The Life360 Inc (ASX: 360) share price is roaring higher on Friday morning.
In early trade, the location technology company's shares were up 14% to $5.57.
The ASX All Ords tech share has pulled back a touch since then but remains up 7% to $5.23.
Why is the Life360 share price charging higher?
As well as getting a boost from a rebound in the tech sector, investors have been bidding the Life360 share price higher today after the company released a trading update.
According to the release, the company's strong performance continued in the fourth quarter of 2022. This saw core Life360 subscription revenue (excluding Tile and Jiobit) growth exceeding 54%, which was in line with guidance.
In addition, the company confirmed that its year end cash position met guidance, with cash balance of $90 million, adjusted for $32 million of net placement proceeds.
Also meeting guidance was its full year revenue and adjusted EBITDA. It is expected to come in at the lower end of its guidance range of US$225 million to US$240 million in revenue and an EBITDA loss of US$37 million to US$41 million.
Pleasingly, Life360 revealed that it has experienced a resumption of normalised growth and churn patterns since the completion of iOS price changes in mid-December.
Restructure
Another positive that could be boosting the Life360 share price is the announcement of a restructure that will reduce its workforce by 14% and generate cost savings of US$15 million.
This restructure enables the streamlining of operations to drive lower operating expenses, and a sharpened focus on the company's key strategic product initiatives to enhance its leadership in family safety and security.
Together with continuing strong subscription revenues, the restructure is expected to deliver positive operating cash flow and adjusted EBITDA from the second quarter of 2023. This is a quarter earlier than previously announced. Management also then expects to report positive operating cash flow and adjusted EBITDA for the full year.
Life 360 CEO, Chris Hulls, appears confident on the year ahead. He said:
We are moving into 2023 in a very strong position to pursue our global growth agenda, with significant upside opportunity from the launch of the bundled hardware subscription in Q1, a strong balance sheet and an accelerated trajectory to profitability.
