Life360 Inc (ASX: 360) shares have soared more than 1,300% in 5 years. 

Those who invested in this ASX 200 company back then have been well rewarded. 

Yesterday, the technology powerhouse released its Q1 earnings report. It was another blockbuster result, sending the company 16% higher. In fact, Life360 reached a new 52-week high of $28.20. 

The company delivered 33% revenue growth, and adjusted EBITDA more than tripled. CEO Chris Hulls expects the company to hit break-even this year. 

There's no doubt that Life360's financials continue to trend in the right direction. 

But what exactly is the company's competitive advantage? And how does it compare to other apps and social media platforms?

What does Life360 do?

Life360 was founded in San Francisco and is dual-listed on the ASX and Nasdaq. 

It is a family safety app, whereby groups (family and friends) are formed to track each other. Life360 operates a 'freemium' model'. This means it offers basic features for free, with the option to upgrade to more advanced features for a fee. Such features include location coordination and safety, driving safety, digital safety, and emergency assistance services. It also provides tile hardware tracking devices to locate lost devices sold through online and brick and mortar retail channels. 

Life360 also uses artificial intelligence to improve its functionality, specifically to tailor user notifications and promote smarter interactions.

An increasingly popular platform

Life360's user base continues to grow. In Q1 it added 4.1 million net global monthly active users, taking its total global MAUs to 83.7 million. In the recent earnings result, management revealed that Life360 is the 13th highest-ranked app in the US based on daily active users. In the social networking apps category, it ranks 4th (trailing social media giants Facebook, Facebook Messenger, and WhatsApp).

Facebook and WhatsApp have around 3 billion monthly active users, which is almost half the planet! Meanwhile, Instagram trails slightly behind with 2 billion.

How big can Life360 get?

While Life360's user base is only a fraction of the size of social media giants such as Facebook and Instagram, it has grown rapidly over the past five years, and as a result, Life360 shares have surged. Life360 CEO Chris Hulls attributed this growth to word-of-mouth recommendations and the launch into new markets such as Canada, the UK, Australia, and New Zealand. In Q1, international revenue grew 39%, suggesting the strategy is paying off, with the app clearly resonating in foreign markets.CEO Hulls also commented on the unique appeal of the product in the current environment, noting:

In a more cautious consumer spending environment, our performance reflects both the resilience of our business model and the growing demand for our services that keep families safe, connected, and provide peace of mind. As a trusted daily essential for millions, we are uniquely positioned to support families through uncertain times—and beyond.

Evidently, Life360 is doing everything right to grow its user base. Should this continue, there's no reason why it couldn't have several hundred million users one day.