With the Fed issuing slightly hawkish comments in mid-November, some of the momentum propelling the historic Trump rally has faded somewhat. With ongoing nervousness about valuations and all-time market highs, I continue to favor emphasizing individual stock selection, particularly among value stocks.With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of t ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 reached $137.7 million, up 6% year-over-year, driven by strong service revenue growth [7][17] - Non-GAAP gross profit was nearly $50 million, with earnings per share at $0.11 [7][25] - Annual recurring revenue (ARR) increased to $242 million, up over 21% year-over-year [19] - Non-GAAP operating income rose 28%, and free cash flow surged 150% compared to the same period last year [19][25] - Non-GAAP net income for Q3 was $11.8 million, translating to a non-GAAP net income per diluted share of $0.11 [25] Business Line Data and Key Metrics Changes - Service revenue grew 21% to a record $62 million, representing about 45% of total revenue, up from 39% in the same period last year [17][19] - Paid subscribers increased by 255,000, a 70% year-over-year growth, reaching 4.2 million [8][18] - Average revenue per user (ARPU) for retail and direct accounts rose to $12.24 per month [8][19] Market Data and Key Metrics Changes - Approximately $66 million, or 48% of total revenue, was generated from international customers, up from $50 million or 39% in the prior period [22] - The company shipped 1.5 million devices worldwide, compared to 1.3 million in the prior period [20] Company Strategy and Development Direction - The company is focusing on a services-first business model, aiming for 50% of revenue from services [17] - A new product, Arlo Secure 5.0, was launched, featuring innovative capabilities and a significant uptake in premium plan subscriptions [9][11] - The company plans to be aggressive with promotional pricing during the holiday season to drive unit sales and future subscriptions [12][28] Management's Comments on Operating Environment and Future Outlook - The management noted a softer market environment but highlighted strong performance from certain retailers [12] - The company expects product gross margins to trend downward due to aggressive pricing strategies, but service gross margins are expected to remain strong [22][29] - Guidance for Q4 total revenue is projected to be between $116 million and $126 million, with service revenue expected to exceed full-year guidance [28][29] Other Important Information - The company announced a share buyback program of $50 million as part of its capital allocation plan [15] - The partnership with Verisure has been renewed for another five years, indicating strong collaboration [14] Q&A Session Summary Question: Clarification on Q4 POS expectations - Management clarified that the expectation of nearly doubling POS from Q3 to Q4 refers specifically to cameras sold, not including accessories [30][31] Question: Details on Arlo Secure 5.0 rollout - Arlo Secure 5.0 is currently available to new subscribers, with early data showing a significant increase in premium plan sign-ups [32][33] Question: Insights on Allstate partnership - The management discussed the phased approach to the Allstate partnership, expecting gradual growth similar to the Verisure relationship [38][39] Question: Regional performance in Europe - Management noted varying performance across Europe, with some countries ramping quickly while others are destocking [42][43] Question: Impact of promotional strategies on inventory and cash flow - The company is prepared for a more aggressive promotional strategy in Q4, anticipating a destocking position among retailers [50]

arlo " Investor Presentation Q3 2024 ©2024 – ALL RIGHTS RESERVED SAFE HARBOR DISCLOSURE This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words "anticipate," "expect," "believe," "will," "may," "should," "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Th ...

Arlo Technologies (ARLO) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this maker of smart connected devices would post earnings of $0.09 per share when it actually produced earnings of $0.10, delivering a surprise of 11.11%.Over the last fou ...

NEWS RELEASE Arlo Reports Third Quarter 2024 Results Record service revenue of $61.9 million, growing 21.2% year over year GAAP service gross margin of 76.7%; non-GAAP service gross margin of 77.4% GAAP net loss per share of $(0.04); non-GAAP net income per share of $0.11 (1) (2) Annual recurring revenue (ARR) ended at $241.6 million, growing 20.8% year over year Free cash flow (FCF) of $17.4 million with FCF margin of 12.6% Carlsbad, California – November 7, 2024 – Arlo Technologies, Inc. (NYSE: ARLO), a l ...

Latest DIY Smart Floodlight Camera Builds on Arlo's Award-Winning Wire-Free FloodlightSAN JOSE, Calif., Oct. 15, 2024 /PRNewswire/ -- Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security brand, today announced the Wired Floodlight Camera, an all-in-one DIY security solution built on Arlo's award-winning and innovative wire-free floodlight. With a direct power source for uninterrupted security, the feature-rich Wired Floodlight Camera delivers enhanced visibility and protection of outdoor spac ...

