Half-year report sends Life360 (ASX:360) share price to record high

The location services tech company is having a good day on the ASX today after delivering its half-year report.

| More on:
happy campers, recreational vehicle hire, tourism, holiday market share price rise, up, increase

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Life360 (ASX: 360) share price has soared more than 5% to record highs after releasing its half-year report for FY21.

Investors are bidding shares in the technology company higher after it announced a positive growth outlook.

Let's take a look at how Life360 performed for the half-year.  

Highlights from Life360's' half-year report for FY21

  • 27% year on year (yoy) increase in revenue of US$48.0 million
  • 36% yoy increase in Annualised Monthly Revenue (AMR) of US$105.9 million
  • Global Monthly Active User (MAU) base of 32.3 million, up 28% yoy
  • Global Paying Circles of 1.0 million, an increase of 19% yoy  
  • Average Revenue Per Paying Customer (ARPPC) of US$84.43 for the US and US$44.22 for International, up 14% and 4% yoy respectively.
  • Statutory EBITDA loss of US$10.4 million compared with loss of US$7.) million in the prior year
  • Underlying EBITDA loss of US$4.8 million compared with US$2.6 million in the prior year.
  • Statutory net loss of US$10.7 million compared with US$7.2 million in the prior year.
  • Cash used in operating activities of US$4.9 million improved from US$5.5 million in the prior year.

For the 6 months ending 30 June 2021, Life360 noted a cash balance of US$50.8 million and debt of US$2.1 million. In addition, the company reported net subscriber revenue retention above 100% for the half-year.

What happened with Life360 in the first-half of FY21?

Life360 cited a surge in its Paying Circles membership as a key driver in revenue growth. The company noted that Paying Circles members increased by 161,000 year on year, with record gains in the second quarter.

Indirect revenue from data revenue and lead generation also contributed to revenue, increasing 11% year on year to $11.6 million.

Losses for the half-year increased, with Life360 citing expansion and growth initiatives for the rise.

What did management say?

Life360 Co-Founder and CEO Chris Hulls noted:

The first half of 2021 delivered accelerating performance of our key user metrics, benefiting from the rollout of the COVID-19 vaccine, particularly in the US. Growth is accelerating across the board, and we're seeing the back-to-school wave we anticipated. Even with the Delta variant, our confidence for the rest of the year remains extremely high.

What's next for Life360?

For its core business, Life360 expects annualised monthly revenue to hit $US120 million to $US125 million by December 2021.

In addition, the company plans on increasing investment in marketing and research which would increase its underlying EBITDA loss. For the calendar year, Life360 expects an underlying EBITDA loss in excess of $US15 million.

The company noted that the current Delta outbreak was taken into account when generating guidance.

However, Life360 also cautioned that ultimate changes in social distancing patterns and government restrictions remain unclear.

In addition, Life360 noted intentions to pursue a US listing and acknowledged plans to expand its offering beyond location services.

At the time of writing, the Life360 share price is 5% higher on the day at $9.26, not too far off its record high of $9.35.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why Boss Energy, Emeco, Mineral Resources, and Plenti shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Three small children reach up to hold a toy rocket high above their heads in a green field with a blue sky above them.
Share Gainers

3 ASX 300 shares going gangbusters on Wednesday

Investors are bidding up these three ASX 300 shares today. But why?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a huge Tuesday for ASX shares, with the index resetting its record high.

Read more »

Woman holding gold bar and cheering.
Gold

Why are ASX gold shares rebounding today?

ASX investors are going for gold today.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

Why Meteoric Resources, Resolute Mining, Sonic Healthcare, and TechnologyOne shares are roaring higher

Let's see why investors are getting excited about these shares on Tuesday.

Read more »

Two kids in superhero capes.
Small Cap Shares

Guess which 2 ASX small-cap shares just rocketed 50%+ on big news!

Investors are sending these two ASX small-cap stocks through the roof on Tuesday.

Read more »