ARLO Earnings Prediction
The chart below shows how ARLO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ARLO sees a -1.45% change in stock price 10 days leading up to the earnings, and a +5.56% change 10 days following the report. On the earnings day itself, the stock moves by +0.12%. This data can give you a slight idea of what to expect for the next quarter's release.
ARLO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
137.67M
5.90%
8.02%
Gross Margin
35.17%
6.00%
-4.33%
Operating Margin
-2.93%
89.03%
-68.46%
Net Margin
-3.22%
274.42%
-64.50%
EPS
-0.04
-300.00%
-66.67%
No Data Available
ARLO Earnings Analysis
Arlo Technologies, Inc. Corporation (ARLO.N) Earnings Conference Call
Positive
Third Quarter Revenue Increase: Total revenue for the third quarter of 2024 came in at $137.7 million, up 6% over the prior year period.
Service Revenue Increase: Service revenue represented about 45% of total revenue, up from 39% in the same period last year as we continue the progress towards the 50% threshold.
Subscriber Growth and Revenue Increase: Paid subscribers grew by 255,000, an increase of 70% year-over-year to reach 4.2 million, and service revenue grew 21% to a record $62 million while total service gross margin rose to over 77%.
Services Business Success: The driving force behind the success continues to be our services business, which broke several records in Q3.
Product Launch Success: We launched our latest offering, Arlo Secure 5.0, at the end of Q3, which includes innovative new features and has already seen impressive early results.
Negative
Third Quarter Revenue Growth: Total revenue for the third quarter of 2024 came in at $137.7 million, up 6% over the prior year period, indicating a slower growth rate compared to previous quarters.
Service Revenue Dependency: Service revenue represented about 45% of total revenue, up from 39% in the same period last year, suggesting a reliance on service revenue that may not be sustainable long-term.
Subscriber Growth Surge: Paid subscribers grew by 255,000, an increase of 70% year-over-year to reach 4.2 million, but this growth may not continue at the same pace in future quarters.
Rising Operating Expenses: Total non-GAAP operating expenses for the third quarter were $38.7 million, up from $35.7 million in the same period last year, indicating rising costs that could impact profitability.
Fourth Quarter Revenue Outlook: The company expects fourth quarter total revenue to be in the range of $116 million to $126 million, which is lower than previous guidance and reflects potential challenges in meeting growth targets.
ARLO FAQs
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ARLO Earning Call Sentiment
Arlo Technologies, Inc. (ARLO) Q3 2024 Earnings Call Transcript
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00:00
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ARLO.N
0.34%Positive
The earnings call revealed strong financial performance with record service revenue growth and improved margins, alongside a $50 million share buyback program. Despite concerns about product revenue decline and supply chain challenges, the positive guidance and strategic partnerships with Verisure and Allstate indicate promising future growth. The market cap of approximately $1.27 billion suggests moderate volatility, likely resulting in a positive stock price movement within the 2% to 8% range over the next two weeks.
