Impressive March quarter results sends Life360’s share price up 18 per cent
In response to Life360’s (ASX:360) March 2025 Quarterly update released on Monday 12 May, its share price has jumped 18 per cent from $23.58 to $27.85 in the past two trading days.
At first glance Life360 may appear to be a simple location-tracking app, however we see it as an emerging platform with deep emotional resonance and a rare level of trust among families. The company’s differentiated positioning and operating system agnosticism allow it to serve as a guardian of family safety in a way that platform giants cannot easily replicate. Life360 has now reached a pivotal inflection point, with positive operating cash flow and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) supported by scale, customer retention, and pricing gains.
Global monthly active users at March-end hit 83.7 million users, global paying circle exceeded 2.4 million, both up 26 per cent year on year, whilst penetration in the U.S., for example, has jumped from 6 per cent to 15 per cent in the past five years. We see significant upside for Life360 as the company evolves into a broader ecosystem offering services across family safety, pet tracking, item tracking, elderly care, and targeted advertising.
In the past five years, penetration in the UK has jumped from 2 per cent to 10 per cent, in Europe from 0.4 per cent to 1.7 per cent; in Australia and New Zealand from 3 per cent to 11 per cent and in Canada from one per cent to 4 per cent. Despite having a long remaining runway in U.S. penetration, we see the non-U.S. paying circle, which currently accounts for 30 per cent of the total, trending toward 40 per cent over the medium term.
Revenue in the March 2025 Quarter was $103.6 million*, up 32 per cent on the previous corresponding quarter, whilst EBITDA margins exceeded 15 per cent. Positive operating cashflow of $12.1 million was up 13 per cent, year on year. For calendar 2025, Life 360’s midpoint revenue forecast is $465 million and the adjusted EBITDA forecast is $70 million.
From the powerful network effects, a long global runway, and a higher conversion percentage to global paying circles from global monthly active users, management’s aspirational goals include 150 million monthly active users and $1 billion of revenue whilst more than doubling the adjusted EBITDA margin to 35 per cent.
* All financials are in US dollars.
The Montgomery Fund and the Montgomery [Private] Fund own shares in Life360. This article was prepared on 13 May 2025 with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade Life 360 you should seek financial advice.
Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience.
David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
