Life360 Q3 revenue, adjusted EBITDA beat estimates on subscription growth
Overview
U.S. family safety app's Q3 revenue grew 40% yr/yr, beating analyst expectations
Adjusted EBITDA for Q3 rose 41% yr/yr and beat analyst expectations
Company repurchased $31.2 mln in shares under its buyback program
Outlook
Life360 narrows FY'26 consolidated revenue outlook to $665 mln-$681 mln from $650 mln-$685 mln
Company lifts FY'26 subscription revenue guidance to $483 mln-$488 mln from $475 mln-$480 mln
Life360 narrows FY'26 adjusted EBITDA forecast to $132 mln-$138 mln from $130 mln-$140 mln
Result Drivers
SUBSCRIPTION GROWTH - Subscription revenue rose 29% yr/yr to $124.2 mln, driven by 26% growth in Paying Circles and a 4% increase in average revenue per Paying Circle
ADVERTISING EXPANSION - Advertising revenue rose 250% yr/yr to $25.4 mln, mainly reflecting managed advertising growth following the Nativo acquisition
HARDWARE DECLINE - Hardware revenue fell 20% yr/yr, mainly due to a 32% decrease in hardware units shipped as a result of exiting brick-and-mortar retail
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $174.10 mln | $172.15 mln (8 Analysts) |
Q3 Net Income | $22.50 mln | ||
Q3 Adjusted EBITDA | Beat | $34.60 mln | $32.09 mln (8 Analysts) |
Q3 Gross Margin | 77.00% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Life360, Inc. is $62.00, about 30.9% above its November 6 closing price of $47.37
The stock recently traded at 70 times the next 12-month earnings vs. a P/E of 85 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)