Azzet reports on three ASX stocks with notable trading updates today.
Life360 soars on record quarterly update
Shares in Life360 (ASX: 360) were up by around 12% at the open after the United States family app operator posted a record March quarter revenue of US$10.6 million, up 32%.
The San Francisco-based leader in family safety and connections attributed recent growth to the ongoing demand to keep families safe, connected through uncertain times.
Overall, monthly active users (MAU) jumped 26% to 83.7 million, with MAUs in Australia and New Zealand up 33% to 2.9%.
Adjusted earnings were up 272% to US$15.9 million, while operating cash flow was up 13% to US$12 million.
The main growth driver was a 43% lift in global Paying Circle net additions for the quarter year on year.
An additional 137,000 net paying circles for the period meant total Paying Circles was up 26% year on year to 2.4 million.
Other key results include:
Total subscription revenue of $81.9 million, up 33%.
Core subscription revenue of $76.2 million, up 37%.
Annualised Monthly Revenue (AMR) of $393.0 million, up 38%.
Q1'25 Net Income of $4.4 million.
Positive Operating Cash Flow of $12.1 million, up 13%.
Quarter-end cash, cash equivalents and restricted cash of $170.4 million, up from $95.8 million at Q1'24.
Outlook
For FY25, Life360 expects to deliver revenue of US$450 – US$480 million and positive adjusted earnings of US$65-US$75 million.
Life360’s market cap is $4.6 billion making it the ASX’s 115th largest stock; the share price is up 73% over one year and up 18% year to date.
The stock appears to be in a strong bullish trend confirmed by multiple indicators.
Consensus is Strong Buy.
Lindsay Australia dips on Tasmania acquisition
Shares in Lindsay Australia (ASX: LAU) were down around 2% at the open after the transport and logistics smallcap disclosed plans to acquire Tasmania’s largest refrigerated supply chain provider, Tasmania-based SRT Logistics for $108.2 million.
At first glance, the market is struggling to make sense of the acquisition, which the company is lauding as a compelling entry point into the state’s refrigerated transport market and the Trans Bass Strait logistics corridor.
SRT will continue as a wholly owned subsidiary, with its CEO Robert Miller joining the Lindsay board.
The deal is forecast to be around 15% earnings per share accretive in FY25 and position Lindsay as a fully integrated refrigerated transport player across road, rail, and sea.
Subject to shareholder approval, SRT vendors will end up with a 12.8% stake Lindsay.
The deal is being funded by $30.2 million in scrip, with the balance (57.2 million) to be paid in cash following the assumption of SRT’s debt.
Lindsay’s market cap is $222 million; the share price is down 27% in one year and down 20% year to date.
The stock’s shares appear to be in a near-term rally within a longer-term bearish trend.
Consensus is Moderate Buy.
Abacus lifts after snubbing $1.9bn takeover bid
Shares is Abacus Storage King (ASX: ASK) were up around 1% after the self-storage operator told the market it had rejected a bid from Public Storage and Ki Corporation.
Management doesn’t believe the $1.47 a share offer reflects fair value, while the requested tax conditions from Ki added “timing and completion risk” to the deal.
While the self-storage operator’s independent valuation puts net tangible assets at $1.73 per share, the Ki-led consortium claims Abacus' spin-off from its parent company two years ago has failed to unlock value, improve access to capital or fast-track the development pipeline.
Meanwhile, Abacus stresses that the $1.73 valuation does not capture any portfolio premium to reflect the scale and significance of its portfolio.
Abacus Storage King has a market cap of $1.9 billion, putting it just outside the ASX200; shares are up 32% in one year and up 34% year to date.
The stock is in a strong bullish trend confirmed by multiple indicators.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
