Life360's (ASX:360) success hinged on executing strong growth in monthly active users and adoption of product features, which will drive monetization, according to a report from Morgan Stanley on Wednesday.
The firm is particularly focused on the company's MAU growth in the first quarter, after last quarter saw the lowest additions since 2023, the report said.
New features, including the upcoming pet tracker, are expected to play a significant role in boosting user retention, reducing churn, and improving overall financial performance, the report added.
The brokerage also sees potential in the company's shift towards direct billing relationships and pricing optimization.
Morgan Stanley currently has an overweight rating on Life360 with a AU$28.60 price target.
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