Group 1: Arlo Technologies Inc - Arlo Technologies' shares increased by 3.5% to $12.27 following the announcement of a $50 million stock repurchase program [1] - The stock has risen 28.3% in 2024, although it remains below its 52-week high of $17.64 reached in mid-July [1] - Short interest in Arlo Technologies has increased by 21.5% over the last month, now representing 6.2% of the stock's available float, with a cover time of over six days based on average trading volume [1] Group 2: Applied Optoelectronics Inc - Applied Optoelectronics' stock rose by 18% to $16.59 after showcasing its 1.6T OSFP DR8 LPO modal at the European Conference on Optical Communications [2] - The stock has increased by 75.8% year over year but has seen a decline of 14.6% in 2024, indicating a potential entry point for investors [2] - Options trading activity surged, with 13,000 calls and 1,274 puts traded, which is six times higher than the average intraday volume, particularly in the October 20 call contract [2]

Arlo Secure Subscription Plans Feature New Proprietary AI Technology to Provide Personalized ProtectionSAN JOSE, Calif., Sept. 24, 2024 /PRNewswire/ -- Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security brand, today announced Arlo Secure 5, the next generation of smart home security powered by Arlo Intelligence (AI). Arlo's new proprietary AI technology introduces a suite of industry-first features such as custom detections, vehicle recognition and person recognition. Arlo Secure 5 further ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $127 million, an increase of 11% year-over-year, with annual recurring revenue (ARR) rising over 21% to $235 million [6][17] - Non-GAAP earnings per share for Q2 was $0.10, bringing the first half earnings per share to $0.19, a 171% increase year-over-year [6][25] - Non-GAAP operating profit for Q2 was $9.2 million, a 70% improvement year-over-year, with a 166% increase for the first half of 2024 [19][25] Business Line Data and Key Metrics Changes - Service revenue represented 47% of total revenue, up from 44% year-over-year, with service revenue reaching a record $60.3 million, a 20% increase [17][18] - Product revenue for Q2 was $67.2 million, up 3.8% year-over-year, with 1.3 million devices shipped compared to 954,000 in the prior year [19][20] - Average revenue per user (ARPU) for retail and direct paid accounts grew to $12, a record high for the company [6][36] Market Data and Key Metrics Changes - Approximately 50% of total revenue was generated from international customers, significantly up from 32% year-over-year [21] - The company expects service revenue to grow at approximately 20% over the previous year, becoming a larger portion of overall revenue [27] Company Strategy and Development Direction - The company is focused on a services-first business model, aiming for 10 million paid accounts, $700 million in ARR, and over 25% operating margins [6][19] - Strategic partnerships, including a renewed five-year collaboration with Verisure and a new partnership with Allstate, are expected to drive growth [9][10] - The company is investing in organic growth through technology development and customer experience enhancement, with plans for a three-year device roadmap [10][12][13] Management's Comments on Operating Environment and Future Outlook - Management noted consumer pressure affecting initial hardware purchases but highlighted a successful pricing strategy that has driven service revenue growth [7][27] - The second half of 2024 is expected to mirror the previous year, with strong positioning for holiday sales [8][41] - Management expressed confidence in achieving long-term targets despite current macroeconomic challenges [16][27] Other Important Information - The company ended Q2 with $144 million in cash and equivalents, up over $20 million since June 2023 [25] - Free cash flow for the first half of 2024 was $25.6 million, representing a margin of 10% [26] Q&A Session Summary Question: Clarification on ad server development for Arlo Secure platform - Management confirmed that ad capabilities are being developed in parallel with Arlo Secure 5, with testing expected in Q4 [30] Question: Insights on promotional activities with Walmart - Management indicated that promotional activities for the holiday season will be similar to the previous year, with Walmart as a significant partner [33][34] Question: Trends in Americas vs. EMEA markets - Management noted strong growth in EMEA, largely due to Verisure, while the Americas face some consumer headwinds but are expected to gain households [38][41] Question: Product gross margin expectations - Management expects product gross margins to remain in the mid-single-digit range for the second half of the year [50] Question: Opportunities in InsureTech market - Management expressed excitement about the partnership with Allstate and the potential for future growth in the InsureTech space [52][56]

©2024 – ALL RIGH TS RESERVED Investor Presentation Q2 2024 SAFE HARBOR DISCLOSURE This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words "anticipate," "expect," "believe," "will," "may," "should," "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forw ...