Why the Life360 (ASX:360) share price is marching higher today

Technology now enables us to keep track of our family's whereabouts.

The Life360 Inc (ASX: 360) share price is marching higher in morning trade, up 2.15% trading at $8.09.

We take a look at the ASX tech share's quarterly update for the period ending 30 June, along with an acquisition confirmation.

A high-five between father and daughter who are setting up an app on a laptop.

Image source: Getty Images

What updates did Life360 report?

The Life360 share price is gaining after the company firstly reported it had signed definitive agreements to acquire Jiobit. Based in the US state of California, Jiobit provides wearable location devices intended for young children, pets and seniors.

The ASX tech share first reported on the pending acquisition on 27 April, which saw the Life360 share price leap to a then record high.

In its June quarterly update, also released this morning, the company said its global monthly active user (MAU) base increased by 4.2 million over the quarter to reach 32.3 million users.

In the United States, MAU was up 12% over the previous quarter and 25% year-on-year, to 20.3 million users. MAU also grew strongly in Australia, up 48% year-on-year and 18% from the prior quarter, to 836,000 users.

Underlying revenue of US$25.0 million (AU$33.8 million) increased 28% year-on-year, while annualised monthly revenue (AMR) for June increased 36% year-on-year to US$105.9 million.

Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at a loss of US$3.3 million. The company noted this excluded stock based compensation and other non-recurring adjustments.

Commenting on the results, Life360 CEO Chris Hulls said:

Direct revenue was the key driver of the result, benefiting from a 19% year-on-year increase in Paying Circles to 1.0 million, and a 21% uplift in ARPPC. Momentum in our membership model has accelerated with cumulative 327,000 new and upsell subscribers, now accounting for 40% of US paying circles.

While legacy subscribers are grandfathered on their previous plans, the new membership cohort is delivering an ARPPC uplift of 37% versus the first half of 2020.

Life360 share price snapshot

The Life360 share price has gained an impressive 148% over the past 12 months, sailing past the 25% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date, the Life360 share price has continued its stellar performance, up 108% so far in 2021.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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