NYSE$ARLO

Arlo Technologies Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Exceeded revenue and EPS guidance with 104% GAAP gross profit growth year over year.

Arlo Technologies reported a strong third quarter, exceeding guidance in every measure. Revenue reached $110.2 million, a 3.9% increase year over year, driven by paid account growth and strong performance from European partner, Verisure. The company also made progress on gross margins and improved non-GAAP net loss by $16.3 million year over year.

  • Revenue of $110.2 million, an increase of 3.9% year over year.
  • GAAP gross profit $21.4 million, an increase of 104% year over year; non-GAAP gross profit $22.7 million, an increase of 100% year over year.
  • GAAP net loss per diluted share of $(0.22); non-GAAP net loss per diluted share of $(0.10).
  • Added a record 58,000 paid accounts in Q3, a sequential increase of 35% over Q2.

Headline financials

Total Revenue

$110M

Previous: $106M+3.9%
EPS (adj)

-$0.10

Previous: -$0.32+68.8%
Capital Expenditures

-$2.07M

Previous: -$5.02M+58.8%
Free Cash Flow

-$19.5M

Previous: -$35.6M+45.2%
Net Income

-$17.5M

Previous: -$30.6M+42.9%
Operating Income

-$18M

Previous: -$31.1M+42.2%
Gross Profit

$21.4M

Previous: $10.5M+103.8%
Cash & Equivalents

$174M

Previous: $114M+52.5%
Total Assets

$389M

Previous: $427M-8.9%
Stock-Based Comp

$9M

Previous: $5.22M+72.5%

Revenue & EPS history

Arlo · Revenue · Quarterly

$110M

Q3 2020+3.9%vs Q3 2019
Beat estimate in 2 of 12 quarters(17%)
ActualEstimate

Revenue by segment

Arlo · $91.3M total across 1 segment · Q3 2020

  • Products
    $91.3M

Forward guidance

Arlo expects revenue between $105.0 million and $115.0 million for Q4 2020. GAAP net loss per diluted share is expected to be between $(0.36) and $(0.26), and non-GAAP net loss per diluted share is expected to be between $(0.26) and $(0.16).

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 Q3 2020

Historical avgQ3 2020

+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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