Good afternoon to our U.S. investors, and good morning to our Australian investors. Welcome to the 2023 Annual General Meeting of Life360, Inc. My name is John Philip Coghlan, I am the Chairman of Life360. On behalf of the Board, it is my pleasure to address shareholders at Life360's 4th AGM since listing on the ASX in 2019. Today, we're 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 have decided to hold a virtual meeting once again in 2023 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. To ask a written question, select the messaging tab at the top of the Lumi platform. Select the topic your question relates to from the dropdown list, and then type your question in the box towards the top of the page. Press the arrow symbol to send.
A copy of your submitted questions, along with any written responses from our meeting team, can be viewed by selecting My Messages. 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 one 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 mail. All questions will go through to Paul Leitner, our Deputy General Counsel. Paul 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.
To ask your question verbally, click on the Request to Speak button at the bottom of the broadcast window. The audio questions interface will now display. You will be prompted to confirm your name and enter the topic of your question. Submit your request and follow the instructions to allow access to your microphone and connect to the queue. Please note, while you can submit questions from now on, I will not address them until the relevant time in the meeting. Shortly, I will declare voting open on all items of business. 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. Your vote is automatically recorded.
There's no need to press a submit or enter button. 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 give you a warning before I move to close 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 Mateo, California, on May 30th, and correspondingly after 9:30 A.M. in Sydney, Australia, on May 31st.
I have been advised by our Inspector of Election, Computershare Trust Company, N.A., that proxies have been received in respect to the total number of outstanding shares that constitute a quorum 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'd 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, an Executive Director. 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, Paul Leitner, our Deputy General Counsel, our 2022 auditor, Doug Hart from BDO, and our proposed new 2023 auditor, Joseph Prast from Deloitte. The agenda for the meeting today will be as follows: firstly, I will give a short address on Life360's performance for the 2022 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. Thank you to our shareholders for joining the annual general meeting today. Life360 is cementing its position as the world's leading family safety membership service, offering an all-in-one solution designed for modern life. During 2022, the company demonstrated pleasing progress against our strategic objectives.
We achieved our largest ever annual growth in global monthly active users to around 49 million. We delivered accelerating momentum in core subscription revenue, with strong paying circle growth and the early impact of meaningful price increases. Our pricing power demonstrates the considerable value that we are delivering to our members. We executed the Tile integration strategy, bringing together the Life360, Tile, and Jiobit teams into a single company. We built the platform to support the bundled Life360 and Tile membership offering, which launched during the first quarter of 2023. Finally, we established a path to profitability beginning in 2023. This goal is underpinned by strong revenue momentum and an integrated, leaner, and scalable cost base. Annualized monthly revenue for the month of December increased 61% to $224 million, a measure of the strength of Life360's recurring revenue.
We have seen continued strong momentum into the first quarter of 2023, achieving positive adjusted EBITDA one quarter earlier than our expectations. Life360 delivered calendar year 2022 revenue of $228.3 million, a year-on-year increase of 103%. This performance benefited from strong core Life360 subscription revenue growth of 54% on a like-for-like basis, and the contributions from the Tile and Jiobit acquisitions. Adjusted EBITDA loss, excluding stock-based compensation and non-recurring items of a - $40.1 million, reflected investment to accelerate the integration of Life360, Tile, and Jiobit. The EBITDA loss was a - $85.2 million, and net loss was a - $91.6 million. Life360 ended the calendar year 2022 with cash, restricted cash, and cash equivalents of $90.4 million.
This included the net proceeds of $32.2 million from our November capital raise, which was well supported by shareholders. The company is in a strong position to navigate the uncertainties of the broader macroeconomic environment. At Life360, we're progressing our environmental, social, and governance activities, a reflection of our commitment to the communities that we serve. Initiatives are underway across all three ESG pillars. I'll make special mention of the progress we made with our people policies as we brought together the Life360, Tile, and Jiobit terms during calendar year 2022. Our corporate values were refreshed, and we established a new approach to create a culture of belonging, with further details available in the annual report. Undoubtedly, the key contribution Life360 makes to the community is our mission to simplify safety so families are connected and protected.
