Will dual US listing help Life360's share price climb higher?

ASX-listed tech company Life360 Inc (ASX:360) looks optimistic about the prospects for its share price performance, after seeking dual listing status by applying for an IPO in New York.

Analysts are also upbeat about Life360 shares, due to robust growth in sales following a sharp rise in the global users for the social networking platform.

Life360 applies for Nasdaq listing

Life360 has become the latest ASX-listed company to seek a dual listing on an overseas bourse, following the listing of Westgold Resources Limited on the OTCQX Best market in the US at the start of the year.

On 10 May, Life 360 announced that it was preparing to list its stock in New York on the Nasdaq Global Select Market under the symbol 'LIF,' in a bid to source funding from a far larger audience of investors.

'The company, with headquarters in the San Francisco area and pre-existing SEC reporting obligations, views a US IPO and increased exposure to US investors as a natural next-step in its growth,' Life360 said in a statement made to ASX.

The company's CHESS Depository Interests (CDI) will remain listed on the ASX. The CDI are instruments representing underlying shares of the company's common stock at a ratio of 3 CDIs to one share.

The move will give Life360 a larger market from which to raise capital to drive future growth, as well as improve the liquidity of its equity shares.

San Francisco-based Life360 is a social networking platform that has managed to eck out its own rapidly growing space in the world's online ecosystem, thanks to its unique location-finding feature.

Location finding enables Life360 users to remain apprised of the physical whereabouts of other users as long as consent is provided – a feature that can be highly useful for close family members or the members of tight-knit community groups.

.

The function also enables Life360 to provide other fee-based features that could be of critical importance to people who are family members or in close relationships. These features include various insurance products and emergency roadside assistance.

Sales lift as global active users surge

Life360 posted a strong performance in 2023, on the back of robust growth in global monthly active users (MAU).

Revenue rose 33% year-on-year (YoY) in CY2023 to around $470 million, in line with prior guidance.

Revenue from its flagship Core Life360 subscription leapt 52% YoY to roughly $308 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA) was soundly ahead of guidance of $18 million to $25 million, coming in at $32 million.

Life360 co-founder and CEO Chris Hulls highlighted rapid growth in the company's user base, bringing it to 61 million MAU by the end of 2023.

'In CY23 we made significant strides in our member experience, showing our users what their family members are up to, whether they're driving, walking or biking,' Hulls said.

The company managed to maintain this momentum since the start of 2024. In the first quarter, MAU jumped a further 4.9 million to hit 66.4 million.

Ongoing growth in Life360's user base has prompted optimism amongst analysts at brokerage Bell Potter.

Bell Potter has retained its buy rating for Life360, lifting its price target to $17.75, for a potential upside of 15% over the next 12 months.

'Key potential catalysts for the stock include another strong quarter of paying circle growth in Q2 (April was another good month), a potential upgrade to the 2024 guidance sometime in H2 and a US listing at some stage in the next 12 months,' Bell Potter analysts said.

Take your position on over 13,000 local and international shares via CFDs or share trading – all at your fingertips on our award-winning platform.* Learn more about share CFDs or shares trading with us, or open an account to get started today.

* Winner of 'Best Multi-Platform Provider' at ADVFN International Finance Awards 2022.