Full year revenue of $490 million, growing
13% year over year
Full year service revenue of $136 million,
growing 32% year over year
Full year service gross margin of
67%
Q4 ARR ended at $138 million, growing 53%
year over year
1.9 million in Cumulative Paid
Accounts
Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home
security brand, today reported financial results for the fourth
quarter and full year ended December 31, 2022.
“Arlo executed well during a transformative 2022, delivering Q4
revenue above guidance and full year revenue that rose 13% year
over year. Our high-margin subscription business continues its
strong growth, adding almost 800,000 paid accounts in 2022 and
surpassing 2 million total paid accounts next week. This milestone
reflects an inflection point in our business that will lead to
record levels of profitability for Arlo going forward," said
Matthew McRae, Chief Executive Officer of Arlo Technologies. “Armed
with a slate of critically acclaimed products and a new strategic
partnership with Citizens Pay, Arlo is poised to disrupt the
antiquated home security market and deliver even greater
shareholder value in 2023 as we drive to full year non-GAAP
profitability.”
Financial and Business Highlights (1)
Q4 2022 Summary
- Q4 total revenue of $118.5 million, a decrease of 17.0% year
over year.
- Record Q4 service revenue of $38.3 million, for growth of 34.6%
year over year.
- Ended the quarter with ARR of $137.8 million, growing 52.9%
year over year. (2)
- GAAP services gross margin of 69.1%; non-GAAP services gross
margin of 69.7% in Q4.
- Added 189,000 paid accounts in Q4, a year over year decrease of
0.5%.
- GAAP gross profit of $32.0 million, an increase of 0.8% year
over year; non-GAAP gross profit of $33.2 million, an increase of
1.6% year over year.
- GAAP gross margin of 27.0%; non-GAAP gross margin of
28.0%.
- GAAP net loss per diluted share of $(0.25); non-GAAP net loss
per diluted share of $(0.04).
FY2022 Summary
- 2022 total revenue of $490.4 million, an increase of 12.7% year
over year.
- 2022 GAAP gross profit of $136.0 million, an increase of 25.9%
year over year; non-GAAP gross profit of $140.9 million, an
increase of 25.8% year over year.
- 2022 GAAP gross margin of 27.7%; non-GAAP gross margin of
28.7%.
- 2022 GAAP net loss per diluted share of $(0.65); non-GAAP net
loss per diluted share of $(0.07).
- Ending cash and cash equivalents and short-term investments
balance of $113.7 million and no outstanding balance drawn under
our credit facility as of December 31, 2022.
Three Months Ended
Twelve Months Ended
December 31, 2022
October 2, 2022
December 31, 2021
December 31, 2022
December 31, 2021
(in thousands, except
percentage and per share data)
Revenue
$
118,527
$
128,157
$
142,861
$
490,414
$
435,137
GAAP Gross Margin
27.0
%
28.7
%
22.2
%
27.7
%
24.8
%
Non-GAAP Gross Margin (1)
28.0
%
29.7
%
22.9
%
28.7
%
25.7
%
GAAP Net Loss per Diluted Share
$
(0.25
)
$
(0.16
)
$
(0.08
)
$
(0.65
)
$
(0.68
)
Non-GAAP Net Income (Loss) per Diluted
Share (1)
$
(0.04
)
$
(0.05
)
$
0.04
$
(0.07
)
$
(0.11
)
_________________________
(1)
Reconciliation of financial
measures computed on a GAAP basis to the most directly comparable
financial measures computed on a non-GAAP basis is provided at the
end of this press release.
(2)
ARR is calculated by taking our
recurring paid service revenue for the last calendar month in the
fiscal quarter, multiplied by 12 months. Recurring paid service
revenue represents the revenue we recognized from our paid accounts
and excludes prepaid service revenue and non-recurring engineering
(NRE) service revenue from strategic partners.
