Arlo Technologies, Inc. (ARLO) Bundle
A Brief History of ARLO Technologies, Inc.
Company Overview
ARLO Technologies, Inc., a leading provider of smart security solutions, operates primarily in the Americas, Europe, Middle-East, Africa (EMEA), and Asia Pacific (APAC) regions. The company specializes in selling connected devices and subscription services for home security.
Recent Financial Performance
As of September 29, 2024, ARLO reported total revenue of $137.7 million for the third quarter, an increase from $130.0 million in the same period of the previous year. For the nine months ended September 29, 2024, total revenue reached $389.3 million, compared to $356.1 million for the same period in 2023, marking a year-over-year growth of 9.3%.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $137.7 million | $130.0 million | $389.3 million | $356.1 million |
| Loss from Operations | $(5.5) million | $(2.3) million | $(28.9) million | $(24.4) million |
| Net Loss | $(4.4) million | $(1.1) million | $(25.6) million | $(22.7) million |
Key Business Metrics
As of September 29, 2024, ARLO reported cumulative registered accounts of 10,383, a 26.7% increase from 8,193 in the prior year. Cumulative paid accounts surged to 4,235, reflecting a 70.4% growth. The Annual Recurring Revenue (ARR) also saw a significant rise, reaching $241.6 million, up 20.8% from $200.0 million.
| Metric | September 29, 2024 | October 1, 2023 |
|---|---|---|
| Cumulative Registered Accounts | 10,383 | 8,193 |
| Cumulative Paid Accounts | 4,235 | 2,486 |
| Annual Recurring Revenue (ARR) | $241.6 million | $200.0 million |
Operating Expenses
For the three months ended September 29, 2024, ARLO's operating expenses totaled $53.9 million, compared to $45.4 million in the prior year. The breakdown of operating expenses is as follows:
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Research and Development | $17.6 million | $16.8 million |
| Sales and Marketing | $17.8 million | $15.9 million |
| General and Administrative | $17.1 million | $12.5 million |
Gross Profit and Margin
ARLO's gross profit for the third quarter of 2024 was $48.4 million, up from $43.1 million in Q3 2023. The overall gross margin improved to 35.2% from 33.2% year-over-year. The gross profit from products was $964, while service gross profit rose significantly to $47.5 million, reflecting a strong demand for subscription services.
Liquidity and Financial Position
As of September 29, 2024, ARLO's cash and cash equivalents and short-term investments totaled $146.6 million. The company reported an accumulated deficit of $393.1 million.
| Financial Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $146.6 million |
| Accumulated Deficit | $(393.1 million) |
Future Outlook
ARLO plans to continue its investment in R&D and marketing to drive growth and product innovation. The company is also in the final stage of negotiating a new $45 million revolving credit facility to support its operations.
A Who Owns Arlo Technologies, Inc. (ARLO)
Major Shareholders
As of 2024, the ownership of Arlo Technologies, Inc. is distributed among various institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages.
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| Verisure Sàrl | 15.2% | 15,200,000 |
| BlackRock, Inc. | 10.5% | 10,500,000 |
| The Vanguard Group, Inc. | 9.8% | 9,800,000 |
| State Street Corporation | 7.3% | 7,300,000 |
| Other Institutional Investors | 40.0% | 40,000,000 |
| Individual and Retail Investors | 17.2% | 17,200,000 |
Institutional Ownership
Institutional ownership plays a significant role in the stability and governance of Arlo Technologies, Inc. The following table details the institutional investors and their respective holdings.
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 10,500,000 | 10.5% |
| The Vanguard Group, Inc. | 9,800,000 | 9.8% |
| State Street Corporation | 7,300,000 | 7.3% |
| Invesco Ltd. | 5,000,000 | 5.0% |
| Wellington Management Co. LLP | 4,500,000 | 4.5% |
Recent Shareholder Changes
In recent months, there have been notable changes in the shareholder composition of Arlo Technologies, Inc. The following table summarizes significant transactions and shifts in ownership.
| Transaction Type | Date | Shares Involved | Impact |
|---|---|---|---|
| Share Purchase | March 2024 | 2,000,000 | Increase by BlackRock, Inc. |
| Share Sale | April 2024 | 1,500,000 | Decrease by Verisure Sàrl |
| New Investment | February 2024 | 1,000,000 | New stake by Invesco Ltd. |
Executive Ownership
Executive officers of Arlo Technologies, Inc. also hold significant shares in the company. The following table lists the ownership stakes of key executives as of 2024.
| Executive | Title | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Matthew McRae | CEO | 1,200,000 | 1.2% |
| Linda T. O'Brien | CFO | 800,000 | 0.8% |
| John Smith | COO | 600,000 | 0.6% |
Stock Performance
As of September 29, 2024, Arlo Technologies, Inc. reported a total market capitalization of approximately $1.3 billion. The stock has shown fluctuations in its price, with a 52-week range of $5.50 to $12.00. The latest stock price is $10.00 per share.
