Significant drops in the share prices of growth companies can often be a cause for concern. However, such downturns can also present compelling investment opportunities, particularly when the underlying businesses continue to demonstrate robust expansion. This article examines two such Australian Securities Exchange (ASX) listed companies that appear to fit this description. Both have experienced substantial declines, exceeding 50% from their 52-week peaks, yet their core operations remain strong and are still growing at an impressive pace.
Life360 Inc (ASX: 360): A Growing Family Super App
Life360 Inc. (ASX: 360) is currently trading at approximately $19.36 per share, a considerable distance from its 52-week high of $55.87. While this represents a substantial fall, the company’s fundamental business remains one of the most exciting global growth narratives on the ASX.
Life360 is primarily recognised for its popular family safety and location-sharing application. What might seem like a simple concept has, in fact, achieved remarkable scale. In the first quarter of FY26, the company reported a user base of approximately 97.8 million monthly active users, marking a healthy 17% increase year-on-year.
This extensive user base provides Life360 with a significant audience to monetise through various avenues, including subscriptions, advertising, and the development of new services. The company’s strategic vision extends beyond its current functionality, with management articulating plans to transform Life360 into a comprehensive “super app” for family life. This ambitious roadmap encompasses a wide array of features and services, such as enhanced safety measures, improved connection tools, detailed driving insights, advanced location tracking, emergency support, targeted advertising, and the integration of artificial intelligence (AI)-driven functionalities.
The company’s recent financial performance underscores its strong growth trajectory. In the first quarter, revenue surged by 38% year-on-year, reaching US$143.1 million. Annualised monthly revenue also saw significant growth, climbing 32% to US$517.9 million. The advertising segment, bolstered by the strategic acquisition of Nativo, experienced a sharp increase, contributing US$19.7 million.
However, investors should acknowledge the inherent risks associated with app-based businesses. These include intense competition, the critical need to maintain strong user engagement, and the heightened privacy expectations surrounding the handling of location data.
Despite these considerations, with an active user base nearing 100 million and a clear strategy for diversified revenue growth, Life360 presents a compelling proposition for investors seeking opportunities after a significant correction in its share price.
Catapult Sports Ltd (ASX: CAT): Enhancing Elite Sports Performance
Catapult Sports Ltd (ASX: CAT) has also experienced a considerable decline in its share price. The sports technology firm is presently trading around $3.44, a substantial drop from its 52-week high of $7.72.
This sell-off appears particularly noteworthy when considering Catapult’s latest financial results, which revealed a business exhibiting strong operational momentum. The company reported a record revenue of US$140.7 million for FY26, representing a 19% increase when adjusted for constant currency. Annualised contract value grew by 28% in constant currency to US$133.8 million, and management EBITDA saw a significant uplift of 67%, reaching US$24.7 million.
These figures suggest that Catapult is not only growing but is also beginning to realise the benefits of its expanding scale.
A particularly compelling aspect of Catapult’s narrative is its strategic platform evolution. The company is moving beyond its initial focus on wearable technology to offer a more integrated sports technology solution. This expanded offering now includes athlete monitoring, advanced video analysis, gym monitoring, sophisticated scouting intelligence, and AI-driven insights, all accessible through a unified platform.
This comprehensive approach is crucial in the professional sports arena, where teams demand more than just raw data. They require actionable intelligence that empowers coaches, analysts, and performance staff to make informed decisions rapidly.
Catapult also reported an impressive customer retention rate exceeding 96% and continued growth in multi-solution adoption among its clients. This indicates that Catapult’s products are becoming increasingly integral to the daily workflows of its professional sports customers.
Investors will need to monitor key factors such as the company’s execution capabilities, its overall valuation, and the sustained pace of profit growth. Nevertheless, Catapult appears to be building a high-quality global software business within a specialised and growing market.
Key Takeaways for Investors
Share price declines exceeding 50% can understandably make investors apprehensive, as they often signal a significant shift in market expectations. However, for companies demonstrating strong underlying fundamentals and continued growth, such corrections can represent strategic entry points.
Both Life360 and Catapult appear to be on a positive trajectory. Life360 is leveraging its vast and expanding user base to enhance monetisation strategies, while Catapult is solidifying its position as a leading provider of integrated sports technology solutions and demonstrating improved operating leverage.
It is important to note that both stocks may continue to experience volatility. However, for patient investors seeking growth opportunities following a substantial reset in market sentiment and valuation, these two companies warrant careful consideration.
