<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/739c366ca7dc4e8abb9e925e4aa7f453

Levels Investors & Team –

Our focus in February was organizing our team and continuing a quick pace of experimentation, testing, and product development as we execute against the 2023 strategy.

As a reminder, our updated strategy moves the Levels app and product towards a software-first, CGM-optional experience that provides Guidance, Action, and Accountability. Our goal is to move beyond simply helping people see how food affects their health, to helping our target persona build the habits and identity necessary to reach health goals.

CGM & our biofeedback thesis are still core to our product and brand – but the high annual cost of required CGMs has limited our addressable market and growth opportunities over the last quarter, and been the primary point of feedback from our members and prospective members. We’ve been testing lower-cost product offerings over the last few months, and are excited to continue working towards product-market fit within this strategy.

A few highlights from across the company in February:

• Our Product & Engineering teams are now configured into a pod structure with the goal of increasing velocity, decision making, and prioritization. Each pod pairs a tech lead, product manager, and front/backend implementation capacity, and is organized around a core product.
• Our Growth & Marketing efforts are oriented towards experimentation and testing of our updated product positioning, pricing, and creative across marketing surfaces. Efforts to improve our existing product marketing, simplify checkout flows to improve conversion, and continue driving new member acquisition are ongoing.
• We (re)launched our at-home Labs product to test 5 key biomarkers and give more complete insight into metabolic and cellular health, beyond glucose alone. The at-home visit is offered at-cost for $110 with results in-app, and contributes to the overall value of an annual Levels membership.
• We published a memo and held an AMA with our team to discuss our current burn, runway, and team size – which is higher than typical for companies at our stage. We’re working against the backdrop of company strategy to hit growth and product release targets, and will revisit our decision to maintain or reduce team size regularly.

Our current monthly burn remains $1.2m, providing a runway of 21 months with $25mm of cash on hand. Gross Revenue for February decreased to $1.7mm, from $2.1mm in January. This decrease was driven by the shorter than usual month, as well as the annual memberships that renewed in a batch in January.

All hands are on deck into March to iterate towards product-market fit, and to prepare all our functions for the next phase of growth and product direction. Please feel free to reach out with any questions or further discussion.

<aside> 🏦 A quick note on cash, re: SVB - March 2023

We bank primarily with First Republic Bank, but made a number of quick changes to safeguard our cash, increase amount of funds insured, and maintain access to working capital through backup accounts in the event of any other disruption.

More detail about our updated cash strategy will be shared in the March Investor Update, but if you’d like information for now, please reach out to Sam or Ryley.

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