NYSE$ARLO

Arlo Technologies Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported record service revenue and GAAP net earnings per diluted share (EPS) in Q4 2023.

Arlo Technologies reported a solid Q4 2023 with a 14% revenue increase and over 50% ARR growth compared to the previous year. The company achieved record non-GAAP earnings of $0.11 per share and its first-ever profit on a GAAP basis.

  • Total revenue reached $135.1 million, a 14.0% increase year over year.
  • Service revenue hit a record of $55.9 million, growing 45.9% year over year.
  • GAAP net earnings per diluted share reached a record of $0.01, with a non-GAAP EPS of $0.11.
  • Cumulative paid accounts increased to 2.8 million, growing 51.1% year over year.

Headline financials

Total Revenue

$135M

Previous: $119M+14.0%
EPS (adj)

$0.11

Previous: -$0.04+375.0%
ARR

$210M

No prior period
Paid Accounts

2.8M

Previous: 1.9M+51.1%
GAAP Service Gross Margin

73.9%

No prior period
Non-GAAP Service Margin

74.4%

No prior period
GAAP Gross Margin

35.0%

No prior period
Non-GAAP Gross Margin

35.8%

No prior period
Capital Expenditures

-$399K

Previous: $1.2M-133.4%
Net Income

$692K

Previous: -$22.2M+103.1%
Operating Income

-$458K

Previous: -$22.4M+98.0%
Gross Profit

$47.3M

Previous: $32M+48.1%
R&D Expense

$16.5M

No prior period
Stock-Based Comp

$10.1M

Previous: $16.7M-39.5%

Revenue & EPS history

Arlo · Revenue · Quarterly

$135M

Q4 2023+14%vs Q4 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 anticipates revenue between $117 million and $127 million and a GAAP net loss per diluted share between $(0.08) and $(0.02) for Q1 2024. Non-GAAP net income per diluted share is expected to be between $0.05 and $0.11.

Tailwinds

  • Revenue is projected to be between $117 million and $127 million.
  • Non-GAAP net income per diluted share is expected to be positive, ranging from $0.05 to $0.11.

Headwinds

  • GAAP net loss per diluted share is forecasted to be between $(0.08) and $(0.02).

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 2023

Historical avgQ4 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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