Financial Performance - Subscription revenue for Q3 2023 reached $56.6 million, a 45% increase from $39.0 million in Q3 2022[161] - Total revenue for Q3 2023 was $78.6 million, up 38% from $57.2 million in Q3 2022[161] - Hardware revenue increased by 33% to $15.5 million in Q3 2023, compared to $11.7 million in Q3 2022[161] - Gross profit for Q3 2023 was $57.9 million, representing a 48% increase from $39.2 million in Q3 2022[161] - The net loss for Q3 2023 was $6.5 million, a 69% improvement compared to a net loss of $21.1 million in Q3 2022[161] - Total revenue for the three months ended September 30, 2023, was $78.6 million, a 38% increase from $57.2 million in the same period in 2022[166] - For the nine months ended September 30, 2023, subscription revenue increased by $53.1 million, or 49%, compared to the same period in 2022[168] - Total revenue for the nine months ended September 30, 2023, was $217.6 million, a 39% increase from $157.0 million in the same period in 2022[168] Expenses - Total operating expenses for Q3 2023 were $64.4 million, a 7% increase from $60.4 million in Q3 2022[161] - Research and development expenses remained flat at $24.6 million in Q3 2023, compared to the same period last year[161] - Sales and marketing expenses increased by 6% to $25.7 million in Q3 2023, up from $24.2 million in Q3 2022[161] - General and administrative expenses rose by 22% to $14.1 million in Q3 2023, compared to $11.6 million in Q3 2022[161] - Research and development expenses decreased by $2.4 million, or 3%, during the nine months ended September 30, 2023, primarily due to a $2.3 million reduction in contractor spend[182] - Sales and marketing expenses rose by $3.0 million, or 4%, during the nine months ended September 30, 2023, mainly due to a $5.6 million increase in marketing expenses[184] - General and administrative expenses increased by $2.1 million, or 6%, during the nine months ended September 30, 2023, attributed to a $5.3 million gain on revaluation of contingent consideration from the Jiobit acquisition in the prior year[188] Revenue Metrics - Subscription gross margin improved to 85% during the three months ended September 30, 2023, up from 80% in the same period in 2022[172] - Average Revenue per Paying Circle (ARPPC) for the three months ended September 30, 2023, was $119.97, representing a 28% increase year-over-year from $93.55[203] - Average Revenue per Paying Subscription (ARPPS) for the three months ended September 30, 2023, was $101.33, reflecting a 30% increase year-over-year from $78.03[212] - Annualized Monthly Revenue (AMR) reached $259.1 million as of September 30, 2023, representing a 41% increase year-over-year[195] User Metrics - Monthly Active Users (MAUs) grew to approximately 58.4 million as of September 30, 2023, a 24% increase from 47.0 million in the prior year[196] - The number of Paying Circles increased to approximately 1.7 million as of September 30, 2023, reflecting a 17% year-over-year growth[198] - The number of paid subscribers for Life360, Tile, and Jiobit brands increased to approximately 2.3 million as of September 30, 2023, a 14% increase year-over-year from 2.1 million[206] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2023, were $61.8 million, down from $75.4 million as of December 31, 2022[217] - Net cash used in operating activities for the nine months ended September 30, 2023, was $1.4 million, significantly improved from $54.9 million in the same period of 2022[223][224] - Net cash used in investing activities for the nine months ended September 30, 2023, was $1.3 million, a substantial decrease from $114.1 million in the prior year, primarily due to the Tile Acquisition[225] - Net cash used in financing activities for the nine months ended September 30, 2023, was $24.0 million, compared to $3.5 million in the same period of 2022[226][227] Deferred Revenue and Liabilities - Deferred revenue as of September 30, 2023, was $35.0 million, up from $32.8 million as of December 31, 2022, indicating growth in future revenue recognition[222] - The company reported $3.8 million in liabilities measured at fair value as of September 30, 2023, compared to $7.0 million as of December 31, 2022[234] Regulatory and Compliance - The company expects to continue facing regulatory inquiries related to data protection and consumer rights, which may impact its operations[248] - Future litigation may be necessary to defend against claims related to regulatory, commercial, and intellectual property matters, which could impact operational practices[248] Internal Controls - Management identified material weaknesses in internal control over financial reporting related to IT general controls, which could lead to undetected misstatements[242] - The company is implementing measures to remediate identified control deficiencies, including enhancing IT controls and providing training[243] - The company concluded that its disclosure controls and procedures were not effective as of September 30, 2023, due to identified material weaknesses[239] - Management acknowledges that disclosure controls and procedures cannot prevent all errors and fraud, highlighting inherent limitations in control systems[246]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ Title of each class Trading Symbol(s) Name of each exchange on which registered None. None. None. FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-5642 ...

