Arlo Technologies Inc (NYSE:ARLO)
$ 13.58 -0.14 (-1.02%) Market Cap: 1.40 Bil Enterprise Value: 1.28 Bil PE Ratio: 0 PB Ratio: 13.58 GF Score: 60/100
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Q4 2024 Arlo Technologies Inc Earnings Call Transcript

Feb 27, 2025 / 10:00 PM GMT
Release Date Price: $11.92 (+0.34%)

Key Points

Positve
  • Arlo Technologies Inc (ARLO) achieved significant growth in its subscription business, with annual recurring revenue (ARR) surpassing $250 million, growing over 20% year-over-year.
  • The company reported a gross margin on service revenue above 80%, highlighting the efficiency and profitability of its subscription model.
  • Arlo Technologies Inc (ARLO) has nearly 11 million registered accounts and over 4.5 million paid subscribers, demonstrating strong customer acquisition and retention.
  • The company is expanding its product lineup with the largest device launch in its history, expected to drive further growth and increase shelf space at major retailers.
  • Arlo Technologies Inc (ARLO) has formed strategic partnerships, such as with Rapid SOS and Origin Wireless, to enhance its service offerings and expand its market reach.
Negative
  • The cost of customer acquisition increased from $100 to $200 in 2024, impacting profitability despite strong subscription growth.
  • Product revenue declined by $22.1 million compared to the prior year, reflecting challenges in the hardware segment.
  • Aggressive promotional activities in Q4 2024 led to decreased average selling prices (ASPs) and a decline in product gross margins.
  • The company anticipates a potential temporary increase in churn due to the transition of subscribers to new service plans.
  • Despite strong performance, Arlo Technologies Inc (ARLO) trades at a lower revenue multiple compared to peers, suggesting that its market value may not fully reflect its growth potential.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ARLO.N - Arlo Technologies Inc
Q4 2024 Arlo Technologies Inc Earnings Call
Feb 27, 2025 / 10:00PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, thank you for standing by. At this time, all participants are in our listen-only mode. Later we will conduct the question and answer session. At that time, if you have a question, you will need to press the star one on your push button phone. I would like to turn the conference over to Tom and Clark. Please go ahead, sir.

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Unidentified_2 [2]
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Thank you, operator. Good afternoon and welcome to Arlo Technologies 4th quarter 2024 Financial results conference call.

Joining us from the company are Mr. Matthew McCray, CEO.
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