<aside> 💡 After 12 months, all historic Investor Updates, Friday Forums, and other inside the company content can be found here:
Inside Levels - Friday Forums and Investor Updates
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Levels Investors & Team –
Hope you had a nice holiday and New Years break. Welcome back!
December was a slow month in growth for us – down 32% from November, largely due to last month’s Black Friday/Cyber Monday campaign which increased sales, as well as the industry-wide seasonality that we’ve come to expect through the December holiday period.
Our first cohort of annual member memberships were set to expire/renew at the end of 2022, and our efforts were oriented around ensuring a successful renewals season. This included app updates, a new web profile UI, and improvements to several internal processes. We expect to report our renewal rate in January.
We used the renewals opportunity to test several price points for annual membership ($99, $149, and the standard $199), and also ran a $99 Try-It campaign to measure demand for the product at a more approachable price point and 1-month time period.
These efforts support what we’ve learned since launching out of beta this past summer: feedback, data, and experimentation has shown that we’ve hit a revenue plateau with early adopters of our relatively expensive product ($2,600/year). Although we've had a software-first approach (lowering dependency on CGMs) as part of our strategy since 2020, we haven't prioritized it until now. As we allocate resources towards this approach, we're developing a product path that delivers value to the early majority (while maintaining the core Levels thesis and differentiator with closed-loop biofeedback).
Our focus for January will be releasing updates to our company and product strategies. We’ll have more to share in next month’s update on the evolution of our product direction, and the accompanying metrics that will help us measure growth, adoption, and broader product-market fit.
We’re also looking forward to the relaunch of our Metabolic Health Panel product (Labs 2.0) with new phlebotomy and lab partners featuring 5 biomarkers and an updated in-app experience.
We finished the month with $1.41m in gross revenue, $27mm of cash, and 23 months of runway. Sixty full-time team members are working within their functions to finding product market fit beyond our early adopters. Our current monthly burn target of 1.2mm.
As always, please reach out with any questions, suggestions, or insights. We appreciate your continued and ongoing support.
Table of Contents
https://www.loom.com/share/297bf84a553f4763a209aac12b8269dd
We launched the first iteration of quarterly functional OKRs in October for Q4 of 2022. This effort was intended to align our functions towards company objectives, provide clarity on direction, and allow for accountability and resource allocation on those highest priorities.
We’ve learned from the objective setting process across the company, and we’ll be refocusing metrics in Q1 on the core growth and product-market fit measurements that will serve as inputs to our strategic thinking and thought process as our product evolves. We don’t want to optimize towards metrics that won’t help us achieve our growth goals.
You can expect an update to this format with Q1 metrics in January’s update.
<aside> 🔁 Member Retention
Percentage of members active more than 30 days after activating Levels, within the past month.
(-) no change from November
Active members have, over the course of the prior week, 1) input a food or exercise log, and/or 2) imported glucose data.
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<aside> 🆕 New Member Acquisition
Month over month growth in new membership sales.
We had 1,427 new membership purchases in December, -32.9% m/m from 2,129 in November.
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<aside> 🎯 Goals and targets to be added in January 2023.
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<aside> 🛣️ Member Health Improvement
Member Health Improvement is a top level steering objective, but requires longer-term data readouts to begin reporting on accurately.
Our IRB study, along with internal data sets will be one of several sources to provide metrics associated with positive health outcomes in our members over time. In the meantime, this goal remains top of mind for decision making and prioritization.
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We had 60 fulltime team members at the end of December 2022, and don’t have plans to expand the team meaningfully through the first half of 2023.