pet into the map so it feels like every other member of the family. What we also did is say, well, what about everybody else? You know, freemium has been the thing that has propelled our growth, and we wanted to make sure to keep all pets safe, not just those that are part of our subscription membership. And so we introduced our pet finder network. Our pet Finder network is a way to register your pet so that if they do get lost, you can issue an alert to people in that area, and we can use our location services to send a notification to tell people to keep an eye out and notify you if they see your dog.
- [17:39]
Ann Berry
Despite the benefits that you've laid out, there are people who are perhaps not so excited to hand over their data or they perhaps don't enroll because they have heard sort of stories about other brands that unfortunately can spill over into some level of skepticism about yours. I'll give you one example. I had Jamie Siminoff here on the show. He's the inventor of the ring Doorbell. And there was backlash after a Super bowl commercial that brought up surveillance and privacy concerns, specifically around pets. So what do you do in these moments, Lauren? How are you out there saying no? Our story is different. Assuage your fears by coming to us.
- [18:15]
Lauren Antonoff
Yeah, I mean, trust is fundamental to what we do. We are oriented around family. So it's one of the things we prioritize. We're actually in the process now of investing in a way to have more transparency so people can see in an easier way what permissions they've given and have control over it. They have control over those things now. And we're very transparent on our blog posts with how we use data and we use it in very responsible ways. But we're adding an increased level of transparency so that people can check one place and see more what permissions they've given or not and change that if they want.
- [18:51]
Ann Berry
So, Lauren, you've got a ton going on. You've just laid out lots of different areas of potential growth. You just reported some impressive growth. But your shares, as of right now, filming at mid afternoon, your stock price is down nearly 20% this morning. So let's just talk about some of the comments that have come out. City analyst Siraj Ahmed said some people have been disappointed with Life360 pushing back on cost cuts due to AI. Talk about that point. Talk about what's been expected of you and what your position is.
- [19:23]
Lauren Antonoff
Yeah, so the question that's been asked is do we see AI as a cost cutting mechanism? And the thing to remember, there's two things about Life360 1, we're fairly early in our journey, so we have a lot of growth ahead. We're just getting into ads, we're just starting in the pet market, we're starting a lot of new lines of business and that takes people. What, what AI does is help us use the resources we have more efficiently so we can add headcount much, much more slowly than we would have at the stage of growth that we're at. But we're not in the same sort of situation as companies that are more mature, they have fewer market opportunities and they really have an enormous expensive headcount that they need to draw down. So that may be one of the things. I think the other thing that we're very focused on is making sure that we're continuing to grow at the top of the funnel channel. And we had great history there. We've put out great numbers for the future. But I think there's some questions about, you know, why won't, why don't we expect you to see that in Q1?
- [20:26]
Ann Berry
And there is a bit of a wait and see sense there just to put some numbers around this. Lauren, you'd said in the press today that Life360 users are expected to increase by 20% again this year. So that would take you to 115 million. But you do expect growth would be faster in the second half of the year. Why is that? What is the reason for that? Not delayed, but very specific timing that's back end weighted.
- [20:49]
Lauren Antonoff
Yeah, we spent a lot of time looking at our data and what we see is, you know, this very cyclical pattern where we grow a bunch of users. Some of those sort of settle out into sort of sort themselves between active and passive. And so we see kind of a wave of users going up and down, but it trends over time. When you back out, it adds to really consistent strong growth year over year. And so we see that same trend playing out. We can forecast our core markets in the us, the UK and Australia and see very clearly that we're on path to that 20% or to that contribution towards 20%. And then the international markets, which are the fastest growing part, that are a very important component of that 20%, that growth is much more irregular and so we know that that that really ebbs and flows and we're doing a bunch of new things this year that we think is going to accelerate that growth and we've seen great signals for this already both in product and in marketing and so we're looking forward to that as well.
- [21:54]
Ann Berry
And just to touch on international a little bit and to go back to the sort of Apple versus Android setup, how much growth do you expect and in international markets versus in the US you know the US has got about 60% market share held by Apple internationally. It feels as though Android's got dominance globally. So talk about how that impacts your decision about which markets to grow into.
- [22:23]
Lauren Antonoff
Yeah, well, so we're 1% penetrated internationally where we're 16% penetrated in the U.S. so international is a huge opportunity and we do know that the majority of customers there are on Android and so we are leaning into Android more and more. I'm an Android user, I've been an Android user for a very since the end of Windows Phone, I've been an Android user and we're making a lot of investments there to make sure that our Android customers are really satisfied. And especially it's not just iOS versus Android, it's which devices and internationally a lot of the devices aren't as high end as those in the United States and we're making sure that we adapt work well on those devices.
- [23:05]
Ann Berry
Lauren, you've got a big couple of quarters coming up to your point. The eyes of the market are there to see evidence that that cyclicality that you just laid out is indeed kicking in. So please come back, give us an update. We'd love to hear how it's going. Congrats again on a great quarter and hopefully we'll catch up again soon.
- [23:22]
Lauren Antonoff
Thank you. Welcome to celebrate the next quarter.
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Ann Berry
Well, huge thanks to Lauren Antonov for joining us. It got us through the scary Friday the 13th and we're off now for a brilliant weekend. That's it folks for today's Blue Markets Daily.
- [23:34]
John Croteau
Brew Markets Daily is hosted by Anne Barry and produced by John Croteau, Tarkab delatif, Avani Laroya and Emily Milliron. Our technical director is Uchenawa Ogu. Billy Menino is our audio engineer booking by A.B. silver and the president of Morning Brew Inc. Is Devin Emery. If you have any feedback or a company you'd like us to COVID leave a comment or send an email to
- [23:51]
Ann Berry
brewmarketshoworningbrew.com have a brilliant weekend see you here on Monday. Same time, same place.
- [24:06]
Lauren Antonoff
Great.
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John Croteau
Great. And you tend if the lighting is different as a reminder, I don't know if it is for for you after earnings. Yeah.
- [24:23]
State Street Investment Management Advertiser
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