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Life360, Inc. (LIF)
:LIF
US Market

Life360, Inc. (LIF) AI Stock Analysis

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LI

Life360, Inc.

(NASDAQ:LIF)

Rating:65Neutral
Price Target:
$70.00
▲(11.59%Upside)
Life360, Inc. shows strong financial performance with significant revenue growth and improved cash flow generation. However, the technical analysis indicates potential overbought conditions, and the high P/E ratio suggests overvaluation. The absence of a dividend yield further constrains its valuation appeal.
Positive Factors
Earnings
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, targeted marketing efforts, the ongoing benefit from price adjustments, and the continued scaling of multi-tier pricing plans.
Negative Factors
Insider Selling
Recent negative catalysts include the CEO selling a significant portion of his stock.
Product Delays
Life360 was impacted by a six-week delay in rolling out its new Tile product lineup given supply chain and certification challenges.

Life360, Inc. (LIF) vs. SPDR S&P 500 ETF (SPY)

Life360, Inc. Business Overview & Revenue Model

Company DescriptionLife360, Inc. is a technology company that provides location-based services, primarily focusing on family safety and connectivity. The company's flagship product is a mobile application that allows family members to share their locations, communicate, and receive alerts in real-time. Life360's offerings are designed to enhance family safety and security, offering features such as location sharing, driving reports, and emergency assistance across multiple devices.
How the Company Makes MoneyLife360, 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 ongoing net losses, these are decreasing, and cash flow metrics show significant improvement, indicating a positive trajectory towards profitability. The balance sheet remains strong with low debt levels, supporting long-term financial stability. The primary risk lies in achieving net profitability to enhance return on equity.
Income Statement
72
Positive
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
65
Positive
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
80
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
371.48M304.52M228.31M112.64M80.66M
Gross Profit
279.16M222.64M148.60M89.88M65.26M
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 SheetCash, Cash Equivalents and Short-Term Investments
159.24M68.96M75.44M230.99M56.41M
Total Assets
441.58M321.72M339.63M302.38M86.31M
Total Debt
359.00K5.56M8.39M12.79M3.07M
Net Debt
-158.88M-63.40M-67.06M-218.19M-53.35M
Total Liabilities
83.03M74.65M95.09M52.33M21.82M
Stockholders Equity
358.55M247.06M244.54M250.04M64.50M
Cash FlowFree Cash Flow
27.48M5.30M-57.76M-12.23M-7.90M
Operating Cash Flow
32.61M7.52M-57.05M-12.15M-7.25M
Investing Cash Flow
-10.13M-2.22M-111.63M-7.06M-653.00K
Financing Cash Flow
67.27M-24.95M27.71M193.95M445.00K

Life360, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price62.73
Price Trends
50DMA
50.86
Positive
100DMA
46.78
Positive
200DMA
44.50
Positive
Market Momentum
MACD
2.93
Positive
RSI
59.95
Neutral
STOCH
27.81
Neutral
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 62.73 is above the 20-day moving average (MA) of 62.59, above the 50-day MA of 50.86, and above the 200-day MA of 44.50, indicating a neutral trend. The MACD of 2.93 indicates Positive momentum. The RSI at 59.95 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIF.

Life360, Inc. Risk Analysis

Life360, Inc. disclosed 65 risk factors in its most recent earnings report. Life360, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Life360, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$2.88B24.4817.27%6.72%43.44%
75
Outperform
$1.42B28.1030.85%9.43%10.07%31.38%
73
Outperform
$4.60B-63.52%30.08%-196.62%
LILIF
65
Neutral
$4.80B666.883.12%26.15%
63
Neutral
$1.36B197.202.81%22.75%-47.45%
58
Neutral
$4.95B18.19-16.94%6.95%13.73%-24.47%
RNRNG
53
Neutral
$2.43B16.58%7.78%70.43%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LIF
Life360, Inc.
62.22
30.97
99.10%
RNG
RingCentral
26.94
-0.22
-0.81%
ALRM
Alarm
56.96
-4.36
-7.11%
GRND
Grindr
23.02
13.10
132.06%
SEMR
SEMrush Holdings
9.18
-4.05
-30.61%
KARO
Karooooo
46.79
15.32
48.68%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.