👉 Background: Life360 is an ASX-listed tech company that essentially lets parents track the movements of their kids. Think: tracking their children's location and even tracking their child's driving speed. In fact, a Black Mirror episode was actually inspired by the Life360 concept.

👉 What happened: Since 2008, Life360 has grown pretty steadily to over 50 million active users. Now, they've just announced that their net losses have narrowed to $4.4 million over the past year. And their revenue has increased by 45% year-on-year!

👉 What else: They reckon it's a combo of subscription growth as well as major cost-cutting measures. And, its share price zoomed 18% higher on the news.

What's the key learning?

💡Rapid user growth is no longer sexy, unless it comes with rapidly-growing profit.

💡The big jump in Life360's share price shows a shifting investor focus. In 2020-2021, we lived in a world that favoured rapid growth, often with no regard to profitability. But now, we've shifted to a more balanced approach that rewards companies that are managing money responsibly.

💡Tech companies that can show a clear path to profitability are gaining more confidence from investors. And Life360 has managed to close in on reaching breakeven a bit sooner.

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