You're unlikely to hear any stockholders complaining about the past year's performance of S&P/ASX 200 Index (ASX: XJO) tech stock Life360 Inc (ASX: 360).
Life360, as you may be aware, develops family-oriented software for location sharing.
And with strong demand growth for its products, the Life360 share price has been going through the roof.
One year ago, you could have snapped up shares in the ASX 200 tech stock for $7.86 each. In late afternoon trade today, shares are changing hands for $24.81 apiece.
That sees Life360 shares up a whopping 215.7% over 12 months. Or enough to turn a $6,000 investment into $18,939.
And, according to Bell Potter Securities' Christopher Watt, Life360 still presents "a compelling investment case" (courtesy of The Bull).
Here are three reasons why.
ASX 200 tech stock on the growth path
"This information technology company provides a mobile networking safety app for families.," said Watt, who has a buy recommendation on the ASX 200 tech stock.
"Life360 continues to demonstrate strong growth, particularly in core subscription revenue, which remains on track to generate more than 25% growth," he said, citing the first reason this stock looks attractive.
As for the second and third reasons, Watt added:
The company has upgraded EBITDA [earnings before interest, taxes, depreciation and amortisation] guidance, reflecting improving operational efficiencies. Record growth in paying subscribers, increasing user engagement and a strong balance sheet position Life360 for continued expansion.
Focusing on increasing its market share and enhancing its product offerings, the company presents a compelling investment case, in our view
.
What's been happening with Life360?
The last price-sensitive announcement from the ASX 200 tech stock was the company's third-quarter results on 12 November.
Among the highlights, Life360 reported that its monthly active users reached 76.9 million in Q3 2024.
The company reported revenue of $92.9 million, up 18% year on year, with annualised monthly revenue up 30% to $336.2 million.
And as Watt mentioned, the ASX 200 tech stock raised its outlook for full year 2024 adjusted EBITDA.
"Life360 made tremendous progress in Q3 2024, achieving our best-ever U.S. back-to-school period with record MAU and subscriber growth while simultaneously advancing our platform strategy," Life360 CEO Chris Hulls said on the day.
Addressing the company's impressive growth metrics, Hulls said:
To quantify these results, our member base grew by 32% year-over-year, with 6.3 million new MAUs added this quarter, bringing our total to 76.9 million.
Subscriber growth also hit a milestone, with a quarterly record net increase of 159 thousand Paying Circles – a notable acceleration from the 132 thousand net additions in Q2 and a record for quarterly net additions in the US at 111 thousand net additions, a 64% increase year-over-year.
International expansion also played a significant role, with a 51% year-over-year increase in international MAUs and a 37% increase in international Paying Circles, even amid price increases for legacy subscribers outside our core Triple Tier markets.
