Technology
Life360 reports CY 2023 results
Published
7 months agoon
By
SAN FRANCISCO, Feb. 29, 2024 /PRNewswire/ — San Francisco area-based Life360, Inc. (Life360 or the Company) (ASX: 360) today reported audited financial results for the quarter and year ended December 31, 2023. Life360 Co-founder and Chief Executive Officer Chris Hulls said: “We are incredibly proud that more than 61 million monthly active users (MAU) globally enjoy the peace of mind that comes with the location sharing and safety features of Life360. In CY23 we made significant strides in our member experience, showing our users what their family members are up to, whether they’re driving, walking or biking. We put pets and other valuables on the map with Tile, all in the service of our mission to keep people close to the ones they love.
“At the same time we made meaningful progress on our path to profitability as we significantly reduced our net loss, and achieved a major milestone by delivering our first full year of positive Adjusted EBITDA1 and Operating Cash Flow. We are excited to continue building on our leading global position in location sharing, and see exciting opportunities in CY24 and beyond to broaden our reach and deepen engagement with our members. We look forward to bringing the benefits of our subscriptions to more markets globally, and creating new revenue streams that utilize the scale and quality of our member base.
“In 2023, we delivered on our commitment to balance fiscal responsibility and prudent investment to position the business for long-term success. We delivered YoY revenue growth of 33% while GAAP operating expenses increased only 4% YoY. We met or exceeded all of the guidance metrics we provided to the market for CY23.”
Looking forward to CY24, we are excited to announce the creation of a new advertising revenue stream that offers partners unparalleled reach to Life360’s enormous free user base, and more than 20 million daily active users (DAU) connecting with their families and friends. We have consistently spoken of the potential that our investment in the core user experience, and the scaling of our MAU base, would provide for the future. We are encouraged by the success of early testing and see the opportunity to deliver an attractive platform to advertisers, while continuing to provide a great user experience.
CY23 Financial Highlights
Revenue of $305 million, a YoY increase of 33%, in line with guidance of $300 million – $310 million;Core Life360 subscription revenue2 of $200 million, up 52% YoY, ahead of guidance for more than a 50% YoY increase;Net loss of $28.2 million, a $63.5 million improvement from CY22;Positive Adjusted EBITDA of $20.6 million ahead of guidance of $12 million – $16 million, with consistent Positive Adjusted EBITDA delivered in each quarter of CY23;Positive Operating Cash Flow (OCF) of $7.5 million, a $64.6 million improvement versus CY22;Year-end cash, cash equivalents and restricted cash of $70.7 million up from $63.7 million at the end of Q3’23
CY23 Operating Highlights and CY24 Outlook
Significant CY23 operating leverage with revenue growth of $76.2 million on an operating expense increase of $9.6 million, yielding increasing Adjusted EBITDA margins and positive Adjusted EBITDA in each quarter.Global Monthly Active Users (MAU) grew nearly 13 million or 26% to 61.4 million, driven by ongoing investment in our core location sharing experience.International MAU grew 7 million, or 40% YoY to 24.6 million as we increased the speed and responsiveness of the app, and achieved international feature parity with the U.S.Global Paying Circles grew to 1.8 million, up 21% YoY, despite significant price increases implemented in Q3/Q4’22 and Q2’23, underscoring the value our subscribers perceive in the Life360 services. Q4’23 net subscriber additions were 54 thousand.U.S. Average Revenue Per Paying Circle (ARPPC) increased 32% YoY, driven by price increases.International Paying Circles increased 43% YoY to 474 thousand, benefiting from strong growth in both the UK and Australia.Triple Tier Membership launched in the UK in October, with an Australian launch planned for Q2’24.Looking forward to CY24, we are pursuing new value-added revenue streams including advertising, utilizing Life360’s enormous free user base. We expect some set-up costs in the first half of CY24, and a modest revenue contribution in the second half of the year.CY24 guidance: Consolidated revenue of $365–$375 million; Adjusted EBITDA2 of $30 million – $35 million; EBITDA loss of $(8) million – $(13) million; year-end cash balance of $80 million – $90 million.
1
Adjusted EBITDA is a Non-GAAP measure. For the definition of Adjusted EBITDA and the use of this Non-GAAP measure, as well as a reconciliation of Net Loss to Adjusted EBITDA, refer to the Non-GAAP Financial Measures section below.
2
Core Life360 subscription revenue is defined as subscription revenue derived from the Life360 mobile application, excluding certain revenue adjustments related to bundled Life360 subscription and hardware offerings, for the reported period.
Key Performance Indicators
(in millions, except ARPPC, ARPPS, and ASP)
Q4
2023
Q4
2022
% YoY
CY
2023
CY
2022
% YoY
Life360 Core3
Monthly Active Users (MAU) – Global
61.4
48.6
26 %
61.4
48.6
26 %
U.S.
36.8
30.9
19 %
36.8
30.9
19 %
International
24.6
17.6
40 %
24.6
17.6
40 %
Australia
1.9
1.4
36 %
1.9
1.4
36 %
Paying Circles – Total
1.8
1.5
21 %
1.8
1.5
21 %
U.S.
1.3
1.2
14 %
1.3
1.2
14 %
International
0.5
0.3
43 %
0.5
0.3
43 %
Average Revenue per Paying Circle (ARPPC)
$ 124.17
$ 105.79
17 %
$ 121.09
$ 96.95
25 %
Life360 Consolidated
Subscriptions
2.4
2.1
17 %
2.4
2.1
17 %
Average Revenue per Paying Subscription (ARPPS)
$ 102.17
$ 87.54
17 %
$ 99.53
$ 80.63
23 %
Net hardware units shipped (standalone)4
1.7
1.7
1 %
4.0
3.6
12 %
Average Sale Price (ASP)
$ 11.50
$ 11.48
— %
$ 13.48
$ 13.47
— %
Annualized Monthly Revenue (AMR)5
$ 274.1
$ 224.4
22 %
$ 274.1
$ 224.4
22 %
3
Life360 Core metrics relate solely to the Life360 mobile application.
4
Net hardware units shipped (standalone) represents 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.
5
We use Annualized Monthly Revenue (“AMR”) to identify the annualized monthly value of active customer agreements at the end of a reporting period. AMR includes the annualized monthly value of subscription, data and partnership agreements. All components of these agreements that are not expected to recur are excluded.
Global MAU increased 26% YoY to 61.4 million, with Q4’23 net additions of 3.0 million. U.S. MAU increased 19% YoY, with Q4’23 net adds of 1.4 million. International MAU were 40% higher YoY, with Q4’23 net adds of 1.6 million. Australian MAU increased 36% YoY to 1.9 million.Q4’23 Paying Circle net additions of 54 thousand reflected usual quarterly seasonality and natural churn following Q3’23’s record-breaking growth. U.S. Paying Circles increased 14% YoY despite the effect of price increases implemented from August 2022. Our U.S. Membership plan subscribers comprise Silver 15%, Gold 81% and Platinum 4% of total.International Paying Circles maintained strong momentum, up 43% YoY. The UK delivered a 47% YoY increase in Paying Circles and Australia achieved a 51% YoY increase. Triple Tier Membership launched in the UK in October with plans on track for a Triple Tier launch in Australia in Q2’24.Q4’23 global ARPPC increased 17% YoY and 4% QoQ. The benefit from U.S. price increases implemented from August 2022 saw Q4’23 U.S. ARPPC increase 24% YoY.
