The Life360 Inc (ASX: 360) share price was among the best performers on the ASX 200 index on Thursday.
The location technology company's shares ended the day 16% higher at $5.69.
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Why did the Life360 share price rocket higher?
Investors were bidding the Life360 share price higher today for a couple of reasons.
One was the significant rebound in the tech sector following a strong night on Wall Street NASDAQ index.
This saw the S&P ASX All Technology index have its best day in a while and rise a sizeable 3.2%.
Among the best performers in the sector were beaten down loss-making tech shares like Life360 and Megaport Ltd (ASX: MP1).
What else?
Also giving the Life360 share price a boost was the release of presentation for the Bell Potter Technology Decoded event. That presentation reemphasised the company's plan to stop be a loss-maker in the near future. It explained:
We expect Life360 to be on a trajectory to consistently positive Adjusted EBITDA and Operating Cash Flow by late CY23, such that we record positive Adjusted EBITDA and operating cashflow for CY24. This trajectory could be further assisted by the positive impact of potential future price changes.
It also worth noting that Life360 expects to end calendar year 2022 with cash of US$65 million after making a loss of US$35 million to US$38 million for the year.
Based on its expectation that its losses will narrow before eventually becoming profitable in 2024, it appears as though the company has the balance sheet strength to see it through to then without requiring a capital raising.
Can its shares keep rising?
According to a recent note out of Bell Potter, its analysts have a buy rating and $8.23 price target on the company's shares.
Based on the current Life360 share price, this implies potential upside of 45% for investors over the next 12 months.
This could mean that the gains are only just beginning for this tech share.