First Quarter 2023 Business Outlook (3)
A reconciliation of our business outlook on a GAAP and non-GAAP
basis is provided in the following table:
Three Months Ended April 2,
2023
Revenue
Net Income (Loss) per
Diluted Share
(in millions, except per share
data)
GAAP
$100 - $110
$(0.23) - $(0.17)
Estimated adjustments for (3):
Stock-based compensation expense
—
0.16
Non-GAAP
$100 - $110
$(0.07) - $(0.01)
_________________________
(3)
Business outlook does not include
estimates for any currently unknown income and expense items which,
by their nature, could arise late in a quarter, including:
litigation reserves, net; impairment charges; discrete tax benefits
or detriments relating to tax windfalls or shortfalls from equity
awards; and any additional impacts relating to the implementation
of U.S. tax reform. New material income and expense items such as
these could have a significant effect on our guidance and future
results.
Investor Conference Call / Webcast Details
Arlo will review the fourth quarter and full year 2022 results
and discuss management’s expectations for the first quarter of 2023
today, Tuesday, March 7, 2023 at 5:00 p.m. ET (2:00 p.m. PT). The
toll-free dial-in number for the live audio call is (888) 660-6387.
The international dial-in number for the live audio call is +1
(929) 203-1909. The conference ID for the call is 7749064. A live
webcast of the conference call will be available on Arlo’s Investor
Relations website at https://investor.arlo.com. A replay of the
call will be available via the web at
https://investor.arlo.com.
About Arlo Technologies, Inc.
Arlo is the award-winning, industry leader that is transforming
the way people experience the connected lifestyle. Arlo’s deep
expertise in product design, wireless connectivity, cloud
infrastructure and cutting-edge AI capabilities focuses on
delivering a seamless, smart home experience for Arlo users that is
easy to setup and interact with every day. Arlo’s cloud-based
platform provides users with visibility, insight and a powerful
means to help protect and connect in real-time with the people and
things that matter most, from any location with a Wi-Fi or a
cellular connection. To date, Arlo has launched several categories
of award-winning smart connected devices, software and services,
including wire-free smart Wi-Fi and LTE-enabled security cameras,
audio and video doorbells, a floodlight, home security systems, and
the Arlo Apps: Arlo Secure, and Arlo Safe, AI-based subscription
services designed to maximize security through personalized
notifications and emergency services for quicker help during a
crisis.
With a mission to bring users peace of mind, Arlo is as
passionate about protecting user privacy as it is about
safeguarding homes and families. Arlo is committed to supporting
industry standards for data protection designed to keep users'
personal information private and in their control. Arlo does not
monetize personal data, provides enhanced controls for user data,
supports privacy legislation, keeps user data safely secure, and
puts security at the forefront of company culture.
© 2023 Arlo Technologies, Inc., Arlo and the Arlo logo are
trademarks and/or registered trademarks of Arlo Technologies, Inc.
and/or certain of its affiliates in the United States and/or other
countries. Other brand and product names are for identification
purposes only and may be trademarks or registered trademarks of
their respective holder(s). The information contained herein is
subject to change without notice. Arlo shall not be liable for
technical or editorial errors or omissions contained herein. All
rights reserved.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 for Arlo Technologies, Inc.:
This press release 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. The forward-looking statements
represent our expectations or beliefs concerning future events
based on information available at the time such statements were
made and include statements regarding its potential future
business, operating performance and financial condition, including
descriptions of its expected revenue and profitability (and related
timing), GAAP and non-GAAP gross margins, operating margins, tax
rates, expenses, and cash outlook; the expansion of our product
portfolio with Arlo Safe and the Security System; strategic
objectives and initiatives; the recurring revenue business model;
expectations regarding market expansion and future growth; and
others. These statements are based on management's current
expectations and are subject to certain risks and uncertainties,
including the following: the expansion of our product portfolio
with Arlo Safe and the Security System may not materialize; the
relationships with strategic enterprise partners may deteriorate;
future demand for our products may be lower than anticipated,
including due to inflation, lower consumer confidence and rising
interest rates; we may be unsuccessful in developing and expanding
its sales and marketing capabilities; we may not be able to
increase sales of its paid subscription services; consumers may
choose not to adopt our new product offerings or adopt competing
products; product performance may be adversely affected by real
world operating conditions; we may be unsuccessful or experience
delays in manufacturing and distributing its new and existing
products; we may fail to manage costs and cost saving initiatives,
including the cost of developing new products and manufacturing and