Operating Results
Revenue
Three Months Ended December 31,
Year Ended December 31,
2023
2022
2023
2022
($ millions)
(unaudited)
Subscription revenue
$ 59.8
$ 45.4
$ 220.8
$ 153.3
Hardware revenue
21.1
19.6
58.2
47.9
Other revenue
6.1
6.3
25.5
27.1
Total revenue
$ 87.0
$ 71.3
$ 304.5
$ 228.3
Annualized Monthly Revenue – December
$ 274.1
$ 224.4
$ 274.1
$ 224.4
Q4’23 Consolidated subscription revenue increased 32% YoY (including hardware subscriptions) to $59.8 million. Life360 core subscription revenue increased 40% YoY supported by the 21% YoY increase in Paying Circles, and 17% higher ARPPC, as a result of the price increases described above. CY23 Consolidated subscription revenue growth of 44% was underpinned by Core Life360 subscription revenue which increased 52% YoY, ahead of guidance of 50%.Q4’23 Hardware revenue delivered a seasonal uplift versus Q3, increasing 8% YoY to $21.1 million driven by lower returns and channel marketing versus Q4’23. CY23 Non-GAAP hardware revenue6 growth of 14% was in line with guidance, with GAAP hardware revenue growth of 21% benefiting from the contribution from bundling.Q4’23 Other revenue of $6.1 million was in line with the prior period reflecting the terms associated with the single data partnership. CY23 revenue of $25.5 million was in line with guidance of approximately $26 million.December AMR increased 22% YoY, cycling a very strong December 2022 base which included the impact of the U.S. price increases.
Gross Profit
Three Months Ended
December 31,
Year Ended December 31,
2023
2022
2023
2022
($ millions, except percentages)
(unaudited)
Gross Profit
$ 60.1
$ 45.0
$ 222.6
$ 148.6
Gross Margin
69 %
63 %
73 %
65 %
Gross Margin (Subscription Only)
86 %
83 %
86 %
80 %
Q4’23 gross profit margin increased to 69% from 63% in the prior year period, reflecting the improvement in subscription only margins to 86% due to higher pricing. CY23 gross margins increased from 65% to 73% due to higher prices as well as the significant YoY improvement in Hardware gross margins which benefited from successful initiatives and a favorable return adjustment recorded in Q2’23.
Three Months Ended
December 31,
Year Ended December 31,
2023
2022
2023
2022
($ millions)
(unaudited)
Research and development
$ 26.0
$ 25.2
$ 101.0
$ 102.5
Sales and marketing
25.7
22.0
99.1
92.4
Paid acquisition & TV
7.5
5.2
28.9
26.5
Other sales and marketing
7.0
8.1
27.5
34.5
Commissions
11.1
8.7
42.7
31.4
General and administrative
12.8
10.5
52.6
48.1
Total operating expenses
$ 64.5
$ 57.7
$ 252.6
$ 243.0
6
Life360 Non-GAAP Hardware Revenue is calculated using Hardware Revenue, GAAP. For a reconciliation between Hardware Revenue, GAAP and Non-GAAP Hardware Revenue, refer to the Revenue (GAAP to Non-GAAP reconciliation) section below.
Q4’23 operating expenses increased 12% YoY, largely due to higher general and administrative costs primarily arising from increased accounting costs related to Sarbanes-Oxley compliance, and higher legal expenses. Commissions were higher YoY in line with the growth in subscription revenue. CY23 operating expenses increased 4% for the year, benefiting from a 1% reduction in R&D expenses which reflected cost reduction measures undertaken in Q1’23.
EBITDA and Adjusted EBITDA7
Three Months Ended
December 31,
Year Ended December 31,
2023
2022
2023
2022
($ millions)
(unaudited)
Net Loss
$ (3.1)
$ (12.3)
$ (28.2)
$ (91.6)
EBITDA
(2.0)
(10.3)
(20.8)
(85.2)
Non-GAAP Adjustments
10.9
12.0
41.4
45.1
Adjusted EBITDA
$ 8.9
$ 1.6
$ 20.6
$ (40.1)
Q4’23 delivered a positive Adjusted EBITDA contribution of $8.9 million versus $1.6 million in the prior corresponding period as a result of continued strong subscription revenue growth, higher hardware revenue, improved margins and continuing cost efficiencies. These same drivers supported the $60.7 million improvement in Adjusted EBITDA in CY23.
7
EBITDA and Adjusted EBITDA are non-GAAP measures. For definitions of EBITDA and Adjusted EBITDA, a description of these non-GAAP measures’ use, and a reconciliation of Net Loss to EBITDA and Adjusted EBITDA, refer to the Non-GAAP Financial Measures section below.
Balance Sheet and Cash Flow
Three Months Ended
December 31,
Year Ended December 31,
2023
2022
2023
2022
($ millions)
(unaudited)
Net cash provided by (used in) operating activities
$ 9.0
$ (2.2)
$ 7.5
$ (57.1)
Net cash provided by (used in) investing activities
(1.0)
2.5
(2.2)
(111.6)
Net cash provided by (used in) financing activities
(0.9)
31.2
(25.0)
27.7
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
7.1
31.5
(19.7)
(141.0)
Cash, Cash Equivalents, and Restricted Cash at the End of the Period
$ 70.7
$ 90.4
$ 70.7
$ 90.4
Life360 ended Q4’23 with cash, cash equivalents and restricted cash of $70.7 million, with unrestricted cash increasing by $7.1 million from Q3’23. Q4’23 operating cash flow of $9.0 million was offset by $1.0 million used in investing activities related to payments for internally developed software, and $0.9 million used in financing activities related to taxes paid for the net settlement of equity awards, offset by proceeds from the exercise of options.Q4’23 net cash provided by operating activities of $9.0 million was largely in line with Adjusted EBITDA of $8.9 million.In CY23, cash and cash equivalents decreased by $19.7 million from CY22. CY23 operating cash flow of $7.5 million was offset by $2.2 million used in investing activities and $25.0 million used in financing activities.CY23 cash provided by operating activities of $7.5 million saw a differential to Adjusted EBITDA of $20.6 million due to timing of receipts, manufacturing payments, and Q1 restructuring costs.
Earnings Guidance8
For CY24 Life360 expects to deliver the following metrics which include both the early revenue, and set-up costs, for the new advertising business:
Consolidated revenue of $365 million – $375 million, with core Life360 subscription revenue growth of at least 20% YoY;Positive Adjusted EBITDA9 of $30 million – $35 million;EBITDA7 loss of $(8) million to $(13) million;Positive Operating Cash Flow for each quarter of CY24, with the usual seasonal low point in Q1;Year-end cash, cash equivalents and restricted cash of $80 million – $90 million.
The company expects to continue to be Adjusted EBITDA positive on a quarterly basis going forward, and to achieve positive EBITDA in the first half of CY25.
8
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, convertible notes and derivative liability fair value adjustments, and gains/losses on revaluation of contingent consideration. These items may be material to our results calculated in accordance with GAAP.
