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Life360 (ASX:360) has seen its shares fall over -7% in early arvo Tuesday trades as the company reports net income (read: profits) of $9.8 million for the third quarter, a margin of 8% – which has apparently underwhelmed the market despite growth across revenues, due in turn to a 19% growth in users year-on-year.
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Monthly active users have climbed to nearly 92 million; quarterly revenue is up 34% year-over-year, to $124.5 million, and the company even raised its full-year guidance for revenue and earnings before tax (EBITDA). But EBITDA and profits, let alone revenue, are two different things.
On the after-hours session on the Nasdaq, where Life360 is also listed, shares were down over -5% in early afternoon trades Australian time.
At least one HotCopper user noticed that of the $9 million profit figure Life360 had shared on Tuesday, nearly $5 million of that comes from interest income as opposed to ‘real’ income from, ultimately, people buying the app and using it. So if you wanted to ignore the interest income segment, the cynic – or realist, perhaps – may argue that Life360’s profits really look closer to $4-5 million.
That same observation is also worth considering in the context of Life360 raising its prices in the U.S., and “a shift in product mix towards higher-priced offerings.” Make of that what you will.
“Our strategy to build a platform that’s relevant to more families in more ways continues to deliver— expanding from location and safety into richer everyday experiences that keep families connected and protected,” Life360 CEO Lauren Antonoff said.
“We’re leaning into momentum across the U.S. and international markets with the launch of our Pet GPS that puts furry family members on the map in the U.S., Canada, the U.K., Australia and New Zealand as we head into the holiday gifting season.”
360 last traded at $44.90.sh.
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