Life360 (ASX:360) showed a "solid" set of results in the fiscal third quarter, and its decision to acquire Nativo is expected to accelerate the company's advertising roadmap, according to a Tuesday Jefferies note.
The company reported Tuesday third-quarter earnings of $0.11 per share, up from $0.09 a year earlier. The company said it expects 2025 revenue in the range of $474 million to $485 million, up from its previous guidance of $462 million to $482 million.
Jefferies expects Nativo to more than double Life360's advertising revenue, although overall gross profit margins may decline as the company transitions from pure advertising revenue to using Nativo's full advertising technology platform.
Jefferies reaffirmed its buy rating on Life360 and raised its price target to AU$53 from AU$50.