9
EBITDA and Adjusted EBITDA are non-GAAP measures. For definitions of EBITDA and Adjusted EBITDA, a description of these non-GAAP measures’ use, and a reconciliation of Net Loss to EBITDA and Adjusted EBITDA, refer to the Non-GAAP Financial Measures section below.
Investor Conference Call
A conference call will be held today at 9.30am AEDT, Friday 1 March 2024 (Thursday 29 February U.S. PT at 2.30pm). 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
Australia: +61 2 8015 6011
U.S.: +1 669 444 9171
Other countries: details
Meeting ID: 951 2669 6840
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.
About Life360
Life360 delivers peace of mind for families of all types. The company’s category leading mobile app and Tile tracking devices help members protect 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. Life360 is based in San Mateo and has approximately 61 million monthly active users (MAU) located in more than 150 countries. For more information, please visit life360.com and Tile.com.
Life360’s CDIs are issued in reliance on the exemption from registration contained in Regulation S of the US Securities Act of 1933 (Securities Act) for offers of securities which are made outside the US. Accordingly, the CDIs have not been, and will not be, registered under the Securities Act or the laws of any state or other jurisdiction in the US. As a result of relying on the Regulation S exemption, the CDIs are ‘restricted securities’ under Rule 144 of the Securities Act. This means that you are unable to sell the CDIs into the US or to a US person who is not a QIB for the foreseeable future except in very limited circumstances until after the end of the restricted period, unless the re-sale of the CDIs is registered under the Securities Act or an exemption is available. To enforce the above transfer restrictions, all CDIs issued bear a FOR Financial Product designation on the ASX. This designation restricts any CDIs from being sold on ASX to US persons excluding QIBs. However, you are still able to freely transfer your CDIs on ASX to any person other than a US person who is not a QIB. In addition, hedging transactions with regard to the CDIs may only be conducted in accordance with the Securities Act.
Forward-looking statements
This announcement and the accompanying 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, advertising revenue, other revenue, consolidated revenue and ability to create new revenue streams, such as advertising; Adjusted EBITDA, and operating cash flow; its capital position; future growth; the impact of past price increases on future results of operations and subscriber churn; scaling its MAU base; its ability to continue building on its leading global position and the strategic value and opportunities for global expansion; operating cost savings, including through reduced commissions; 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.
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 29, 2024 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.
Consolidated Statements of Operations and Comprehensive Loss
(Dollars in U.S. $, in thousands, except share and per share data)
Year Ended December 31,
2023
2022
2021
Subscription revenue
$ 220,794
$ 153,287
$ 86,551
Hardware revenue
58,178
47,884
952
Other revenue
25,546
27,134
25,140
Total revenue
304,518
228,305
112,643
Cost of subscription revenue
30,975
30,659
17,807
Cost of hardware revenue
47,384
45,441
1,340
Cost of other revenue
3,522
3,607
3,621
Total cost of revenue
81,881
79,707
22,768
Gross profit
222,637
148,598
89,875
Operating expenses:
Research and development
100,965
102,480
50,994
Sales and marketing
99,072
92,419
47,473
General and administrative
52,583
48,110
23,670
Total operating expenses
252,620
243,009
122,137
Loss from operations
(29,983)
(94,411)
(32,262)
Other income (expense):
Convertible notes fair value adjustment
(684)
1,786
(511)
Derivative liability fair value adjustment
(116)
1,295
(733)
Other income (expense), net
3,228
13
(178)
Total other income (expense), net
2,428
3,094
(1,422)
Loss before income taxes
(27,555)
(91,317)
(33,684)
Provision for (benefit from) income taxes
616
312
(127)
Net loss
(28,171)
(91,629)
(33,557)
Net loss per share, basic
$ (0.42)
$ (1.47)
$ (0.65)
Net loss per share, diluted
$ (0.42)
$ (1.50)
$ (0.65)
Weighted-average shares used in computing net loss per share, basic
66,748,542
62,209,545
51,656,195
Weighted-average shares used in computing net loss per share, diluted
66,748,542
62,839,593
51,656,195
Comprehensive loss
Net loss
(28,171)
(91,629)
(33,557)
Change in foreign currency translation adjustment
15
(6)
—
Total comprehensive loss
$ (28,156)
$ (91,635)
$ (33,557)
Consolidated Balance Sheets
(Dollars in U.S. $, in thousands)
December 31,
2023
December 31,
2022
Assets
Current Assets:
Cash and cash equivalents
$ 68,964
$ 75,444
Restricted cash, current
—
13,274
Accounts receivable, net
42,180
33,125
Inventory
4,099
10,826
Costs capitalized to obtain contracts, net
1,010
1,438
Prepaid expenses and other current assets
15,174
8,548
Total current assets
131,427
142,655
Restricted cash, noncurrent
1,749
1,647
Property and equipment, net
730
393
Costs capitalized to obtain contracts, noncurrent
834
626
Prepaid expenses and other assets, noncurrent
6,848
7,134
Operating lease right-of-use asset
1,014
802
Intangible assets, net
45,441
52,699
Goodwill
133,674
133,674
Total Assets
$ 321,717
$ 339,630
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable
5,896
$ 13,791
Accrued expenses and other current liabilities
27,538
27,015
Escrow liability
—
13,274
Convertible notes, current
3,449
3,513
Deferred revenue, current
33,932
30,056
Total current liabilities
70,815
87,649
Convertible notes, noncurrent
1,056
4,060
Derivative liability, noncurrent
217
101
Deferred revenue, noncurrent
1,842
2,706
Other liabilities, noncurrent
723
576
Total Liabilities
$ 74,653
$ 95,092
Commitments and Contingencies
Stockholders’ Equity
Common Stock
70
67
Additional paid-in capital
532,128
501,763
Notes due from affiliates
—
(314)
Accumulated deficit
(285,143)
(256,972)
Accumulated other comprehensive income (loss)
9
(6)
Total stockholders’ equity
247,064
244,538
Total Liabilities and Stockholders’ Equity
$ 321,717
$ 339,630
Consolidated Statements of Cash Flows
(Dollars in U.S. $, in thousands)
Year Ended December 31,
2023
2022
2021
Cash Flows from Operating Activities:
Net loss
$ (28,171)
$ (91,629)
$ (33,557)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
9,141
9,199
876
Amortization of costs capitalized to obtain contracts
2,125
2,928
4,014
Amortization of operating lease right-of-use asset
842
—
—
Stock-based compensation expense
38,512
34,680
11,754
Compensation expense in connection with revesting notes
73
(87)
184
Non-cash interest expense, net
462
474
166
Convertible notes fair value adjustment
684
(1,786)
511
Derivative liability fair value adjustment
116
(1,295)
733
(Gain)/loss on revaluation of contingent consideration
—
(5,279)
3,600
Non-cash revenue from investment
(1,608)
(1,504)
—
Inventory write-off
916
—
—
Adjustment in connection with membership benefit
(2,172)
—
—
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net
(9,055)
6,474
(2,689)
Prepaid expenses and other assets
(6,667)
10,629
(943)
Inventory
5,811
(497)
(859)
Costs capitalized to obtain contracts, net
(1,905)
(3,343)
(1,713)
Accounts payable
(7,895)
(12,654)
559
Accrued expenses and other current liabilities
2,193
(7,722)
4,720
Deferred revenue
4,620
4,660
1,671
Other liabilities, noncurrent
(498)
(303)
(1,180)
Net cash provided by (used in) operating activities
