Life360 Inc (ASX: 360) shares will be in focus next week.
That's because the location technology company is scheduled to release its full-year results on Friday 1 March.
Ahead of the release, let's take a look at what the market is expecting from the company.
What should you expect next week?
According to a note out of Goldman Sachs, its analysts are expecting Life360 to deliver very strong growth in FY 2023.
For example, it is forecasting subscription revenue of US$221.7 million for the year, which represents annual growth of 51%.
This is expected to ultimately lead to total revenue of US$304.4 million, which is in line with the company's guidance range of US$300 million to US$310 million.
As for earnings, the broker is forecasting earnings before interest, tax, depreciation and amortisation (EBITDA) of US$15.9 million in FY 2023. This will be the top end of Life360's guidance range of US$12 million to US$16 million.
What else?
Life360 could potentially provide guidance for FY 2024 with its results.
If it does, it could be worth understanding what Goldman Sachs is expecting for the year ahead.
It has pencilled in total revenue of US$370.6 million and adjusted EBITDA of US$30.8 million. This represents growth of 22% and 94%, respectively, over the broker's FY 2023 estimates.
Are Life360 shares good value?
Goldman Sachs sees a lot of value in Life360 shares at the current value.
It has a buy rating and $10.50 price target on them, which implies potential upside of almost 30% for investors over the next 12 months. Goldman said:
We estimate Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US. The company is currently raising prices for its existing iOS US subscriber base, demonstrating its pricing power and latent monetisation opportunity with >50mn global users.
