How this ASX 200 tech stock became a 10-bagger

Landing a 10-bagger is every ASX investor's dream.

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Key points

  • Life360 has skyrocketed over 1,200% in less than five years, positioning itself as a standout tech investment in the ASX 200.
  • With revenue growth from US$228.3 million in 2022 to US$371.5 million in 2024 and 88 million active users, Life360 continues its upward trajectory.
  • Analysts remain bullish on Life360, with most maintaining a buy or strong buy rating, expecting further growth in underpenetrated markets.

The S&P/ASX 200 Index (ASX: XJO) is not exactly known for its technology investments. 

However, one standout ASX-listed technology investment has increased more than 10 times in less than five years. 

That stock is Life 360 Inc (ASX: 360).

Landing a 10-bagger is every ASX investor's dream.

Last Friday, Life360 shares reached a record $52.40 during intraday trade.

In less than five years, Life360 shares have increased by more than 1,200%. That means a $20,000 investment in Life360 shares five years ago is worth more than $240,000 today.

That makes Life360 a potentially life-changing investment. The Australian Bureau of Statistics (ABS) estimates the average home loan deposit to be $197,000. 

Let's find out how Life360 shares got there and whether the ASX 200 tech stock has further to run.

Life360's incredible growth story

Founded in 2007 by Alex Haro and Chris Hulls, Life360 has an incredible growth story. 

What started out as a simple tracking app has undergone major adaptations, allowing Life360 to become an all-inclusive family safety platform. 

The company operates a 'freemium' model, meaning the basic model is free, and users can pay a subscription fee for premium features. 

Life360 is constantly adding new features, retaining existing customers, and capturing new ones. 

Such features include real-time location sharing, driving reports with features like crash detection and driving behaviour monitoring. The App also allows users to notify family members when leaving or arriving at certain locations.

The numbers

This trajectory has translated into strong financial results for Life360. 

Between 2022 and 2024, Life360 grew its revenue from US$228.3 million to US$371.5 million. 

The company shows no signs of slowing down.

In the most recent quarter, Life360 increased revenue 36% to $115.4 million.

On a customer level, Life360 recently reached a staggering 88 million global monthly active users and 2.5 million paying circles. 

Despite hitting these numbers, management sees more growth ahead. 

Management has estimated that its core subscription total addressable market (TAM) could be worth US$75 billion.

The company believes it is significantly underpenetrated in many of its core markets, including the UK, Canada, and Europe.

More to come?

Despite Life360's strong run, several analysts believe the ASX 200 tech stock can go higher. 

As recently reported by The Motley Fool's Samantha Menzies, 8 out of 9 analysts have a buy or strong buy rating on the shares, according to TradingView.

Motley Fool contributor Laura Stewart 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 Life360. The Motley Fool Australia has positions in and has recommended Life360. 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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