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Life360 (ASX:360), the popular family tracking app, has recently updated its revenue projections for the year, buoyed by robust user growth and ambitious plans for its global advertising expansion.
Revenue Guidance Upgraded
The Silicon Valley-based company now anticipates its revenue for the 2024 calendar year will range between $US370 million and $US378 million. This is a notable increase from the previous guidance of $US365 million to $US370 million. This revision comes on the back of a significant user base expansion, with Life360 adding 4.3 million new users in the last quarter alone.
Financial Performance and Future Outlook
Life360 is forecasting an EBITDA loss between $US8 million and $US13 million for the year, while adjusted EBITDA is expected to fall between $US36 million and $US41 million. The company’s share price has surged by 98% year-to-date, reflecting strong investor interest.
In June, Life360 completed its initial public offering (IPO) on the Nasdaq, raising $US5.8 million in IPO costs which contributed to a net loss of $US11 million for the quarter. This loss was an increase from $US2 million in the same period the previous year. Despite these costs, Life360 remains optimistic about its path to sustained positive EBITDA by 2025.
User Growth and Financial Milestones
Life360 ended the quarter with $US162 million in cash, marking a significant increase of $US87.4 million from the previous quarter. The company’s total user base has now reached 70.6 million, a milestone that has driven revenue growth of over 20%, reaching $US84.9 million.
In Australia and New Zealand, Life360 boasts 2.4 million users. The company also achieved a 25% increase year-over-year in paying members, reaching a total of 2 million paying users. Average revenue per paying account has risen nearly 6%, underscoring the company's successful monetization strategies.
Expansion and Advertising
Life360 is positioning itself for further growth with plans to scale its advertising business. Having launched its ad offerings in the US earlier this year, the company has already seen expanding revenue from this new segment. CEO Chris Hulls expressed confidence in the company’s ability to substantially increase ad revenue, stating that Life360 is actively engaging with large advertisers and potential partners that align with its family-focused user base.
With a strong user base and an expanding revenue stream from advertising, Life360 (ASX:360) is set to continue its growth trajectory, making it a noteworthy company to watch in the technology and digital advertising sectors.
