Life360, Inc. (360) Earnings Call Transcript & Summary

Good afternoon to our U.S. investors, and good morning to our Australian investors. Welcome to the 2022 Annual General Meeting of Life360, Inc. My name is John Philip Coghlan, and I am the Chairman of Life360. On behalf of the Board, it is my pleasure to address shareholders at Life360's third AGM since listing on the ASX in 2019. Today, we are very pleased to welcome those of you participating online through our virtual meeting platform provided by Lumi. This allows shareholders, proxies and guests to attend the meeting virtually. All attendees can watch a live webcast of the meeting. In addition, shareholders and proxies have the ability to ask questions and submit votes. While there's been significant easing of restrictions following the COVID-19 pandemic, given that we have security holders in the U.S., Australia and other parts of the world, we've decided to hold a virtual meeting once again in 2022 to allow participation and engagement amongst our security holders wherever they may be. Should we have any technical issues, David Wiadrowski, who chairs the Audit and Risk Committee will step in as acting Chairman. Online attendees can submit questions at any time. [Operator Instructions] Please note that while you can submit questions from now on, I will not address them until the relevant time in the meeting. Please also note that your questions may be moderated or if we receive multiple questions on 1 topic, amalgamated together. Finally, due to time constraints, we may run out of time to answer all your questions. If this happens, we will answer them in due course via e-mail. We have endeavored to answer the questions that were supplied in advance of the meeting in our prepared remarks. All questions will go through to Kirsten Daru, our General Counsel and Corporate Secretary. Kirsten will read out the question. I will either answer the question or pass it to the most appropriate person to answer. We reserve the right to rule out questions not relating to the AGM or which are out of order. [Operator Instructions] Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, I will shortly open voting for all resolutions. At that time, if you are eligible to vote at this meeting, a new voting tab will appear. Selecting this tab will bring up a list of resolutions and present you with voting options. To cast your vote, simply select one of the options. There is no need to hit a submit or enter button as the vote is automatically recorded. You do, however, have the ability to change your vote up until the time I declare voting closed. I now declare voting open on all items of business. The voting tab will soon appear. Please submit your votes at any time. I will provide advanced warning before I move to close the voting. To view documents relevant to today's meeting, select the Documents tab, a list of all available documents will appear. When selected, the document will open within the Lumi platform. You will still be able to listen to the meeting while viewing the documents. It is now after 4:30 p.m. in San Francisco, California on May 19 and correspondingly, after 9:30 a.m. in Sydney, Australia on May 20. I have been advised that a quorum is present for the matters to be considered at this meeting. I therefore declare this AGM open and welcome each of you to the virtual platform. Before I proceed with the business of the meeting, I would like to introduce my fellow directors. In the U.S. are Chris Hulls, our CEO and Co-Founder and an Executive Director; Alex Haro, a Co-Founder and Non-Executive Director; Brit Morin, Independent Non-Executive Director; Mark Goines, Independent Non-Executive Director and Chairman of the Remuneration and Nomination Committee. Randi Zuckerberg, Independent Non-Executive Director; CJ Prober; and Executive Director and CEO of our Tile business. In Australia are James Synge, Independent Non-Executive Director; and David Wiadrowski, Independent Non-Executive Director and Chairman of the Audit and Risk Committee. Also attending today are Russell Burke, our Chief Financial Officer; Kirsten Daru, our General Counsel and Corporate Secretary; and our auditor, Dan Harris from BDO. The agenda for the meeting today will be as follows: Firstly, I will give a short address on Life360's performance for the 2021 year and an overview of the company's strategy. This will be followed by a presentation from our CEO, Chris Hulls. I will then outline the meeting procedures and continue to the formal items of business. 2021 was a landmark year for Life360 in which we took a fundamental step forward in our vision of being the dominant platform for a much broader suite of family safety services. The business delivered accelerating operational metrics, and we undertook 2 transformational transactions with the acquisitions of Tile and Jiobit. Integrating these 3 businesses will position Life360 to deliver on our vision of bringing people, pets and things together in 1 unified app. In order to focus on our core and simultaneously reduce business risk, we signed a data partnership with Placer.ai to enable us to spend less time navigating the rapidly evolving regulatory environment. And we undertook our first international launch of membership in Canada providing us with a strong playbook for international expansion. The business delivered very strong operational metrics. Monthly active users increased 34% year-on-year with a particularly impressive performance in the U.S., which delivered a 39% uplift. Australia continued to be a standout performer for the year despite the impact of extended COVID-related lockdowns with MAU of 969,000, up 47% year-on-year. Worldwide Paying Circles increased 39% with the U.S. up 41%, benefiting from the increasing value of our membership offering. These operational metrics underpinned Life360's strong financial performance for the year with revenue growth of 40% to $112.6 million. The underlying EBITDA loss, excluding stock-based compensation and nonrecurring items of $13.1 million, reflected investment to grow the business. The statutory EBITDA loss was $31.4 million and statutory net loss was $33.6 million. Life360 finished 2021 with a cash balance of $231.3 million. Following the close of the Tile acquisition in January 2022, the cash balance was approximately $94.0 million. At the end of the March 2022 quarter, the cash balance was $98.0 million, placing the company in a strong capital position sufficient to fund future growth. 2021 was a tremendous year of progress against Life360's strategic objectives. Our goal to build a large user base delivered more than 35 million monthly active users. This achievement was supported by a back-to-school brand campaign and broader user acquisition channels in concert with a range of new free user features, including data breach alerts and map updates. Our goal to grow membership saw the achievement of more than 1.2 million Paying Circles with 3 consecutive quarters of record Paying Circle additions. And as mentioned, we began the first stage of the international expansion of membership with the Canada launch. And finally, our goal to expand reach and revenue saw the acquisition of Jiobit and Tile marking a fundamental step forward in our vision of being the dominant platform for a much broader suite of family safety services. The acquisition of Tile concluded the Board's strategic review, which I outlined in my 2021 address to shareholders. Life360 continues to progress our environment, social and governance initiatives to reflect our commitment to the communities we serve. We advanced our environmental commitments, with the achievement of carbon neutrality across Scope 1, 2 and 3 emissions for 2020 and developed an ESG policy to provide a framework for our future initiatives. Our greatest community contribution is the ongoing development of our membership features which simplify family safety, both physical and online Life360 quite literally saves lives, dispatching almost 20,000 ambulances during the year. And the testimonial on this page is one of many we received from grateful users. I would like to thank my fellow board members for all they contribute to Life360. Their guidance experience and expertise benefit the company and shareholders. I would like to welcome our newest Director, CJ Prober, the CEO of Tile, who joined the Board in January 2022. On behalf of the Board, I would like to thank our talented colleagues for their commitment and hard work. I would like to acknowledge Chris Hulls and his leadership team for their exceptional efforts and the transformational progress they delivered in 2021. And finally, I would like to thank you, our shareholders, for your ongoing support. Life360 is strongly positioned to deliver on our mission to simplify safeties so families can live fully. I'll now hand over to Chris Hulls, who will provide an update on the company's performance.

