Leading family location-based service Life360 said it has revived Nasdaq plans for a U.S. initial public offering (IPO) to raise up to US$100 million (A$151 million), but has yet to determine the number of shares and price range for the listing.
The location-sharing app announced the S-3 filing after securing investor support recently, after it said would enable ads on its platform to generate additional revenue.
The San Francisco-based, ASX-listed company considered a dual Nasdaq listing in 2021 but ultimately decided against it due to dwindling tech stocks brought about by rising interest rates.
Life360 believes reviving this long-shelved plan would increase its investor base in the U.S. with CEO and co-founder Chris Hulls saying it’s about time to take the next step in stimulating the company’s growth.
“It is expected that the U.S. 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, which is eyeing to list its common stock on the Nasdaq Global Select Market under the ticker symbol “LIF,” is finalising the specifics of the offering, while minimising stock reduction for current shareholders.
Competing against large tech manufacturers such as Apple and Samsung, Life360 is now a growing adversary in the tracking subsector.
During the first quarter, the company’s revenue rose 15 percent year on year to $78.2 million as its total subscription revenue increased 19 percent to $61.6 million.
“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,” Mr. Hulls said.
“Last quarter we introduced a new advertising offering which is now live in production with U.S. members and early results are promising.”
Mr. Hulls noted the company anticipates more significant growth from the new advertising offering in the second half of the year.
Meanwhile, Life360 also unveiled its plan to invest in Hubble Network, a satellite business founded by Life360’s co-founder and director, Alex Haro.
Hubble’s proprietary satellite technology allows two-way communication between ground-based Bluetooth devices, such as Tile, and its newly-launched satellite constellation.
Mr. Hulls said that the partnership will allow Life360 to improve its tracking capabilities of its consumer devices, potentially surpassing Google and Apple’s services.
“This potential partnership is intended to open another low effort, high margin revenue stream and would allow us to potentially monetize the latent demand for enterprise tracking services via Tile, a venture we had previously set aside to focus on consumer offerings,” Mr. Hulls said.
The CEO explained that by integrating Life360’s Bluetooth finding network with Hubble’s satellite technology, it can potentially create global tracking solutions for assets without depending on cellular connections.
“While currently only two prototype satellites are operational, Hubble plans to launch a full constellation that will eventually provide global coverage,” Mr. Hulls said.
“We believe our potential partnership with Hubble will lead the development of this combined phone and satellite network, primarily targeting enterprise applications such as tracking pallets on ships.”
Life360 expects the initial launch of the network in early 2025.
