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Highlights
- Revenue Growth: Total revenue climbed 22% to US$371.5 million, driven by surging subscription sales.
- Profitability Spike: Adjusted EBITDA skyrocketed 121% to US$45.5 million, beating guidance.
- User Growth: Monthly active users (MAU) rose 30% to 79.6 million globally.
- Guidance: FY 2025 revenue forecasted at US$450–480 million, with EBITDA projected between US$65–75 million.
Shares of Life360 Inc (ASX:360) soared 11% to $24.16 in Friday morning trading, continuing the tech stock’s blistering run after it unveiled an impressive full-year result for 2024. The location technology company smashed earnings expectations, fueled by rapid subscription growth, expanding user numbers, and tight cost management.
Subscription Revenue Powers Record Results
For the year ending 31 December 2024, Life360 delivered 22% revenue growth, reaching US$371.5 million. The standout performer was subscription revenue, which jumped 25.8% to US$277.8 million — with particularly significant gains in international markets:
- US subscription revenue: Up 22.7% to US$240.6 million.
- International subscription revenue: Up 52.2% to US$37.3 million.
The company’s monthly active users (MAU) climbed 30% to 79.6 million, highlighting Life360’s global appeal:
- US MAU: Up 19% to 43.7 million.
- Australia & New Zealand MAU: Up 35% to 2.7 million.
- International MAU: Up 46% to 36 million.
Paying users also grew significantly, with paying circles rising 25% to 2.3 million, while average revenue per paying circle (ARPPC) increased 6% to US$131.76.
Profitability Surges as Margins Expand
Despite a slight dip in hardware sales (US$57.6 million) and 42.2% growth in other revenue (advertising and data partnerships), Life360’s operating expenses grew slower than sales, driving substantial margin expansion. This efficiency fueled an Adjusted EBITDA increase of 121% to US$45.5 million, comfortably beating the company’s guidance of US$39–42 million.
This sharp rise in profitability underscores Life360’s ability to scale its platform while keeping costs in check — a combination that impressed analysts and investors alike.
Bullish FY 2025 Guidance
Looking ahead, Life360 provided upbeat guidance for FY 2025, signaling confidence in its ongoing growth trajectory:
- Total revenue: US$450–480 million.
- Subscription revenue: US$350–360 million.
- Hardware revenue: US$45–55 million.
- Other revenue: US$55–65 million.
- Adjusted EBITDA: US$65–75 million (including US$8 million investment for a new pet device launch).
This outlook suggests Life360 is doubling down on innovation and customer retention, betting that product expansion will further solidify its market position.
Broker Reaction: Wall Street Loves It
Goldman Sachs analysts praised the results, noting Life360’s:
- Outperformance on EBITDA (+23% vs guidance, +32% vs consensus).
- Resilient MAU growth despite seasonal factors.
- Conservative initial FY 2025 guidance, leaving room for potential upgrades later in the year.
The stock has now tripled in value over the past 12 months, reflecting mounting investor optimism about Life360’s future.
