Half-year report sends Life360 (ASX:360) share price to record high

The location services tech company is having a good day on the ASX today after delivering its half-year report.

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The Life360 (ASX: 360) share price has soared more than 5% to record highs after releasing its half-year report for FY21.

Investors are bidding shares in the technology company higher after it announced a positive growth outlook.

Let's take a look at how Life360 performed for the half-year.  

Highlights from Life360's' half-year report for FY21

  • 27% year on year (yoy) increase in revenue of US$48.0 million
  • 36% yoy increase in Annualised Monthly Revenue (AMR) of US$105.9 million
  • Global Monthly Active User (MAU) base of 32.3 million, up 28% yoy
  • Global Paying Circles of 1.0 million, an increase of 19% yoy  
  • Average Revenue Per Paying Customer (ARPPC) of US$84.43 for the US and US$44.22 for International, up 14% and 4% yoy respectively.
  • Statutory EBITDA loss of US$10.4 million compared with loss of US$7.) million in the prior year
  • Underlying EBITDA loss of US$4.8 million compared with US$2.6 million in the prior year.
  • Statutory net loss of US$10.7 million compared with US$7.2 million in the prior year.
  • Cash used in operating activities of US$4.9 million improved from US$5.5 million in the prior year.

For the 6 months ending 30 June 2021, Life360 noted a cash balance of US$50.8 million and debt of US$2.1 million. In addition, the company reported net subscriber revenue retention above 100% for the half-year.

What happened with Life360 in the first-half of FY21?

Life360 cited a surge in its Paying Circles membership as a key driver in revenue growth. The company noted that Paying Circles members increased by 161,000 year on year, with record gains in the second quarter.

Indirect revenue from data revenue and lead generation also contributed to revenue, increasing 11% year on year to $11.6 million.

Losses for the half-year increased, with Life360 citing expansion and growth initiatives for the rise.

What did management say?

Life360 Co-Founder and CEO Chris Hulls noted:

The first half of 2021 delivered accelerating performance of our key user metrics, benefiting from the rollout of the COVID-19 vaccine, particularly in the US. Growth is accelerating across the board, and we're seeing the back-to-school wave we anticipated. Even with the Delta variant, our confidence for the rest of the year remains extremely high.

What's next for Life360?

For its core business, Life360 expects annualised monthly revenue to hit $US120 million to $US125 million by December 2021.

In addition, the company plans on increasing investment in marketing and research which would increase its underlying EBITDA loss. For the calendar year, Life360 expects an underlying EBITDA loss in excess of $US15 million.

The company noted that the current Delta outbreak was taken into account when generating guidance.

However, Life360 also cautioned that ultimate changes in social distancing patterns and government restrictions remain unclear.

In addition, Life360 noted intentions to pursue a US listing and acknowledged plans to expand its offering beyond location services.

At the time of writing, the Life360 share price is 5% higher on the day at $9.26, not too far off its record high of $9.35.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. 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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