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 ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 reached $137.7 million, up 6% year-over-year, driven by strong service revenue growth [7][17] - Non-GAAP gross profit was nearly $50 million, with earnings per share at $0.11 [7][25] - Annual recurring revenue (ARR) increased to $242 million, up over 21% year-over-year [19] - Non-GAAP operating income rose 28%, and free cash flow surged 150% compared to the same period last year [19][25] - Non-GAAP net income for Q3 was $11.8 million, translating to a non-GAAP net income per diluted share of $0.11 [25] Business Line Data and Key Metrics Changes - Service revenue grew 21% to a record $62 million, representing about 45% of total revenue, up from 39% in the same period last year [17][19] - Paid subscribers increased by 255,000, a 70% year-over-year growth, reaching 4.2 million [8][18] - Average revenue per user (ARPU) for retail and direct accounts rose to $12.24 per month [8][19] Market Data and Key Metrics Changes - Approximately $66 million, or 48% of total revenue, was generated from international customers, up from $50 million or 39% in the prior period [22] - The company shipped 1.5 million devices worldwide, compared to 1.3 million in the prior period [20] Company Strategy and Development Direction - The company is focusing on a services-first business model, aiming for 50% of revenue from services [17] - A new product, Arlo Secure 5.0, was launched, featuring innovative capabilities and a significant uptake in premium plan subscriptions [9][11] - The company plans to be aggressive with promotional pricing during the holiday season to drive unit sales and future subscriptions [12][28] Management's Comments on Operating Environment and Future Outlook - The management noted a softer market environment but highlighted strong performance from certain retailers [12] - The company expects product gross margins to trend downward due to aggressive pricing strategies, but service gross margins are expected to remain strong [22][29] - Guidance for Q4 total revenue is projected to be between $116 million and $126 million, with service revenue expected to exceed full-year guidance [28][29] Other Important Information - The company announced a share buyback program of $50 million as part of its capital allocation plan [15] - The partnership with Verisure has been renewed for another five years, indicating strong collaboration [14] Q&A Session Summary Question: Clarification on Q4 POS expectations - Management clarified that the expectation of nearly doubling POS from Q3 to Q4 refers specifically to cameras sold, not including accessories [30][31] Question: Details on Arlo Secure 5.0 rollout - Arlo Secure 5.0 is currently available to new subscribers, with early data showing a significant increase in premium plan sign-ups [32][33] Question: Insights on Allstate partnership - The management discussed the phased approach to the Allstate partnership, expecting gradual growth similar to the Verisure relationship [38][39] Question: Regional performance in Europe - Management noted varying performance across Europe, with some countries ramping quickly while others are destocking [42][43] Question: Impact of promotional strategies on inventory and cash flow - The company is prepared for a more aggressive promotional strategy in Q4, anticipating a destocking position among retailers [50]

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 ...

Group 1: Arlo Technologies Inc - Arlo Technologies' shares increased by 3.5% to $12.27 following the announcement of a $50 million stock repurchase program [1] - The stock has risen 28.3% in 2024, although it remains below its 52-week high of $17.64 reached in mid-July [1] - Short interest in Arlo Technologies has increased by 21.5% over the last month, now representing 6.2% of the stock's available float, with a cover time of over six days based on average trading volume [1] Group 2: Applied Optoelectronics Inc - Applied Optoelectronics' stock rose by 18% to $16.59 after showcasing its 1.6T OSFP DR8 LPO modal at the European Conference on Optical Communications [2] - The stock has increased by 75.8% year over year but has seen a decline of 14.6% in 2024, indicating a potential entry point for investors [2] - Options trading activity surged, with 13,000 calls and 1,274 puts traded, which is six times higher than the average intraday volume, particularly in the October 20 call contract [2]