Core Insights - Arlo Technologies, Inc. is scheduled to present at the Raymond James TMT and Consumer Conference on December 9, 2025, with CEO Matthew McRae as the speaker [1] - The presentation will be available via webcast on Arlo's investor relations website [1] Company Overview - Arlo Technologies is recognized as a leader in smart home security, offering advanced solutions for home, business, and personal security [2] - The company utilizes AI and computer vision analytics, cloud services, and innovative connectivity to provide a seamless security experience [2] - Arlo's product lineup includes wire-free security cameras, video doorbells, floodlights, and subscription services like Arlo Secure and Arlo Safe [2] Commitment to Privacy - Arlo emphasizes user privacy and data protection, ensuring that personal information remains private and under user control [3] - The company does not monetize personal data and supports privacy legislation while maintaining robust security measures [3] Financial Performance - Arlo reported a significant increase in Annual Recurring Revenue (ARR) to $323 million, representing a 34% year-over-year growth [6] - The gross margin for non-GAAP subscriptions and services reached over 85%, marking a 770 basis points increase year-over-year [6]

Arlo's Business Overview - Arlo is an AI-powered SaaS business in the smart security space with a focus on innovation and privacy [7] - Arlo's annual recurring revenue (ARR) is greater than $315 million, with year-over-year growth exceeding 30% [11] - Arlo has over 5 million paid subscribers and over 11 million registered accounts [11] - Arlo's LTV/CAC ratio is 3x [11] Market Opportunity - The US smart home security market is sized at $25 billion in 2025 [16] - Paid smart home security services are only 7% penetrated in the US, leaving significant room for growth [16] - Smart cameras and video doorbells have the highest subscription attach rates among smart home products, at 66% and 71% respectively [16] Q2 2025 Performance - Arlo's annual recurring revenue (ARR) reached $316 million, a 34% year-over-year increase [50] - Service revenue accounted for 60% of total revenue [50] - The service gross margin was 85% (non-GAAP) [50] - Adjusted EBITDA reached $344 million YTD, a 79% year-over-year increase [66] - Free cash flow reached $34 million YTD, a 33% year-over-year increase [67] Future Outlook - Arlo is targeting over $310 million in service revenue [82] - Arlo projects non-GAAP earnings per share of $012 to $018 for Q3 2025 and $056 to $066 for the full year 2025 [82]

Arlo's Business Overview - Arlo's annual recurring revenue (ARR) exceeds $275 million, with a year-over-year growth rate of over 20%[10] - Arlo has over 5 million paid subscribers and over 11 million registered accounts[10] - Arlo's service gross margin is greater than 80%[10] - Retail accounts generate over 80% of Arlo's ARR[53] Market and Product Strategy - Arlo participates in the U S smart home security market, which is sized at $25 billion in 2025[15] - Paid smart home security services are only 7% penetrated in the U S, indicating significant growth potential[15] - Arlo plans a complete refresh of all cameras and expansion of product lines in 2025-2026[33, 35] Financial Performance and Outlook - In Q1 2025, Arlo's annual recurring revenue was $276 million, a 22% year-over-year increase[50] - Arlo's service revenue mix was 58% of total revenue in Q1 2025[50] - Non-GAAP service gross margin was 83% in Q1 2025[50] - Adjusted EBITDA for Q1 2025 was $164 million, a 76% year-over-year increase[64] - Free cash flow for Q1 2025 was $281 million, a 45% year-over-year increase[64]

Arlo's Business Overview - Arlo operates an AI-powered SaaS business in the Smart Security space[10] - The company's Annual Recurring Revenue (ARR) exceeds $250 million, with a year-over-year growth rate of over 20%[10] - Arlo has over 45 million paid subscribers and over 11 million registered accounts[10] - The company's Service Gross Margin is greater than 80%[10] - Arlo's LTV/CAC (Lifetime Value to Customer Acquisition Cost) ratio is 4x[10] Market and Growth Opportunities - The US smart home security market is sized at $25 billion in 2025[16] - Paid smart home security services are only 7% penetrated in the US, indicating a large whitespace for capture[16] - Smart cameras and video doorbells have subscription attach rates of 66% and 71% respectively[16] Financial Performance and Outlook - Arlo's Q4 2024 saw record SaaS metrics, with ARR at $257 million, a 22% year-over-year increase[52] - Services revenue accounted for 53% of total revenue in Q4 2024[52] - The company's non-GAAP service gross margin was 82% in Q4 2024[52] - Arlo anticipates Q1 2025 revenue between $114 million and $124 million, with earnings per share between $009 and $015[117] - Arlo anticipates full year 2025 revenue between $510 million and $540 million, with earnings per share between $056 and $066 and service revenue exceeding $300 million[117]