Life360 (ASX:360) share price sinks 10% after 2025 Q3, Nativo acquisition

Core Insights - Life360 Inc's share price dropped 10% following the announcement of its quarterly growth and the acquisition of Nativo [1] - The company reported strong growth in its user base and financial performance, indicating a positive trajectory despite the share price decline [10] User Growth - Global monthly active users (MAU) increased by 19% year on year to 91.6 million, with US users rising 15% to 48.7 million, international users up 24% to 42.9 million, and ANZ users growing 28% to 3.2 million [2] - Paying circles grew by 23% to 2.7 million, with US paying circles climbing 21% to 1.9 million and international paying circles increasing by 29% to 0.8 million [2] Revenue Performance - Revenue for the third quarter of 2025 surged 34% to $124.5 million, with total subscription revenue also up 34% year on year to $96.3 million [4] - Annualized monthly revenue rose 33% year on year to $446.7 million [4] Profitability Metrics - Net profit climbed 27% to $9.8 million, while adjusted EBITDA increased by 174% to $24.5 million [5] - Operating expenses as a percentage of revenue decreased by 8%, reflecting a focus on cost discipline and operational efficiency [5] - Operating cash flow soared 319% to $26.4 million, with a cash balance of $457.2 million at the end of the quarter [5] Acquisition of Nativo - Life360 announced the acquisition of Nativo, an advertising technology company, for $120 million [6] - The acquisition aims to enhance Life360's advertising strategy by integrating first-party family and location insights with Nativo's publisher network and advertising technology [7] - CEO Lauren Antonoff emphasized that this acquisition accelerates the company's advertising roadmap and enhances the member experience [8] Strategic Outlook - The acquisition of Nativo is seen as a strategic move to monetize free users and potentially improve profitability [10] - Despite the recent share price decline, the company's financials are trending positively, although other ASX growth shares may appear more appealing [11]