7,524
(57,055)
(12,153)
Cash Flows from Investing Activities:
Cash paid for acquisitions, net of cash acquired
—
(110,933)
(2,983)
Internal use software
(1,715)
(701)
—
Purchase of property and equipment
(506)
—
(81)
Cash advance on convertible note receivable
—
—
(4,000)
Net cash used in investing activities
(2,221)
(111,634)
(7,064)
Cash Flows from Financing Activities:
Indemnity escrow payment in connection with an acquisition
(13,128)
—
—
Proceeds from the exercise of options
5,811
2,394
3,543
Taxes paid related to net settlement of equity awards
(14,033)
(4,077)
(4,725)
Proceeds from repayment of notes due from affiliates
314
648
—
Payments on borrowings
—
—
(41)
Repayment of convertible notes
(3,919)
(3,471)
—
Proceeds from capital raise, net of transaction costs
—
32,215
193,064
Cash received in advance of the issuance of convertible notes
—
—
2,110
Net cash provided by (used in) financing activities
(24,955)
27,709
193,951
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
(19,652)
(140,980)
174,734
Cash, Cash Equivalents and Restricted Cash at the Beginning of the Period
90,365
231,345
56,611
Cash, Cash Equivalents, and Restricted Cash at the End of the Period
$ 70,713
$ 90,365
$ 231,345
Year Ended December 31,
2023
2022
2021
Supplemental disclosure:
Cash paid during the period for taxes
$ 697
$ —
$ 33
Cash paid during the period for interest
640
514
24
Non-cash investing and financing activities:
Fair value of stock issued in connection with an acquisition
—
15,409
13,821
Fair value of convertible debt issued in connection with an acquisition
—
—
11,597
Fair value of contingent consideration issued in connection with an acquisition
—
—
5,900
Fair value of vested options assumed in connection with an acquisition
—
—
533
Forgiveness of convertible debt receivable in connection with an acquisition
—
—
4,023
Relative fair value of warrants issue with convertible debt
—
—
844
Beneficial conversion feature related to convertible debt
—
—
603
Fair value of bifurcated derivative related to convertible debt
—
—
663
Fair value of warrants held as investment
—
5,474
—
Fair value of stock issued in settlement of contingent consideration
—
4,221
—
Right of use asset recognized in connection with lease modification
1,054
—
—
Operating lease liability recognized in connection with lease modification
1,054
—
—
Total non-cash investing and financing activities
$ 2,108
$ 25,104
$ 37,984
Non-GAAP Financial Measures
We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance.
EBITDA and Adjusted EBITDA
In addition to total revenue, net loss and other results under GAAP, we utilize non-GAAP calculations of earnings before interest, taxes, depreciation and amortization (“EBITDA”) and adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). EBITDA is defined as net loss, excluding (i) convertible notes and derivative liability fair value adjustments, (ii) provision for income taxes, (iii) depreciation and amortization and (iv) other income, net. Adjusted EBITDA is defined as net loss, excluding (i) convertible notes and derivative liability fair value adjustments, (ii) provision for income taxes, (iii) depreciation and amortization, (iv) other expense, net, (v) stock-based compensation, (vi) Form 10 transaction costs, (vii) acquisition and integration costs, (viii) workplace restructuring costs, (ix) inventory write-offs, (x) adjustment in connection with membership benefit, (xi) warehouse relocation costs and (xii) gain on revaluation of contingent consideration.
The above items are excluded from EBITDA and Adjusted EBITDA because these items are non-cash in nature, or because the amount and timing of these items are unpredictable, are not driven by core results of operations and render comparisons with prior periods and competitors less meaningful. We believe EBITDA and Adjusted EBITDA 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 EBITDA and Adjusted EBITDA 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. However, these non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for or superior to financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP financial measures used by other companies. 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.
The following table presents a reconciliation of net loss, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA:
Three Months Ended
December 31,
Year Ended December 31,
2023
2022
2023
2022
(in thousands)
Net loss
$ (3,146)
$ (12,303)
$ (28,171)
$ (91,629)
Add (deduct):
Convertible notes fair value adjustment
(114)
89
684
(1,786)
Derivative liability fair value adjustment10
(62)
(112)
116
(1,295)
Provision for income taxes
411
228
616
312
Depreciation and amortization11
2,297
2,368
9,141
9,199
Other expense, net
(1,431)
(614)
(3,228)
(13)
EBITDA
$ (2,045)
$ (10,344)
$ (20,842)
$ (85,212)
Stock-based compensation
10,834
10,193
38,512
34,680
Form 10 transaction costs
—
923
—
3,766
Acquisition and integration costs
—
852
—
11,949
Workplace restructuring costs12
54
—
4,024
—
Write-off of obsolete inventory13
—
—
916
—
Adjustment in connection with membership benefit14
—
—
(2,172)
—
Warehouse relocation costs15
44
—
121
—
Gain on revaluation of contingent consideration
—
—
—
(5,279)
Adjusted EBITDA
$ 8,887
$ 1,624
$ 20,559
$ (40,096)
10
To reflect the change in value of the derivative liability associated with the July 2021 Convertible Notes.
11
Includes depreciation on fixed assets and amortization of acquired intangible assets.
12
Relates to non-recurring personnel and severance related expenses in connection with the workplace restructure announced on January 12, 2023.
13
Relates to the write-off of raw materials that have no alternative use to the Company following the decision to halt development.
14
Relates to an adjustment recorded to reduce product costs recorded to cost of revenue in connection with the discontinuation of certain battery related membership benefits.
15
Relates to non-recurring warehouse relocation costs in relation to the Company’s transition to a new logistics partner.
Key Financial Metrics:
Three Months Ended
December 31,
Year Ended December 31,
2023
2022
2023
2022
(in millions)
(unaudited)
Revenue
U.S. subscription revenue (Non-GAAP)
$ 54.5
$ 40.6
$ 199.4
$ 136.1
International subscription revenue (Non-GAAP)
6.5
4.8
24.5
17.2
Subscription revenue (Non-GAAP)16
61.0
45.2
223.9
153.3
Hardware revenue (Non-GAAP)16
19.8
19.7
54.5
47.8
Other revenue (GAAP)
6.1
6.4
25.5
27.2
Total revenue (Non-GAAP)
87.0
71.3
303.9
228.3
Add: Non-GAAP adjustments related to bundled offerings
—
—
0.6
—
Total revenue (GAAP)
87.0
71.3
304.5
228.3
Non-GAAP Gross Profit17
62.0
46.4
226.8
153.5
Non-GAAP Gross Margin %17
71 %
65 %
75 %
67 %
Non-GAAP Subscription Gross Margin %
85 %
84 %
84 %
81 %
Research and Development (Non-GAAP)
19.6
18.8
76.1
82.5
Sales and Marketing (Non-GAAP)
User acquisition and TV costs
7.5
5.2
28.9
26.4
Other Sales and Marketing
5.1
6.2
19.4
26.0
Commissions
11.1
8.7
42.7
31.4
General & Administrative (Non-GAAP)
9.8
5.9
39.7
28.5
Non-GAAP Operating Expenses18
53.1
44.8
206.8
194.8
Net loss (GAAP)
(3.1)
(12.3)
(28.2)
(91.6)
Adjusted EBITDA (Non-GAAP)
8.9
1.6
20.6
(40.1)
Non-GAAP Adjusted EBITDA Margin %
10 %
2 %
7 %
(18) %
Stock-based Compensation (GAAP)
(10.8)
(10.2)
(38.5)
(34.7)
Other Non-GAAP Adjustments
(0.1)
(1.9)
(2.9)
(10.5)
EBITDA (Non-GAAP)
$ (2.0)
$ (10.4)
$ (20.8)
$ (85.2)
16
Life360 Non-GAAP Revenue is calculated using GAAP Revenue. For a reconciliation between GAAP Revenue and Non-GAAP Revenue, refer to the Revenue (GAAP to Non-GAAP reconciliation) section in this table.
