The $1 billion vision behind Life360’s premium market multiple

Life360’s (ASX: 360) CFO Russell Burke isn’t losing sleep over the company’s lofty valuation.

 “If we successfully execute on our vision and strategy, valuation will take care of itself,” he says.

That vision includes becoming the world’s leading family super app - connecting people, pets, and things - and generating US$1 billion in revenue with 35%-plus EBITDA margins.

Note: This interview was recorded on Tuesday, 12 August 2025.

Leadership change, same strategy

The quarter coincided with a major leadership shift, with Chief Executive Officer and co-founder Chris Hulls stepping into an executive chairman role and Chief Operating Officer Lauren Antonoff promoted to the top job.

“This is the right time for the change,” Burke says. 

“When Chris brought on Lauren as COO, he definitely had in mind longer-term succession ... they are of the same mindset that it’s really about the member experience that comes first. It will be a seamless transition and the strategy is really already set.”

Record results in a tough market

Life360’s latest quarter saw record revenue and profitability - achievements Burke says are especially pleasing given the macro environment.

"It's about moving along the path for our long-term vision, which is to be the go-to app for the family in the digital age. Sometimes we talk about it as the super app for the family, but that's our vision and each path along this is a building block for us and we've managed to move along that path quite significantly in Q2," he says.

That execution - growing the top line strongly while expanding margins - is, he believes, a big reason the market awards Life360 a valuation premium.

Director sales and shareholder alignment

With more than US$20 million of Life360 stock sold by directors since 2024 (excluding the ~US$22 million divestment announced by Hulls last year) - and no on-market purchases in over a year - investors are right to question management’s alignment with shareholders.

“The company’s been around for 18 years and several of our directors have been with the company from the early days ... it’s not unusual to see some diversifying,” he says, pointing to  tax obligations from restricted stock units and last year’s US IPO secondary offering.

“It doesn’t detract at all from our view that there’s huge opportunity ahead for Life360.”

Early wins in advertising, opportunities in new verticals

Advertising is seen as a major growth engine, with analysts forecasting ad revenue could 10x by FY27.

“Advertising was a big part of the reason that other revenue increased — almost doubled to US$14.5 million,” Burke says. The company is designing ad experiences to be “a positive for the member and valuable for the advertiser,” citing the Uber airport partnership as a successful example.

Two more ad products have recently launched, with more partnerships in the works. “It’s validated our belief that the opportunity in the long term is huge,” he says — and a future driver of both revenue scale and, in turn, valuation support.

Later this year, Life360 will launch pet tracking - tapping into a $2.7 billion addressable market and the fact that “more than half of our existing family circles have a pet as part of the family.”

Next on the roadmap is eldercare, where the “sandwich generation” is already adding grandparents into family circles. “There’s a lot we can do in terms of software before we even start to think about hardware in that area,” Burke says.

International growth momentum

Life360’s monthly active users outside the US are expected to surpass domestic users this financial year, with international MAUs up 34% year-on-year in Q2.

The strongest growth is in 'triple tier' markets - Australia, Canada, and the UK - where the US-style product has been rolled out. Other territories have seen the launch of a “dual tier” digital-only product, enabling quick rollout and competitive pricing.

“There’s a core recognition that family connectivity and safety is universal,” Burke says.

Embracing AI

From tailored member alerts to finance process automation, AI is becoming embedded across the business.

"The key one of course is the member experience and we're looking at generative models that will help us provide really tailored experiences for our members," says Burke.

Internally, Life360 is using AI and automation to lift productivity, share ideas across teams, and drive efficiencies from finance to customer service.

The long runway ahead

Life360 trades at more than twice the multiple of some global consumer app peers, a point Burke meets with optimism rather than defensiveness.

“We absolutely see huge opportunities and a long runway left from where we are today ... increasing engagement, international expansion, expansion into new use cases and verticals gives us a lot of opportunity ahead of us," he says.

Looking three to five years out, Burke’s targets are clear: 150 million members, $1 billion in revenue, and 35%-plus EBITDA margins.

“They’re well within our sights now, and frankly, they’re a milestone on our way to something bigger.”

The fundie take

In the following write-up, my colleague Stephanie Gardner speaks with Shaun Weick from Wilson Asset Management about the company’s prospects, and why its results have reinforced his conviction in a buy rating.

Equities

From record numbers to fresh leadership... Life360’s next chapter

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Timecodes 

• 00:00 - Introduction
• 00:38 - Executive changes (Chris Hulls stepping down, Lauren Antonoff promoted)
• 01:49 - What went right in Q2?
• 02:47 - Why are 360 directors selling?
• 04:50 - Key opportunities in the advertising market
• 06:31  - Growth in MAUs in and outside the USA
• 08:14 - Expansion into new verticals (pets, elderly)
• 09:57 - How 360 is leveraging artificial intelligence
• 11:40 - Why Life360's valuation "will take care of itself"
• 13:18 - 3-5 year outlook