S&P/ASX 200 Index (ASX: XJO) tech stock Life360 Inc (ASX: 360) has made its shareholders very happy this past year.
If you're unfamiliar with Life360, the company develops software that's mostly used for location sharing. Its smartphone app can be used by families looking to track their children's whereabouts or to help keep elderly people and folks with special needs safe.
And business has been booming, with Life360 enjoying some added tailwinds from the ongoing artificial intelligence (AI) revolution.
That's helped drive the ASX 200 tech stock to a one-year gain of 223%. Or enough to turn a $5,000 investment 12 months ago into $16,600 today.
And Sequoia Wealth Management's Peter Day believes Life360 could keep on outperforming in 2025 (courtesy of The Bull).
Here's why.
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Buy this ASX 200 tech stock before its 2024 results announcement
"Life360 is a global market leader with competitive advantages," said Day, who has a buy recommendation on the ASX 200 tech stock. "This information technology company provides a mobile networking safety app for families."
And investors may do well to snap up some Life360 shares before the company reports its 2024 calendar year results on 28 February.
According to Day:
Life360 remains one of our key choices, and we expect a strong full year 2024 result, with EBITDA [earnings before interest, taxes, depreciation and amortisation] possibly exceeding guidance.
We expect strong 2025 guidance involving revenue and statutory EBITDA.
If Life360 indeed beats its revenue and earnings guidance, the ASX 200 tech stock could enjoy another leap higher to end the month with a bang.
And with its market cap growing rapidly, the company could be set to move another rung up the ASX index ladder.
"We expect the company to be added to the S&P/ASX 100 Index when the next rebalance occurs in early March," Day said. "This should be a positive result if Life360 is added to this large market capitalisation index."
What's been happening with Life360?
Life360 released its third quarter (Q3 2024) results on 13 November.
Highlights for the ASX 200 tech stock included an 18% year-on-year increase in revenue for the three months to US$92.9 million. And gross profits of US$70.0 million were up 21% from the prior corresponding period.
Full-year 2024 revenue was forecast to be between US$368 million and US$374 million.
And Life360 CEO Chris Hulls sounded an optimistic note on the growth outlook.
"Our partnership with Hubble is officially signed, and international expansion, a critical pillar for future growth, accelerated significantly as we have started to reach tipping points in multiple countries," Hulls said.