Thanks, John. I'm pleased to have the opportunity to provide a brief business update to our shareholders. Despite the continued disruption from COVID-19 in the U.S. and other countries, Life360 delivered accelerating operational metrics across the business in 2021. I'm particularly proud of the performance of our core U.S. membership offering, which is increasingly resonating with consumers as we expand beyond location and driving. The acquisitions of Tile and Jiobit provide the opportunity to hypercharge membership growth by expanding our use case in our total addressable market. The progress we're making becoming the go-to global brand for Family Safety is illustrated on this slide. According to market estimates by data.ai, formerly App Annie, Life360 is now ranked as the 19th most used iOS app in the United States based on install penetration. This is a tremendous achievement, given it places us just behind household names such as WhatsApp and Twitter, ahead of LinkedIn, Venmo, Walmart and other exceptionally large brands. The accelerating operational metrics, which Life360 is delivering are reflected in this slide. For the 2021 year, our global monthly active users increased 33% to 35.5 million. This performance has accelerated into 2022 with MAU reaching more than 40 million at the end of April. U.S. MAU delivered a 39% uplift to 23.7 million in 2021, and at this rate of growth has been maintained, reaching 25.6 million at the end of April. Paying Circles increased 39% to 1.2 million in 2021, delivering 3 consecutive of record additions, benefiting from a significant uplift in conversion metrics, which doubled year-on-year. In 2022, we are seeing accelerating growth with April Paying Circles exceeding 1.34 million, a year-on-year increase of 40%. This performance shows that consumers are responding to our broader range of online and physical safety features which delivered a substantially lower cost than purchasing individual subscriptions. These strong operational metrics are driving Life360's significant revenue momentum. In 2021, we delivered a revenue uplift of 40% to USD 112.6 million, at the top end of the guidance we have provided to the market with quarterly growth accelerating over the 4 quarters of the year. While Q1 of 2022 includes a step-up from the acquisitions of Tile and Jiobit, on an underlying basis, core Life360 revenue momentum strengthened further to 64% year-on-year growth. Annualized monthly revenue, excluding hardware, reached $166 million in 2022 Q1, benefiting from core Life360 growth of 51% year-on-year. The acquisitions of Tile and Jiobit dramatically expand the total addressable market for Life360 and most importantly, bring the opportunity to hypercharge the Membership model. By integrating Tile and Jiobit, our members will be able to find, connect with and protect everything that matters to them most, including people, pets and things. This provides the opportunity for broader brand reach and expansion in our markets as the joint offering appeals to new demographics such as younger children and older adults. We're excited about our ability to bundle something that people can touch and feel as part of what was previously solely a digital experience. While there are current headwinds for Tile's category and for consumer electronics more broadly, we believe this new integrated experience will drive an uplift in all key membership metrics for the opportunity for higher conversion to paid, stronger retention and opportunity for upsell to higher membership tiers. We are on schedule integrating Tile and Jiobit into our offering and are planning a back-to-school peak seasonality launch in Q3. We have seen some very encouraging results from trials of bundled Tile with an upsell offer so being a 35% uplift in subscriptions versus the control group. Given these strong early indications and the fact that available inventory may be constrained by continuing supply chain issues, our strategy is to prioritize inventory allocation for the benefit of high-margin bundled subscription over retail sales. Our CY '22 earnings expectations are unchanged from the April 2022 guidance. Core Life360 subscription revenue, not including Tile and Jiobit, growth in excess of 50%. Consolidated revenue of USD 245 million to USD 275 million for subscription hardware and direct revenue. Consolidated non-GAAP underlying EBITDA loss, excluding stock-based compensation and nonrecurring items, in the range of $32 million to $38 million. This includes efficiencies flowing in the second half from the Tile integration and restructuring. Life360 expects to finish CY '22 with cash and cash equivalents in the range of $65 million to $70 million. This includes financing-related cash outflows of approximately $8 million. This is a strong capital position to fund future growth. In addition, as demonstrated in the COVID-19 period in CY '20, Life360 has a flexible expense model with discretionary marketing spend of approximately $44 million currently projected from -- in the period from July 2022 to December 2023. While we're currently committed to driving growth, this provides an additional buffer to support the balance sheet. We expect Life360 to be on a trajectory to consistently positive operating cash flow by late CY '23 such that we record positive operating cash flow in CY '24. As a fellow shareholder, I want to conclude with some observations about the current environment for technology companies, which has heavily impacted Life360 share price over the past few months. We have already responded to this changed environment by targeting cash flow breakeven in Q4 of CY '23 with our first full year of cash flow breakeven expected in CY '24. This target has been assisted by the full integration of Tile and Jiobit to accelerate efficiencies and allows us to enter CY '23 with a leaner organizational structure. While we are currently committed to investing to support the current strong user and subscriber growth rate, our business model has the flexibility to adjust should circumstances warrant. Unlike many technology companies which rely entirely on marketing spend to drive growth, Life360 benefits from considerable organic engagement. We remain excited about the long-term opportunities for Life360 as we increasingly become a household name synonymous with family safety and security. Notwithstanding the current challenges in the hardware retail category, we are more optimistic than ever about the opportunity for our business to benefit from bundling hardware subscriptions. We see long-term value creation from increased conversion, higher retention and expansion in our addressable markets. With that, I will hand it back to John to conduct the formal part of the meeting.