17
Non-GAAP Gross Profit is calculated using Revenue, Non-GAAP and Cost of revenue, Non-GAAP. Non-GAAP Gross Margin is calculated by dividing Non-GAAP Gross Profit by Total Revenue (Non-GAAP). For a reconciliation between Total Revenue, GAAP and Total Revenue, Non-GAAP and Total Cost of revenue, GAAP and Total Cost of revenue, Non-GAAP, refer to the Revenue and Cost of Revenue (GAAP to Non-GAAP reconciliation) sections below.
18
Non-GAAP operating expenses are calculated using Research and Development, Non-GAAP, Sales and Marketing, Non-GAAP and General & Administrative, Non-GAAP expenses. For a reconciliation between Total operating expenses, GAAP and Total operating expenses, Non-GAAP, refer to the Operating expenses (GAAP to Non-GAAP reconciliation) section below.
Revenue (GAAP to Non-GAAP reconciliation):
Q1 2023
Q2 2023
Q3 2023
Q4 2023
(in millions)
Subscription revenue, GAAP included in Adjusted EBITDA
$ 51.7
$ 52.7
$ 56.6
$ 59.8
Bundled offerings19
—
0.7
1.2
1.2
Total Subscription revenue, Non-GAAP
$ 51.7
$ 53.4
$ 57.8
$ 61.0
Hardware revenue, GAAP included in Adjusted EBITDA
$ 10.0
$ 11.6
$ 15.5
$ 21.1
Bundled offerings19
—
(1.1)
(1.4)
(1.2)
Total Hardware revenue, Non-GAAP
$ 10.0
$ 10.5
$ 14.2
$ 19.8
19
The net difference of the bundled offerings represents the GAAP revenue recognition of subscription revenue allocated to hardware revenue which is recognized at a point-in-time rather than ratably over the subscription period. Bundled offerings only represent bundled Life360 subscription and hardware offerings.
Cost of Revenue (GAAP to Non-GAAP reconciliation):
Three Months Ended December 31,
Year Ended December 31,
2023
2022
2023
2022
(in millions)
Cost of subscription revenue, GAAP
$ 8.3
$ 7.9
$ 31.0
$ 30.7
Less: Depreciation and amortization
(0.3)
(0.3)
(1.2)
(0.9)
Less: Stock-based compensation
(0.2)
(0.1)
(0.7)
(0.6)
Less: Severance and other
—
—
(0.1)
—
Less: Adjustment in connection with membership benefit
—
—
1.8
—
Non-GAAP Cost of subscription revenue included in Adjusted EBITDA
$ 7.7
$ 7.5
$ 30.8
$ 28.9
Less: Hardware bundling adjustment
1.5
—
4.0
—
Total Cost of subscription revenue, Non-GAAP
$ 9.2
$ 7.5
$ 34.8
$ 28.9
Cost of hardware revenue, GAAP
$ 17.7
$ 17.5
$ 47.4
$ 45.4
Less: Depreciation and amortization
(0.9)
(0.9)
(3.6)
(3.6)
Less: Stock-based compensation
(0.4)
(0.1)
(1.1)
(0.4)
Less: Severance and other
—
—
(0.2)
(0.1)
Less: Adjustment in connection with membership benefit
—
—
0.4
—
Non-GAAP Cost of hardware revenue included in Adjusted EBITDA
$ 16.3
$ 16.5
$ 42.9
$ 41.3
Less: Alignment of accounting policies20
—
—
—
1.0
Less: Hardware bundling adjustment
(1.5)
—
(4.0)
—
Total Cost of hardware revenue, Non-GAAP
$ 14.8
$ 16.5
$ 38.9
$ 42.3
Cost of other revenue, GAAP
$ 0.9
$ 0.9
$ 3.5
$ 3.6
Less: Stock-based compensation
—
(0.1)
—
(0.3)
Total Cost of other revenue, Non-GAAP
$ 0.9
$ 0.9
$ 3.5
$ 3.5
Cost of revenue, GAAP
$ 26.8
$ 26.3
$ 81.9
$ 79.7
Less: Depreciation and amortization
(1.2)
(1.2)
(4.8)
(4.5)
Less: Stock-based compensation
(0.6)
(0.3)
(1.8)
(1.3)
Less: Severance and other
—
—
(0.3)
(0.1)
Less: Adjustment in connection with membership benefit
—
—
2.2
—
Non-GAAP Cost of revenue included in Adjusted EBITDA
$ 24.9
$ 24.8
$ 77.2
$ 73.8
Less: Alignment of accounting policies20
—
—
—
1.0
Total Cost of revenue, Non-GAAP
$ 24.9
$ 24.9
$ 77.2
$ 74.8
20
Includes non-recurring costs reflecting the alignment of accounting policies attributable to the integration with Tile. As these adjustments are not deemed to be non-routine or one time in nature, they have not been added back to EBITDA or Adjusted EBITDA.
Operating expenses (GAAP to Non-GAAP reconciliation):
Three Months Ended December 31,
Year Ended December 31,
2023
2022
2023
2022
(in millions)
Research and development expense, GAAP
$ 26.0
$ 25.1
$ 101.0
$ 102.4
Less: Depreciation and amortization
—
—
(0.1)
—
Less: Stock-based compensation
(6.5)
(6.3)
(22.0)
(19.4)
Less: Severance and other
0.1
—
(2.7)
(0.5)
Total Research and development, Non-GAAP
$ 19.6
$ 18.8
$ 76.1
$ 82.5
Sales and marketing expense, GAAP
$ 25.7
$ 22.1
$ 99.1
$ 92.4
Less: Depreciation and amortization
(1.1)
(1.1)
(4.2)
(4.3)
Less: Stock-based compensation
(0.8)
(0.7)
(3.1)
(3.7)
Less: Severance and other
—
(0.1)
(0.9)
(0.6)
Total Sales and marketing expense, Non-GAAP
$ 23.7
$ 20.2
$ 90.9
$ 83.8
General and administrative expense, GAAP
$ 12.8
$ 10.5
$ 52.6
$ 48.1
Less: Depreciation and amortization
—
(0.1)
—
(0.4)
Less: Stock-based compensation
(2.9)
(2.9)
(11.6)
(10.1)
Less: Severance and other
(0.1)
(1.6)
(1.2)
(9.1)
Total General and administrative expense, Non-GAAP
$ 9.8
$ 5.9
$ 39.7
$ 28.5
Total Operating expenses, GAAP
$ 64.5
$ 57.7
$ 252.6
$ 243.0
Less: Depreciation and amortization
(1.1)
(1.2)
(4.3)
(4.7)
Less: Stock-based compensation
(10.2)
(9.9)
(36.7)
(33.2)
Less: Severance and other
(0.1)
(1.7)
(4.8)
(10.2)
Total Operating expenses, Non-GAAP
$ 53.1
$ 44.9
$ 206.8
$ 194.8
Note: The financial information in this announcement may not add or recalculate due to rounding. All references to $ are to U.S. dollar.
