Arlo Technologies, Inc. (NYSE:ARLO) Q3 2021 Earnings Conference Call November 9, 2021 5:00 PM ET Company Participants Erik Bylin - NMN Advisors Matthew McRae - CEO & Director Gordon Mattingly - CFO, Principal Financial Officer & Principal Accounting Officer Conference Call Participants Jeffrey Rand - Deutsche Bank Hamed Khorsand - BWS Financial Jeffrey Osborne - Cowen and Company Operator Ladies and gentlemen, thank you for standing by. [Operator Instructions]. I would now like to turn the conference over t ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2021 was $98.6 million, up 47.9% year-over-year and 19.4% sequentially, exceeding guidance [16][22] - Non-GAAP gross profit dollars increased by 328% year-over-year, reaching $27.5 million, with a non-GAAP gross margin of 27.9% [7][19] - Non-GAAP net loss per diluted share improved to a loss of $0.04, significantly better than previous guidance [8][20] Business Line Data and Key Metrics Changes - Product revenue for Q2 2021 was $73.3 million, up 47.8% year-over-year and 22.7% sequentially [17] - Service revenue reached a record $25.2 million, up 48.3% year-over-year and 10.8% sequentially, driven by the new business model [18] - The company added 146,000 paid accounts in Q2, a 240% increase year-over-year, bringing total paid accounts to over 700,000 [9][10] Market Data and Key Metrics Changes - Revenue growth in EMEA was particularly strong, with a 123% year-over-year increase, driven by the partnership with Verisure [14] - The Americas and Asia-Pacific also saw double-digit year-over-year revenue growth [8] Company Strategy and Development Direction - The company is transitioning to a services-first business model, which has significantly improved profitability and service revenue [7][10] - New service plans, Arlo Secure and Arlo Secure Plus, were introduced, featuring unlimited device support and emergency response capabilities [10][11] - The strategic partnership with Verisure is expected to generate significant revenue and service subscription growth, with a guaranteed minimum of $500 million in product purchases over five years [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain challenges but expressed confidence in continued strong demand and reaffirmed revenue guidance for the full year between $410 million and $420 million [22] - The company aims to achieve breakeven on a non-GAAP basis later in the year despite supply constraints impacting revenue and costs [23][40] Other Important Information - The company expects to end the year with approximately $130 million in cash, cash equivalents, and short-term investments [23] - A non-cash impairment charge of $9.1 million was recorded due to a sublease agreement for the San Jose office [21] Q&A Session Summary Question: Growth in subscription business and strategy for converting users - Management highlighted active efforts to convert legacy install base users through promotions and new hardware offerings, with increasing success quarter-over-quarter [24][25] Question: Gross margin pressure in Q3 - Management attributed expected gross margin pressure to increased air freight costs and supply constraints, balancing revenue against profit [26][27] Question: Feedback on new subscription plans - Early feedback on Arlo Secure and Arlo Secure Plus has been positive, with a focus on simplifying the subscription process and introducing emergency response features [28][29] Question: Revenue expectations from Europe and subscription adoption - Management indicated that revenue from Europe is significant, with expectations for subscription growth from the Verisure security channel [35][36] Question: Supply chain confidence for Q4 - Management expressed confidence in securing necessary components for Q4, having worked closely with suppliers and OEM partners [37][38] Question: Breakeven timeline clarification - Management clarified that the goal is to achieve breakeven on a non-GAAP basis in Q4, contingent on overcoming supply chain challenges [39][40] Question: Replicating the Verisure partnership in other regions - Management noted the importance of B2B partnerships for growth and mentioned ongoing efforts to establish similar relationships in other regions [42][43]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to | --- | --- | --- | |------------------------------------------------------------------------------|-------------------------------------- ...

Arlo Technologies, Inc. (NYSE:ARLO) Q3 2019 Earnings Conference Call November 7, 2019 5:00 PM ET Corporate Participants Erik Bylin - Investor Relations Matthew McRae - Chief Executive Officer Christine Gorjanc - Chief Financial Officer Conference Call Participants Adam Tindle - Raymond James Hamed Khorsand - BWS Financial Thomas Boyes - Cowen and Company Operator Ladies and gentlemen, thank you for standing by. At this time all participants are in a listen-only mode. [Operator Instructions] I would now like ...

Arlo Technologies, Inc (NYSE:ARLO) Q2 2019 Earnings Conference Call August 6, 2019 5:00 PM ET Company Participants Erik Bylin – Investor Relations Matthew McRae – Chief Executive Officer Christine Gorjanc – Chief Financial Officer Conference Call Participants Adam Tindle – Raymond James Thomas Boyes – Cowen and Company Hamed Khorsand – BWS Financial Operator Ladies and gentlemen, thank you for standing by. At this time all participants are in a listen-only mode. [Operator Instructions] I would now like to ...

Table of Contents Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered Common Stock, par value $0.001 per share ARLO New York Stock Exchange Large Accelerated filer ☐ Accelerated filer ☐ Non-Accelerated filer ☒ Smaller reporting company ☐ Emerging growth company ☒ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 3 ...

Table of Contents Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common Stock, par value $0.001 per share ARLO New York Stock Exchange Large Accelerated filer ¨ Accelerated filer ¨ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2019. ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE AC ...