Thank you, Chris. If shareholders have any questions on the updates which Chris and I have presented, please ask them now, and I will address them in turn at the end of the meeting. The Notice of Meeting was distributed on April 22, 2022, and I propose to take this Notice of Meeting as read. Before moving on to the various resolutions to be considered today, I will now briefly outline the meeting and voting procedures for today's meeting. As set out in the Notice of Meeting, each of the resolutions will be conducted by a poll. The results of the poll will be released on the ASX and will be available on the company's website as soon as possible after the meeting. As Chairman of the meeting, I will vote all directed proxies in accordance with the directions provided by shareholders. I am also holding undirected proxies in my capacity as Chairman of this meeting, and I intend to vote all such proxies in favor of all resolutions. As shareholders, you can cast your vote using the electronic voting card that you received when you registered via the online virtual platform. You're able to vote between the commencement of the meeting and the closure of voting as announced during the meeting. If you are a CDI holder attending the online meeting, you will not be able to vote using the online voting system and must have submitted your CDI voting form ahead of the meeting in accordance with procedures in the Notice of Meeting. Voting today will be conducted by way of a poll on all items of business. If you have any questions about casting your vote online, please refer to the online meeting guide that was issued with the Notice of Meeting. We will display the number of proxy votes received for each resolution as well as the terms of each proposed resolution ahead of voting on each resolution. I will now move on to the business of the meeting. The proxy materials accompanying the Notice of Meeting included detailed information, explanations and rationale around each of the items of business. For this reason, when I come to introduce each resolution, I do not propose to summarize any of the information, explanations or rationale for the resolutions, which were included in the proxy materials. That brings me to the resolutions. The first resolution of the meeting is the reelection of Chris Hulls as a Director of the company. Information relevant to Chris' proposed reelection is set out any information that accompanied the Notice of Meeting. The Board, with Chris Hulls abstaining, unanimously recommend shareholders vote for this resolution. I now invite Chris to address this meeting in relation to his reelection.