View original content to download multimedia:https://www.prnewswire.com/news-releases/life360-reports-cy-2023-results-302076508.html
SOURCE Life360
You may like
The wholesale purchase acquisition will preserve Fiery as an independent DFE provider and strengthen its industry leadership.
FREMONT, Calif., Sept. 18, 2024 /PRNewswire/ — Fiery, LLC (“Fiery”), the print industry’s leading innovator of digital front ends (DFEs) and workflow software, today announced that Fiery’s ownership has entered into an agreement with Seiko Epson Corporation (“Epson”) whereby Epson will acquire Fiery from Siris Capital Group, LLC (“Siris”, together with its affiliates, including Electronics for Imaging, Inc.) in a transaction valued at approximately $591 million.
Fiery’s industry-leading products have enabled the exceptional color, personalization, performance, and efficiency that print businesses have relied on for more than three decades. Fiery’s software, server, and workflow solutions will complement Epson’s strategic vision and hardware leadership to drive growth across a broad range of print devices and applications.
By joining Epson, a global leader in innovation, Fiery is better positioned to scale, drive innovation, and continue delivering cutting-edge solutions to its customers while maintaining its independence in areas where the company excels.
Following the consummation of the transaction, Fiery will continue to operate as an independent provider of DFEs and workflow solutions to empower OEM partners to deliver the best possible output from their devices and accelerate the development of digital printing around the world.
“Epson’s acquisition of Fiery showcases the uniquely important role we play in enabling success across the entire print industry,” said Toby Weiss, CEO of Fiery. “Fiery has a demonstrated track record of empowering OEM partners to deliver the best possible results for its customers, and we look forward to building upon this legacy with Epson and our valued partners. I’d also like to thank Frank and the entire Siris team for their invaluable guidance and expertise.”
“We are delighted to welcome Fiery into the Epson Group. We are confident that this agreement will not only drive further growth in our commercial and industrial printing businesses but also accelerate the digital transformation of the analog printing market in an innovative way,” said Yasunori Ogawa, President and Representative Director, Epson. “Together with Fiery, we remain committed to contributing to our customers’ success and enhancing corporate value as we pursue new opportunities in the evolving printing landscape.”
Siris acquired Fiery as part of Siris’s take-private acquisition of Electronics for Imaging, Inc. (“EFI”) in 2019. Under Siris’ ownership, Fiery separated from EFI in 2021 to become an independent company.
“Under our ownership, Toby and the Fiery team accelerated investments in innovative technologies and expanded the product portfolio for the benefit of their OEM partners,” said Frank Baker, a Co-Founder and Managing Partner at Siris. “Epson is the ideal partner for Fiery’s next chapter, and we look forward to seeing how Fiery builds upon its leading position within the print industry moving forward.”
DC Advisory and UBS Investment Bank acted as exclusive financial advisors to EFI in connection with the sale of its interests in Fiery to Epson.
The transaction remains subject to customary closing conditions including regulatory approvals and is expected to close within 2024.
About Fiery
Fiery is the leading provider of digital front ends (DFEs) and workflow solutions for the global print industry. With a customer base that includes over 2 million DFEs sold worldwide, Fiery’s industry-leading software and cloud-based technologies deliver the best possible performance, color, and print quality across a broad range of production printing devices.
Fiery’s innovative solutions empower commercial print, industrial, packaging, signs and display graphics, ceramics, building materials, textiles, and more. Through over 30 years of excellent support and service, Fiery has built an unmatched community of customers, dealers, and partners.
About Epson
Epson is a global technology leader whose philosophy of efficient, compact and precise innovation enriches lives and helps create a better world. The company is focused on solving societal issues through innovations in home and office printing, commercial and industrial printing, manufacturing, visual and lifestyle. Epson’s goal is to become carbon negative and eliminate use of exhaustible underground resources such as oil and metal by 2050.
Led by the Japan-based Seiko Epson Corporation, the worldwide Epson Group generates annual sales of more than JPY 1 trillion. www.global.epson.com
About Siris
Siris is a leading private equity firm that targets control investments in companies that provide mission-critical technology infrastructure. Siris leverages its network of exclusive Executive Partners to identify opportunities and drive strategic and operational value. Siris is based in New York and West Palm Beach and has approximately $7 billion in assets under management as of September 30, 2023.
Forward-Looking Statements
Except for historical information, all other information in this communication consists of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, and related oral statements Fiery may make, are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. For example, (1) conditions to the closing of the transaction may not be satisfied, (2) the timing of completion of the transactions is uncertain, (3) the business of Fiery may suffer as a result of uncertainty surrounding the transaction, (4) events, changes or other circumstances could occur that could give rise to the termination of the agreement, (5) there are risks related to disruption of the management’s attention from the ongoing business operations of Fiery due to the transaction, (6) the announcement or pendency of the transaction could affect the relationships of Fiery with its clients, operating results and business generally, including on the ability of Fiery to retain employees, (7) the outcome of any legal proceedings initiated against Fiery following the announcement of the transaction could adversely affect Fiery, including the ability to consummate the transaction, and (8) Fiery may be adversely affected by other economic, business, and/or competitive factors, as well as management’s response to any of the aforementioned factors. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere. Fiery does not undertake any obligation to update, correct or otherwise revise any forward-looking statements.
Fiery is a registered trademarks of Fiery, LLC in the U.S. and/or certain other countries. All other terms and product names may be trademarks or registered trademarks of their respective owners and are hereby acknowledged.
Nothing herein should be construed as a warranty in addition to the express warranty statements provided with Fiery products and services.
View original content to download multimedia:https://www.prnewswire.com/news-releases/fiery-to-be-acquired-by-epson-302252489.html
SOURCE Fiery
Technology
Siris Announces Sale of Fiery to Seiko Epson Corporation
Published
2 hours agoon
September 18, 2024By
During its ownership period, Siris partnered with Fiery to expand product portfolio and deepen strategic partnerships
NEW YORK, Sept. 18, 2024 /PRNewswire/ — Siris (together with its affiliates, including Electronics for Imaging, “Siris”), a leading private equity firm focused on investing and driving value creation in technology companies, today announced the sale of Fiery, LLC (“Fiery”) to global technology leader Seiko Epson Corporation (“Epson”) in a transaction valued at approximately $591 million.
Fiery is a leading provider of digital front end (“DFE”) servers and workflow solutions for the growing industrial and graphic arts print sectors. Utilizing a combination of software and cloud-based technologies, Fiery has a demonstrated track record of delivering fast performance, stunning color and exceptional print quality across a broad range of production printing devices.
