Life360 is seeing robust growth as the family-tracking service sells to parents seeking peace of mind. Life360 stock jumped Tuesday after the company's second-quarter report.
The San Mateo, Calif.-based company earned an adjusted 26 cents a share on revenue of $115.4 million in the June quarter. Analysts had expected adjusted earnings of 13 cents a share on sales of $110.3 million in the period. In the year-earlier period, it earned a penny a share on sales of $84.9 million, FactSet said.
On the stock market today, Life360 stock jumped 13.3% to close at 83.55. Earlier in the session, it notched a record high 84.02.
Life360 provides technology for tracking family members, pets and valuables. It sells small tracking devices than can be attached to key chains, backpacks and other items or slid into school IDs, passports, wallets and other thin spaces.
Life360 finished the second quarter with 88 million monthly active users, up 25% year over year. Plus, it recorded 2.5 million paying users, also up 25%.
Life360's new Chief Executive, Lauren Antonoff, told Investor's Business Daily that she intends to continue the company's central mission and grow and monetize its user base.
"Our job is to help members keep close to the ones they love and to keep the people, pets and things they love safe and connected," she said. "So were going to find more ways to create member value and grow the company."
Life360 allows users to know where their family members are and provides alerts for car accidents, severe weather and other situations.
Life360 plans to expand its product line with a GPS-enabled pet tracker in time for the holiday season.
Company Goal: Become 'Family Super App'
Also, Life360 is looking to monetize its free users by providing location-based advertising. It already started this initiative by inking a deal with ride-hailing service Uber.
"We see ourselves as becoming the family super app," Antonoff said.
At least five Wall Street analysts raised their price targets on Life360 stock after the company's Q2 report.
Evercore ISI analyst Mark Mahaney reiterated his outperform rating on Life360 stock and raised his price target to 95 from 55.
"We view Life360 as an established leader in the family- and location-tracking space and a fundamentally attractive asset with a profitable business model," Mahaney said in a client note Tuesday.
He added, "We believe Life360 has a multiyear lead vs. competitors, while the biggest risk is the potential for large and well-capitalized competitors to enter the space."
One competitor is Apple with its AirTags devices and FindMy app.
"What makes us different is our focus on family," Antonoff said. "Apple's job is to find your devices. Our job is to keep your family safe and connected. I think we have different jobs, and we each do our job very well."
Life360 Stock Is On Four IBD Lists
On a conference call with analysts, Life360 cofounder and Executive Chairman Christopher Hulls said the company's positive results reflect a cultural movement.
"Today, peace of mind isn't a luxury; it's essential," Hulls said. "Families are budgeting for it, just like Wi-Fi or electricity. And that shift is fueling durable, values-driven growth."
Life360 stock is on four IBD lists: IBD 50, IPO Leaders, Stock Spotlight and Tech Leaders.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