Thanks, John. I am pleased to have this opportunity to speak about my reelection as a director on the Life360 Board. I have served on the Board since the company's formation in 2007 and have remained on the Board due to the deep institutional knowledge, I bring as Co-Founder and CEO, along with my background in business and technology company experience. I have unique expertise in the Life360 product, the team that has built it and our users, all of which are a passion of mine. I believe strongly in the vision of bringing our membership experience to a broader group to the recent acquisitions of Tile and Jiobit and will work tirelessly to ensure a successful integration. My shareholding in the company means that my interests are highly aligned with yours. I've never been more optimistic about the future of the organization. I appreciate your continued support and understanding of the impact I will make in the next phases of growth as an ongoing member of the Life360 Board.

The resolution is set out on the slide. I will now address any questions regarding Chris' reelection as a director. Kirsten, do we have any online questions?

No, we don't.

Kirsten, do we have any audio questions?

No, we don't have any audio questions.

Thank you. I put to the meeting Resolution 1. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for or abstain next to resolution 1. [Voting]

As the next resolution relates to my own reelection, I propose to hand the chair to David Wiadrowski for this item.

Thank you, John. The second resolution of the meeting is the reelection of John Philip Coghlan as a director of the company. Information relevant to John's proposed reelection is set out in the information that accompanied the Notice of Meeting. The Board, with John Coghlan abstaining, unanimously recommend shareholders vote for this resolution. I now invite John to address the meeting in relation to his reelection.

Thank you, David. I'm pleased to have the opportunity to address shareholders and offer myself for reelection as a director on the Life360 Board. I've been the Chairman since 2009 and have, therefore, worked with the company since its very early days as a start-up. My previous business experience includes roles as President and CEO of Visa USA, and Vice Chairman of, the Charles Schwab Corporation, a leading financial services company in the United States. I also served as a Board member of the Rivet School, a nonprofit startup, which I Co-Founded to provide debt-free college degree attainment to less advantaged scholars. I feel that my long and varied business career, including businesses of substantial scale combined with my deep understanding of Life360 over many years have been valuable at supporting the company as it has scaled to become the significant global platform it is today. I remain even more convinced about the quite substantial future growth opportunity for Life360 than when I first joined the Board, and I'm fully committed to contributing to our delivering on that opportunity. I look forward to and would greatly appreciate your continued support.