During the year, we dispatched more than 34,000 ambulances, as well as billions of safe arrival notifications, illustrating the peace of mind our core proposition delivers. I would like to express my appreciation to my fellow board members for their contribution to Life360 over the past year. Shareholders greatly benefit from their expertise and guidance. On behalf of the Board, I thank our colleagues, including those who, unfortunately, have had to leave the business, for their hard work and commitment. We are grateful for their talent and dedication, which have contributed to the successful integration of the Life360, Tile, and Jiobit businesses, and established the next important steps in our strategy. I acknowledge Chris Hulls and his leadership team for their work in implementing our vision for a fully integrated and differentiated location platform.
Finally, I would like to thank our shareholders for their ongoing support of the company and participation in the November 2022 capital raising. Life360 is better positioned than ever to deliver on our mission to offer peace of mind designed for modern life. I'll now hand it over to Chris Hulls, who will provide an update on the company's performance. Chris?
Thank you, John, and good morning to our shareholders. I am pleased to be able to provide you with a brief business update and a deeper dive into the operating metrics driving Life360's performance. 2022 was a tremendous year of progress for the company in delivering against our strategic objectives, and we're seeing strong momentum in the Q1 results we recently delivered to the market. John mentioned that during 2022, we achieved our largest ever annual growth in monthly active users, and we've seen continued progress in Q1 with a 33% uplift to around 51 million users. We have seen continued strength in our returning monthly active users, or RMAU, reflecting the increasing engagement of our user base....
We believe we have absolute top-tier retention for a mobile app, with users who signed up nearly a decade ago, just as engaged with the product as they were when they initially registered. During CY 2022, global paying circles increased 23% year-on-year, with U.S. paying circles growth achieved even while implementing significant price increases during Q4. As we guided to in November, Q4 subscribers were stable at Q3 levels, reflecting the one-time impact on churn as we implemented price increases across the existing iOS subscriber base. During Q1, paying circles returned to growth, with global net subscriber additions of 73,000, ahead of the 69,000 achieved in Q1 2022. This is a very positive result, given the magnitude of the price increases implemented in Q4 2022. During Q1, international paying circles increased 50% year-over-year, with net adds at close to all-time record levels.
The AR PPC chart reflects the achievement of significant price increases across all our U.S. iOS monthly membership tiers, including our legacy product lines. Price increases were already in place for new monthly Android subscribers and have extended to existing monthly Android subscribers during Q2. The impact from the size and timing of these price increases is reflected in the U.S. AR PPC chart, with a 43% uplift to $140 in Q1. These strong operational metrics are driving significant growth in Life360's recurring revenue over the course of 2022, with a further uplift in Q1, which delivered 41% year-over-year growth. Quarterly annualized monthly revenue delivered a significant uplift in Q4 of 2022, and a further step up in Q1, reflecting the benefit of price increases. AMR has more than tripled since our IPO in May of 2019.
John provided an overview of the 2022 financial results, and this slide highlights the progress we have made in Q1. Subscription revenue growth of 56% reflects the paying circle additions and AR PPC uplift, as I've just outlined. Hardware revenue increased 3% year-over-year. Our primary focus is on driving subscription revenue rather than standalone retail sales, and this year-over-year growth was achieved despite significant reductions in headcount, marketing, and R&D expenses in our devices business. We will continue to be disciplined in regard to our spending in this part of the business as part of our emphasis on cash flow. Despite this conservative level of investment, we are continuing to make meaningful improvements to our devices lineup, including our anti-theft mode, use case bundles, and most recently, a newly announced partnership with Google to leverage Android phones to expand our network reach in the future.
Other revenue of $6.5 million reduced 21% year-over-year. We made the strategic decision to shift to a single aggregated data partnership, and the prior corresponding quarter included revenue from the previous agreement. We earlier provided guidance for Life360 to achieve adjusted EBITDA profitability from Q2 2023 onwards and for full year CY 2023. We have achieved this milestone a quarter early, with Q1 2023 positive adjusted EBITDA of $0.5 million. The impact of price increases, combined with better than expected net subscriber additions, delivered ongoing strong momentum in subscription revenue. This positive trend, coupled with the impact of additional cost efficiencies implemented in January, supported the achievement of our adjusted profitability target ahead of schedule. In a time of macro uncertainty, we are focused on balancing fiscal responsibility with prudent investment to position the business for long-term success.
