With the cooling of inflation, investors appear to have raised expectations of a rate cut soon. This could potentially better the prospects of some growing companies to invest in.
Life360 Inc. (ASX: 360)
Life360 Inc. (ASX: 360) reported strong financial results for Q3 2024, demonstrating substantial growth across key metrics. Monthly Active Users (MAUs) reached a record 76.9 million, driven by a significant 32% year-over-year increase. The company, among the best growth stocks to buy now, added 6.3 million new MAUs during the quarter, with international markets contributing to the growth. Paying Circles saw record net additions of 159,000, bringing the total number of paying circles to nearly 2.2 million. This growth was driven by a 64% increase in U.S. subscriber additions and a 51% rise in international MAUs, with average revenue per paying circle in international markets growing by 53%. Revenue for the quarter grew 18% year-over-year to $92.9 million, driven by a 27% increase in total subscription revenue.
Life360's hardware strategy also progressed, with the launch of a new lineup of Tile devices, which now include an SOS feature. The product launch, while delayed by logistical challenges, has shown early success, particularly in direct-to-consumer sales, which more than doubled compared to the same period last year. Tile is also playing a key role in boosting subscription growth, as more U.S. premium subscribers are linking active Tiles to their accounts. Furthermore, the company is expanding its hardware offerings, planning new devices like a pet tracker in late 2025 and an elder care product in 2026. These products, which require subscriptions, are expected to drive further growth in the coming years.
The company is also focusing on expanding its advertising and data businesses. A notable partnership with Uber has helped Life360 tap into its unique user data, enabling more effective, location-based advertising. The collaboration has shown strong engagement, surpassing industry averages for banner ads. Additionally, Life360 is deepening its data partnership with Placer.ai, contributing to growth in its data business. The company remains on track to achieve sustained positive EBITDA in 2025, with Q3'24 results reflecting a strong focus on balancing growth with profitability.
Woolworths Group (ASX: WOW)
Woolworths Group (ASX: WOW) has provided an operational update following the resolution of industrial action across four key Distribution Centres (DCs) in Victoria and NSW. The company successfully negotiated new enterprise agreements, delivering a total wage increase of approximately 11% over three years. While the agreements ensure competitive pay and address employee concerns, the impact on Australian Food sales has been material, with an estimated $140 million in lost revenue as of December 8. The direct EBIT impact is estimated at $50–60 million, driven by lost sales, additional logistics costs, and inventory losses. While operations have resumed, management anticipates lingering headwinds as stock levels are rebuilt ahead of the crucial Christmas trading period. Despite these disruptions, Woolworths reported a 4.5% YoY increase in Q1 FY25 Group sales (3.3% ex-Petstock), underpinned by strong momentum in Australian Food (+3.8% YoY), robust eCommerce growth (+23.6%), and resilient B2B (+6.9%). However, consumer behavior is shifting toward lower-margin private label and discounted products, weighing on profitability. The company also saw a 1-point YoY decline in customer satisfaction, partly due to ACCC legal proceedings.
New Zealand Food delivered 2.7% sales growth, benefiting from improved momentum in the latter part of the quarter. Meanwhile, W Living saw a 17% revenue boost, driven by the Petstock acquisition, though BIG W declined 0.9% due to price-mix challenges. Looking ahead, management expects Australian Food EBIT for H1 FY25 to be below prior forecasts, with an updated guidance range of $1,480–1,530 million (vs. $1,595 million in H1 FY24). Cost-of-living pressures remain a key overhang, reinforcing the need for Woolworths to execute well in Q2. The focus remains on driving value, convenience, and engagement through promotions such as Disney Worlds of Wonder collectibles. Strategic cost controls, commercial program optimization, and productivity enhancements will be key levers to mitigate margin pressure from rising wages and an expanding eCommerce mix. Despite short-term headwinds, the integration of Petstock and PFD remains on track, providing long-term growth catalysts.
Source: Company’s Report
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