Thank you, John. The resolution is set out on the slide. I will now address any questions regarding John's reelection as a director. Kirsten, do we have any online questions?

We do not.

And Kirsten, do we have any audio questions.

We do not have any audio questions either.

Thank you. I've put [ to the ] meeting resolution 2. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for or abstain next to resolution 2. [Voting]

I will now pass the chair back to John.

Thank you, David. The third resolution of the meeting is the reelection of CJ Prober as a director of the company. Information relevant to CJ's proposed reelection is set out in the information that accompanied the Notice of Meeting. The Board with CJ Prober abstaining, unanimously recommend shareholders vote for this resolution. I now invite CJ to address the meeting in relation to his reelection.

Thank you, John. I appreciate the opportunity to address the Life360 shareholders about my reelection as a Board member. As most of you know, I joined the Board of Life360 following the acquisition of Tile earlier this year where I was a CEO. And in the short time since bringing these 2 businesses together, my conviction on the underlying thesis for this combination has only strengthened. The integration is well underway, and we're seeing compelling early test results from our efforts to leverage Tiles to drive Life360 membership. As an executive and Board Director of Life360, I'm very excited about bringing my extensive operating experience to deliver on the promise of the Tile acquisition while at the same time working with Chris to scale the broader global membership opportunity. Thank you for your continued support.

The resolution is set out on the slide. I will now address any questions regarding CJ's reelection as a director. Kirsten, do we have any online questions?

No, we do not.

Thank you. And Kirsten, do we have any audio questions?

No audio questions either.

Thank you. I put to the meeting resolution 3. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for or abstain next to resolution 3. [Voting]

Resolution 4 relates to the issue of restricted stock units and options to Chris Hulls under the company's amended and restated 2011 Stock Plan. The Board, with Chris Hulls abstaining, unanimously recommend shareholders vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units and options to Chris. Kirsten, do we have any online questions?

No, we do not.

Thank you. And Kirsten, do we have any audio questions?

No.

Thanks very much. I put to the meeting resolution 4. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 4. [Voting]

As the next resolution relates to an issue of restricted stock units and options to myself, I propose once again to hand the chair to David Wiadrowski for this item.

Thank you, John. Resolution 5 relates to the approval of the issue of restricted stock units and options to John Philip Coghlan under the amended and restated company's 2011 Stock Plan, the Board, with John Philip Coghlan abstaining, unanimously recommends shareholders to vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units and options to John. Kirsten, do we have any online questions?

No, we do not.

And Kirsten, do we have any audio questions?

We do not have any audio questions either.

Thank you, Kirsten. I put to the meeting resolution 5. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 5. [Voting]

I will now pass the chair back to John.

Thank you, David. Resolution 6 relates to the approval of the issue of restricted stock units and options to Brit Morin under the company's amended and restated 2011 Stock Plan. The Board, with Brit Morin abstaining, unanimously recommend shareholders vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units and options to Brit. Kirsten, do we have any online questions?

We do not have any online questions.

Thank you. And Kirsten, do we have any audio questions?

We do not have any audio questions either.

Thank you. I put to the meeting resolution 6. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 6. [Voting]

Resolution 7 relates to the approval of the issue of restricted stock units to James Synge under the company's amended and restated 2011 Stock Plan, the Board, with James Synge abstaining, unanimously recommend shareholders vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units and options to James. Kirsten, do we have any online questions?

No, we do not.

Thank you very much. And Kirsten, do we have any audio questions?

No audio questions either.

Thank you. I put to the meeting resolution 7. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 7. [Voting]

Resolution 8 relates to the approval of the issue of restricted stock units and options to Mark Goines under the company's amended and restated 2011 Stock Plan. The Board, with Mark Goines abstaining, unanimously recommend shareholders vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units and options to Mark, Kirsten, do we have any online questions?

No, we do not.

Thank you. And Kirsten, do we have any audio questions?

No audio questions either.

Thank you again. I put to the meeting Resolution 8. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 8. [Voting]

Resolution 9 relates to the approval of the issue of restricted stock units and options to David Wiadrowski under the company's amended and restated 2011 Stock Plan. The Board, with David Wiadrowski abstaining, unanimously recommend shareholders vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units and options to David. Kirsten, do we have any online questions?

