Shares of Life360 Inc (ASX: 360) are soaring on Friday morning, reaching a new all-time high of $17.85, marking a 20% increase. This surge comes after the company announced a record-breaking performance for the second quarter of 2024.
Record-Breaking Quarterly Performance
For the three months ending June 30, 2024, Life360, an ASX tech stock, delivered a robust set of financial results that have excited investors. The company reported a 20% year-on-year increase in revenue, totaling US$84.9 million. This impressive growth was driven by a substantial rise in subscription revenue, which saw a 25% boost to US$65.7 million.
In addition to the increase in subscription revenue, Life360's hardware revenue grew by 2.6% to US$11.9 million, while other revenue sources, including advertising and incremental data revenue, rose by 12.3% to US$7.3 million.
Key Metrics and Growth
Life360's strong performance was highlighted by several key metrics. The number of monthly active users (MAU) globally surged by 31% to approximately 70.6 million, with net additions of 4.3 million in the second quarter alone. In the U.S., MAU grew by 20%, adding 1.7 million users, while international MAU jumped by 48%, with net additions of 2.6 million. In the Australia and New Zealand (ANZ) region, MAU increased by 35% to 2.4 million.
The number of paying circles also reached a new quarterly record, with net additions of 132,000. This performance surpasses previous records and reflects the company’s success in both domestic and international markets. Additionally, the average revenue per paying circle (ARPPC) increased by 6%, even with strong international growth where pricing is generally lower compared to the U.S. market.
Despite posting a net loss of US$11 million for the quarter, this result includes significant one-time expenses such as IPO-related transaction costs of US$5.8 million and a higher income tax provision of US$5.2 million compared to the previous year.
Management's Positive Outlook
Chris Hulls, co-founder and CEO of Life360, expressed enthusiasm about the company's performance. He noted that the second quarter of 2024 was marked by outstanding achievements in both business and financial metrics. Hulls highlighted the company’s successful IPO and the record-breaking growth in its user base and paying circles.
Hulls further emphasized the company's ongoing focus on international expansion and innovation, with substantial growth in international MAUs and paying circles. He also pointed out that Life360 is still in the early stages of tapping into global market opportunities, with significant potential for expansion as the company introduces new features and enters new regions.
Upgraded Guidance
Adding to the positive momentum, Life360 has revised its guidance for the full fiscal year 2024. The company now expects consolidated revenue to be between US$370 million and US$378 million, up from the previous range of US$365 million to US$370 million. Core subscription revenue growth is now projected to exceed 25% year-on-year, an upgrade from the earlier expectation of over 20%. Additionally, adjusted EBITDA guidance has been increased to a range of US$36 million to US$41 million, up from the previous forecast of US$30 million to US$35 million.
Life360's strong quarterly performance, impressive growth metrics, and optimistic outlook have contributed to the significant rise in its share price, reflecting the positive market response to the company’s recent achievements and future prospects.