distribution of its existing offerings. Further, certain
forward-looking statements are based on assumptions as to future
events that may not prove to be accurate. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecast in such forward-looking statements. Further information
on potential risk factors that could affect our business are
detailed in our periodic filings with the Securities and Exchange
Commission, including, but not limited to, those risks and
uncertainties listed in the section entitled “Risk Factors” in the
most recently filed Annual Report and Quarterly Report filed with
the Securities and Exchange Commission (the “SEC”) and subsequent
filings with the SEC. Given these circumstances, you should not
place undue reliance on these forward-looking statements. We
undertake no obligation to release publicly any revisions to any
forward-looking statements contained herein to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Non-GAAP Financial Information:
To supplement our unaudited selected financial data presented on
a basis consistent with U.S. Generally Accepted Accounting
Principles (“GAAP”), we disclose certain non-GAAP financial
measures that exclude certain charges, including non-GAAP gross
profit, non-GAAP gross margin, non-GAAP research and development,
non-GAAP sales and marketing, non-GAAP general and administrative,
non-GAAP total operating expenses, non-GAAP operating income
(loss), non-GAAP operating margin, non-GAAP other income
(expenses), net, non-GAAP provision for income taxes, non-GAAP net
income (loss) and non-GAAP net income (loss) per diluted share.
These supplemental measures exclude adjustments for stock-based
compensation expense, restructuring charges, impairment charges,
separation expense, litigation reserves, employee retention credit
and the related tax effects. These non-GAAP measures are not in
accordance with or an alternative for GAAP, and may be different
from similarly-titled non-GAAP measures used by other companies. We
believe that these non-GAAP measures have limitations in that they
do not reflect all of the amounts associated with our results of
operations as determined in accordance with GAAP and that these
measures should only be used to evaluate our results of operations
in conjunction with the corresponding GAAP measures. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for the most directly
comparable GAAP measures. We compensate for the limitations of
non-GAAP financial measures by relying upon GAAP results to gain a
complete picture of our performance.
In calculating non-GAAP financial measures, we exclude certain
items to facilitate a review of the comparability of our operating
performance on a period-to-period basis because such items are not,
in our view, related to our ongoing operational performance. We use
non-GAAP measures to evaluate the operating performance of our
business, for comparison with forecasts and strategic plans, and
for benchmarking performance externally against competitors. In
addition, management’s incentive compensation is determined using
certain non-GAAP measures. Since we find these measures to be
useful, we believe that investors benefit from seeing results
“through the eyes” of management in addition to seeing GAAP
results. We believe that these non-GAAP measures, when read in
conjunction with our GAAP measures, provide useful information to
investors by offering:
- the ability to make more meaningful period-to-period
comparisons of our on-going operating results;
- the ability to better identify trends in our underlying
business and perform related trend analyses;
- a better understanding of how management plans and measures our
underlying business; and
- an easier way to compare our operating results against analyst
financial models and operating results of competitors that
supplement their GAAP results with non-GAAP financial
measures.
The following are explanations of the adjustments that we
incorporate into non-GAAP measures, as well as the reasons for
excluding them in the reconciliations of these non-GAAP financial
measures:
Stock-based compensation expense consists of non-cash charges
for the estimated fair value of stock options, performance-based
stock options, restricted stock units (RSU), performance-based
restricted stock units, shares under the employee stock purchase
plan granted to employees and employees' annual bonus in RSU form.
We believe that the exclusion of these charges provides for more
accurate comparisons of our operating results to peer companies due
to the varying available valuation methodologies, subjective
assumptions and the variety of award types. In addition, we believe
it is useful to investors to understand the specific impact
stock-based compensation expense has on our operating results.
Other non-GAAP items are the result of either unique or
unplanned events, including, when applicable: restructuring
charges, impairment charges, separation expense, amortization of
capitalized software, litigation reserves, net and employee
retention credit. It is difficult to predict the occurrence or
estimate the amount or timing of these items in advance. Although
these events are reflected in our GAAP financial statements, these
unique transactions may limit the comparability of our on-going
operations with prior and future periods. The amounts result from
events that often arise from unforeseen circumstances, which often
occur outside of the ordinary course of continuing operations.
