Life360 reboots Nasdaq listing plans, seeks to raise up to $151m

Two years after it put the brakes on a US listing in the wake of investors dumping tech stocks, the Australian tracking company believes the climate is right again.

Life360 chief executive Chris Hulls says the company is making “meaningful progress” toward profitability.

Family location sharing app Life360 has reignited plans for a dual Nasdaq listing — two years after it put the brakes on the move in the wake of investors dumping tech stocks — hoping a listing will raise $151m.

The San Francisco-based company, which currently has shares listed on the ASX, believes the climate has turned significantly to reboot its long-awaited US IPO.

Life360, which has a market value of $3.12bn, is yet to determine how many shares — and at what price — will be floated in the Nasdaq listing.

“It is expected that the US IPO would consist of a primary issuance of new Life360

shares, as well as a secondary sale of existing shares in order to reduce dilution for existing

Stockholders,” Life360 said in a statement.

“The company currently expects the primary raise to be no more than $US100m ($151.4m).”

The company said, given its headquarters were in the San Francisco area and it had pre-existing US Securities and Exchange Commission reporting obligations, exposure to American investors was a “natural next step” in its growth.

Life360 now competes with some of the world’s largest tech manufacturers in the tracking space, including Apple and Samsung. It also competes with a number of smaller Australian tech brands including Cygnett, which has introduced a credit card tracking device.

Life360’s CHESS Depositary Interests (CDIs) — representing underlying shares of

common stock on a 3 CDIs-for-1 share of common stock basis — will remain listed on the ASX.

The potential dual listing comes as Life360’s first quarter revenue leapt 15 per cent to $78.2m, while its net loss fell from $14.07m to $9.8m.

Adjusted earnings before interest, tax, depreciation and amortisation surged to $4.3m from $0.5m. It generated positive operating cash flow of $10.7m, an improvement of $19.9m from Q1 2023.

Co-founder and chief executive Chris Hulls said: “We continue to make meaningful progress on our path to profitability, narrowing our net loss and delivering our sixth consecutive quarter of positive adjusted EBITDA, and fourth consecutive quarter of positive operating Cash Flow”.

“Our commitment to balancing fiscal responsibility, with prudent investment to position the business for long-term success, is reflected in Q1’24 revenue growth of 15 per cent year-on-year. While operating expenses increased just 3 per cent.

“The market opportunity is on a global scale, and we believe we have significant headroom to grow as we expand to new regions, and launch new features that expand our relevance to different life stages.”

The company’s shares were trading 3.3 per cent lower at $14.99 per share in afternoon trade on Friday, in line with expectations.

Originally published as Life360 reboots Nasdaq listing plans, seeks to raise up to $151m