Fiery was acquired as part of Siris’ take-private acquisition of EFI in 2019. As part of its value creation strategy, Siris operationalized Fiery as an independent company in order to position it for a strategic exit. The divestiture of Fiery is the second carveout that Siris has completed from the broader EFI portfolio, after previously selling eProductivity Software to Symphony Technology Group, announced in 2022.
“Since our investment in Fiery in 2019, Toby and the team have grown the company’s leadership position in the DFE market, making significant progress expanding the product portfolio and deepening strategic partnerships,” said Frank Baker, a Co-Founder and Managing Partner at Siris. “Our partnership with Fiery is a great example of how we partner with management teams to drive value and position companies for continued long-term success. We look forward to seeing how the company continues to thrive with Epson moving forward.”
Mr. Baker added, “Post separation and divestiture of Fiery and eProductivity Software, EFI is now a streamlined, leading provider of industrial inkjet solutions for the display graphics, packaging and textiles industries with a broad range of printers, inks and service capabilities. We will continue to support EFI as it drives the exciting digital printing transition across a broad range of industrial end markets globally.”
“With Siris’ partnership and investment, we successfully raised the standards of digital printing excellence across a diverse range of operating segments,” said Toby Weiss, Chief Executive Officer of Fiery. “We are thrilled to embark on our next phase of growth alongside Epson, as we continue to provide our customers with dynamic solutions for their digital printing needs.”
The transaction is expected to close within 2024, subject to customary closing conditions including required regulatory approvals. Upon transaction close, Fiery will become part of the Epson group, retain its current name and organizational structure and continue to operate from its existing offices.
DC Advisory and UBS Investment Bank acted as exclusive financial advisors to EFI in connection with the sale of its interests in Fiery, LLC to Seiko Epson Corporation. Sidley Austin LLP served as legal advisor to Siris.
About Siris
Siris is a leading private equity firm that targets control investments in companies that provide mission-critical technology infrastructure. Siris leverages its network of exclusive Executive Partners to identify opportunities and drive strategic and operational value. Siris is based in New York and West Palm Beach and has approximately $7 billion in assets under management as of December 31, 2023. https://siris.com/
About Fiery
Fiery is the leading provider of digital front ends (DFEs) and workflow solutions for the global print industry. With a customer base that includes over 2 million DFEs sold worldwide, Fiery’s industry-leading software and cloud-based technologies deliver the best possible performance, color, and print quality across a broad range of production printing devices.
Fiery’s innovative solutions empower commercial print, industrial, packaging, signs and display graphics, ceramics, building materials, textiles, and more. Through over 30 years of excellent support and service, Fiery has built an unmatched community of customers, dealers, and partners.
Forward-Looking Statements
Except for historical information, all other information in this communication consists of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, and related oral statements Siris may make, are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. For example, (1) conditions to the closing of the transaction may not be satisfied, (2) the timing of completion of the transactions is uncertain, (3) the business of Fiery may suffer as a result of uncertainty surrounding the transaction, (4) events, changes or other circumstances could occur that could give rise to the termination of the agreement, (5) there are risks related to disruption of the management’s attention from the ongoing business operations of Fiery due to the transaction, (6) the announcement or pendency of the transaction could affect the relationships of Fiery with its clients, operating results and business generally, including on the ability of Fiery to retain employees, (7) the outcome of any legal proceedings initiated against Fiery following the announcement of the transaction could adversely affect Fiery, including the ability to consummate the transaction, and (8) Fiery may be adversely affected by other economic, business, and/or competitive factors, as well as management’s response to any of the aforementioned factors.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere. Siris does not undertake any obligation to update, correct or otherwise revise any forward-looking statements.
View original content to download multimedia:https://www.prnewswire.com/news-releases/siris-announces-sale-of-fiery-to-seiko-epson-corporation-302252493.html
SOURCE Siris Capital Group, LLC
Technology
Inspection Robots Market to Grow by USD 5.70 Billion from 2024-2028, with AI Driven Advantages Over Manual Methods Boosting Revenue – Technavio Report
Published
3 hours agoon
September 18, 2024By
NEW YORK, Sept. 18, 2024 /PRNewswire/ — Report with the AI impact on market trends- The global inspection robots market size is estimated to grow by USD 5.70 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 19.86% during the forecast period. Advantages of robotic inspection over manual inspection is driving market growth, with a trend towards shift towards cloud-based solutions in inspection robots. However, rising levels of unemployment due to use of robotics poses a challenge. Key market players include Blue Origin Enterprises LP, Cognex Corp., Cross Co., Cyberhawk Innovations, Eddyfi Technologies, FARO Technologies Inc., Flyability SA, GECKO ROBOTICS INC., General Electric Co., Genesis Systems, Groupe Gorge SA, Invert Robotics Group Ltd., IPG Photonics Corp., JH Robotics Inc, Mistras Group Inc., Robotic Automation Systems, SuperDroid Robots Inc., TechnipFMC plc, and Teradyne Inc..
AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View your snapshot now
Forecast period
2024-2028
Base Year
2023
Historic Data
2018 – 2022
Segment Covered
Type (ROVs and Autonomous robots), End-user (Oil and gas, Petrochemicals, Food and beverages, and Others), and Geography (Europe, North America, APAC, South America, and Middle East and Africa)
Region Covered
Europe, North America, APAC, South America, and Middle East and Africa
Key companies profiled
Blue Origin Enterprises LP, Cognex Corp., Cross Co., Cyberhawk Innovations, Eddyfi Technologies, FARO Technologies Inc., Flyability SA, GECKO ROBOTICS INC., General Electric Co., Genesis Systems, Groupe Gorge SA, Invert Robotics Group Ltd., IPG Photonics Corp., JH Robotics Inc, Mistras Group Inc., Robotic Automation Systems, SuperDroid Robots Inc., TechnipFMC plc, and Teradyne Inc.
Key Market Trends Fueling Growth
The global inspection robots market is experiencing notable growth due to the adoption of cloud-based solutions. Cloud computing technologies are increasingly being utilized in this industry to facilitate data storage, processing, and analysis. Cloud-based inspection robots offer several advantages, including scalability, flexibility, and accessibility. Users can access inspection data from any location and collaborate with remote teams in real-time. Predictive maintenance is also facilitated through the analysis of historical inspection data. Cloud platforms enable secure sharing of inspection data among authorized users, promoting collaborative workflows and knowledge sharing. Real-time communication and updates ensure that stakeholders remain informed about inspection activities and results. The shift towards cloud-based solutions is driving the growth potential of the global inspection robots market by enhancing efficiency and effectiveness in inspection operations, improving asset management, and boosting overall performance.
Inspection robots are gaining popularity in various industries due to the need for worker safety and the adoption of collaborative robots or cobots. These robots are equipped with sensors, cameras, and specialized tools to collect data from assets in manufacturing, construction, energy, and other sectors. They can access hard-to-reach areas, hazardous environments, and confined spaces, providing real-time visual information for maintenance assessment and safety inspections. Businesses are recognizing the complementary need for human workers and robots, with robots taking on repetitive, dangerous, or time-consuming tasks. Initial investment in inspection robots includes training and infrastructure modifications, but the long-term benefits include increased cost-efficiency, consistency, and informed decisions based on real-time data. However, economic downturns and travel restrictions may hinder robot deployment, making it essential for businesses to consider the versatility and advanced sensors of inspection robots, such as lidar, for maximum effectiveness. Despite the initial costs, the benefits of worker safety, human intervention, and data collection make inspection robots a worthwhile investment.
