Life360 (ASX: 360) shares jump on over 100% revenue growth in CY22, upbeat guidance

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 Life360 (ASX: 360) shares jump on over 100% revenue growth in CY22, upbeat guidance
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Highlight:

  • Life360 Inc shares jumped as much as 7.2% in opening trade on Friday.
  • The company reported its CY2022 earnings today.
  • Its revenue in CY22 saw a growth of 103%.

Life360 Inc (ASX: 360) shares got a major boost on Friday, 17 March 2023, after the location service provider reported over 100% growth in its CY2022 revenue and provided upbeat guidance for CY2023. As of 10:45 am AEDT, 360 shares were up 2.5% at AU$4.960, outperforming the broader S&P/ASX 200 index (up 0.28% at 6,985.10 at the time of drafting) by a wider margin. 360 shares surged as much as 7.2% in the opening trade to an intraday high of AU$5.190.

Today's up move in Life360 shares was triggered by the announcement of CY22 earnings by the company. The San Francisco-based tech company reported 103% growth in CY22 revenue at US$228.3 million, while subscription revenue jumped by 77% annually to US$153.3 million.

The company also saw record annual growth of 37% or 13.1 million in its global monthly active users (MAU) at 48.6 million.

The tech company's total revenues in CY22 also got a decent contribution of US$47.9 million from the hardware division and US$27.1 million from others.

Explaining the revenue growth, the company said it was driven by 23% increase in paying circles to 1.5 million and 19% growth in average revenue per paying circle (ARPPC).

However, the company reported a net loss of US$91.6 million and an adjusted EBITDA loss of US$40.1 million, which was in line with the guidance given by the company.

Total operating expenses of the company jumped by almost 100% to US$243 million as against US$122.1 million in 2021. The company said the jump in expenses was because of the acquisition of Tile and Jiobit, ESOP cost, deal-related depreciation and amortization, and investment in integrating the combined businesses. 

Guidance for CY23

Commenting on CY23 outlook, Life360 Chief Executive Officer Chris Hulls said:

ASX 360

In terms of numbers, for CY23, Life360 expects revenue of US$300 million-US$310 million, which reflects a growth of 31.4%-35.8% over CY22 revenue of US$228.3 million. It core Life360 subscription revenue is expected to grow by 50% annually while hardware revenue is seen growing by 0%-5%. Meanwhile, other revenues may come in at US$26 million.

Also, the company expects to report a positive EBITDA of US$5 million-US$10 million for CY23.

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