Why Life360 Stock Is Plummeting Today
Shares of leading family safety mobile app Life360 (NASDAQ: LIF) are down 19% as of 2 p.m. ET on Tuesday after the company reported fourth-quarter earnings. Life360's Q4 revenue grew 26% and adjusted EBITDA soared 53%, helping the company easily surpass Wall Street's hopes. Full-year revenue grew 32% and the company reported its first profitable quarter, earning $33 million in net income (after subtracting a one-time tax benefit) on $490 million in sales. However, management guided sales growth below 20% in Q1, alongside pressured margins as the company tests pricing for its new pet GPS product and exits its brick-and-mortar operations, which helped spur today's decline.
While the market seems spooked about these short-term issues, I believe they are necessary investments and shouldn't cause panic. Overall, Life360's Q4 was excellent as it:
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Source Fool.com
