Life360 Shares Surge as Morgan Stanley Reaffirms Buy Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2025
0mins
Source: TipRanks
Analyst Rating and Growth Potential: Life360, Inc. shares rose after Morgan Stanley analyst James Bales reaffirmed a Buy rating, citing the company's large subscriber base and growth potential, with a price target of AU$25 indicating a 15% upside.
Strong User Engagement and Revenue Forecasts: Life360 boasts around 80 million engaged users and expects significant revenue growth, projecting $368-$374 million for 2024, alongside strong performance in new service offerings and international adoption.
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Analyst Views on LIF
Wall Street analysts forecast LIF stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LIF is 57.17 USD with a low forecast of 48.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 58.910
Low
48.00
Averages
57.17
High
70.00
Current: 58.910
Low
48.00
Averages
57.17
High
70.00
About LIF
Life360, Inc. is a provider of technology platform used to locate the people, pets and things that matter to families. The Company has a category at the intersection of family, technology, and safety to help keep families connected and safe. Its products include Life360 Subscription Offerings, Life360 Platform, Tile Product Line, Tile Subscription Offerings, Jiobit Product Line and Jiobit Subscription Offerings. The Life360 mobile application operates under a freemium model where its core offering is available to users. In addition, three paid membership subscription options are available for users looking for a variety of features, such as additional safety features for the everyday family: Life360 Silver, Life360 Gold, and Life360 Platinum, which offer users a comprehensive suite of premium safety services. It offers four key product features that combined make up the Life360 Platform: location coordination and safety, driving safety, digital safety, and emergency assistance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Life360 (LIF) Stock Rises 24.25% on Strong Q4 User Growth and Revenue Projections
- Strong User Growth: Life360's monthly active users reached 95.8 million in Q4, with U.S. users increasing by 16% year-over-year to 50.6 million and international users surging 26% to 45.3 million, highlighting the market appeal of the company's safety services.
- Increase in Paying Users: Life360's paid subscribers, referred to as paying circles, grew to 2.8 million, with U.S. paying circles rising 23% to 2 million and international circles increasing 32% to 0.8 million, indicating record conversion rates that enhance revenue potential.
- Upward Revenue Projections: Life360 anticipates a 32% increase in full-year revenue for 2025, reaching between $486 million and $489 million, while EBITDA is expected to grow by 19% to $87 million to $92 million, both exceeding prior management guidance and reflecting strong financial performance.
- Optimistic Future Outlook: Looking ahead to 2026, Life360 expects total MAUs to grow by about 20%, with the CEO noting that despite potential quarterly fluctuations, Q4 and full-year 2025 results demonstrate stable growth trends, reflecting families' emphasis on staying connected and safe.
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Life360 Reports Record User Conversion Rates, Shares Surge 24%
- Significant User Growth: Life360's monthly active users (MAU) reached 95.8 million by Q4, with U.S. users increasing 16% year-over-year to 50.6 million and international users rising 26% to 45.3 million, showcasing the company's strong user acquisition performance and solidifying its market position.
- Surge in Paying Subscribers: The number of Life360's paying circles grew to 2.8 million, with U.S. paying circles up 23% to 2 million and international circles increasing 32% to 0.8 million, indicating significant progress in monetization strategies and enhancing revenue potential.
- Upward Revenue Guidance: Life360 projects a 32% increase in full-year revenue for 2025, reaching between $486 million and $489 million, while EBITDA is expected to grow by 19% to between $87 million and $92 million, both exceeding prior management guidance and reflecting ongoing financial health.
- Optimistic Future Outlook: Looking ahead to 2026, Life360 anticipates total MAUs to grow by about 20%, with the CEO noting that despite potential quarterly fluctuations, Q4 and full-year 2025 results demonstrate stable growth trends, reflecting families' emphasis on staying connected and safe.
Continue Reading