👉 Background: Life360 calls itself a 'family social networking app' - it is the ultimate tool for helicopter parents who want eyes on their children's movements. It also recently acquired Tile, so they're pretty much tracking anything that does and does not move.

👉 What happened: Despite its creepy nature, Life360 has grown to over 61 million people using the app each month. And in 2023, Life360 saw a 33% increase in revenue and a profit jump.

👉 What else: However, these results are not what investors are happy-dancing about. It's actually Life360's announcement to launch an advertising business to rival its existing subscription revenue that has caused its share price to shoot up 37%.

What's the key learning?

💡Today's business landscape is witnessing a full-circle revolution—from ads to subscriptions and back again.

💡Over the past decade, many companies have pivoted from ad-based revenues to the more reliable subscription revenues. The New York Times was all over that trend; they swapped ads for subscriptions many years ago.

💡But now, plot twist - companies that were all-in on subs are flirting with ads again for a little extra revenue:

• When Uber announced ads within their app, their share price jumped nearly 5%.
• When Netflix announced ads within their app, their share price jumped 25%

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