The Life360 Inc (ASX: 360) share price is jumping on Friday morning.
At the time of writing, the ASX 200 tech stock is up 11% to $24.16.
This follows the release of a strong full year results from the location technology company.
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Life360 share price
- Total revenue up 22% to US$371.5 million
- Gross profit up 25.4% to US$279.2 million
- Adjusted EBITDA up 121% to US$45.5 million
What happened during the year?
For the 12 months ended 31 December, Life360 reported a 22% increase in total revenue to US$371.5 million.
This was driven largely by a 25.8% increase in subscription revenue to US$277.8 million. The majority of this is from the United States, which recorded a 22.7% lift in subscription revenue to US$240.6 million. International subscription revenue lifted 52.2% to US$37.3 million for the 12 months.
Life360 monthly active users (MAU) reached 79.6 million at the end of December. This is up 30% on the prior corresponding period. US MAU were up 19% to 43.7 million, ANZ MAU lifted 35% to 2.7 million, and international MAU were up 46% to 36 million.
Paying circles increase 25% to 2.3 million during the 12 months and average revenue per paying circle (ARPPC) rose by 6% to US$131.76.
Hardware revenue was modestly lower year on year at US$57.6 million and other revenue lifted 42.2% to US$36 million. The latter reflects increases in data and partnership revenue, which includes advertising revenue.
And with operating expenses growing slower than its sales, the company's margins expanded and underpinned very strong earnings growth. In fact, adjusted EBITDA was ahead of guidance and up 121% to US$45.5 million for FY 2024.
Management had been guiding to adjusted EBITDA of US$39 million to US$42 million.
Management commentary
The ASX 200 tech stock's co-founder and CEO, Chris Hulls, was pleased with the transformative year. He said:
2024 was a transformative year for Life360. We successfully launched our advertising business, unlocking new growth opportunities, introduced a cutting-edge lineup of Tile devices, executed an award-winning brand campaign, forged a key strategic partnership with Hubble, and celebrated a significant milestone by completing our U.S. IPO to become publicly traded on Nasdaq.
As we enter 2025, we are laser-focused on achieving our longer term strategic goals: reaching 150 million MAU, surpassing $1 billion in annual revenue, and exceeding a 35% Adjusted EBITDA margin. By keeping families safe, connected to the people, pets, and things they love, and helping make everyday life better, we are uniquely positioned to tap into vast global market potential and drive sustained growth for years to come.
Guidance
For FY 2025, Life360 revealed that it expects to deliver consolidated revenue of US$450 million to US$480 million.
This comprises subscription revenue of US$350 million to US$360 million, Hardware revenue of US$45 million to US$55 million, and other revenue of US$55 million to US$65 million.
Positive Adjusted EBITDA is expected in the range of US$65 million to US$75 million. This includes US$8 million of investment relating to the development and launch of a new pet device in 2025.
Broker reaction
Goldman Sachs was impressed with the result. Its analysts commented:
Life360's 4Q result was above guidance and GSe/VA consensus expectations at the Adj. Ebitda line +23%/32%, despite lower Hardware sales, with MAU continuing to perform strongly in a seasonally softer quarter and the Ebitda performance continuing to highlight improved profitability. FY25 guidance came broadly in-line with VA consensus expectations while we note that initial FY guidance is typically conservative with an expectation of upgrades as the year progresses.
The Life360 share price has now tripled in value over the past 12 months.
