ASX-listed family safety app Life360 Inc (ASX: 360) is maturing and starting to flex its muscles, as shareholders took note with a 7.8% share price increase yesterday.
I was on the tram last week and saw people frantically trying to get the attention of someone who had just got off. I looked out the window and saw it was a friend of mine. He was oblivious, and the tram continued on. Those trying to get his attention were walking towards the driver, about to hand in a mobile phone.
Instead of letting the phone do several laps of the number 6 line, I grabbed it and jumped off at the next stop. Walking to his house, I looked at the screen and saw rotating images that told me this was not his phone. It had just been left on the seat next to him.
I was now stuck with this lost phone, which was on some kind of setting where it wasn’t ringing despite the owner’s attempts. I had no way of returning the phone. Thirty minutes after returning home, there was a knock on the door—I recognised the two from the screensaver! Two young uni students had used Life360 to follow the phone’s journey around the city and arrived at my door.
Off the back of this good news story, Life360 bounced 7.8% yesterday… well, that and the release of results which showed active monthly users grew by 25%.
88 million monthly active users and growing
There are now 88 million monthly active users on Life360, with 2.5 million paying subscribers.
If you have a family with younger kids or teenagers, there’s a good chance you’ve heard of the app, Life360. A global family safety app that lets you location-track your family, monitor how fast cars are driving, protect your family online, and be a point of emergency support.
Marketing and getting the positioning right
What started as a tracking app has morphed into what they describe as a “family super-app”. For users, it is quickly moving into a non-negotiable family safety tool. It is no longer in the discretionary bucket of spending — this is essential.
Additional features aside, Life360 is really starting to click with its marketing. From the viral music video “I Think of You (Dying)” to “fambushing” — the act of teenage kids using Life360 to appear unannounced, playfully surprising their parents.
A massive competitive advantage for Life360 is its built-in user base. With 88 million users, this gives it incredible power. You can add additional features like pet tracking and safety and support for elderly family members as add-ons without having to spend millions on marketing. There is zero cost of acquisition for customers.
Keep an eye on executive movements
One thing that is a little unusual is the movement of co-founder Chris Hulls. Chris has been at the helm for over 20 years. In May, the board approved an “enhanced termination” package. Essentially, if Hulls is terminated for “good reason,” his equity vests. It’s unusual, and I believe his movement from CEO to Executive Chairman does not trigger this acceleration.
Additionally, insiders have been significant net sellers of Life360 stock over the last few years. People sell stock for many reasons, so we consider this a beige flag.
Life360 is on our radar as investors in the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC). Life360 is 5.8% of the ETF and its 8th largest holding.
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