We have a strong balance sheet with cash, restricted cash, and cash equivalents of $76.1 million at March 2023 quarter end. Turning to our focus on the remainder of 2023 and our continued mission to simplify safety for families. There are four pillars to our strategy, each of which build on the progress we achieved in CY 2022. We are investing in the core as we continue to believe we have significant opportunities to improve the user experience and further differentiate ourselves from our competitors, who have much more limited functionality. We are driving membership through a bundled Tile offering, which is fully rolled out in the U.S. market.
We are excited about opportunities over time to improve paid user conversion and retention, and while it is early days, we are excited by what appears to be a material improvement in retention, which is the signal we were hoping for at launch. While the initial launch did not focus on increasing top-of-funnel conversion, in coming months, we will be rolling out user flows that more aggressively bring people into the Tile experience. We expect this to drive increases in conversion in the second half of the year, in particular, during our critical back-to-school season. We anticipate another year of strong momentum, with guidance of more than 50% year-over-year growth in subscription revenue. We are expanding internationally and have established a dedicated management team based in the U.K., with a U.K. launch planned for the second half of 2023.
Additionally, we are committed to improving the international user experience with global core features. The international rollout of Tile on the Life360 map is underway, with completion expected in coming days. Finally, we are maintaining financial discipline and driving financial leverage, building on revenue momentum, strong growth margins, and tightly managed OpEx to support our path to profitability. Our CY 2023 earnings expectations are unchanged from the guidance we provided with Q1 results. Core Life360 subscription revenue growth, excluding Tile and Jiobit, in excess of 50% year-over-year.
Hardware revenue growth of 0%-5%. Other revenue of approximately $26 million. Consolidated revenue of $300 million-$310 million. Positive adjusted EBITDA and operating cash flow of $5 million-$10 million, with positive adjusted EBITDA for each quarter of CY 2023 and positive operating cash flow anticipated on a quarterly basis, beginning with Q2 2023 and for full CY 2023. With that, I will hand 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 17th, 2023, and I propose to take the 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 this 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, if you have not already done so, you can cast your vote using the electronic voting card that you received when you registered via the online virtual platform. You are 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 the procedures in the notice of meeting. Voting today will be conducted by way of a poll on all items of business.
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 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 re-election of Mark Goines as a director of the company. Information relevant to Mark's proposed re-election is set out in the information that accompanied the notice of meeting. The Board, with Mark Goines abstaining, unanimously recommends shareholders vote for this resolution.
I now invite Mark to address the meeting in relation to his re-election.
Thanks, John. After a long experience serving on a public school board and working with companies serving families on their concerns and needs, and serving on several boards of fast-growing companies, I have tremendous empathy for families, challenges and interests, and management's focus on scaling their business. It's been a delight serving on the Life360 board of directors, supporting our millions of users and helping to guide the company, and I've never been more optimistic about the potential of our services to help families and communities live safer, happier lives. I thank shareholders for their continued support.
Thanks very much, Mark. The resolution is set out on the slide. I will now address any questions regarding Mark's re-election as a director. Paul, do we have any questions?
No, there are no questions relevant to this item.
Thank you. I put to the meeting Resolution 1a. The proxies received are on the screen. On your electronic voting card through the voting icon, please now select For or Withhold next to Resolution 1a. The next resolution of the meeting is the re-election of Alex Haro as a director of the company. Information relevant to Alex's proposed re-election is set out in the information that accompanied the notice of meeting. The Board, with Alex Haro abstaining, unanimously recommends shareholders vote for this resolution. I now invite Alex to address the meeting in relation to his re-election.
