Core Insights - Life360 reported strong earnings for Q3, exceeding Wall Street's expectations, but the stock declined due to a major acquisition announcement [1][4][5] - The company earned 11 cents per share under GAAP, up from 9 cents in the same period last year, with adjusted earnings of 28 cents per share on sales of $124.5 million, surpassing analyst expectations [2][6] - Life360's monthly active users reached 91.6 million, an increase of 3.6 million from Q2, although it fell short of the expected 94 million [3] Financial Performance - Life360's Q3 earnings rose 4% year-over-year, while sales increased by 34% [2] - The company raised its full-year revenue target to between $474 million and $485 million, exceeding the previous guidance and consensus estimates [6] User Metrics - The number of Paying Circle members increased to 2.7 million from 2.5 million in Q2 [3] - Life360's technology focuses on tracking family members, pets, and valuables through small tracking devices [3] Acquisition Impact - Life360 announced the acquisition of Nativo for $120 million, which is expected to close in January [4] - UBS lowered its price target for Life360 stock from $120 to $110, citing concerns over the acquisition and potential low-margin ad-tech deals [5] Stock Performance - Following the acquisition news, Life360's stock dropped over 18% to $76.25, trading below its 50-day moving average [5][7]
Life360 Stock Sinks On Shift To Advertising With Acquisition