Life360 shares climb on full-year result, 2025 outlook
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More news: App maker Life360 was one of the best performing companies on the ASX 200 index in morning trade after its calendar-year results outstripped market estimates.
Life360 shares were up 5.8% to $23.01 at 11:45am AEDT, having advanced more than 180% over the last 12 months.
RBC Capital Markets analyst Wei-Weng Chen called it "another strong result" from the company, with full-year EBITDA at the top end of guidance and fourth-quarter earnings topping consensus estimates by 28%.
Chen also noted that while guidance for 2025 is "broadly in-line" with market expectations, it is compositionally better than forecasts, with more revenue expected from Life360's higher-multiple businesses.
Life360 revenue jumps 20%; acquires Fantix platform to boost ad business
The news: ASX-listed Life360 generated USD115.5 million ($184 million) in revenue for the three months ending December 31, a rise of 22% from the previous quarter.
Most of that came from subscriptions for the family-tracking app. Hours before reporting its earnings, Life360 announced an acquisition of an ad-tech platform developed by Fantix, which it hopes will boost its growing advertising segment.
The numbers: Life360 made $78.8 million from subscription revenue, USD66.9 million ($107 million) of which came from American users. Hardware, via the company's Tile products, brought in $23.8 million ($38.3 million). "Other revenue", which encapsulates advertising, earned $13 million ($20 million)
Full-year adjusted EBITDA rose to USD45.5 million from USD20.6 million in the previous year, while its full-year net loss narrowed from USD28.2 million to USD4.6 million.
Paying subscribers rose 27% over the calendar year, up to 2.3 million from 1.8 million.
Life360 said it expects to earn between USD450 and USD480 million ($735 million to $770 million) during the current financial year, up from this financial year's USD371 million ($595 million).
The context: Life360 has been on a tear over the past year, rocketing 170% to its current share price if $21.74. Part of that is its fastening approach to profitability, but also the promise of what in-app advertising could mean for the company's bottom line.
To that end Life360 overnight announced its acquisition of an ad-tech platform made by New York-based Fantix, which will help it offer targeted advertising.
What they said: Life360 CEO Chris Hulls said: “2024 was a transformative year for Life360... as we enter 2025, we are laser-focused on achieving our longer term strategic goals: reaching 150 million MAU, surpassing $1 billion in annual revenue, and exceeding a 35% Adjusted EBITDA margin."
Hulls said the company's Fantix acquisition "reflects our commitment to build a differentiated, privacy-by-design advertising platform that aligns with our mission to serve families."
The sources: ASX announcement, RBC Capital Markets research