Therefore, the amounts do not accurately reflect the underlying
performance of our continuing business operations for the period in
which they are incurred.
Source: Arlo-F
ARLO TECHNOLOGIES, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31,
2022
2021
(In thousands, except share
and per share data)
ASSETS
Current assets:
Cash and cash equivalents
$
84,024
$
175,749
Short-term investments
29,700
—
Accounts receivable, net
65,960
79,564
Inventories
46,554
38,390
Prepaid expenses and other current
assets
6,544
9,919
Total current assets
232,782
303,622
Property and equipment, net
7,336
9,595
Operating lease right-of-use assets,
net
12,809
14,814
Goodwill
11,038
11,038
Restricted cash
4,155
4,107
Other non-current assets
4,081
4,314
Total assets
$
272,201
$
347,490
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
52,132
$
84,098
Deferred revenue
11,291
29,442
Accrued liabilities
98,855
97,389
Total current liabilities
162,278
210,929
Non-current operating lease
liabilities
19,279
21,470
Other non-current liabilities
2,949
2,439
Total liabilities
184,506
234,838
Commitments and contingencies
Stockholders’ Equity:
Preferred stock: $0.001 par value;
50,000,000 shares authorized; none issued or outstanding
—
—
Common stock: $0.001 par value;
500,000,000 shares authorized; shares issued and outstanding:
88,887,139 at December 31, 2022 and 84,453,212 at December 31,
2021
89
84
Additional paid-in capital
433,138
401,367
Accumulated other comprehensive loss
(107
)
—
Accumulated deficit
(345,425
)
(288,799
)
Total stockholders’ equity
87,695
112,652
Total liabilities and stockholders’
equity
$
272,201
$
347,490
ARLO TECHNOLOGIES, INC.UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
Three Months Ended
Twelve Months Ended
December 31,
2022
October 2, 2022
December 31,
2021
December 31,
2022
December 31,
2021
(in thousands, except
percentage and per share data)
Revenue:
Products
$
80,199
$
92,720
$
114,396
$
353,935
$
331,620
Services
38,328
35,437
28,465
136,479
103,517
Total revenue
118,527
128,157
142,861
490,414
435,137
Cost of revenue:
Products
74,700
79,386
100,476
308,692
285,334
Services
11,857
12,021
10,669
45,687
41,768
Total cost of revenue
86,557
91,407
111,145
354,379
327,102
Gross profit
31,970
36,750
31,716
136,035
108,035
Gross margin
27.0
%
28.7
%
22.2
%
27.7
%
24.8
%
Operating expenses:
Research and development
14,457
16,471
13,644
64,709
59,063
Sales and marketing
20,214
22,193
12,464
70,081
48,909
General and administrative
17,909
12,253
12,584
55,932
49,489
Restructuring charges
1,805
—
—
1,805
—
Impairment charges
—
—
—
—
9,116
Others
10
273
254
387
1,596
Total operating expenses
54,395
51,190
38,946
192,914
168,173
Loss from operations
(22,425
)
(14,440
)
(7,230
)
(56,879
)
(60,138
)
Operating margin
(18.9
)%
(11.3
)%
(5.1
)%
(11.6
)%
(13.8
)%
Interest income (expense), net
512
290
(15
)
926
11
Other income (expense), net
(12
)
19
605
302
4,775
Loss before income taxes
(21,925
)
(14,131
)
(6,640
)
(55,651
)
(55,352
)
Provision for income taxes
230
304
152
975
677
Net loss
$
(22,155
)
$
(14,435
)
$
(6,792
)
$
(56,626
)
$
(56,029
)
Net loss per share:
Basic
$
(0.25
)
$
(0.16
)
$
(0.08
)
$
(0.65
)
$
(0.68
)
Diluted
$
(0.25
)
$
(0.16
)
$
(0.08
)
$
(0.65
)
$
(0.68
)
Weighted average shares used to compute