Insights on how AI is driving innovation, efficiency, and market growth- Request Sample!
Market Challenges
The integration of robots and robotic applications in various industries, including manufacturing, has significantly boosted productivity, economies of scale, and cost savings. However, this automation trend raises concerns about employment, as it may lead to job losses. Process automation, fueled by machine learning and artificial intelligence, is increasingly common in manufacturing, transportation, finance, and energy management. While these technologies offer performance advantages, they also pose a threat to white-collar and blue-collar jobs, particularly those involving routine, process-driven tasks. Unemployment resulting from automation may lead to income inequality and a need for workforce skill development. Governments in North America and Europe are addressing this challenge by formulating strategies to mitigate the impact of robotic automation on employment. As a result, the rising unemployment rate may hinder the growth of the global inspection robots market during the forecast period.The Inspection Robots Market is experiencing significant growth due to the increasing demand for automation in various industries. However, challenges persist. Injuries and accidents during robot operation pose safety concerns. Data organization and operational costs are key challenges in implementing robot inspections. Integration of cameras, electronics, and operating software requires specialized skills. Robots must navigate hazardous situations, making safety a top priority. The Hotel and Transport industries are major adopters, with the Internet of Things and Artificial Intelligence driving innovation. However, lack of standardization and testing methodologies hinder market growth. Mobile robots in the Mobile Robots segment lead in terms of adoption due to their ease of use and versatility. The Pharmaceutical segment benefits from robots’ efficiency and accuracy in product inspection. Patents and intellectual property are crucial for market leaders like Cognite, Honeybee Robotics, Universal Robots, Inuktun Services, LEO Robotics, and Superdroid Robotics. Robot types include collaborative robots and human-robot cooperation models, with AI and quadruped robot dogs leading the way. Safety, ease of use, and specialized training are essential considerations. Testing Type, such as non-destructive testing and visual inspection, are critical applications. The market’s future lies in the development of more advanced robots and the integration of AI for improved human-robot cooperation in quality control.
Insights into how AI is reshaping industries and driving growth- Download a Sample Report
Segment Overview
This inspection robots market report extensively covers market segmentation by
Type 1.1 ROVs1.2 Autonomous robotsEnd-user 2.1 Oil and gas2.2 Petrochemicals2.3 Food and beverages2.4 OthersGeography 3.1 Europe3.2 North America3.3 APAC3.4 South America3.5 Middle East and Africa
1.1 ROVs- ROV (Remotely Operated Vehicles), also known as inspection robots, are mobile devices controlled from a central unit, typically tethered through a cable. Their diverse shapes and designs increase flexibility and performance, driving market growth. ROVs, primarily used for underwater exploration and inspection, have low power requirements and are easy to operate. Their affordability, low maintenance costs, and suitability for confined spaces make them popular in industries requiring assistance in navigating critical areas. These factors contribute to the revenue generation of the ROV inspection robot market.
Download complimentary Sample Report to gain insights into AI’s impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2018 – 2022)
Research Analysis
Inspection robots are revolutionizing industries by automating quality control and product inspection processes, enhancing efficiency and accuracy while ensuring worker safety. These robots, including Cognite’s quadruped robot dog and ANYbotics’ human-robot cooperation models, employ AI and machine learning to identify faults, failures, leakages, and other critical issues. The adoption of cobots, such as those from Universal Robots and Mitsubishi Electric Corporation, allows for human-robot cooperation in various scenarios. Inspection robots are essential in unmanned facilities, remote locations, and harsh environments, where human presence is limited or dangerous. These robots can navigate complex terrain, inspect hard-to-reach areas, and work in extreme temperatures, ensuring the quality of products and the reliability of transportation systems. Fully autonomous inspection robots are increasingly being adopted to streamline processes and reduce costs, making them an indispensable tool for modern manufacturing and production.
Market Research Overview
Inspection robots are transforming industries by providing efficient and accurate solutions for quality control and maintenance assessment in various sectors. These robots, including quadruped robot dogs, utilize AI and collaborative robots for human-robot cooperation. They are equipped with sensors, cameras, and specialized tools to inspect assets and infrastructure in manufacturing, energy, construction, and other industries. The adoption of these robots is a complementary need to human workers, enhancing safety and consistency in product inspection and maintenance. Inspection robots are particularly valuable in harsh environments, confined spaces, and hazardous areas, where human intervention is risky or inefficient. Real-time data collection and analysis enable informed decisions, increasing cost-efficiency and effectiveness. Advanced sensors, such as lidar, ultrasonic, and thermal imaging, enable accurate defect detection and anomaly identification, leading to predictive maintenance and inspection efficiency. Businesses are investing in inspection robots to improve safety, reliability, and productivity. However, initial investment, training, and infrastructure modifications can be significant. Economic downturns and travel restrictions may impact robot deployment, but the long-term benefits outweigh the costs. Inspection robots are customizable, with options for mobile service robots, vision sensors, and semi-autonomous or fully autonomous operation. They are essential for critical scenarios, unmanned facilities, and remote locations, providing real-time data for informed decisions and ensuring safety in various industries, including aerospace, automotive, and oil and gas.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
TypeROVsAutonomous RobotsEnd-userOil And GasPetrochemicalsFood And BeveragesOthersGeographyEuropeNorth AmericaAPACSouth AmericaMiddle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
View original content to download multimedia:https://www.prnewswire.com/news-releases/inspection-robots-market-to-grow-by-usd-5-70-billion-from-2024-2028–with-ai-driven-advantages-over-manual-methods-boosting-revenue—technavio-report-302252086.html
SOURCE Technavio
Fiery to be Acquired by Epson
Siris Announces Sale of Fiery to Seiko Epson Corporation
Inspection Robots Market to Grow by USD 5.70 Billion from 2024-2028, with AI Driven Advantages Over Manual Methods Boosting Revenue – Technavio Report
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
Peloton Unveils Holiday 2022 Creative Campaign Highlighting How Motivation Transcends Beyond the Workout
These ’90s fashion trends are making a comeback in 2017
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Technology5 days ago
MSquare Technology Showcases Leadership in IP and Chiplet Innovation at the AI Hardware & Edge AI Summit
-
Technology5 days ago
Sunwoda Inside at RE+ 2024: Showcasing Comprehensive Energy Storage Solutions Across the Full Industrial Chain
-
Technology5 days ago
AI Recruitment Platform Bossjob Surpasses 4 Million Registered Users in the Philippines
-
Coin Market4 days ago
Norway town campaigns to close Bitcoin mine, electricity costs jump 20%
-
Coin Market3 days ago
Reddit user claims ChatGPT initiated a conversation from previous info
-
Technology5 days ago
Akuvox S567G Smart Indoor Monitor Has Received Google Mobile Service Certification
-
Coin Market4 days ago
Circle predicts stablecoins will become mainstream global payment method
-
Technology3 days ago
Canada Invests in Net Zero Atlantic to Create Jobs and Support Clean Energy for Atlantic Canadians