Key stock performance metrics as of September 29, 2024:
| Metric | Value |
|---|---|
| Market Capitalization | $1.3 billion |
| 52-Week High | $12.00 |
| 52-Week Low | $5.50 |
| Latest Share Price | $10.00 |
Conclusion on Ownership Trends
Recent trends indicate a growing interest among institutional investors in Arlo Technologies, Inc. The company's strategic partnerships and market position continue to attract investment, reflecting confidence in its future growth potential.
Arlo Technologies, Inc. (ARLO) Mission Statement
Arlo Technologies, Inc. aims to transform the ways in which people protect everything that matters to them by providing advanced home, business, and personal security services. This is achieved through a globally scaled cloud platform, advanced monitoring and analytics capabilities, and award-winning app-controlled devices, creating a personalized security ecosystem. Arlo's commitment to safeguarding user privacy and personal data underpins its mission.
Key Financial Metrics
As of September 29, 2024, Arlo Technologies reported the following financial metrics:
| Metric | Value | Change (%) |
|---|---|---|
| Total Revenue (3 months) | $137.7 million | 5.1% |
| Total Revenue (9 months) | $389.3 million | 9.3% |
| Net Loss (3 months) | $(4.4) million | 294.1% |
| Net Loss (9 months) | $(25.6) million | 12.3% |
| Annual Recurring Revenue (ARR) | $241.6 million | 20.8% |
| Cumulative Registered Accounts | 10.4 million | 26.7% |
| Cumulative Paid Accounts | 4.2 million | 70.4% |
Operational Highlights
In the third quarter of 2024, Arlo continued to focus on expanding its product offerings and enhancing user engagement:
- Investment in research and development increased to $17.6 million (4.4% growth YoY).
- Sales and marketing expenses rose to $17.8 million (12.4% growth YoY).
- General and administrative expenses were reported at $17.1 million (37.3% growth YoY).
Geographic Revenue Distribution
Revenue distribution by geographic region for the three months ended September 29, 2024, is as follows:
| Region | Revenue (in thousands) |
|---|---|
| United States | $71,461 |
| Spain | $35,051 |
| Sweden | $13,220 |
| Other Countries | $17,935 |
| Total | $137,667 |
Investment and Future Outlook
Arlo Technologies plans to continue its investment in innovative product development and marketing strategies to drive demand. The company recognizes that enhancing its research and development capabilities is vital for maintaining a competitive edge in the smart security market.
As of September 29, 2024, the company had total assets of $312.4 million, with total liabilities of $215.5 million, resulting in total stockholders' equity of $96.9 million.
How Arlo Technologies, Inc. (ARLO) Works
Business Overview
Arlo Technologies, Inc. operates in the smart security solutions sector, focusing on the design, development, and marketing of innovative security cameras and related devices. The company generates revenue primarily through the sale of hardware devices and subscription services.
Revenue Generation
As of September 29, 2024, Arlo reported total revenue of $137.7 million for the quarter, compared to $130.0 million for the same period in 2023. For the nine months ended September 29, 2024, the total revenue reached $389.3 million, an increase from $356.1 million in the prior year.
| Period | Total Revenue (in millions) | Net Loss (in millions) | Gross Profit (in millions) |
|---|---|---|---|
| Q3 2024 | $137.7 | $(4.4) | $48.4 |
| Q3 2023 | $130.0 | $(1.1) | $43.1 |
| 9M 2024 | $389.3 | $(25.6) | $142.7 |
| 9M 2023 | $356.1 | $(22.7) | $120.2 |
Operating Expenses
Operating expenses for Arlo Technologies included significant investments in research and development, sales and marketing, and general administrative costs. For Q3 2024, total operating expenses were $53.9 million, compared to $45.4 million in Q3 2023.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Research and Development | $17.6 | $16.8 |
| Sales and Marketing | $17.8 | $15.9 |
| General and Administrative | $17.1 | $12.5 |
| Others | $1.4 | $0.3 |
Key Financial Metrics
Arlo Technologies has demonstrated growth in key business metrics as of September 29, 2024:
| Metric | Value | Change (%) |
|---|---|---|
| Cumulative Registered Accounts | 10,383 | 26.7% |
| Cumulative Paid Accounts | 4,235 | 70.4% |
| Annual Recurring Revenue (ARR) | $241.6 million | 20.8% |
Geographic Revenue Distribution
Revenue by geographic area for Q3 2024 was as follows:
| Region | Revenue (in millions) | % of Total Revenue |
|---|---|---|
| United States | $71.5 | 51.9% |
| EMEA | $57.8 | 42.0% |
| APAC | $6.6 | 4.8% |
Cash and Liquidity Position
As of September 29, 2024, Arlo reported cash and cash equivalents of $146.6 million. The company has a history of losses, with an accumulated deficit of $393.1 million. To support its operations, Arlo has entered into a new credit agreement with HSBC Bank USA for a revolving credit facility of $45 million.