net loss per share:
Basic
88,743
88,124
84,367
87,173
82,688
Diluted
88,743
88,124
84,367
87,173
82,688
ARLO TECHNOLOGIES, INC.UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Year Ended December
31,
2022
2021
(In thousands)
Cash flows from operating
activities:
Net loss
$
(56,626
)
$
(56,029
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock-based compensation expense
48,476
38,030
Impairment charges
—
9,116
Depreciation and amortization
4,768
5,975
Allowance for credit losses and inventory
reserves
(190
)
(3,125
)
Deferred income taxes
181
(296
)
Others
24
(3
)
Changes in assets and liabilities:
Accounts receivable, net
13,517
(1,739
)
Inventories
(7,887
)
29,258
Prepaid expenses and other assets
3,427
(3,463
)
Accounts payable
(32,520
)
22,156
Deferred revenue
(19,281
)
(38,919
)
Accrued and other liabilities
149
(24,158
)
Net cash used in operating activities
(45,962
)
(23,197
)
Cash flows from investing
activities:
Purchases of property and equipment
(2,010
)
(2,268
)
Purchases of short-term investments
(69,305
)
—
Proceeds from maturities of short-term
investments
39,542
20,000
Net cash provided by (used in) investing
activities
(31,773
)
17,732
Cash flows from financing
activities:
Proceeds related to employee benefit
plans
4,260
8,231
Restricted stock unit withholdings
(18,202
)
(13,201
)
Net cash used in financing activities
(13,942
)
(4,970
)
Net decrease in cash, cash equivalents and
restricted cash
(91,677
)
(10,435
)
Cash, cash equivalents and restricted
cash, at beginning of period
179,856
190,291
Cash, cash equivalents and restricted
cash, at end of period
$
88,179
$
179,856
Non-cash investing activities:
Purchases of property and equipment
included in accounts payable and accrued liabilities
$
946
$
379
Supplemental cash flow
information:
Cash paid for income taxes, net
$
415
$
964
ARLO TECHNOLOGIES, INC.RECONCILIATIONS OF GAAP MEASURES
TO NON-GAAP MEASURES
UNAUDITED STATEMENT OF OPERATIONS
DATA:
Three Months Ended
Twelve Months Ended
December 31,
2022
October 2, 2022
December 31,
2021
December 31,
2022
December 31,
2021
(in thousands, except
percentage data)
GAAP gross profit:
Products
$
5,499
$
13,334
$
13,920
$
45,243
$
46,286
Services
26,471
23,416
17,796
90,792
61,749
Total GAAP gross profit
31,970
36,750
31,716
136,035
108,035
GAAP gross margin:
Products
6.9
%
14.4
%
12.2
%
12.8
%
14.0
%
Services
69.1
%
66.1
%
62.5
%
66.5
%
59.7
%
Total GAAP gross margin
27.0
%
28.7
%
22.2
%
27.7
%
24.8
%
Stock-based compensation expense -
Products
1,001
1,132
776
4,136
3,532
Stock-based compensation expense -
Services
230
233
191
705
385
Non-GAAP gross profit:
Products
6,500
14,466
14,696
49,379
49,818
Services
26,701
23,649
17,987
91,497
62,134
Total Non-GAAP gross profit
$
33,201
$
38,115
$
32,683
$
140,876
$
111,952
Non-GAAP gross margin:
Products
8.1
%
15.6
%
12.9
%
14.0
%
15.0
%
Services
69.7
%
66.7
%
63.2
%
67.0
%
60.0
%
Total Non-GAAP gross margin
28.0
%
29.7
%
22.9
%
28.7
%
25.7
%
GAAP research and development
$
14,457
$
16,471
$
13,644
$
64,709
$
59,063
Stock-based compensation expense
(3,715
)
(2,679
)
(2,391
)
(12,317
)
(10,865
)
Non-GAAP research and development
$
10,742
$
13,792
$
11,253
$
52,392
$
48,198
Percentage of revenue
9.1
%
10.8
%
7.9
%
10.7
%
11.1
%
GAAP sales and marketing
