Family tracking app Life360 eyeing a US IPO as profitability approaches

If you were the kind of person who would think an app designed to track family members pandered to a kind of enthusiastic paranoia, you’d definitely have to concede it’s what the market wants.

Family tracking app developer Life360 (ASX:360) announced on Friday that it is now looking to enter the world’s largest equity market by nation – applying for a US IPO with the SEC.

The company’s headquarters are already in San Fransisco, so a US listing could perhaps be viewed as something that was inevitable. At the same time, it’s also a testament to the popularity of the company’s product.

It’s probably no great surprise the app is quite popular in a period of history where political polarisation and extremism have become more common, perhaps feeding into a broad sense of uncertainty felt across the zeitgeist.

Then again, families – or human beings – have historically always liked knowing where loved ones are. To an extent, it’s simply in our nature.

As of Friday 10 May, however, the company noted it has not got any firm idea yet when investors could expect a US IPO – just that a prospectus will be lodged, but right now, there is “no certainty.”

However, on the bourse down under, Life360 shares have fallen -6.4% to $14.51/sh on Friday after the company released its Q1 earnings.

While revenue was up 15% YoY to $78.2M, the company still reported a net loss of -$9.8M.

However, the company says it’s heading towards profitability with $10.7M in “positive operating cash flow” at the end of Q1, an improvement of $20M compared to Q1CY23.

The company reiterated its CY24 guidance, seeing revenue between $365-375M; but, an earnings before costs loss of between -$8M and -$13M.

The company retains a market cap just short of a billion dollars at $988.9M.

Life360 last traded at $14.51.