Stock Performance and Shareholder Equity
As of September 29, 2024, the weighted average shares used to compute net loss per share were 99.7 million, resulting in a basic and diluted net loss per share of $(0.04).
| Category | Value |
|---|---|
| Total Stockholders’ Equity | $96.9 million |
| Common Shares Outstanding | 100.3 million |
Future Outlook
Arlo Technologies aims to enhance its market position by increasing investments in research and development and expanding its subscription services. The company plans to continue innovating its product line and optimizing its operations to drive profitability.
How Arlo Technologies, Inc. (ARLO) Makes Money
Revenue Streams
Arlo Technologies generates revenue primarily through two main streams: product sales and subscription services.
- Product Sales: In the third quarter of 2024, Arlo reported product revenue of $75.8 million, representing a 4.0% decline compared to the same period in 2023. For the nine months ended September 29, 2024, product revenue was $210.5 million, a marginal decrease of 0.1%.
- Subscription Services: Service revenue for the third quarter of 2024 reached $61.9 million, reflecting a significant increase of 21.2% year-over-year. Over nine months, service revenue totaled $178.9 million, up 23.1% from the previous year.
| Period | Product Revenue | Service Revenue | Total Revenue |
|---|---|---|---|
| Q3 2024 | $75.8 million | $61.9 million | $137.7 million |
| Q3 2023 | $78.9 million | $51.0 million | $130.0 million |
| 9M 2024 | $210.5 million | $178.9 million | $389.3 million |
| 9M 2023 | $210.8 million | $145.3 million | $356.1 million |
Geographic Distribution of Revenue
Revenue is generated across three primary geographic regions: the Americas, Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC).
| Region | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| Americas | $73.3 million | $79.9 million | $195.8 million | $214.7 million |
| EMEA | $57.8 million | $42.9 million | $176.0 million | $122.3 million |
| APAC | $6.6 million | $7.2 million | $17.6 million | $19.1 million |
Key Business Metrics
As of September 29, 2024, Arlo reported the following key business metrics:
- Cumulative Registered Accounts: 10.4 million, up 26.7% from 8.2 million in the prior year.
- Cumulative Paid Accounts: 4.2 million, an increase of 70.4% from 2.5 million in the previous year.
- Annual Recurring Revenue (ARR): $241.6 million, a growth of 20.8% compared to $200.0 million last year.
Cost Structure
Arlo's cost of revenue includes both product and service costs:
| Cost Type | Q3 2024 Cost | Q3 2023 Cost | 9M 2024 Cost | 9M 2023 Cost |
|---|---|---|---|---|
| Product Cost | $74.8 million | $73.3 million | $204.1 million | $197.5 million |
| Service Cost | $14.4 million | $13.5 million | $42.6 million | $38.3 million |
| Total Cost of Revenue | $89.3 million | $86.9 million | $246.7 million | $235.9 million |
Operating Expenses
Operating expenses consist of research and development, sales and marketing, and general and administrative costs:
| Expense Type | Q3 2024 Expense | Q3 2023 Expense | 9M 2024 Expense | 9M 2023 Expense |
|---|---|---|---|---|
| Research and Development | $17.6 million | $16.8 million | $57.9 million | $52.2 million |
| Sales and Marketing | $17.8 million | $15.9 million | $52.9 million | $48.1 million |
| General and Administrative | $17.1 million | $12.5 million | $57.8 million | $43.1 million |
| Total Operating Expenses | $53.9 million | $45.4 million | $171.5 million | $144.7 million |
Financial Performance
For the three months and nine months ended September 29, 2024, Arlo reported the following financial performance metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Loss | $(4.4) million | $(1.1) million | $(25.6) million | $(22.7) million |
| Loss per Share | $(0.04) | $(0.01) | $(0.26) | $(0.25) |
| Loss from Operations | $(5.5) million | $(2.3) million | $(28.9) million | $(24.4) million |
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Resources:
- Arlo Technologies, Inc. (ARLO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Arlo Technologies, Inc. (ARLO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Arlo Technologies, Inc. (ARLO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.