$
20,214
$
22,193
$
12,464
$
70,081
$
48,909
Stock-based compensation expense
(1,731
)
(1,389
)
(1,444
)
(6,290
)
(5,391
)
Non-GAAP sales and marketing
$
18,483
$
20,804
$
11,020
$
63,791
$
43,518
Percentage of revenue
15.6
%
16.2
%
7.7
%
13.0
%
10.0
%
GAAP general and administrative
$
17,909
$
12,253
$
12,584
$
55,932
$
49,489
Stock-based compensation expense
(10,012
)
(4,520
)
(5,680
)
(25,028
)
(17,857
)
Litigation reserves, net
(30
)
(5
)
(3
)
(147
)
(170
)
Non-GAAP general and administrative
$
7,867
$
7,728
$
6,901
$
30,757
$
31,462
Percentage of revenue
6.6
%
6.0
%
4.8
%
6.3
%
7.2
%
ARLO TECHNOLOGIES, INC.RECONCILIATIONS OF GAAP MEASURES
TO NON-GAAP MEASURES (CONTINUED)
UNAUDITED STATEMENT OF OPERATIONS DATA
(CONTINUED):
Three Months Ended
Twelve Months Ended
December 31,
2022
October 2, 2022
December 31,
2021
December 31,
2022
December 31,
2021
(in thousands, except
percentage and per share data)
GAAP total operating expenses
$
54,395
$
51,190
$
38,946
$
192,914
$
168,173
Stock-based compensation expense
(15,458
)
(8,588
)
(9,515
)
(43,635
)
(34,113
)
Restructuring charges
(1,805
)
—
—
(1,805
)
—
Impairment charges
—
—
—
—
(9,116
)
Other
(40
)
(278
)
(257
)
(534
)
(1,766
)
Non-GAAP total operating expenses
$
37,092
$
42,324
$
29,174
$
146,940
$
123,178
GAAP operating loss
$
(22,425
)
$
(14,440
)
$
(7,230
)
$
(56,879
)
$
(60,138
)
GAAP operating margin
(18.9
)%
(11.3
)%
(5.1
)%
(11.6
)%
(13.8
)%
Stock-based compensation expense
16,689
9,953
10,482
48,476
38,030
Restructuring charges
1,805
—
—
1,805
—
Impairment charges
—
—
—
—
9,116
Other
40
278
257
534
1,766
Non-GAAP operating income (loss)
$
(3,891
)
$
(4,209
)
$
3,509
$
(6,064
)
$
(11,226
)
Non-GAAP operating margin
(3.3
)%
(3.3
)%
2.5
%
(1.2
)%
(2.6
)%
GAAP other income (expense),
net
$
(12
)
$
19
$
605
$
302
$
4,775
Employee retention credit
—
—
(103
)
(65
)
(2,110
)
Non-GAAP other income (expense), net
$
(12
)
$
19
$
502
$
237
$
2,665
GAAP provision for income taxes
$
230
$
304
$
152
$
975
$
677
GAAP income tax rate
(1.0
)%
(2.2
)%
(2.3
)%
(1.8
)%
(1.2
)%
Non-GAAP provision for income taxes
$
230
$
304
$
152
$
975
$
677
Non-GAAP income tax rate
(6.8
)%
(7.8
)%
3.8
%
(19.9
)%
(7.9
)%
ARLO TECHNOLOGIES, INC.RECONCILIATIONS OF GAAP MEASURES
TO NON-GAAP MEASURES (CONTINUED)
UNAUDITED STATEMENT OF OPERATIONS DATA
(CONTINUED):
Three Months Ended
Twelve Months Ended
December 31,
2022
October 2, 2022
December 31,
2021
December 31,
2022
December 31,
2021
(in thousands, except
percentage and per share data)
GAAP net loss
$
(22,155
)
$
(14,435
)
$
(6,792
)
$
(56,626
)
$
(56,029
)
Stock-based compensation expense
16,689
9,953
10,482
48,476
38,030
Restructuring charges
1,805
—
—
1,805
—
Impairment charges
—
—
—
—
9,116
Other
40
278
154
469
(344
)
Non-GAAP net income (loss)
$
(3,621
)
$
(4,204
)
$
3,844
$
(5,876
)
$
(9,227
)
GAAP net loss per share - basic and
diluted
$
(0.25
)
$
(0.16
)
$
(0.08
)
$
(0.65
)
$
(0.68
)
Stock-based compensation expense
0.19
0.11
0.12
0.56
0.46
Restructuring charges
0.02
—
—
0.02
—
Impairment charges
—
—
—
—
0.11
Other
—
—
—
—
—
Non-GAAP net income (loss) - diluted
$
(0.04
)
$
(0.05
)
$
0.04
$
(0.07
)
$
(0.11
)
Shares used in computing GAAP net income
(loss) - basic
88,743
88,124
84,367
87,173
82,688
Shares used in computing non-GAAP net