Thanks, John. As one of the founders, I am deeply honored to be a part of the Board of Life360. With a strong focus on technology and an unwavering commitment to building the best possible experience for our consumers, I am dedicated to driving our growth and ensuring we are able to meet the needs of families all around the world. I continue to be more and more excited by the day of the potential of Life360 and appreciate the opportunity to continue to drive Life360 forward. I thank shareholders for their continued support.
Thank you, Alex. The resolution is set out on the slide. I will now address any questions regarding Alex's re-election as a director. Paul, do we have any questions?
No, there are no questions relevant to this item.
Thank you. I put to the meeting Resolution 1b. The proxies received are on the screen. On your electronic voting card through the voting icon, please now select for or withhold next to Resolution 1b. The next resolution of the meeting is the re-election of Randi Zuckerberg as a director of the company. Information relevant to Randi's proposed re-election is set out in the information that accompanied the notice of meeting. The Board, with Randi Zuckerberg abstaining, unanimously recommend shareholders vote for this resolution. I now invite Randi to address the meeting in relation to her re-election.
Thank you so much, John. It has been an absolute honor serving on the Board of Life360, and I can say with my very unique blend of expertise in both technology and the arts, stemming from early days as a Facebook employee and being the creator of Facebook Live, it has been a real privilege to shape Web 2.0 technology, which has touched the lives of billions across the globe. Throughout my journey, I've personally witnessed the transformative power of connectivity and its profound impact, especially on families around the world. I'm also a working mother myself with children who use Life360. I deeply understand the significance of safety and peace of mind in today's fast-paced world. I have personally faced the challenges of striking a balance between work, family, and the need to stay connected with our loved ones.
It is this firsthand experience that really fuels my own personal dedication to ensuring that Life360 remains the leading platform in simplifying safety for families, empowering them to embrace life to the fullest, and removing the burden of everyday worries. Thank you very much to all shareholders for their continued support.
Thanks very much, Randi. The resolution is set out on the slide. I will now address any questions regarding Randi's re-election as director. Paul, do we have any questions?
No, there are no relevant questions to this item.
Thank you. I put to the meeting Resolution 1c. The proxies received are on the screen. On your electronic voting card through the voting icon, please now select for or withhold next to Resolution 1c. Resolution 2 relates to the approval of the company's Amended and Restated 2011 Stock Plan for the purposes of Listing Rule 7.2 of the Australian Securities Exchange. 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 company's Amended and Restated 2011 Stock Plan. Paul, do we have any questions?
No, there are no relevant questions to this item.
Thank you. I 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, against, or abstain next to Resolution 2. Resolution 3 relates to the issue of restricted stock units 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 to Chris. Paul, do we have any questions?
No, there are no relevant questions to this item.
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, against, or abstain next to Resolution 3. As the next resolution relates to an issue of restricted stock units to myself, I propose to hand the chair to David Wiadrowski for this item. David?
Thank you, John. Resolution 4 relates to the approval of the issue of restricted stock units to John Philip Coghlan under the Amended and Restated Company's 2011 Stock Plan. The Board, with John Philip Coghlan abstaining, unanimously recommends 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 to John. Paul, do we have any questions?
No, there are no relevant questions to this item.
Thank you, Paul. 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. I will now pass the chair back to John.
Thank you, David. Resolution five relates to the approval of the issue of restricted stock units to Brit Morin under the company's Amended and Restated 2011 Stock Plan. The Board, with Brit Morin abstaining, unanimously recommends 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 to Brit. Paul, do we have any questions?
No, there are no questions relevant to this item.
Thank you. 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. Resolution 6 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 recommends 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 to James. Paul, do we have any questions?
No, there are no questions relevant to this item.
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. Resolution 7 relates to the approval of the issue of restricted stock units to Mark Goines under the company's Amended and Restated 2011 Stock Plan. The Board, with Mark Goines abstaining, unanimously recommends shareholders vote for this resolution. Resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units to Mark. Paul, do we have any questions?
No, there are no questions relevant to this item.
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. Resolution 8 relates to the approval of the issue of restricted stock units to David Wiadrowski under the company's Amended and Restated 2011 Stock Plan. The Board, with David Wiadrowski abstaining, unanimously recommends 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 to David. Paul, do we have any questions?
