👉 Background: Life360 is the family social networking app founded in 2008 in San Francisco, but is listed in the ASX. It’s a subscription based platform that lets family and friends track each others location.

👉 What happened: Life360 has just announced that it’s hit 70 million users on its app which sent Life360’s shares flying 18% to an all-time high. Life360’s also upped its revenue guidance to $378 million USD in annual revenue.

👉 What else: That’s not all investors were excited about. Life360 also announced that its 'other revenue' which includes its new ad business grew 12% for the June quarter and it’s planning to expand its ad business this year.

What's the key learning?

💡First it was ads, then it was subscriptions, and now it’s subscriptions plus ads. They say, "if you're not paying for the product, you are the product," but nowadays you can be paying for the product via subscriptions, and be the product through ads.

💡Many businesses that started with an ad-based revenue model switched to subscription revenue model to expand their earnings potential. But now, subscription businesses are coming back to ads to increase their earnings

💡Think Netflix launched its new ad-tier, and Disney’s soon to introduce ads too, and of course, Life360. In fact, Life360’s shares jumped 40% in a day when it first announced it was introducing ads, and for now, it’s still riding that high.