income (loss) - diluted
88,743
88,124
90,679
87,173
82,688
ARLO TECHNOLOGIES, INC.UNAUDITED SUPPLEMENTAL FINANCIAL
INFORMATION
Three Months Ended
December 31,
2022
October 2, 2022
July 3, 2022
April 3, 2022
December 31,
2021
(in thousands, except
headcount and per share data)
Cash, cash equivalents and short-term
investments
$
113,724
$
125,272
$
135,258
$
145,541
$
175,749
Cash, cash equivalents and short-term
investments per diluted share
$
1.28
$
1.42
$
1.47
$
1.56
$
1.94
Accounts receivable, net
$
65,960
$
82,707
$
73,998
$
78,054
$
79,564
Days sales outstanding
50
59
57
58
50
Inventories
$
46,554
$
73,243
$
39,208
$
37,038
$
38,390
Inventory turns
6.4
4.3
7.5
8.7
10.5
Weeks of channel inventory:
U.S. retail channel
11.9
13.6
11.9
15.8
7.0
U.S. distribution channel
14.1
5.5
7.4
10.5
8.5
APAC distribution channel
4.7
9.4
9.8
18.1
8.9
Deferred revenue (current and
non-current)
$
11,503
$
12,242
$
14,022
$
17,375
$
30,786
Cumulative registered accounts (1)
7,220
6,930
6,640
6,389
6,131
Cumulative paid accounts (2)
1,862
1,673
1,478
1,272
1,067
Annual recurring revenue (ARR) (3)
$
137,764
$
125,402
$
116,601
$
101,341
$
90,100
Headcount
343
360
354
358
353
Non-GAAP diluted shares
88,743
88,124
91,787
93,135
90,679
_________________________
(1)
We define our registered accounts at the
end of a particular period as the number of unique registered
accounts on the Arlo platform as of the end of such period. The
number of registered accounts does not necessarily reflect the
number of end-users on the Arlo platform as one registered account
may be used by multiple end-users to monitor the devices attached
to that household.
(2)
Paid accounts are defined as any account
worldwide where a subscription to a paid service is being collected
(either by us or by our customers or channel partners, including
Verisure), plus paid service plans of a duration of more than three
months bundled with products (such bundles being counted as a paid
account after 90 days have elapsed from the date of
registration).
(3)
ARR represents the amount of paid service
revenue that we expect to recur annually and is calculated by
taking our recurring paid service revenue for the last calendar
month in the fiscal quarter, multiplied by 12 months. Recurring
paid service revenue represents the revenue we recognize from our
paid accounts and excludes prepaid service revenue, and NRE service
revenue from strategic partners. ARR is a performance metric and
should be viewed independently of revenue and deferred revenue, and
is not intended to be a substitute for, or combined with, any of
these items.
REVENUE BY GEOGRAPHY
Three Months Ended
Twelve Months Ended
December 31,
2022
October 3, 2022
December 31,
2021
December 31,
2022
December 31,
2021
(in thousands, except
percentage data)
Americas
$
74,131
63
%
$
71,040
55
%
$
80,354
56
%
$
273,981
56
%
$
271,182
62
%
EMEA
39,464
33
%
52,542
41
%
53,609
38
%
196,465
40
%
134,232
31
%
APAC
4,932
4
%
4,575
4
%
8,898
6
%
19,968
4
%
29,723
7
%
Total
$
118,527
100
%
$
128,157
100
%
$
142,861
100
%
$
490,414
100
%
$
435,137
100
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230307005674/en/
Arlo Investor Relations Erik Bylin investors@arlo.com (510)
315-1004
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