What's the 'Paying' stand for again?

研报英文原文证据摘录

What's the 'Paying' stand for again?

Macquarie Equity Research Life360

operating leverage as 1H brand and including one with competitive overlap

integration costs roll off. 4Q adj with 360.

EBITDA margin is expected to exceed • Buyback under consideration.

the 22% achieved in 1Q25. Management indicated this will be

• Deeper partnership with Uber. assessed within a balanced capital

360 has expanded its partnership management framework, alongside

with Uber, with increased product ongoing growth investment needs.

integration allowing parents to now

book and track Uber Teen rides

directly within the 360 app.

Does MAU growth matter?

Paying Circles are the driver of economic value for 360. While MAU growth is important for

the long-term scale and network effects of the platform, it does not drive near-term revenue

outcomes. Put simply, the key top-line driver is Paying Circles growth.

In 1Q26, Paying Circles grew 27% YoY, with net adds predominantly driven by improved

conversion rather than MAU growth. Although conversion was partly driven by mix shift on

a lower number of low-quality Android MAUs, which are a lower conversion cohort, Paying

Circles growth accelerated QoQ. Management commentary highlighted multiple drivers, with

Pet GPS included as a key driver in 1Q26. As shown below, conversion contributed ~151k

Paying Circle net adds during the quarter. For clarity, we are referring to absolute converted

volumes rather than the conversion rate (Paying Circles as a percentage of MAUs). The

conversion rate may moderate through the year as MAUs recover following remediation of

the temporary technical issues.

Figure 1 - Conversion drove +151k Paying Circle Figure 2 - Sequential Paying Circles growth

net adds in 1Q26 accelerated in 1Q26

#m %

3.5 10%

3.0

3.0 7.8% 2.7 2.8