NYSE$ARLO

Arlo Technologies Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Arlo's Q4 2020 earnings exceeded EPS guidance, delivered highest gross margin in nine quarters, and achieved sixth consecutive quarterly record for service revenue growth.

Arlo Technologies reported Q4 2020 revenue of $114.8 million, a decrease of 6.2% year over year. The company's GAAP gross profit was $24.5 million, an increase of 79.0% year over year, and non-GAAP gross profit was $25.7 million, an increase of 73.0% year over year. Arlo closed out the year with an 89.1% year over year paid account growth and saw service gross margin improve 10 percentage points year over year.

  • Revenue grew 4.2% sequentially to $114.8 million.
  • Paid account growth increased 89.1% year over year.
  • Service gross margin improved 10 percentage points year over year.
  • Launched two new products in the fourth quarter.

Headline financials

Total Revenue

$115M

Previous: $122M-6.2%
EPS (adj)

-$0.08

Previous: -$0.26+69.2%
Capital Expenditures

$1.82M

Previous: $1.64M+11.0%
Free Cash Flow

$11M

Previous: $50.2M-78.2%
Net Income

-$15.2M

Previous: $19.6M-177.5%
Operating Income

-$15.7M

Previous: $21.8M-171.9%
Gross Profit

$24.5M

Previous: $13.7M+79.0%
Cash & Equivalents

$186M

Previous: $237M-21.4%
Total Assets

$414M

Previous: $543M-23.7%
Stock-Based Comp

$8.91M

Previous: $7.63M+16.7%

Revenue & EPS history

Arlo · Revenue · Quarterly

$115M

Q4 2020-6.2%vs Q4 2019
Beat estimate in 3 of 13 quarters(23%)
ActualEstimate

Revenue by segment

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

  • Products
    $79M-14.8%

Forward guidance

Arlo expects revenue of $70.0 million to $80.0 million for Q1 2021. GAAP net loss per diluted share is expected to be $(0.35) to $(0.29), and non-GAAP net loss per diluted share of $(0.23) to $(0.17).

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 Q4 2020

Historical avgQ4 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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