Life360 shares plunge after technical issue hits user growth in Q1
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More news: Shares in Life360 plunged in afternoon trade despite the company lifting its full-year EBITDA and revenue guidance off the back of a stronger first-quarter performance.
However RBC Capital Markets analyst Wei-Weng Chen noted the downgrade guidance for monthly active users growth in CY26, now in the range of 17-20%, was below market forecast of 19.5%. This follows a temporary technical issue in the first quarter that suppressed new user registrations, with a recovery not expected until the third quarter.
Chen added that while the issue has resolved for iOS, interconnected issues with Android resulted in a global suppression of Google Play Store searches during Life360’s peak Q1 marketing period. Chen holds an outperform rating with a price target of $36.
Life360 lifts full-year guidance after strong Q1 results
The news: Family tracking app Life360 has lifted its full-year EBITDA guidance to a range of USD130 million ($179 million) to USD140 million, up from the previous target of USD128 million to USD138 million, driven by a stronger first-quarter performance.
The numbers: For the first quarter, total revenue rose 38% year on year to USD143.1 million, while advertising revenue surged 329% to USD19.7 million.
Adjusted EBITDA increased 7% to USD17.1 million, up from USD15.9 million in the prior corresponding period. Positive operating cashflow reached USD17.2 million, a 42% year-on-year increase.
The company upgraded its full-year consolidated revenue guidance to between USD650 million and USD685 million, while subscription revenue is now forecast to be in the range of USD470 million to USD475 million, up from the previous estimates of USD460 million to USD470 million.
The context: Life360 stated that the upgraded full-year guidance was driven by a strong first-half performance, supported by subscription momentum across its paying circles and the average revenue per paying circle (ARPPC) tiers. An increase in partnership revenue also strengthened results, alongside a surge in advertising revenue following the Nativo acquisition.
