If, like me, you also enjoy searching around the ASX software space, it might be worth adding these two to your watchlist: Life360 Inc (ASX: 360) and Nitro Software Limited (ASX: NTO).
Life360
Although listed here on the ASX, Life360 is a San Francisco-based company that’s designed a family safety app available on iPhone and Android.
At its core, families (called “circles”) are able to share/view their location on a map in real-time under Life360’s free membership plan.
Under Life360’s premium subscriptions, families can access a much broader range of features like roadside assistance, crash detection, emergency dispatch and ID theft protection (works by scanning the deep web for ID breaches).
Its key market is the US, where it currently has around 20.3 million monthly users and 820,00 paying circles.
Based on June’s revenue, it’s bringing in around $100 million on an annualised basis. But it’s just upgraded guidance for December to $120 million to $125 million.
Life360 has some big expansion plans on the cards. It’s recently acquired Jiobit, a provider of wearable location devices made for young children, pets and seniors.
It’s also looking to build out its offering in international markets such as Canada, Australia, the UK and Europe.
For more reading on Life360, click here to read: 2 ASX shares that could benefit from a reopening economy.
Nitro Software
Most recently on my watchlist is Melbourne-based company Nitro Software.
It has a suite of products used to edit, create, sign and secure PDF documents and competes with the likes of Adobe Inc’s (NASDAQ: ADBE) Acrobat PDF product.
While it’s only listed fairly recently on the ASX, it’s actually well-established in its industry. It has 11,700 business customers in 154 countries. 68% of the Fortune 800 are customers of Nitro.
Nitro was a beneficiary of the pandemic which saw printing levels plummet and businesses turn towards digital transformation. If you take the view that businesses will continue to adopt this sort of technology, Nitro could stand to benefit from this thematic.
As of FY20, Nitro’s annual recurring revenue (ARR) was US$27.7 million, up 64% from FY19.
It had a $43.7 million cash balance with no debt.
