The Life360 Inc (ASX: 360) share price is jumping on Tuesday morning.
At the time of writing, the location technology company's shares are up 14% to a record high of $27.25.
This follows the release of a record first quarter result before the market open.
Life360 share price jumps on results day
For the three months ended 31 March, Life360 reported a 32% increase in revenue over the prior corresponding period to US$103.6 million.
This reflects a 33% increase in total subscription revenue to US$81.9 million, with core subscription revenue lifting 37% year on year to US$76.2 million.
This underpinned a 38% jump in annualised monthly revenue (AMR) to US$393 million.
Growing at an even more rapid rate was Life360's adjusted EBITDA, which came in at US$15.9 million for the three months. This is more than triple the US$4.3 million it reported for the same period last year.
Another highlight was its positive operating cash flow of US$12.1 million, which is up 13% year on year. This led to Life360 ending the quarter with cash, cash equivalents, and restricted cash of US$170.4 million.
What drove the strong result?
Life360's strong result was driven partly by yet another increase in its user base.
First quarter global monthly active user (MAU) net additions were 4.1 million, which picked up seasonally after a softer fourth quarter. This means that total MAUs increased 26% year on year to approximately 83.7 million. Management notes that this was thanks to a significant contribution from organic growth.
But the main driver was a 43% lift in global Paying Circle net additions for the quarter compared to net additions a year ago. Life360 added 137,000 net paying circles for the period. This means that total Paying Circles was up 26% year on year to 2.4 million. Management highlights that this was supported by improved retention in the U.S.
Average Revenue Per Paying Circle (ARPPC) increased 8% year on year primarily. This was "due to U.S. price increases for new and existing subscribers and a shift in product mix toward higher-priced offerings, along with legacy price increases, the launch of Dual Tier memberships in non-Triple Tier countries, and continued growth in Triple Tier memberships in the UK and ANZ."
Commenting on the quarter, Life360's co-founder and CEO, Chris Hulls, said:
Life360 started 2025 strongly, achieving record highs in MAUs, subscribers, and Q1 net additions, while making meaningful progress against our strategic roadmap. In a more cautious consumer spending environment, our performance reflects both the resilience of our business model and the growing demand for our services that keep families safe, connected, and provide peace of mind. As a trusted daily essential for millions, we are uniquely positioned to support families through uncertain times—and beyond.
Outlook
Life360 has reaffirmed its guidance for FY 2025. It expects consolidated revenue of US$450 million to US$480 million.
This comprises Subscription revenue of $355 million to $365 million, hardware revenue of US$40 million to US$50 million, and other revenue of US$55 million to US$65 million.
Positive adjusted EBITDA of US$65 million to US$75 million continues to be expected for the year.
However, it is possible that given how it has started FY 2025, the market believes that an earnings guidance upgrade is inevitable in the coming quarters.
The Life360 share price is up almost 80% since this time last year.
