Stock of the day: Life360

(AI video summary)

This video was created on 13 May 2025 for IG audiences by ausbiz.

ASX code: 360

Life360's Q1 results and strategic partnership

Life360 has reported quarterly revenue and earnings exceeding consensus expectations. The company added 137,000 customers - a quarterly record - while generating revenue of $103.5 million. Management has maintained its previous guidance, shifting focus towards more subscription revenue and less hardware.

Life360 has also formed an advertising partnership and revenue-sharing agreement with Aura, an artificial intelligence (AI) powered online safety solution. As part of this deal, Life360 will make a $25 million convertible investment into Aura.

The market has responded positively, with Life360's share price rising more than 16% in today's trading.

Monetisation opportunities and growth prospects

With 84 million monthly active users (MAUs), Life360 has a substantial base for future growth. While many users currently utilise the free version, this presents both a significant monetisation opportunity and a potential risk.

Analysts expect double-digit revenue growth over the next three years as the company expands into new markets and enhances its advertising capabilities. The stock has risen approximately 45% over the past month, indicating strong market confidence.

Diversification into adjacent markets

Beyond its core family location tracking service, Life360 is exploring pet-tracking solutions and services for senior citizens, which could provide additional revenue streams and expand the company's market reach.

Technical analysis and trading perspective

Life360 has broken through previous resistance levels with significant volume, suggesting potential for upward movement. Potential buying opportunities might emerge if the stock retraces to test recent highs around $27.70.

The strong fundamentals, including 30% growth in core subscriptions and overall revenue, support the positive market sentiment despite ongoing questions about the pace of monetisation.