eToro market analyst Josh Gilbert suggests investors are keenly awaiting Life360’s upcoming results, scheduled for release on Tuesday, to gauge whether the company is on a stable trajectory. Life360 operates a family safety and location app. In January, the company revealed a record operational update, noting 95.8 million monthly active users globally by the close of Q4. Full-year net additions reached 16.2 million, marking a 20 per cent year-on-year increase.
Gilbert highlighted that after a substantial rally peaking at a 600 per cent increase, Life360’s shares have since experienced a downturn of approximately 55 per cent since October. He attributes this decline to investor apprehension surrounding the company’s acquisition of ad-tech provider Nativo. The market’s unease stems from the perceived shift in business model, as Life360 transitions from a family safety app to incorporate advertising, a departure from its original investor base’s expectations.
According to Gilbert, the conversion rate of new users to paid subscriptions is at an all-time high. The company also raised revenue guidance to between $US486 million and $US489 million for FY25, suggesting a fourth-quarter revenue of approximately $US142 million to $US145 million. In addition to revenue, Gilbert noted that Life360’s profitability is a compelling aspect. Adjusted EBITDA margins are projected to be around 18 to 19 per cent for the full year, increasing from 12 per cent in FY24.