No, we do not.

Thank you. And Kirsten, do we have any audio questions?

No audio questions either.

I put to the meeting Resolution 9. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 9. [Voting]

Resolution 10 relates to the approval of the issue of restricted stock units and options to Randi Zuckerberg under the company's amended and restated 2011 Stock Plan. The Board, with Randi Zuckerberg abstaining, unanimously recommend shareholders vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units and options to Randi. Kirsten, do we have any online questions?

No, we do not.

Thank you. And Kirsten, do we have any audio questions?

No audio questions.

Thank you. I put to the meeting Resolution 10. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 10. [Voting]

Resolution 11 relates to the approval of the issue of restricted stock units and options to Alex Haro under the company's amended and restated 2011 Stock Plan. The Board, with Alex Haro abstaining, unanimously recommend shareholders vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units and options to Alex. Kirsten, do we have any online questions?

No, we do not.

And Kirsten, do we have any audio questions?

No audio questions either.

Thank you. I put to the meeting resolution 11. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 11. [Voting]

Resolution 12 relates to the approval of the issue of restricted stock units and options to CJ Prober under the company's amended and restated 2011 Stock Plan. The Board, with CJ Prober abstaining, unanimously recommend shareholders vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units and options to CJ. Kirsten, do we have any online questions?

No, we do not.

And Kirsten, do we have any audio questions?

No audio questions.

I put to the meeting resolution 12. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 12. [Voting]

Resolution 13 relates to the approval of the issues of shares of common stock and convertible promissory notes, which were issued in conjunction with the acquisition of Jio, Inc. The Board unanimously recommend shareholders vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the approval of shares of common stock and convertible promissory notes issued in conjunction with the acquisition of Jio, Inc. Kirsten, do we have any online questions?

No, we do not.

And Kirsten, do we have any audio questions?

No audio questions either.

Thank you. I put to the meeting resolution 13. The proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 13. [Voting]

Resolution 14 relates to the approval of an institutional placement of 13,350,000 [ CHESS Depositary Instruments ], CDIs, which were issued in conjunction with the acquisition of Tile, Inc. The Board unanimously recommends shareholders vote for this resolution. The resolution is set out on the slide. I will now address any questions regarding the approval of the institutional placement of 13,350,000 CDIs issued in conjunction with the acquisition of Tile, Inc. Kirsten, do we have any online questions?

No, we do not.

Thank you. And Kirsten, do we have any audio questions?

No audio questions.

Thank you. I put to the meeting Resolution 14, the proxies received are on the screen. On your electronic voting cards, through the voting icon, please now select for, against or abstain next to Resolution 14. [Voting]

Resolution 15 relates to the approval of shares of common stock, which were issued in conjunction with the acquisition of Tile, Inc. The Board unanimously recommend shareholders vote for this resolution. The resolution is set out on the slide. I will now address any issues regarding the approval of shares of common stock issued in conjunction with the acquisition of Tile, Inc. Kirsten, do we have any online questions?

No, we do not.

Thank you. And Kirsten, do we have any audio questions?

No audio questions either.

Thank you. I put to the meeting resolution 15, the proxies received are on the screen. On your electronic voting card, through the voting icon, please now select for, against or abstain next to resolution 15. [Voting]

Ladies and gentlemen, that concludes our discussion on the items of business. I will shortly close the voting system. Please ensure that you have cast your votes on all resolutions. I will now pause to allow you time to finalize those votes. [Voting]

Voting is now closed. Thank you. As I mentioned earlier, the results of this meeting will be announced to the ASX as soon as the votes have been counted and verified. That completes the formal business of the meeting. I will now answer any questions received on the 2021 annual report and any general questions that we have received. Kirsten, do we have any online questions?

No, we do not.

And Kirsten, do we have any audio questions?

No audio questions.

Thank you. I believe that we've answered all questions received. But before I close the meeting, Kirsten, are there any final questions that shareholders have?

No, there are not.

Thank you. If there are any further queries, I encourage you to send them to our Investor Relations e-mail address, which is available on the company's website. That concludes the business of the meeting, and I now declare this annual meeting closed. Thank you for your time, your questions and your continued engagement and support.