Big share price declines tend to draw attention, especially when they involve well-known growth companies.
For me, the more interesting question is what has changed beneath the surface, and whether the long-term direction of the business still points higher over time.
Here are two ASX 200 shares that have pulled back heavily, but that I think still offer compelling long-term potential.
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Life360 Inc (ASX: 360)
Life360 is a business I increasingly think of as a network rather than just an app.
At its core, this technology company connects families through location sharing and safety features, but what stands out is the scale it is reaching. The platform now has close to 100 million monthly active users globally, with strong growth continuing across both the US and international markets.
That kind of scale creates something valuable. As more users join the platform, the usefulness of the network increases, and that can support stronger engagement and monetisation over time. The company is already seeing that play out, with subscription growth continuing to track alongside user growth.
What I find interesting is how many layers this business could have. Beyond subscriptions, there are opportunities in hardware, data, advertising, and additional services that sit on top of the core platform. That creates multiple pathways for growth, rather than relying on a single revenue stream.
For me, the size of the network and the ability to deepen monetisation over time is what makes this ASX 200 share very interesting, especially after falling more than 60% from its high.
TechnologyOne Ltd (ASX: TNE)
TechnologyOne offers a very different type of opportunity.
Where Life360 is building a global consumer platform, TechnologyOne is focused on enterprise software, particularly for government, education, and large organisations.
What stands out to me here is the strength and consistency of the business. Over time, TechnologyOne has developed a model built around recurring revenue, long-term customer relationships, and steady expansion within its existing base. That creates a level of predictability that is not always common in technology companies.
More recently, the company has been leaning into artificial intelligence (AI) as part of its product offering, with management highlighting AI as a driver of confidence in future growth.
I think that is an interesting shift. Rather than being positioned as a risk, AI is being integrated into the product suite to enhance what the company already does. That approach could help strengthen its value proposition over time, particularly with customers looking for more capability without added complexity.
The share price pullback suggests some caution from the market, but the underlying model remains consistent. For me, that combination of reliability and gradual evolution is what makes it a compelling long-term holding. This is particularly the case after pulling back 33% from its high.
Foolish Takeaway
Share price declines of this magnitude often reflect a change in sentiment as much as a change in fundamentals.
Life360 is building a large and growing network with multiple avenues for monetisation, while TechnologyOne continues to deliver a steady, recurring revenue model while evolving its product offering.
They are different businesses, but I think both offer something that matters over the long term. The ability to grow into a larger opportunity from where they are today.
