Life360, Inc. (LIF) AI Stock Analysis

• Market Cap: $5.24B
• Dividend Yield: N/A
• Average Volume (3M): 815.83K
• Price to Earnings (P/E): 755.0
• Beta (1Y): 1.86
• 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: 641,446
• 30 Day Avg. Volume: 815,826
• PEG Ratio: 1.51
• Price to Book (P/B): 14.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 189.69
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 3.63
• Enterprise Value/Gross Profit: 17.25
• Enterprise Value/Ebitda: -1.12K
• 1Y Price Target: $61.50
• Price Target Upside: -10.17% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $71.00 ▲(3.71%Upside)

Life360, Inc. has strong financial performance and technical indicators, suggesting growth potential. However, the very high P/E ratio raises concerns about overvaluation, impacting the overall stock score.

Positive Factors

Advertising Revenue

Life360 continues to make progress developing the advertising offering, with a recently announced partnership with AI safety company Aura expected to drive incremental advertising revenue.

Financial Performance

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

Subscription Growth

Core subscription revenue growth accelerated once again to +37% y/y, reflecting improved retention in US markets.

Negative Factors

Hardware Challenges

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

Insider Selling

The CEO selling a significant portion of his stock has been seen as a negative catalyst for Life360.

Revenue Guidance

Recent negative catalysts include a FY24 revenue guide-down due to logistic-related issues in the non-core hardware segment.

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, offering premium services that enhance the features available in its free version of the app. The company's key revenue streams include its Life360 Membership plans, which provide advanced safety features like roadside assistance, crash detection, and emergency dispatch services. Additionally, Life360 earns money through partnerships with businesses and service providers that complement its safety and location services, such as insurance companies and automotive firms. The company may also derive income from advertising and data monetization, leveraging its large user base and location-based data insights.

Life360, Inc. Financial Statement Overview

Summary

Life360, Inc. shows strong revenue growth and improving profitability, with a robust balance sheet and positive cash flow trends. However, there are still areas for improvement in operational efficiency and consistent cash generation.

Income Statement

Life360, Inc. has demonstrated strong revenue growth, with TTM revenue increasing significantly from prior years. The gross profit margin remains robust, indicating efficient cost management. Net profit has improved markedly, transitioning from losses in previous periods to a positive figure, enhancing the net profit margin. However, EBIT and EBITDA margins, while improving, still reflect a relatively modest performance, suggesting room for operational efficiency gains.

Balance Sheet

The balance sheet shows a strong equity position, with a high equity ratio indicating financial stability and low leverage. The debt-to-equity ratio is minimal, reflecting prudent financial management and low reliance on debt. Return on equity has improved with the positive net income, but there is still potential for further enhancement as profitability increases.

Cash Flow

Life360's cash flow statements reveal a positive trajectory, with increasing operating cash flow and strong free cash flow growth. The ratios of operating and free cash flows to net income have improved, underscoring effective cash management. However, fluctuations in free cash flow in past periods highlight areas for improvement in maintaining consistent cash flow generation.

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
EBITDA	2.13M	-20.00M	-85.21M	-31.39M	-15.99M
Net Income	-4.55M	-28.17M	-91.63M	-33.56M	-16.33M
Balance Sheet
Total Assets	441.58M	321.72M	339.63M	302.38M	86.31M
Cash, Cash Equivalents and Short-Term Investments	159.24M	68.96M	75.44M	230.99M	56.41M
Total Debt	359.00K	5.56M	8.39M	12.79M	3.07M
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: 68.46
• 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 68.46 is above the 20-day moving average (MA) of 64.14, above the 50-day MA of 60.85, and above the 200-day MA of 47.17, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 72.83 is Negative, neither overbought nor oversold. The STOCH value of 87.23 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	77 Outperform	$2.72B	22.83	17.27%	―	6.72%	43.44%
KARO	75 Outperform	$1.56B	30.97	30.85%	8.72%	11.15%	27.97%
LIF	69 Neutral	$5.24B	754.98	3.12%	―	26.15%	―
SEMR	63 Neutral	$1.29B	186.67	2.81%	―	22.75%	-47.45%
GRND	60 Neutral	$4.28B	―	-63.52%	―	30.08%	-196.62%
Sector *	56 Neutral	$5.79B	21.50	-28.61%	5.76%	10.78%	-34.04%
RNG	52 Neutral	$2.38B	―	16.58%	―	7.78%	70.43%