By Stuart Condie
SYDNEY–Shares in Life360 are on course for their best-ever one-day gain after the tracking provider outlined plans to generate advertising revenue that it said could eventually match its income from subscriptions.
Life360’s Australia-listed shares were up 29%, at 10.56 Australian dollars (US$6.86), on Friday after the company said that it planned to let external advertisers target its users during 2024. It expects a modest revenue contribution in the December half and further growth in 2025 onwards.
The company did not give a timeline or specific target for its advertising revenue aspirations, but released a presentation to investors showing advertising revenue metrics for what it said were comparable tech companies. Ad revenue ranged from US$0.68 to US$6.16 per monthly active user.
Life360 had 61 million monthly active users at the end of 2023. It generated US$200 million in annual core subscription revenue.
The stock hasn’t been as high since December 2021. Its record one-day gain was 25% on June 24, 2022, according to FactSet.
Write to Stuart Condie at [email protected]
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