No, there are no questions relevant to this item.
Thank you. 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. Resolution 9 relates to the approval of the issue of restricted stock units to Randi Zuckerberg under the company's Amended and Restated 2011 Stock Plan. The Board, with Randi Zuckerberg abstaining, unanimously recommends shareholders vote for this resolution. Resolution is set out on the slide. I will now address any questions regarding the issue of restricted stock units to Randi. Paul, do we have any questions?
No, there are no questions relevant to this item.
Thank you. 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. Resolution 10 relates to the approval of the issue of restricted stock units to Alex Haro under the company's Amended and Restated 2011 Stock Plan. The Board, with Alex Haro abstaining, unanimously recommends 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 to Alex. Paul, do we have any questions?
No, there are no questions relevant to this item.
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. Resolution 11 relates to the ratification of an institutional placement of 7,936,509 CHESS Depositary Interests. 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 ratification of the institutional placement of 7,936,509 CDIs. Paul, do we have any questions?
No, there are no questions relevant to this item.
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. Resolution 12 relates to the ratification of the selection of Deloitte & Touche LLP as the company's independent registered public accounting firm for the fiscal year ending December 31st, 2023. 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 ratification of the selection of Deloitte & Touche. Paul, do we have any questions?
No, there are no questions relevant to this item.
Thank you. 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. 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 vote on all resolutions. I will now pause to allow you time to finalize those votes. 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. We will report our final voting results on a current report on Form 8-K, to be filed with the SEC within four business days. That completes the formal business of the meeting.
I will now answer any questions received on the 2022 annual report and any general questions that we have received. Paul, do we have any questions?
Yes, Mr. Chairman. We have two questions regarding general business items. Both were submitted by Stella Wang. The first question is: In the last quarterly call, it was mentioned that U.K. paying circles grew 64%+ , even before rolling out membership. That's remarkable considering the weak consumer sentiment and high inflation in the U.K. What does the company think is driving such growth?
Thank you to Stella for that question, and I would like to refer that question to our CEO, Chris Hulls.
Sure. Thank you, John, and thank you for the question, Stella. There are really two pieces to that. One, there's the infrastructure work we've been doing that's been slowly improving the overall experience globally for the past year. Although the big bang, so to speak, will be membership later in the year, we have been improving our infrastructure with things like increased loading times, better support for Android phones, better translations. It's a little bit less of an issue in the U.K., but the experience for our customers has improved. That's reason one. The second reason is just demographic tailwinds, which we've long felt are big drivers of the business. Life360's core value proposition transcends borders, regions, cultures, socioeconomic classes, and really is having its moment to shine as digitally native parents become the norm.
In many ways, it's not surprising that we are getting this traction because the U.S. is a number of years ahead of other regions, and the U.K. is so demographically similar. We still do believe we have a significant amount of just organic, untapped demand that will continue to drive us forward and positions us very well for the triple tier membership, which we'll launch later this year.
Thank you very much, for that, Chris. Paul, what was the second question from Stella?
Yep. The second question is: The reports repeatedly stated there was a material internal control weakness that's not affecting reported financials. Could the company elaborate on what that's about and when that can be remedied?
Certainly, and thank you again, Stella. This I will refer to our CFO, Russell Burke.
Thanks, John, and thanks, Stella, for the question. As part of management's review of internal controls, we identified a material weakness in IT general controls. This was identified due to a lack of certain defined processes and controls in areas such as access management and change management. This type of weakness is very common for U.S. public companies in their first year, which is equivalent to the stage that we're at. We've started a very detailed process for remediation of this weakness as part of our overall process to deal with the requirements of Sarbanes-Oxley this year. Thanks, Mr. Chairman.
Thank you, Russell, and thank you all. I believe we've answered all questions received, but before I close the meeting, Paul, are there any final questions that shareholders have?
No, Mr. Chairman, there are no further questions.
Okay. Thank you. Well, if there are any further queries, I encourage you to send them to our investor relations email 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 and your continued engagement and support.