<aside> <img src="/icons/calendar_green.svg" alt="/icons/calendar_green.svg" width="40px" /> This January 2024 update reviews our performance from December, 2023.
You can expect to see our next update on February 20, 2024, reviewing performance for January 1-31st, 2024
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https://www.loom.com/share/3802806ca1904ca19ad176cf8c1ef8a3
<aside> <img src="/icons/circle-dot_green.svg" alt="/icons/circle-dot_green.svg" width="40px" /> Levels Investors –
In October we shifted our focus to improving contribution margin and decreasing burn while we worked toward delivering a path to non-linear growth. December marks our third straight month of improvement in our contribution margin which grew by $115k to $282k. While some of the drivers for the improvement this month were non-recurring, our underlying fundamentals were stronger than expected. We’ve updated our goals for Q1 of 2024 accordingly.
In Engineering, we continue to gain momentum. Our ‘What’s New’ notifications release showed meaningful improvements in opt-in rates and use retention. We also launched Habit Loops to track nutrition, wellness, and other positive routines with or without a CGM on. We expect to have early results from this release in January.
December was a comparatively quiet month for our Growth and Operations teams. December is slower seasonally because it follows a heavy purchasing period in Black Friday, and precedes a busy health-related spending period with New Year’s resolutions to start the year.
In growth, we focused on lifecycle campaigns and saw strong results from partner thought leaders - this helped us finish the month with better-than-expected acquisition results.
Operations supported cross-functional efforts on app development and growth. The team prepared for a busy month ahead in January with a busy season of renewals as well as new customers joining during the New Year’s resolution season.
<aside> <img src="/icons/arrow-right-basic_green.svg" alt="/icons/arrow-right-basic_green.svg" width="40px" /> Looking ahead to January
We’re looking forward to one of our busiest months with expected high volumes of new and returning customers seeking a health-conscious start to the new year.
Our growth team will be leaning into the new year trend by focusing on lifecycle and new year campaigns to capture demand from existing leads and lapsed subscriptions.
In operations, we’re gearing up to serve these customers by adding more agents to achieve same-day issue resolution. We’re aiming to achieve 80% support response within 3 hours.
In Engineering, we’re looking forward to improvements to the logging experience through advanced food search and customizable logging templates. We’re also planning to roll out explainable meal scores which provides more clarity to customers about how our scores are calculated and incentivizes more consistent and comprehensive logging.
We’ve also increased our expectation for contribution margin in Q1 2024 after better-than-expected results in Q4 2023. The contribution margin for January will be higher than previously forecast but slightly down from December.
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<aside> <img src="/icons/help-alternate_green.svg" alt="/icons/help-alternate_green.svg" width="40px" /> Asks
<aside> 🤝 Network Referrals - 💼 General Counsel Our current General Counsel, Zac Henderson, is leading the search for his replacement — he’s transitioning out of corporate practice later this year. Please share this listing with your networks and send your top-tier tech lawyers our way!
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<aside> 🙏 Special thanks this month to Nick Roumbakis and Will Young.
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<aside> 👉 In December we saw stronger-than-expected contribution improvements despite expected seasonal month-over-month declines in customer acquisition metrics. The underlying reason for this is revenue stability, due to 89% of reported revenue being based on annual subscriptions and invoice timing for device sales resulting in better-than-expected margins in December which is a non-recurring improvement in the month. We expect acquisition, retention, and spending metrics to improve in Q1 and have increased our expectations for contribution margin for the quarter.
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<aside> 📝 Definitions for Contribution margin, New customers, LTV:CAC, 12 month retention, and Runway are included in our Metrics Appendix.
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