Life360: Outlook Intact on Trading Update

No-moat Life360 is performing broadly in line with expectations in first quarter 2024. Paying circles rose to approximately 1.9 million, a 21% increase on the previous corresponding period. This broadly tracks our 20% growth forecast for 2024. Monthly active users, a broader measure with a less direct and immediate impact on revenue, grew more rapidly, increasing around 30% on the PCP, and are running ahead of our 22% growth forecast for the full year. We maintain our revenue and earnings estimates despite stronger-than-expected growth in unpaid subscribers in the first three months of the year. Shares rallied on the update and now trade close to our unchanged AUD 14 fair value estimate.