Life360 shares dive after posting Q1 loss, Nasdaq IPO filing
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More news: Shares in Life360 plummeted in morning trade after the ASX-listed family tracking company announced a net loss of $9.8 million for the first quarter and that it intended to IPO on the Nasdaq.
Shares were down 9.7% to $14.00 by 10:45am AEST.
RBC Capital Markets analysts said its quarterly earnings were a "broadly in-line result". They noted that growth in subscriber numbers and advertising revenue, as well as a triple-tier launch in Australia and New Zealand, were key positives from the result.
Meanwhile, the analysts noted the announcement of a potential partnership with, and small investment in, space-tech firm Hubble would likely be a key focus area for investors today.
Life360 family tracking company to list on NASDAQ
The news: ASX-listed Life360 has announced it has filed with America's Securities Exchange Commission to IPO on the NASDAQ. The news came alongside Life360's quarterly earnings, which saw its net losses decrease.
The numbers: Life360 reported a net loss of USD9.7 million, an improvement from the USD14.1 million loss during the a year ago. Revenue was up USD10 million year on year to $78.2 million.
The stock last closed at $15.5 and over the past 12 months has risen 172.89%.
The context: Life360 is a San Francisco-based family tracking company that listed on the ASX in 2019 at the recommendation of early investor James Synge. Thanks to both subscription growth and the platform now integrating advertising as a new revenue stream, Life360 is currently enjoying a peak valuation of $3.2 billion, up over 100% year-to-date.
The company also announced it was set to partner and make a small investment in space technology company Hubble Network. Life360 co-founder Alex Haro also co-founded Hubble and is its executive chair. The initial launch of the network is expected to be in early 2025.
Speaking to Capital Brief earlier this year, CEO Chris Hulls said the company intended to dual list "sooner than you might think".
What they said: "By integrating our bluetooth finding network with Hubble's satellite technology, we hope to able to offer global tracking solutions for assets without relying on cellular connections," Life360 said in its announcement to the ASX.
"... we believe our potential partnership with Hubble will lead the development of this combined phone and satellite network, primarily targeting enterprise applications such as tracking pallets on ships."
The sources: ASX announcement, ASX announcement
