The Life360 Inc (ASX: 360) share price is taking off on Tuesday morning.
At one stage, the location technology company's shares were up 11% to $6.45.
The Life360 share price has eased back a touch but remains up 7% to $6.23.
Why is the Life360 share price rocketing higher?
Investors have been bidding the company's shares higher today after it released its first-quarter update.
Life360 reported:
- Revenue up 34% to US$68.1 million
- Core Life360 Subscription revenue up 66% to US$46.2 million.
- Annualised Monthly Revenue (AMR) up 44% to US$239.5 million
- Positive adjusted EBITDA of US$0.5 million
- Net loss of US$14.1 million
What happened during the quarter?
For the three months ended 31 March, Life360 reported a 34% increase in revenue to US$68.1 million. This was driven by strong growth from its core business, which was underpinned by a 22% increase in paying circles. Life360 added 73,000 new paying circles during the quarter, which was greater than a year earlier despite recent price increases.
Those price increases led to U.S. Average Revenue Per Paying Circle (ARPPC) of US$140, which was a 43% increase year over year.
This strong performance led to the company reporting positive adjusted EBITDA one quarter ahead of expectations. It also meant that Life360 ended the quarter with cash, cash equivalents and restricted cash of US$76.1 million.
Looking ahead, management has reiterated its FY 2023 guidance for more than 50% growth in core Life360 subscription revenue, consolidated revenue of US$300 million to $US310 million, positive Adjusted EBITDA, and operating cash flow of US$5 million to US$10 million.
Life360's co-founder and CEO, Chris Hulls, said:
The Life360 business has continued to deliver impressive growth metrics, with Global MAU up 33% YoY and AMR up 44% to $239.5 million. Paying Circles returned to growth in Q1'23, with Global net subscriber additions of 73 thousand, ahead of the 69 thousand achieved in Q1'22, a very positive result given the size of the price increases implemented in Q4'22. International Paying Circles increased 50% YoY, with net adds at close to all-time record levels. UK Paying Circles increased 64% YoY, a very encouraging sign ahead of our Membership launch later this year.
