Life360 Inc (ASX: 360) shares are having another strong session on Wednesday.
In afternoon trade, the ASX tech stock is up 2.5% to $12.93.
This means that the company's shares have now risen an incredible 59% since the start of March.
To put that into context, if you had invested $10,000 in Life360 shares on 29 February, your holding would now be worth almost $16,000.
Image source: Getty Images
Why is this ASX tech stock on fire?
Investors have been scrambling to buy the company's shares this month following the release of its FY 2023 results.
In case you missed it, Life360 reported a 33% increase in revenue to US$305 million for the 12 months ended 31 December. This was driven by a 52% year on year increase in core Life360 subscription revenue to US$200 million, which was ahead of its guidance.
Global monthly active users (MAU) grew nearly 13 million or 26% to 61.4 million in FY 2023.
Things were just as good for its adjusted EBITDA, which came in at US$20.6 million for the year. This was comfortably ahead of its guidance range of US$12 million to US$16 million.
Another item that got investors and analysts very excited was news that the ASX tech stock is looking to monetise its massive user base by launching an advertising business.
Life360's co-founder and CEO, Chris Hulls, commented:
[W]e are excited to announce the creation of a new advertising revenue stream that offers partners unparalleled reach to Life360's enormous free user base, and more than 20 million daily active users (DAU) connecting with their families and friends. We have consistently spoken of the potential that our investment in the core user experience, and the scaling of our MAU base, would provide for the future. We are encouraged by the success of early testing and see the opportunity to deliver an attractive platform to advertisers, while continuing to provide a great user experience.
Is it too late to invest?
The good news is that a number of analysts still believe this ASX tech stock can rise further from here despite its incredible gains in March.
For example, Goldman Sachs has a buy rating and $14.20 price target on its shares. This suggests further upside of 10% for investors.
Elsewhere, Bell Potter and Morgan Stanley (as covered here) have the equivalent of buy ratings on its shares with $14.50 and $14.40 price targets, respectively. This implies potential upside of 12% and 11% for investors from current levels.
