This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

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ASX tech stock Life360 Inc (ASX: 360) made shareholders very happy in March.

How happy?

With less than an hour of trading left in the month, the S&P/ASX 200 Index (ASX: XJO) technology share has gained a whopping 60.2% since the closing bell rang on 29 February.

That sees Life360 shares up 75% so far in 2024 and up an eye-popping 169% since this time last year.

If you're not familiar with Life360, the United States-based company develops software primarily focused on location sharing.

Its smartphone app has been gaining popularity among families wishing to track their children's locations or to assist with keeping older people and those with special needs safe.

Here's what helped drive the ASX tech stock to 60% gains in March.

Life360 shares in growth phase

Life360 reported its 2023 calendar year results on 1 March.

Highlights included a 33% year on year increase in revenue to US$305 million. And subscription revenue was up by 52% compared to 2022 to US$200 million, with adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) coming in at US$20.6 million.

The ASX tech stock did still operate at a net loss of US$28.2 million in 2023. But that was a huge step up from the US$91.7 million net loss the previous year.

And the company's balance sheet was solid, with cash and equivalents of US$70.7 million.

ASX 200 investors reacted to the full-year results by sending the Life360 share price up 38.5% on the day, closing at $11.30 a share.

Can the ASX tech stock keep on giving?

After a phenomenal month, the question now is, can Life360 continue to outperform in the year ahead?

For some greater insight into that question, we turn to two top brokers.

Earlier this month, Goldman Sachs came out with a bullish outlook for this ASX tech stock.

According to Goldman's analysts, "360's re-rate is only beginning, in our view, as it delivers solid subscription and EBITDA growth from the core business while opening up significant upside optionality via advertising monetisation."

Goldman has a buy rating on the stock with a $14.20 price target for Life360 shares. That represents a potential 8.6% upside from the recent price of $13.07 per share.

Morgan Stanley believes Life360 can charge even higher. Its analysts are optimistic about future earnings amid the company's plans to sell advertisers access to its user base.

Morgan Stanley retained its overweight rating with a $14.40 price target for the ASX tech stock. That implies a 10.2% potential upside from recent levels.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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