<aside> <img src="/icons/calendar_green.svg" alt="/icons/calendar_green.svg" width="40px" /> This June 2024 update reviews our performance from May, 2024.

You can expect to see our next update on July 20, 2024, reviewing performance for June 1-30th, 2024

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<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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Overview

Loom

https://www.loom.com/share/670782cd52c0449cb997a4c32e2dd56a

Letter

<aside> <img src="/icons/circle-dot_green.svg" alt="/icons/circle-dot_green.svg" width="40px" /> Levels Investors –

As we wrapped up April, we anticipated significant product releases in May, and we are thrilled to share that May did not disappoint. Our development efforts have been fruitful, leading to the launch of exciting new product features, increased customer acquisition, and a record-breaking LTV to CAC ratio.

In product and engineering, we made significant strides in our goal to offer a standalone software experience. In May, we:

• Launched our freemium standalone software in beta at the month's end. Early feedback from customers has been very promising.
• Enhanced the speed and accuracy of logging ******with quick logging features and a new lock screen widget for even faster access.
• Developed and tested day review, reports, and insights to strengthen the feedback loops customers receive from the Levels app.

We are excited for these new features to build on the momentum we’ve established over the past few months where we’ve seen the percentage of customers logging more than 1,000 calories per day rising by 65% since February.

In growth, our customer acquisition efforts were amplified by the release of Good Energy which helped drive a 16% increase from April to May, and achieved a record LTV:CAC ratio of 4.6. Additionally, we:

• Acquired the levels.com domain, enhancing our brand presence and trust.
• Launched our internal communications platform, “Comms,” in private beta.

In operations, we reached an all-time high in support efficiency through process improvements and better content leverage. We continue to explore opportunities for further improvement, including the investigation of various AI tools.

We completed our crowdfunding and subsequent 506c investment rounds, securing a total of $10.4M. This extends our runway to 25 months, assuming increased investment, or up to 42 months at our current burn rate.

<aside> <img src="/icons/arrow-right-basic_green.svg" alt="/icons/arrow-right-basic_green.svg" width="40px" /> Next Month

We look forward to the full rollout and evaluation of our newly developed product features, including quick logging, day review, reports, and insights, with ongoing iterations.

We will finalize the beta testing of our freemium go-to-market approach for standalone software and refine our product marketing to target standalone software users.

Additionally, we will expand our beta group of comms users and leverage that platform to generate incremental margin for our business.

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<aside> <img src="/icons/help-alternate_green.svg" alt="/icons/help-alternate_green.svg" width="40px" /> Asks

<aside> 🤝 Softbank Vision Fund intro

We’re looking for connections to anyone at Softbank Vision Fund or direct introduction to Vikas Parekh.

Please reach out to @Sam Corcos ([email protected]) for the introductions.

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<aside> 🤝 Referrals for Comms

If you know of any organizations seeking an alternative to Slack for internal communications, particularly those focused on deep, asynchronous work, we would greatly appreciate direct introductions. We believe our platform, Comms, offers a superior solution and would love the opportunity to demonstrate its value to interested organizations. See below to learn more about Comms.

Please reach out to @Tony Milio ([email protected]) for the introductions.

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<aside> 🙏 Special thanks this month to Ben Grynol and Arda Kara.

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Table of Contents

Metrics

<aside> 👉 May saw several changes in our key metrics:

• We saw a substantial improvement in customer acquisition in May despite a decrease in growth spending. This led to strong results from an LTV to CAC perspective. We expect this number to soften in the coming months as our spend normalizes and acquisition returns to baseline over the summer months.
• We updated our LTV methodology to include the latest retention data. This increased the margin-adjusted LTV per customer because it allowed us to allocate value to longer-term retention. We’ve restated comparatives to reflect the updated methodology throughout this update.
• Our runway increased as a result of our fundraising initiatives. We’ve taken a conservative approach to calculating runway based on future expectations of increasing our rate of spend to capitalize on growth and R&D initiatives. As of May 2024, the runway is calculated using a future burn rate of $900k which exceeded our actual burn rate of $522k.
• We updated our projections and goals for the next three months based on year to date performance. </aside>

<aside> 📝 Definitions for New customers, LTV:CAC, 12 month retention, Normalized Burn Rate, and Runway are included in our Metrics Appendix.

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Open Roles