Life360 (ASX:360): What other company lets you know where your loved ones are?

Life360 (ASX:360) is this week’s stock of the week. It is both an international and domestic stock, because the Silicon Valley-headquartered firm has been listed on the ASX since March 2019 and on the NASDAQ since June 2024. It isn’t yet profitable and probably should’ve been a while ago. But we think has made good progress towards this goal and is on the right track.

Introduction to Life360 (ASX:360)

Life360 listed on the ASX in 2019 because it was too small for the NASDAQ but thought it was the right time to list. It planned to list on the NASDAQ in early 2022 but put pause on its plans as the Tech Wreck began. These ambitions were realised in June 2024. It is led by its founder Chris Hulls who still retains a 3.6% shareholding and its board includes Randi Zuckerberg (the sister of Mark Zuckerberg).

Life360 operates an app that allows parents and children to stay connected. The app’s original premise was for parents to see the location where their children are, an idea that remains its primary capability.

Acquisitions to expand its scope

Several other features have been added to the platform since the company was founded in 2008. The app can also help children see where their parents are, help family members monitor their movements and even detect traffic collisions that users are involved in. The company’s 2021 acquisition of fellow Silicon Valley tech company Tile diversified the company into tracking things in addition to people. Tile sells small hardware devices that can be attached to items such as wallets and keys. If you’re thinking AirTags, you’ve got the right idea. In the same year, Life360 also acquired Jiobit, a Chicago-based manufacturer of wearable locational devices.

The Life360 app uses the GPS chip in your smart phone. It can not only alert parents, but anyone in a specific ‘Circle’, like other household members and/or close friends. It operates on a ‘freemium’ model, offering a Basic Service for free and two tiers (Gold and Platinum) with premium features.

These include free towing of vehicles involved in a collision, ID theft protection, reimbursement of funds stolen through cybercrimes, credit monitoring and travel support. The Gold tier costs US$14.99 per month, or US$99.99 per year, while the Platinum tier costs US$24.99 per month, or US$199.99 annually.

Good growth since listing

The pandemic struck less than a year after Life360 listed on the ASX, forcing customers to stay home, which reduced the need for the company’s app. But if you look at Life360’s growth since 2019, you’d be forgiven for thinking the pandemic never happened. It has benefited through the acquisitions it has made and organic growth in its core business.

Cast your mind back to its half-yearly results in 2019 (1HY19). It recorded US$24.6m in revenue, recorded 23.1m Monthly Active Users (12.7m of which were in the US) and held 696,000 Paying Circle members (in other words, premium subscribers).

Now let’s jump ahead to its FY24 results, released in February 2025. It made US$371.5m in revenue, including $277.8m of subscription revenue, had 79.6m Monthly Active Users (over 20m of which were outside the US) and it has 2.3m Paying Circles Members. Its Annualised Monthly Revenue was $367.6m and Average Revenue per Paying Circle was US$131.76.

But not yet profitable

The trouble is that it is not yet profitable on an annual basis with $3.8m negative EBITDA for the full year. Nonetheless, it recorded $8.4m in positive EBITDA for Q4 of FY24

For CY25, the company has guided to:

• $450-480m in revenue
• $65-75m in positive Adjusted EBITDA

Consensus estimates expect US$466.6m in revenue, $71.4m EBITDA and $0.21 EPS. For FY26, $566.8m in revenue, $108.7m EBITDA and $0.59 EPS. Then for FY27, $676.9m revenue, $163.9m EBITDA and $1.31 EPS.

The mean target price among ASX analysts covering the stock is $25.86, not a big premium to its $21.54 share price right now. US analysts are more optimistic, setting a US$55.29 target price when it is trading at just above US$40.

Risks facing Life360

The risks with this one are:

• Slowing in revenue growth
• Slower progress towards key profitability
• Stock market and macroeconomic conditions
• Competition risks
• Key personnel risk

But we think if the company can stay on track, it could make some good returns for shareholders in the months to come.

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