Core Viewpoint - Arlo Technologies (ARLO) has experienced a significant decline in share price, dropping 12.9% over the past month, while the broader Zacks Computer & Technology sector has returned 2.4% [1] Group 1: Financial Performance - Arlo Technologies' service revenues reached a record $61.9 million, reflecting a 21% year-over-year increase in Q3 2024, driven by the growth in paid subscribers and a higher mix of premium plans [3] - The company added 255,000 paid subscribers, marking a 70% increase year over year, bringing the total to 4.2 million, which has elevated the average revenue per user (ARPU) to $12.24 per month [4] - The Zacks Consensus Estimate for 2025 revenues is projected at $513.50 million, indicating a year-over-year increase of 0.59%, while earnings are estimated at 56 cents per share, reflecting a 36.59% increase year over year [8] Group 2: Business Developments - The decline in ARLO's share price is attributed to a shift in consumer purchasing behavior towards lower price points, leading to reduced average selling prices and product revenues [2] - The launch of Arlo Secure 5.0 has significantly contributed to subscriber growth, offering innovative features that have attracted more users to premium plans [5] - ARLO's partnership with Allstate has introduced the Arlo Total Security bundle, enhancing home security solutions for Allstate's 6 million home insurance customers, further driving growth [6][7] Group 3: Market Position - Arlo Technologies has underperformed compared to peers like Amazon and Logitech, which have seen positive returns of 0.7% and 1.2% respectively over the same period [1] - Despite the challenges, the company maintains a Zacks Rank 1 (Strong Buy) and a Growth Score of B, indicating a favorable investment opportunity [10]

Strategic Partnership - Arlo Technologies has entered into an exclusive worldwide partnership with Origin AI to integrate Origin's AI Verified Human Presence™ detection technology into its security solutions [1] - The partnership grants Arlo exclusive rights to market and sell Origin AI's TruShield™ and Allos products, which use RF signals from existing WiFi devices to detect human presence with high accuracy and reduce false alarms [2] - Arlo plans to integrate Origin AI's sensing technologies into its future offerings, enhancing its AI-assisted motion detection, indoor/outdoor video monitoring, and professional monitoring services [3] Product Innovations - Arlo Secure 5, powered by Arlo Intelligence, leverages advanced computer vision AI and recognition engines to provide detailed alerts for faster decision-making [4] - New AI-powered features include Person Recognition, Vehicle Recognition, Custom Detection, and Fire Detection, enabling personalized alerts and enhanced security monitoring [7] Company Overview - Arlo Technologies is a leader in smart home security, offering advanced AI- and CV-powered analytics, cloud services, and innovative wireless connectivity solutions [6] - The company provides a range of products, including wire-free security cameras, video doorbells, floodlights, and subscription services like Arlo Secure and Arlo Safe [8] - Arlo is committed to user privacy, implementing industry standards for data protection and providing enhanced controls for user data [9] Origin AI Overview - Origin AI specializes in AI-enabled WiFi Sensing technology, with its TruShield™ Security offering Verified Human Presence™ detection [11] - The company's technology is trusted by Fortune 500 ISPs and multinational security providers, backed by over 200 patents, and sets new standards in privacy and accuracy [11]

Core Viewpoint - Arlo Technologies (ARLO) shows significant upside potential with a mean price target of $18, indicating a 50.8% increase from the current price of $11.94 [1] Price Targets and Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $4.24, suggesting variability among analysts [2] - The lowest estimate of $15 indicates a 25.6% increase, while the highest estimate suggests a 101% surge to $24 [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement direction [7] Analyst Sentiment and Earnings Estimates - Analysts show growing optimism about ARLO's earnings prospects, as indicated by upward revisions in EPS estimates, which correlate with potential stock price increases [9] - Over the last 30 days, one estimate has increased, leading to a 48.8% rise in the Zacks Consensus Estimate [10] - ARLO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors [11] Caution on Price Targets - While price targets are often sought after, they can mislead investors, and reliance solely on them may lead to poor investment decisions [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Core Viewpoint - Arlo Technologies (ARLO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which significantly influence stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance Indicators - Arlo Technologies is projected to earn $0.41 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 46.4% [8]. - Over the past three months, the Zacks Consensus Estimate for Arlo has risen by 48.8%, indicating a strong upward revision trend [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Arlo in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10][11].

With the Fed issuing slightly hawkish comments in mid-November, some of the momentum propelling the historic Trump rally has faded somewhat. With ongoing nervousness about valuations and all-time market highs, I continue to favor emphasizing individual stock selection, particularly among value stocks.With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of t ...

Arlo Technologies, Inc. (NYSE:ARLO) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Tahmin Clarke - Investor Relations Matthew McRae - CEO Kurt Binder - COO and CFO Conference Call Participants Jacob Stephan - Lake Street Mark Cash - Raymond James Hamed Khorsand - BWS Financial Operator Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions]. I wou ...

arlo " Investor Presentation Q3 2024 ©2024 – ALL RIGHTS RESERVED SAFE HARBOR DISCLOSURE This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words "anticipate," "expect," "believe," "will," "may," "should," "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Th ...

Arlo Technologies (ARLO) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this maker of smart connected devices would post earnings of $0.09 per share when it actually produced earnings of $0.10, delivering a surprise of 11.11%.Over the last fou ...

NEWS RELEASE Arlo Reports Third Quarter 2024 Results Record service revenue of $61.9 million, growing 21.2% year over year GAAP service gross margin of 76.7%; non-GAAP service gross margin of 77.4% GAAP net loss per share of $(0.04); non-GAAP net income per share of $0.11 (1) (2) Annual recurring revenue (ARR) ended at $241.6 million, growing 20.8% year over year Free cash flow (FCF) of $17.4 million with FCF margin of 12.6% Carlsbad, California – November 7, 2024 – Arlo Technologies, Inc. (NYSE: ARLO), a l ...

Latest DIY Smart Floodlight Camera Builds on Arlo's Award-Winning Wire-Free FloodlightSAN JOSE, Calif., Oct. 15, 2024 /PRNewswire/ -- Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security brand, today announced the Wired Floodlight Camera, an all-in-one DIY security solution built on Arlo's award-winning and innovative wire-free floodlight. With a direct power source for uninterrupted security, the feature-rich Wired Floodlight Camera delivers enhanced visibility and protection of outdoor spac ...