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Highlights
- Life360 shares fell over 5% early Wednesday before recovering slightly, following Q3 earnings that missed revenue expectations.
- The company reported revenue of AU$92.9 million, with a significant rise in Monthly Active Users to 76.9 million.
- Life360 continues to expand partnerships, launching collaborations with Uber and expanding its international footprint.
Shares of Life360 Inc. (ASX:360), the Australian-listed family tracking app provider, experienced early volatility on Wednesday following the release of its Q3 2024 earnings report. Initially dropping by more than 5% in early trading, shares later recovered to trade at AU$24.44, marking a modest gain of over 1% by mid-morning. Investors appeared cautious as they processed the mixed results, despite solid growth in user engagement and subscriptions.
Life360’s Q3 financial report revealed a year-over-year revenue increase of 18%, reaching AU$92.9 million. Subscription revenue, a key metric for the company, rose by 27% to AU$71.8 million. Monthly Active Users (MAU) surged to a record 76.9 million, boosted by 6.3 million new users added during the quarter, a 32% rise compared to last year. Paying Circles, which measure groups of users subscribing to Life360’s premium features, also grew significantly, adding 159,000 new subscriptions—a 35% increase year-over-year.
The company also achieved substantial growth in net profit, reporting AU$7.7 million for the quarter, up from nearly AU$5 million the previous year. Additionally, the average revenue per Paying Circle increased by 6%, attributed to strong performance in the U.S. market.
However, despite these positive results, Life360 fell short of analysts’ revenue expectations. The company reported revenue of AU$92.9 million, slightly below the anticipated AU$97.8 million. This shortfall appears to have prompted the early share price dip, as investors reassessed Life360’s growth prospects.
Among the highlights of Q3, Life360 launched a strategic partnership with Uber to integrate location-based advertising. CEO Chris Hulls highlighted that this collaboration showcased “the power of contextual relevance,” and he shared that the company has launched a new line of Tile devices, which have received widespread media coverage. Hulls also emphasized the importance of Life360’s partnership with Hubble for accelerating international expansion, which he considers a "critical pillar" for the company’s future growth.
Looking forward, Life360 is forecasting annual revenue between AU$368 million and AU$374 million. The company has upgraded its adjusted pre-tax earnings outlook to a range of AU$39 million to AU$42 million. Year-end cash reserves are projected to be between AU$150 million and AU$160 million, factoring in expected expenses related to share settlements, investments, IPO proceeds, and costs associated with the new product launch.
While Life360 has delivered notable growth, today’s reaction highlights the high expectations investors hold. The company’s stock has seen substantial gains, up over 188% in the last 12 months, reflecting investor optimism around its long-term prospects.
