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- Life360 (360) enters the new year with a focus on achieving positive operating cash flow and adjusted EBITDA
- The San Fransisco-based tech company is accelerating its path to profits via a restructure, resulting in a 14 per cent workforce reduction and $15 million in annual savings
- Life360 says the move is designed to benefit the “most important areas” of the business, as well as international expansion, while reducing operating costs
- Company shares are up 10 per cent to trade at $5.37 at 2:10 pm AEDT
Life360 (360) has revealed its acceleration plan to achieve positive operating cash flow and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).
This decision comes as the San Francisco-based tech company reported an end-of-year cash balance of $90 million, in line with its guidance.
Despite this, it expects CY22 revenue and adjusted EBITDA to meet the lower end of its guidance.
As part of forward growth strategy, Life360 has restructured its workforce which will result in a 14 per cent reduction of employees.
Restructuring charges related to employee transition and severance costs estimated at $4 million will be paid in the current quarter, but the staff cuts will reportedly save the company more than $15 million annually.
Life360 said the restructure will also deliver on key opportunities such as Tile bundling. Tile is a bluetooth tracking business that Life360 acquired in January 2022. Its cloud-based finding platform helps people find the things that matter to them most.
The company is also focused on international expansion, starting with the launch of its full membership offering in the UK that’s expected in the second half of 2023.
CEO and Co-Founder Chris Hulls said the changes are designed to benefit “the most important areas of our business” and reduce operating expenses.
“We stated in our recent CY22 Q3 earnings announcement that, in response to current market conditions, we were accelerating our path to profitability,” he said.
“The restructure that we are announcing today will enable us to bring forward by a quarter the achievement of positive operating cash flow and adjusted EBITDA to CY23 Q2.”
Life360 operates a family-tracking platform via a mobile app which aims to bring busy families closer together by helping them communicate.
The company expects to release its full-year results for CY22 on March 17.
Company shares were up 10 per cent to trade at $5.37 at 2:10 pm AEDT.
