Life360, Inc. (LIF) AI Stock Analysis

• Market Cap: $4.61B
• Dividend Yield: N/A
• Average Volume (3M): 627.44K
• Price to Earnings (P/E): 645.9
• Beta (1Y): 1.98
• Revenue Growth: 26.15%
• EPS Growth: N/A
• Country: US
• Employees: 455
• Sector: General
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): 0.17
• Shares Outstanding: 76,528,725
• 10 Day Avg. Volume: 846,693
• 30 Day Avg. Volume: 627,436
• PEG Ratio: -29.46
• Price to Book (P/B): 23.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 106.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $55.17
• Price Target Upside: -8.45% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Life360, Inc. has a strong financial performance, with significant revenue growth and improving cash flow metrics, contributing to a positive outlook. However, the high P/E ratio suggests overvaluation, and the stock's technical indicators warn of an overbought status. The absence of dividend yield further affects the valuation negatively. The primary strength is financial performance while valuation concerns and technical overbought conditions pose risks.

Positive Factors

Financial Performance

Life360 reported strong Q1 results, with total revenue and profitability coming in ahead of estimates.

Product Development

Life360 continues to make progress developing the advertising offering, with its first native ad format on track to launch in Q2, and a recently announced partnership with AI safety company Aura is expected to drive incremental advertising revenue later this year.

Subscription Growth

Core subscription revenue growth accelerated once again to +37% y/y, reflecting improved retention in US markets, targeted marketing efforts, the ongoing benefit from price adjustments, and the continued scaling of multi-tier pricing plans.

Negative Factors

Hardware Sales

Hardware revenue was softer than expected, but the company saw continued growth in the number of US Premium subscribers linking Tile devices to their Life360 account.

Leadership and Market Position

Recent negative catalysts include a FY24 revenue guide-down due to logistic-related issues in the non-core hardware segment, the CEO selling a significant portion of his stock, and a lower weighting in the Russell indices.

Logistics and Supply Chain

Life360 was impacted by a six-week delay in rolling out its new Tile product lineup given supply chain and certification challenges.

Life360, Inc. Business Overview & Revenue Model

Company Description

Life360, Inc. operates a technology platform to locate people, pets, and things in North America, Europe, the Middle East, Africa, and internationally. The company provides Life360 mobile application under the freemium model, which offers its services to users at no charge; and provides Life360 Platform, which offers location coordination and safety, driving safety, digital safety, and emergency assistance services. It also provides tile hardware tracking devices to locate lost devices sold through online and brick and mortar retail channels, as well as directly through Tile.com; tile mobile application that includes a free service, as well as two paid subscription options, such as Premium and Premium Protect to offer additional services, including warranties and item reimbursement; Jiobit subscriptions; and Jiobit wearable location devices for young children, pets, and seniors primarily in the United States through online retailers. The company was formerly known as LReady, Inc. and changed its name to Life360, Inc. in October 2011. Life360, Inc. was incorporated in 2007 and is headquartered in San Mateo, California.

How the Company Makes Money

Life360, Inc. generates revenue primarily through a subscription-based model. The company offers premium service tiers that include advanced features such as 24/7 roadside assistance, identity theft protection, and crime reports, which are unavailable in the free version of the app. These subscription plans are offered on a monthly or annual basis, providing a steady revenue stream. Additionally, Life360 may engage in partnerships with insurance companies and third-party service providers to offer additional services, which can also contribute to its earnings. Advertising and in-app purchases are potential, albeit smaller, revenue streams for the company.

Life360, Inc. Financial Statement Overview

Summary

Life360, Inc. demonstrates strong revenue growth and improved operational efficiencies. Despite continued net losses, the company shows a decreasing loss trend and significant cash flow improvements, indicating a positive trajectory towards profitability. The balance sheet is robust with low debt levels, supporting long-term financial stability.

Income Statement

Life360, Inc. has shown a strong revenue growth trajectory, with a significant increase from $112.6 million in 2021 to $371.5 million in 2024. The gross profit margin for 2024 stands at approximately 75.1%, indicating strong profitability in core operations. The net profit margin, however, remains negative due to consistent net losses, though the magnitude of losses has decreased over time. The EBIT and EBITDA margins are improving, reflecting operational improvements despite still being negative.

Balance Sheet

The company's balance sheet shows strong equity levels with a debt-to-equity ratio of 0.001 in 2024, highlighting low financial leverage. The equity ratio is robust, indicating a healthy proportion of company financing through equity. However, the company has accumulated losses, which impacts the return on equity, as net income remains negative.

Cash Flow

Life360, Inc. has shown substantial improvement in cash flow generation, with operating cash flow increasing significantly over the years. The free cash flow has turned positive, reflecting better cash management and operational efficiency. The operating cash flow to net income ratio and free cash flow to net income ratio indicate strong operational cash generation relative to reported losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
371.48M	304.52M	228.31M	112.64M	80.66M
	Gross Profit
279.16M	222.64M	148.60M	89.88M	65.26M
	EBIT
-7.98M	-29.98M	-94.41M	-30.14M	-15.99M
	EBITDA
2.13M	-20.00M	-85.21M	-31.39M	-15.99M
	Net Income Common Stockholders
-4.55M	-28.17M	-91.63M	-33.56M	-16.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
159.24M	68.96M	75.44M	230.99M	56.41M
	Total Assets
441.58M	321.72M	339.63M	302.38M	86.31M
	Total Debt
359.00K	5.56M	8.39M	12.79M	3.07M
	Net Debt
-158.88M	-63.40M	-67.06M	-218.19M	-53.35M
	Total Liabilities
83.03M	74.65M	95.09M	52.33M	21.82M
	Stockholders Equity
358.55M	247.06M	244.54M	250.04M	64.50M
Cash Flow		Free Cash Flow
27.48M	5.30M	-57.76M	-12.23M	-7.90M
	Operating Cash Flow
32.61M	7.52M	-57.05M	-12.15M	-7.25M
	Investing Cash Flow
-10.13M	-2.22M	-111.63M	-7.06M	-653.00K
	Financing Cash Flow
67.27M	-24.95M	27.71M	193.95M	445.00K

Life360, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIF, the sentiment is Positive. The current price of 60.26 is above the 20-day moving average (MA) of 45.75, above the 50-day MA of 41.28, and above the 200-day MA of 41.67, indicating a bullish trend. The MACD of 5.04 indicates Negative momentum. The RSI at 81.85 is Negative, neither overbought nor oversold. The STOCH value of 81.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIF.

Life360, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALRM	79 Outperform	$2.97B	25.22	17.27%	―	6.72%	43.44%
KARO	75 Outperform	$1.68B	33.40	30.85%	1.98%	10.07%	31.38%
GRND	73 Outperform	$4.60B	―	-63.52%	―	30.08%	-196.62%
SEMR	66 Neutral	$1.60B	231.83	2.81%	―	22.75%	-47.45%
LIF	62 Neutral	$4.61B	645.87	3.12%	―	26.15%	―
Sector *	56 Neutral	$4.72B	21.42	-18.09%	5.09%	14.68%	-14.65%
RNG	54 Neutral	$2.53B	―	16.58%	―	7.78%	70.43%