The Life360 Inc (ASX: 360) share price is up after the ASX tech share revealed huge revenue growth in its 2022 financial year result.
If you haven’t heard of Life360 before, it offers a platform for families, enabling them to “better know, communicate with, and protect the pets, people and things they care about most.” The core Life360 mobile app has features like communications, driving safety and location sharing.
2022 result
Here are some of the highlights from the report:
- Life360 global active users increased by 36.9% to 48.6 million
- Average revenue per paying subscription increased 17.8% year on year to $79.75
- Total revenue more than doubled to $228.3 million
- December quarter EBITDA (EBITDA explained) of $1.6 million, up from an EBITDA loss of $4.6 million in the three months to December 2021
- 2022 annual EBITDA sank $27 million to a loss of $40.1 million due to the acquisitions of Tile and Jiobit, and integrating of those businesses.
- 2022 net loss of $91.6 million
The company said that it finished the year with a 61% increase in year on year annualised monthly revenue (AMR) in December, which accelerated to 64% in January, with the full month benefit of the “significant price increases” implemented across its monthly US iOS membership base in late 2022.
Guidance for 2023
The company is expecting that its core Life360 subscription revenue will grow by more than 50% year on year. Consolidated revenue is expected to be between $300 million and $310 million. More growth is promising news for the Life360 share price.
Life360 is expecting to achieve positive adjusted EBITDA, while operating cashflow is expected to be between $5 million to $10 million for the full year, with positive adjusted EBITDA and operating cash flow targeted on a quarterly basis, starting with the second quarter of 2023.
Final thoughts on the Life360 share price
Life360 is doing very well at growing its business. Its revenue is growing at a substantial rate and its subscription revenue comes with a very high gross profit margin, which leads me to believe it can achieve strong profitability in the years ahead.
I think it’s one of the most promising ASX growth shares worth around $1 billion. I’d be happy to invest for the long-term in this one.
