Recent IPO stock Life360 surged on Friday after delivering a modest beat-and-raise quarterly report, the first since its initial public offering. Life360 stock hit an all-time high on the news.
San Mateo, Calif.-based Life360 sells Tile-brand tracking devices and subscription services for families to keep track of loved ones and valuable items. Life360 describes itself as "a family connection and safety company."
Late Thursday, Life360 said second-quarter revenue rose 20% year over year to $84.9 million. Subscription revenue increased 25% to $65.7 million.
Life360 ended the period with 70.6 million global monthly active users, up 31% year over year.
Life360 Focused On Improving Profitability
The company reported a second-quarter loss of 15 cents a share. In the year-earlier period, it lost 7 cents a share.
"We continued to take meaningful steps on our path to profitability during the quarter, and our U.S. IPO enhanced our strategic flexibility," Chief Financial Officer Russell Burke said in a news release.
He added, "While costs from the U.S. IPO impacted our net loss vs. the prior year, we achieved our seventh consecutive quarter of positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), and our fifth consecutive quarter of positive operating cash flow."
The company is on track to reach sustained positive EBITDA in 2025, Burke said.
Life360 raised its revenue target for the full year to $375 million, based on the midpoint of its guidance. Its prior target was $367.5 million.
Life360 Stock Gets Price-Target Hike
Evercore ISI analyst Mark Mahaney reiterated his outperform rating on Life360 stock after the earnings report. He also raised his price target to 39 from 37.
Life360 went public on June 6 with its IPO priced at $27 a share.
On the stock market today, Life360 stock rose 9.1% to close at 35.03. Earlier in the trading session, it notched a record high of 36.88, according to IBD MarketSurge.
Chief Executive Chris Hulls said the company's growth prospects are bright.
"We believe that we are very early on in penetrating our global market opportunity, and that we have significant headroom to grow as we expand to new regions, and launch new safety, connection, and location features that make everyday family life better throughout all life stages," he said in a written statement.
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