Life360 stock holds $55 target, Market Outperform rating
Investing.com - Life360 Inc. (NASDAQ: LIF) has maintained an Outperform rating with a $55.00 price target, according to analysts at JMP Securities. The company, with a market capitalization of approximately $2.8 billion and impressive revenue growth of 22% in fiscal 2024, has an “EXCELLENT” financial health score, according to InvestingPro analysis.
In the fourth quarter of 2024, Life360 reported revenue of $115.5 million, up 33% year over year, with subscription revenue of $78.8 million, up 32% year over year. Monthly Active Users (MAUs) were approximately 79.6 million, up 30% year over year, and paid circles were nearly 2.3 million, up 25% year over year. Net income in the fourth quarter was $8.5 million, marking a significant turnaround in profitability for the company.
Analysts at JMP Securities noted improvements to Life360’s user experience, including the beta launch of a GPS tracker for pets called Jiobit for Pets. The device is integrated into the Life360 app, allowing users to track their pets’ location in real time. To use it, users must subscribe to the $149.99 annual Gold plan, which includes a free Jiobit device that attaches to their pet’s collar or harness.
With a strong gross margin of 75% and a forecast to reach profitability by 2025, Life360 appears well-positioned to capitalize on its subscription strategy. The integration of Tile technology into the Life360 platform and the expansion into pet tracking are expected to drive revenue growth and enhance user value.
Additionally, Life360 is expanding its advertising business, leveraging precise location data to deliver personalized ads. Its partnership with Uber is an example of how the company is diversifying its revenue streams beyond subscriptions.
With these growth drivers, including international expansion and advertising, JMP analysts believe Life360 is on a clear trajectory to reach its $1 billion revenue target, reaffirming its “Market Outperform” rating and $55 price target. Analyst consensus remains positive, with price targets ranging from $52 to $60.
In other recent news, Life360 has appointed Vari Bindra as its new Chief Information Security Officer, underscoring the company’s commitment to security and privacy. Bindra brings a wealth of experience from previous roles at Amazon and Intuit, where he oversaw security for the Amazon Retail Store. The strategic appointment aligns with Life360’s goal of strengthening its digital security strategy as it continues to expand globally.
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