Life360 (ASX: 360) Shares Soar to Record High, Surpass 70 Million Users

Highlights:

• Record High Shares: Life360's (ASX: 360) shares surged 18%, reaching an all-time high after surpassing 70 million users and raising full-year revenue and earnings guidance.
• Significant User Growth: The company added 4.3 million new free users and 2 million paying subscribers by June 2024, fueling a 135% year-to-date increase in share value.
• Upgraded Financial Forecast: Life360 now projects revenue between $US370 million and $US378 million, driven by its expanding advertising business and core subscription growth, with plans to achieve consistent EBITDA positivity by 2025.

Life360’s Stock Hits New Peak

Life360 Inc. (ASX: 360), the San Francisco-based tech company known for its family tracking app and ownership of the Bluetooth tracking device Tile, saw its shares surge by 18% on Friday, reaching an all-time high. The jump followed the company's announcement that it had surpassed 70 million users globally and revised its revenue and earnings guidance upwards for the year.

Rapid User Growth Fuels Optimism
By the end of June 2024, Life360 reported a significant increase in its user base, with 2 million paying subscribers and an additional 4.3 million new free users. The company has caught investors' attention since March when it revealed plans to introduce ads on its platform, creating a new revenue stream that led to a 40% spike in share value in a single day. Currently, Life360’s shares are trading at $17.55, up 135% year-to-date, surpassing its previous high of $17.35 set earlier in August.

Upgraded Financial Outlook

Following robust revenue and user growth in the first half of 2024, Life360 has upgraded its full-year financial guidance. The company now anticipates a 25% increase in revenue for its core subscription business, driven by the back-to-school season in the US and Europe. Life360 expects total revenue to be between $US370 million (AU$560 million) and $US378 million, higher than the previously projected $US365 million to $US370 million.

Expansion Plans and Future Prospects

CEO Chris Hulls highlighted the company's plans to expand its advertising business internationally, which is expected to further boost revenue in the latter half of the year. Life360 aims to achieve consistent EBITDA positivity by 2025, with a forecasted EBITDA loss of $US8 million to $US13 million for 2024. The company is also riding the momentum from its successful $US100 million Nasdaq IPO in June, which has positioned it for future growth.

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