Arlo Technologies Inc (ARLO) Q3 2024 Earnings Call Highlights: Strong Service Revenue Growth ...

GuruFocus.com11-09

Total Revenue: $137.7 million, up 6% year-over-year. Service Revenue: $61.9 million, a 21% increase year-over-year. Non-GAAP Gross Profit: $49.5 million, a 12% increase year-over-year. Non-GAAP Gross ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nArlo Technologies Inc (ARLO) Q3 2024 Earnings Call Highlights: Strong Service Revenue Growth ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-09 05:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/arlo-technologies-inc-arlo-q3-210235882.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Total Revenue: $137.7 million, up 6% year-over-year.\nService Revenue: $61.9 million, a 21% increase year-over-year.\nNon-GAAP Gross Profit: $49.5 million, a 12% increase year-over-year.\nNon-GAAP Gross ...</p>\n\n<a href=\"https://finance.yahoo.com/news/arlo-technologies-inc-arlo-q3-210235882.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ARLO","symbol_name":"Arlo Technologies Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/arlo-technologies-inc-arlo-q3-210235882.html","article_id":"2482641456","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/izsOw.288KkC2EUSj26wUg--~B/aD01MDA7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/d160b9ef7c41034bc8cd3889dfceac5c"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482641456","pubTimestamp":1731099755,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Service Revenue: $61.9 million, a 21% increase year-over-year.Non-GAAP Gross Profit: $49.5 million, a 12% increase year-over-year.Non-GAAP Service Gross Margin: 77%, up over 300 basis points from last year.Non-GAAP Operating Income: $10.8 million, an 8% operating margin.Non-GAAP Net Income: $11.8 million, or $0.11 per diluted share.Free Cash Flow: $17.4 million, representing a free cash flow margin of over 12%.Paid Subscribers: Increased by 255,000 to reach 4.2 million.Annual Recurring Revenue : $242 million, up more than 21% year-over-year.Cash and Equivalents: $146.6 million at quarter end.GuruFocus has detected 1 Warning Sign with ARLO.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Arlo Technologies Inc  reported a 6% increase in total revenue for Q3 2024, reaching $137.7 million.Paid subscribers grew by 255,000, a 70% year-over-year increase, reaching 4.2 million.A: Matthew McRae, CEO: Secure Five has been in the market for about","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ARLO":"Arlo Technologies Inc."},"translate_title":"Arlo Technologies Inc(ARLO)2024年第三季度收益看涨期权亮点：服务收入强劲增长……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARLO":1},"content_text":"Total Revenue: $137.7 million, up 6% year-over-year.\nService Revenue: $61.9 million, a 21% increase year-over-year.\nNon-GAAP Gross Profit: $49.5 million, a 12% increase year-over-year.\nNon-GAAP Gross Margin: 36% for the quarter.\nNon-GAAP Service Gross Margin: 77%, up over 300 basis points from last year.\nNon-GAAP Operating Income: $10.8 million, an 8% operating margin.\nNon-GAAP Net Income: $11.8 million, or $0.11 per diluted share.\nFree Cash Flow: $17.4 million, representing a free cash flow margin of over 12%.\nPaid Subscribers: Increased by 255,000 to reach 4.2 million.\nAnnual Recurring Revenue (ARR): $242 million, up more than 21% year-over-year.\nCash and Equivalents: $146.6 million at quarter end.\n\n\nWarning! GuruFocus has detected 1 Warning Sign with ARLO.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nArlo Technologies Inc (NYSE:ARLO) reported a 6% increase in total revenue for Q3 2024, reaching $137.7 million.\nThe services business achieved record growth, with service revenue increasing by 21% to $62 million and service gross margin rising to over 77%.\nPaid subscribers grew by 255,000, a 70% year-over-year increase, reaching 4.2 million.\nThe launch of Arlo Secure Five has shown promising early results, with more than 40% of new subscribers opting for premium plans, doubling the historical rate.\nArlo Technologies Inc (NYSE:ARLO) announced a $50 million share buyback program, indicating confidence in its financial health and future prospects.\n\n Negative Points \n\nProduct revenue for Q3 was down 4% compared to the same period last year, reflecting a shift in consumer purchase decisions to lower price points.\nThe company anticipates lower product revenue and gross margins for Q4 due to aggressive promotional pricing during the holiday season.\nDespite strong service revenue, the overall market remains soft, with some retailers underperforming due to factors like customer sentiment and lower foot traffic.\nArlo Technologies Inc (NYSE:ARLO) expects to come in at the lower end of its total revenue guidance for the full year.\nThe company faces challenges in maintaining ASPs due to market dynamics, which could impact future hardware revenue.\n\n Q & A Highlights \nQ: Does the expectation of Q4 POS nearly doubling sequentially mean Arlo will ship 3 million devices in Q4? A: Matthew McRae, CEO: The POS doubling from Q3 to Q4 refers to cameras, which drive subscriptions. It doesn't equate to 3 million devices because that includes various regions and accessories. The focus is on North America retail cameras, which are expected to nearly double in Q4, driving subscriber growth.\nQ: How much of the customer base is currently on Secure Five, and is it broadly rolled out to all retail accounts? A: Matthew McRae, CEO: Secure Five has been in the market for about six weeks and is available to all new subscribers. Approximately 80,000 to 100,000 accounts are on the new plan. The focus is on new sign-ups, with plans to migrate existing users to Secure Five, which has shown a significant increase in ARPU.\nQ: Have you seen an uptick in the overall attach rate associated with Secure Five? A: Matthew McRae, CEO: In-app purchases have shown an increase in conversion, though it's small as it's being tested in limited areas. Overall, the attach rate remains consistent with past trends.\nQ: How is Arlo planning to penetrate Allstate's large customer base with the new Arlo Total Security bundle? A: Matthew McRae, CEO: The partnership with Allstate is in its early phases, focusing on understanding brand resonance and product linkage. Phase two involves Allstate marketing Arlo products to their customers. Future phases are expected to scale, with initial data showing access to new households not previously buying security.\nQ: How are you planning for inventory levels and cash flow during the promotional holiday season? A: Kurt Binder, CFO and COO: Arlo is prepared for declining ASPs and plans to be aggressive with promotions to drive unit sales and subscriber growth. Retailers are expected to be in a de-stocking position, unlike last year, allowing Arlo to focus on converting units into subscribers in early 2025.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482641456"}