Life360, Inc. (LIF) AI Stock Analysis

• Market Cap: $8.60B
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 320.2
• Beta (1Y): 1.85
• Revenue Growth: 30.04%
• EPS Growth: N/A
• Country: US
• Employees: 455
• Sector: General
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): 0.26
• Shares Outstanding: 77,548,650
• 10 Day Avg. Volume: 796,247
• 30 Day Avg. Volume: 1,020,307
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 12.61
• Enterprise Value/Gross Profit: 16.35
• Enterprise Value/Ebitda: 329.94
• 1Y Price Target: $99.83
• Price Target Upside: -5.86% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 63 Neutral
• Price Target: $110.00 ▲(3.73% Upside)

Life360, Inc. demonstrates strong financial performance with significant revenue and cash flow growth, which is the most significant factor supporting its stock score. However, technical indicators suggest the stock is overbought, and the high P/E ratio raises concerns about overvaluation. These factors collectively result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Life360's expanding market reach and successful adoption of its subscription-based services, which supports long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances Life360's ability to reinvest in growth opportunities and maintain financial flexibility, ensuring long-term operational stability.

Gross Profit Margin

A high gross profit margin reflects effective cost management and pricing power, supporting Life360's ability to sustain profitability over the long term.

Negative Factors

Net Profit Margin

A low net profit margin suggests challenges in achieving operational efficiency, which could limit Life360's ability to maximize profitability and shareholder value.

Equity Financing Reliance

Moderate reliance on equity financing may dilute shareholder value over time and indicates potential challenges in leveraging debt for growth.

Operational Efficiency

Modest EBIT and EBITDA margins highlight ongoing challenges in operational efficiency, which may hinder Life360's ability to enhance profitability and compete effectively.

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. exhibits a strong financial trajectory with notable revenue and cash flow growth. The company has improved its profitability and operational efficiency, although there is room for further enhancement in net profit margins. The balance sheet remains stable with a balanced debt-to-equity ratio, supporting future growth opportunities.

Income Statement

Life360, Inc. has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 7.69%. The gross profit margin is robust at 77.11%, indicating effective cost management. However, the net profit margin is relatively low at 6.45%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved over time but remain modest, reflecting ongoing challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is manageable at 0.84, indicating a balanced approach to leveraging. The return on equity has improved to 7.65%, showing enhanced profitability from equity investments. However, the equity ratio stands at 48.64%, suggesting a moderate reliance on equity financing. Overall, the balance sheet reflects a stable financial position with potential for further optimization.

Cash Flow

Life360, Inc. has shown significant improvement in cash flow metrics, with a free cash flow growth rate of 42.44% in the TTM period. The operating cash flow to net income ratio is healthy at 0.60, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also robust at 0.92, highlighting effective cash management and reinvestment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	427.40M	371.48M	304.52M	228.31M	112.64M	80.66M
Gross Profit	329.57M	279.16M	222.64M	148.60M	89.88M	65.26M
EBITDA	16.33M	2.13M	-20.00M	-85.21M	-32.81M	-15.99M
Net Income	27.57M	-4.55M	-28.17M	-91.63M	-33.56M	-16.33M
Balance Sheet
Total Assets	753.58M	441.58M	321.72M	339.63M	302.38M	86.31M
Cash, Cash Equivalents and Short-Term Investments	432.71M	159.24M	68.96M	75.44M	230.99M	56.41M
Total Debt	309.84M	359.00K	5.56M	8.39M	14.37M	3.07M
Total Liabilities	386.92M	83.03M	74.65M	95.09M	52.33M	21.82M
Stockholders Equity	366.66M	358.55M	247.06M	244.54M	250.04M	64.50M
Cash Flow
Free Cash Flow	40.48M	27.48M	5.30M	-57.76M	-12.23M	-7.90M
Operating Cash Flow	44.05M	32.61M	7.52M	-57.05M	-12.15M	-7.25M
Investing Cash Flow	-39.90M	-10.13M	-2.22M	-111.63M	-7.06M	-653.00K
Financing Cash Flow	268.06M	67.27M	-24.95M	27.71M	193.95M	445.00K

Life360, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 106.04 is above the 20-day moving average (MA) of 103.24, above the 50-day MA of 92.13, and above the 200-day MA of 60.39, indicating a bullish trend. The MACD of 4.61 indicates Positive momentum. The RSI at 60.82 is Neutral, neither overbought nor oversold. The STOCH value of 77.68 is Neutral, 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
FROG	71 Outperform	$5.66B	―	-11.15%	―	21.97%	-69.32%
LIF	63 Neutral	$8.60B	320.17	7.95%	―	30.04%	―
SMRT	58 Neutral	$257.66M	―	-25.48%	―	-28.45%	-224.48%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ONTF	54 Neutral	$240.30M	―	-22.60%	―	-6.88%	15.83%
BULL	51 Neutral	$6.78B	93.34	-3.09%	―	―	―
BMBL	49 Neutral	$614.70M	―	-75.71%	―	-5.06%	-2318.18%