Here’s why the Life360 share price has done a 180 today

Is this driving the software developer’s stock higher on Friday?

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Key points

  • The Life360 share price is rebounding after yesterday's tumble, gaining 11.5% to trade at $3.87
  • It's joined in the green by the broader tech sector. In fact, the tech index is currently leading the ASX 200 
  • The Life360 share price is also likely lifting in response to the company's management reiterating its previously given guidance today

The Life360 Inc (ASX: 360) share price is back on the horse on Friday after tumbling around 5% yesterday.

Its turnaround comes after the company held its annual general meeting this morning wherein it reaffirmed its previously outlined guidance.

At the time of writing, the Life360 share price is $3.87, 11.53% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.1%.

And, as all good things are better shared, it’s worth noting the broader tech sector is having a good day on Friday.

Right now, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is up 4.58% and the S&P/ASX All Technology Index (ASX: XTX) is lifting 3.63%.

Let’s take a closer look at today’s news from the software development company.

What’s boosting Life360 stock today?

The Life360 share price is back in the green after the company readdressed its 2022 guidance.

As the company stated in April, it expects its core Life360 subscription revenue ­­– excluding Tile and Jiobit – to grow more than 50% this year.

Life360 is also expecting to report a non-GAAP underlying earnings before interest, tax, depreciation, and amortisation (EBIDTA) loss of US$32 million to US$38 million.

The company predicts it will end 2022 with US$65 million to US$70 million in cash and record a full year of positive operating cash flow in 2024.

Additionally, it noted its monthly active users have continued to grow since it released its latest quarterly results.

Life360 boasted more than 40 million monthly active users at the end of April, 25.6 million of which were in the United States. It also had 1.34 million Paying Circles at the end of April. That’s up from 1.3 million at the end of March.

Life360 share price snapshot

This year has been rough on the Life360 share price.

It has tumbled nearly 60% since the start of the year. Though, it’s fallen just 25% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in 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 Scott Phillips.

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