NYSE$ARLO

Arlo Technologies Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported revenue of $115 million, ARR ended at $194 million, and GAAP EPS of $(0.08).

Arlo Technologies reported strong Q2 2023 results, with revenue at the top end of the guidance range at $115 million. The acceleration of the services business drove outstanding results across key metrics, including a 66% year-over-year growth in ARR, which ended at $194 million. The company also reported a record non-GAAP EPS of $0.06 and a free cash flow of $12 million with a 10% margin.

  • Q2 total revenue was $115.1 million, a decrease of 3.3% year over year.
  • Record Q2 service revenue reached $50.3 million, growing 53.5% year over year.
  • ARR ended at $193.6 million, growing 66.1% year over year.
  • Added 245,000 paid accounts in Q2, ending with approximately 2.3 million cumulative paid accounts, growing 54.9% year over year.

Headline financials

Total Revenue

$115M

Previous: $119M-3.3%
EPS (adj)

$0.06

Previous: $0.01+500.0%
ARR

$194M

Previous: $117M+66.1%
Paid Accounts

2.3M

Previous: 1.5M+54.9%
FCF Margin

10.0%

No prior period
Capital Expenditures

-$1.95M

Previous: -$451K-333.3%
Free Cash Flow

-$9.32M

Previous: -$12M+22.4%
Net Income

-$7.36M

Previous: -$11.6M+36.3%
Operating Income

-$8.03M

Previous: -$11.3M+29.2%
Gross Profit

$41.9M

Previous: $33.7M+24.1%
Cash & Equivalents

$62M

Previous: $85.5M-27.6%
Total Assets

$269M

Previous: $300M-10.2%
Stock-Based Comp

$13M

Previous: $12.2M+5.9%

Revenue & EPS history

Arlo · Revenue · Quarterly

$115M

Q2 2023-3.3%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Arlo · $79M total across 1 segment · Q3 2023

  • Products
    $79M-14.8%

Forward guidance

Arlo expects revenue between $122 million and $132 million and non-GAAP net income per diluted share between $0.04 and $0.10 for Q3 2023.

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 2023

Historical avgQ2 2023

+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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