Shares of Life360, Inc. plunged more than 26% Tuesday, a day after the family safety and location-tracking app reported record second-quarter revenue and crossed 100 million monthly active users for the first time, as investors focused instead on deteriorating profitability and guidance that fell short of expectations.

The stock traded at $47.61, down $17.00, or 26.31%, as of 11:37 a.m. Eastern time, extending steep losses from Monday's after-hours session, when shares initially tumbled as much as 23.4% to $49.50 immediately following the earnings release. The decline erased a significant portion of the company's market value, with shares now trading well below their 52-week high of $112.54 and closer to their 52-week low of $37.01.

Life360 reported total revenue of $159.0 million for the second quarter, up 38% year-over-year, alongside adjusted EBITDA of $31.1 million, a 53% increase from the same period a year earlier. Annualized Monthly Revenue climbed 29% year-over-year to $537.2 million, driven by strong global subscription growth. The company added a record 185,000 net Paying Circle subscriptions during the quarter, bringing its total to 3.2 million, a 27% increase from a year earlier, while monthly active users reached approximately 102.4 million, up 16% year-over-year, with 4.6 million net additions during the quarter.

Despite those headline growth figures, the company's unadjusted, GAAP profitability told a more complicated story.........

© International Business Times