In key news on Australian stocks, Life360, Inc. (AU:360) shares fell 3.6% as of writing after the release of the company’s Q1 results for 2024. Despite the company reporting strong growth across key metrics, the market responded negatively to the result. Perhaps investors were disappointed that the company didn’t provide any guidance for the full year despite the solid start.
Last month, Life360 revealed some figures in its trading update that were well-received by investors, resulting in a rally of around 10% in the shares. Year-to-date, 360 stock has surged by an impressive 98%, largely propelled by its strong results and an optimistic outlook.
Life360 is a U.S. technology company, offering location-based services, sharing, and notifications to global customers. The company’s primary offering is the Life360 family social networking app, which was launched in 2008.
Life360’s Q1 Performance
In the first quarter, Life360 achieved 15% year-on-year revenue growth, reaching $78.2 million. This increase was primarily driven by a 23% rise in core subscription revenue. The total subscription revenue increased by 19% year-over-year to $61.6 million.
Additionally, the company reported adjusted EBITDA of 4.3 million compared to $0.5 million in the same corresponding period a year ago. However, net loss was $9.8 million in Q1 2024.
In terms of its operations, the company’s global monthly active users (MAU) hit a record high of 66.4 million at the end of the first quarter. This represents a growth of 4.9 million compared to the previous quarter.
For the full year, Life360 reaffirmed its guidance and expects consolidated revenue in the range of $365 million to $375 million. It projects adjusted EBITDA to be between $30 million and $35 million.
Life360 Eyes U.S. IPO
Along with the results, the company also announced its S-3 filing with the U.S. SEC (Securities and Exchange Commission), regarding its initial public offering (IPO) in the U.S. The company plans to list its common stock on the Nasdaq under the symbol LIF.
The company also stated in the update that despite all the necessary steps for a U.S. IPO, the timing and certainty of proceeding with the potential IPO remain unclear.
Is Life360 a Buy or Sell?
According to TipRanks’ rating consensus, 360 stock has received a Strong Buy rating based on all Buy recommendations from four analysts. The Life360 share price target is AU$15.26, which is 2% above the current price level.
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