Financial Performance - Total revenue for the year ended December 31, 2022, was $228.3 million, a significant increase from $112.6 million in 2021 and $80.7 million in 2020, representing a year-over-year growth of 103.0% from 2021 to 2022[16] - Net loss for the year ended December 31, 2022, was $91.6 million, compared to a net loss of $33.6 million in 2021 and $16.3 million in 2020, indicating an increase in losses[16] - Revenue, excluding Tile and Jiobit revenue, has increased each quarter since 2016, but future growth is uncertain[147] Business Model and Strategy - Life360 operates under a "freemium" model, with paid memberships ranging from $7.99 to $24.99 per month, offering various premium safety services[20] - The company plans to grow its member base in new and existing markets and increase monetization through disciplined expansion into new use cases[17] - The company aims to leverage word-of-mouth referrals to drive new member growth and plans to invest in marketing and brand awareness initiatives[19] - Life360 operates under a "freemium" model, offering a free app while monetizing through paid subscriptions, which is critical for revenue growth[78] Product Offerings - The acquisition of Jiobit and Tile was aimed at creating a comprehensive cross-platform location tracking solution, enhancing the Life360 service offerings[14] - Jiobit devices are priced at $129.99, with subscription plans ranging from $8.99 to $14.99 per month, depending on the contract duration[26][28] - Tile devices are sold at retail prices ranging from $14.99 to $34.99, with additional bundles available at higher price points[24] Workforce and Culture - As of December 31, 2022, Life360 had approximately 400 full-time employees and 200 contractors, with a commitment to diversity in the workforce[37] - The company’s ability to maintain its corporate culture is critical for future success, especially as it continues to expand[140] - The company’s future success depends on attracting and retaining highly skilled personnel, with competition for talent being intense[136] Research and Development - Research and development expenses were $102.5 million, $51.0 million, and $39.6 million for the years ended December 31, 2022, 2021, and 2020, respectively, indicating a significant investment in enhancing customer offerings[47] - The company is focused on improving its technology infrastructure and systems to support new products and market expansion[150] Risks and Challenges - The company faces risks from competition in the digital consumer subscription products market, which may impact its ability to attract and retain members[72] - Economic downturns or uncertainties may adversely affect consumer discretionary spending and demand for the company's products and services[73] - The company is subject to numerous data privacy and security obligations, including the CCPA and EU GDPR, which may increase compliance obligations and exposure for noncompliance[62] - The company has identified a material weakness in internal controls, potentially affecting the accuracy and timeliness of financial reporting[74] - The company may experience challenges in expanding its member base outside the United States, which could limit its growth potential[91] Marketing and Customer Engagement - Attracting members requires considerable marketing expenditure, and evolving consumer behavior may affect the effectiveness of traditional marketing channels[102] - The company generates a portion of its revenue through lead generation offerings, which may be impacted by competition and relationships with advertising partners[164] International Expansion - The company faces risks related to international expansion, including operational and compliance challenges, foreign currency fluctuations, and differing tax laws[131] - As of December 31, 2022, international members represented over 36% of total Monthly Active Users (MAUs) and accounted for approximately 8% of revenue[130] Compliance and Regulatory Environment - The company is subject to stringent data privacy and security laws, which could lead to regulatory actions and significant penalties if not complied with[174] - Non-compliance with privacy laws such as the CCPA could result in civil penalties of up to $7,500 per violation[176] - The company may face significant fines under the EU GDPR, with penalties reaching up to 20 million Euros or 4% of annual global revenue[179] Supply Chain and Manufacturing - The company relies on a limited number of suppliers and manufacturers, and any loss could negatively impact operations[72] - The primary manufacturer’s facilities are located in the PRC and Malaysia, and any disruptions in these regions could adversely affect the company's operations[126] - The company relies significantly on third-party publishers and platforms for the distribution and marketing of its products, which could adversely affect its business if these partners change their policies[103] Financial Outlook - The company expects existing cash and cash equivalents from subscription sales to meet anticipated cash needs for at least the next 12 months[167] - Future capital requirements will depend on subscription growth rates, renewal activity, and the introduction of new products and services[167] Cybersecurity and Data Privacy - Company processes sensitive data and faces threats from cyber-attacks, including ransomware, which could disrupt operations and lead to reputational harm[191] - Increased risks from remote work and reliance on third-party service providers could introduce new cybersecurity vulnerabilities[196][197]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorporation or organization) 539 Bryant Street, Suite 402 San Francisco, CA 94107 (Address of principal executive offices) (Zip C ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-56424 Life360, Inc. (Exact name of registrant as specified in its charter) Delaware 2 ...