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ASX:360
Life360 Inc
Investment Summary
The fund managers believe that Life360 Inc stands out positively in the market. In their opinion, the company has demonstrated impressive revenue growth of 33% to US$305m and substantial subscription growth of 52% to US$200m, alongside a positive EBITDA of US$21m. They noted a strong share price performance, rallying over 150% in 2024, highlighting the potential of its family tracking app. The managers emphasize Life360's expanding international user base, which exceeded market expectations, and project continued growth as new products are rolled out. There is also a strong belief in the advertising strategy's potential to be a significant revenue driver, with targets aiming for over $1 billion in revenue. Despite minor setbacks from insider selling, they remain confident in the company's technology and growth trajectory, pointing to an expected 15-20% EPS growth rate.
Commentary From The Managers
Endeavor Asset Management
31 Jan 2025
$25.29
- Life360 (360) experienced a strong month in January, driven by an upgrade from UBS to a Buy.
- The upgrade stemmed from faster than expected growth in advertising revenue and strong user trends.
- Early estimates suggest that expanding into video, carousel, and off-site advertising could yield an additional 5 to 25 percent upside in revenue by 2028.
- Advertiser checks indicate that operating margins could improve by up to 10 percentage points in the coming years.
- Management aims to reach ad monetisation levels comparable to companies like Pinterest and Snap, which could increase ad revenue to more than six times current levels.
- Endeavor Asset Management expects earnings to accelerate further, with a projected forward EPS growth rate of 15 to 20 percent.
Milford Asset Management
31 Jan 2025
$25.29
- Life360 continues to perform strongly, with a recent increase of +12.2%
- Encouraging high-frequency data suggests improving trends across key geographies
- Ranks among the top 10 social networking apps in 67 countries
- Serves as a valuable distribution channel for advertisers
- This advertising potential presents a lucrative earnings stream
- Contributes to materially de-risking the core business
- Milford Asset Management continues to hold due to these favorable dynamics
Endeavor Asset Management
31 Dec 2024
$22.54
- Life360 (360) shares experienced a decline in early December due to increased insider selling activity.
- Several executives, including the CEO, sold substantial portions of their shares.
- This insider selling contributed to a 10.9% drop in shares over the month.
- Despite acknowledging the insider selling, Endeavor Asset Management remains confident in 360's technology and growth prospects for the next 12 months.
- Endeavor Asset Management took some profits during the previous month.
Milford Asset Management
30 Nov 2024
$25.48
- Milford Asset Management recognizes the positive performance of Life360 (+15.2%).
- The high-frequency data usage continues to show encouraging trends across key geographies.
- Life360 is a top 10 social networking app in 67 countries, enhancing its advertising distribution potential.
- This positioning offers a lucrative earnings stream while materially de-risking the core business.
Endeavor Asset Management
31 Oct 2024
$21.97
- Endeavor Asset Management observes strong performance of Life360 shares, which increased by 16% in October.
- The company successfully rolled out its advertising strategy in Australia, deemed a positive surprise.
- Advertising potential is recognized as a significant future revenue driver.
- The upcoming quarterly report is highly anticipated for insights related to advertising impact.
- Q3 is traditionally the strongest period for paying circle growth, influenced by the back-to-school season in the northern hemisphere.
Endeavor Asset Management
31 Oct 2024
$21.97
- Endeavor Asset Management notes that shares in Life360 Inc. performed strongly in October.
- The rollout of the advertising strategy in Australia was a positive surprise.
- Advertising is expected to be a significant revenue driver moving forward.
- Anticipation builds for comments in the upcoming quarterly report.
- Historically, Q3 is the strongest quarter for paying circle growth due to the back-to-school season.
- Life360 shares saw an increase of 16% over the month.
Ophir Asset Management
22 Sept 2024
$18.27
- Ophir Asset Management identifies Life360 as a potential next 10-bagger for the fund.
- Shares have risen nearly 150% in 2024, currently priced at $18.
- The stock was first acquired by the fund in 2020 at around $3.
- Life360 is positioned to launch multiple businesses off its existing platform, driven by the vast US family safety market.
- The fund manager appreciates Life360’s ultra-low cost of acquiring customers.
- Life360 plans to introduce advertisements to millions of free users, creating a new revenue stream.
- Growth potential noted as Life360 is scaling swiftly, with competition from Apple’s ‘Find My’ app being a key consideration.
Endeavor Asset Management
31 Aug 2024
$18.90
- Life360 Inc. (360) experienced a 16% increase in August.
- Quarterly earnings showed 20% annual revenue growth.
- The user base is expanding, with 71 million monthly active users as of June.
- Annualised revenue reached $340 million in Q2 with 13% EBITDA margins.
- Aiming for over 150 million monthly active users in the future.
- Targets include exceeding $1 billion in revenue and EBITDA margins above 25%.
- This ambitious growth implies over 580% growth in EBITDA compared to FY24 consensus.
- Endeavor Asset Management continues to hold due to these promising growth indicators.
Endeavor Asset Management
31 Aug 2024
$18.90
- Endeavor Asset Management notes a significant increase of 16% in Life360's (360) stock in August.
- The quarterly earnings showcased a 20% annual growth in revenue along with a growing user base.
- Life360 has reached 71 million monthly active users as of June, contributing to $340 million in annualised revenue for Q2.
- The company's EBITDA margins stand at 13%.
- Life360 has set ambitious targets aiming for over 150 million monthly active users and more than $1 billion in revenue.
- Projected EBITDA margins are expected to exceed 25%.
- The targets suggest an impressive potential for over 580% growth in EBITDA compared to FY24 consensus estimates.
- Endeavor Asset Management continues to hold due to these encouraging growth metrics and the company's strategic vision.
Blackwattle Investment Partners
30 Apr 2024
$13.77
- Blackwattle Investment Partners notes a strong performance in Life360, with a rally of +88% since FY23 results.
- The company reported better-than-expected 1Q24 revenues.
- An increase in active users was observed, which is a key forward-looking metric, indicating strong demand for the product.
- Life360 announced plans for a dual listing on the NASDAQ.
- The intention of the dual listing is to align its trading valuation closer to its more highly valued peers.
Endeavor Asset Management
30 Apr 2024
$13.77
- Endeavor Asset Management notes that Life360's share price increased by 5.2% during April.
- In early April, Life360 released a MarQ trading update that exceeded consensus MAU expectations.
- Life360's international paying customer base grew significantly, at approximately 80% above international consensus estimates.
- Endeavor anticipates further growth in paying customers in JunQ as Life360 introduces its triple tier product in Australia.
- During the month, Endeavor continued to take profits.
Endeavor Asset Management
31 Mar 2024
$12.91
- Life360 delivered a great earnings report in March, resulting in a 60% rally in share price.
- Reported revenue growth of 33%, reaching US$305m.
- Achieved subscription growth of 52%, amounting to US$200m.
- Generated positive EBITDA of US$21m.
- Upgraded FY24 guidance to US$30-35m.
- Endeavor Asset Management's average entry price stands at $7.7/sh.
- Took profits at $12.0/sh during the month.
- Life360 is deemed cheaper than offshore peers.
- It remains a core weighting in the portfolio.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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