NYSE$ARLO

Arlo Technologies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported second quarter 2021 results, exceeding revenue and non-GAAP EPS guidance, with significant year-over-year growth in service, product, and total revenue, alongside a substantial increase in total paid accounts.

Arlo Technologies reported strong second-quarter results, exceeding expectations for both revenue and non-GAAP EPS. The company saw significant growth in service revenue, product revenue, and total revenue, driven by the success of its new services business model and refreshed product lineup. Arlo added a record number of paid accounts and surpassed 700,000 total paid accounts.

  • Revenue reached $98.6 million, a 47.9% increase year-over-year.
  • GAAP gross profit was $26.2 million, up 376.8% year-over-year.
  • Added a record 146,000 paid accounts in Q2, representing a 239.5% year-over-year increase.
  • Service revenue was $25.3 million, a 48.3% increase year-over-year.

Headline financials

Total Revenue

$98.6M

Previous: $66.6M+47.9%
EPS (adj)

-$0.04

Previous: -$0.31+87.1%
Capital Expenditures

-$1.07M

Previous: -$1.18M+10.0%
Free Cash Flow

-$24.4M

Previous: -$30.4M+19.9%
Net Income

-$23.3M

Previous: -$29.3M+20.3%
Operating Income

-$25.8M

Previous: -$30.3M+14.9%
Gross Profit

$26.2M

Previous: $5.49M+376.8%
Cash & Equivalents

$179M

Previous: $185M-3.6%
Total Assets

$331M

Previous: $390M-15.2%
Stock-Based Comp

$11.6M

Previous: $4.56M+154.4%

Revenue & EPS history

Arlo · Revenue · Quarterly

$98.6M

Q2 2021+47.9%vs Q2 2020
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Arlo · $73.3M total across 1 segment · Q2 2021

  • Products
    $73.3M

Forward guidance

Arlo anticipates revenue between $100.0 million and $110.0 million. GAAP net loss per diluted share is expected to be between $(0.30) and $(0.23), while non-GAAP net loss per diluted share is projected to be between $(0.19) and $(0.12).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.4%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-2.5%

Avg return

30 days after

49%

17 / 35 earnings

Positive

+48.1%

Q4 2022

Best reaction

-46.2%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%-11.1%-12.2%
Q4 2025+26.8%+21.9%+9.1%
Q3 2025-12.3%-8.0%-14.3%
Q1 2025+16.9%+29.1%+57.7%
Q3 2024+1.3%-0.4%+8.1%
Q2 2024-10.7%-8.8%-13.6%
Q1 2024-19.6%-19.5%-5.8%
Q4 2023+18.8%+9.7%+27.0%
Q3 2023-9.8%-3.7%+3.1%
Q2 2023+7.3%+1.2%+2.6%
Q1 2023+26.2%+29.3%+27.8%
Q4 2022+48.1%+55.0%+80.1%
Q3 2022-29.6%-17.4%-27.3%
Q2 2022+1.7%-5.1%-23.4%
Q1 2022-5.3%-3.4%+1.9%
Q4 2021+20.6%+16.1%-4.5%
Q3 2021+11.5%+11.7%+33.1%
Q2 2021-2.6%-1.8%+1.6%
Q1 2021+8.6%+1.3%+9.7%
Q4 2020+6.2%-1.7%+3.0%
Q3 2020+6.8%+2.3%+50.0%
Q2 2020+22.1%+15.2%+2.1%
Q1 2020-10.8%-13.9%-3.5%
Q4 2019+17.3%-3.8%-48.4%
Q3 2019-16.2%-13.6%-3.2%
Q2 2019-21.5%-21.5%-16.9%
Q1 2019+5.6%+3.8%-7.6%
Q4 2016-1.7%+1.5%+0.7%
Q4 2018-46.2%-49.0%-39.2%
Q3 2017-6.7%-0.9%-13.0%
Q3 2018-9.6%-10.4%-11.9%
Q2 2018-8.1%-13.1%-40.4%
Q4 2017-8.1%-13.1%-40.4%
Q2 2017-8.1%-13.1%-40.4%
Q1 2018-8.1%-13.1%-40.4%
Q1 2017

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