Record service revenue of $56.7 million,
growing 29.0% year over year
Annual recurring revenue (ARR) ended at $227.0
million, growing 24.3% year over year (1)
Record free cash flow (FCF) of $19.5 million
with FCF margin of 15.7% (2)
GAAP net loss per share (EPS) of $(0.10);
non-GAAP EPS of $0.09
Extended Verisure partnership for five
additional years into 2029
Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home
security company, today reported financial results for the first
quarter ended March 31, 2024.
“Arlo continued its strong track record of execution, leveraging
an innovative product portfolio and a steadily growing and highly
profitable services offering to more than double its free cash flow
to a record $19.5 million compared to the same period last year.
Arlo’s $227 million in ARR drove remarkable leverage in the
business and allowed us to improve our non-GAAP EPS by 8 cents year
over year,” said Matthew McRae, Chief Executive Officer of Arlo
Technologies. “Our singular focus on delivering a superior customer
experience in smart security has positioned Arlo for success in
2024 and beyond. Our first quarter results represent a strong start
to the year and our continued operational excellence reaffirms our
confidence that we can achieve our updated long-range plan targets
of 10 million paid accounts, $700 million in ARR, and 25% non-GAAP
operating margins.”
Financial and Business Highlights
- Q1 total revenue of $124.2 million, an increase of 11.9% year
over year.
- Record Q1 service revenue of $56.7 million, growing 29.0% year
over year.
- Q1 GAAP services gross margin of 76.0% and non-GAAP services
gross margin of 76.7%.
- GAAP gross profit of $47.4 million, an increase of 34.5% year
over year; non-GAAP gross profit of $48.9 million, an increase of
35.0% year over year.
- GAAP gross margin of 38.1%; non-GAAP gross margin of
39.4%.
- GAAP net loss per share of $(0.10); non-GAAP earnings per share
of $0.09.
- Cumulative paid accounts increased to 3.2 million, growing
58.3% year over year.
- Ended the quarter with ARR (1) of $227.0 million, growing 24.3%
year over year.
- Ended with cash and cash equivalents and short-term investments
balance of $142.9 million, up $24.2 million year over year.
- Won the 2024 American Business Award (Stevie Award) for
Innovation of the Year in Consumer Product category.
Three Months Ended
March 31, 2024
December 31, 2023
April 2, 2023
(In thousands, except percentage
and per share data)
Revenue
$
124,200
$
135,093
$
111,004
GAAP Gross Margin
38.1
%
35.0
%
31.7
%
Non-GAAP Gross Margin (3)
39.4
%
35.8
%
32.6
%
GAAP Net Income (Loss) per Share - Basic
and Diluted
$
(0.10
)
$
0.01
$
(0.16
)
Non-GAAP Net Income per Share - Basic and
Diluted (3)
$
0.09
$
0.11
$
0.01
_________________________
(1)
In the first fiscal quarter of
2024, we changed the methodology on paid service revenue
recognition from a mid-month convention to a daily recognition
model which recognizes paid service revenue based on the number of
service days within the fiscal reporting period, commencing on the
start date of the subscription and continuing over the term of the
arrangement. Accordingly, the methodology used to calculate ARR was
also changed as of March 31, 2024 and is now calculated by taking
the average daily paid service revenue of the last calendar month
in the fiscal quarter, multiplied by 365 days. We believe the daily
recognition model aligns with our customers’ subscription period
and service usage and allows for a more precise measurement of paid
service revenue relative to the former methodology of a mid-month
convention, which was based on paid service revenue for the last
calendar month in the fiscal quarter, multiplied by 12 months. This
change in calculation methodology has no material impact on our
financial statements or any previously reported ARR numbers.
(2)
FCF is calculated as net cash
provided by operating activities less capital expenditures. FCF
margin is the FCF divided by revenue.
(3)
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.
Second Quarter 2024 Business Outlook (4)
A reconciliation of our business outlook on a GAAP and non-GAAP
basis is provided in the following table:
Three Months Ended June 30,
2024
Revenue
Net Income (Loss)
per Diluted Share
(In millions, except per share
data)
GAAP
$120 - $130
$(0.11) - $(0.05)
Estimated adjustment for stock-based
compensation and other expense
—
0.17
Non-GAAP
$120 - $130
$0.06 - $0.12
_________________________
(4)
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 first quarter 2024 results and discuss
management’s expectations for the second quarter 2024 today,
Thursday, May 9, 2024 at 5:00 p.m. ET (2:00 p.m. PT). To view the
accompanying presentation a live webcast of the conference call
will be available on Arlo’s Investor Relations website at
https://investor.arlo.com. 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 (929) 203-1909. The conference ID for
the call is 7749064. A replay of the call will be available via the
web at https://investor.arlo.com.
About Arlo Technologies, Inc.
Arlo is an award-winning, industry leader that is transforming
the ways in which people can protect everything that matters to
them with advanced home, business, and personal security solutions.
Arlo’s deep expertise in AI- and CV-powered analytics, cloud
services, user experience and product design, and innovative
wireless and RF connectivity enables the delivery of a seamless,
smart security experience for Arlo users that is easy to set up 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 connected
devices, software and services. These include wire-free, smart
Wi-Fi and LTE-enabled security cameras, video doorbells,
floodlights, security system, and Arlo's subscription services:
Arlo Secure, and Arlo Safe.
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 implementing
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.
© 2024 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 our potential future
business, operating performance and financial condition, including
descriptions of our expected revenue and profitability (and related
timing), GAAP and non-GAAP gross margins, operating margins, tax
rates, expenses, cash outlook, free cash flow and free cash flow
margins; the ability of our singular focus on delivering a superior
customer experience in smart security to position us for a
successful 2024; strategic objectives and initiatives; the
recurring revenue business model; expectations regarding market
expansion and future growth, including with respect to our updated
long-range plan targets; and others. These statements are based on
management's current expectations and are subject to certain risks
and uncertainties, including the following: future demand for our
products may be lower than anticipated, including due to inflation,
fluctuating consumer confidence, banking failures and rising
interest rates; we may be unsuccessful in developing and expanding
our sales and marketing capabilities; we may not be able to
increase sales of our 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 our new and existing
products; and we may fail to manage costs and cost saving
initiatives, the cost of developing new products and manufacturing
and distribution of our 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, amortization of development of software cost,
litigation reserves, net, employee retention credit and the related
tax effects. In addition, we use free cash flow as non-GAAP measure
when assessing the sources of liquidity, capital resources, and
quality of earnings. We believe that free cash flow (usage) is
helpful in understanding our capital requirements and provides an
additional means to reflect the cash flow trends in our business.
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
development of software cost, 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
March 31, 2024
December 31, 2023
(In thousands, except share and
per share data)
ASSETS
Current assets:
Cash and cash equivalents
$
62,054
$
56,522
Short-term investments
80,809
79,974
Accounts receivable, net
56,496
65,360
Inventories
44,676
38,408
Prepaid expenses and other current
assets
11,896
10,271
Total current assets
255,931
250,535
Property and equipment, net
4,311
4,761
Operating lease right-of-use assets,
net
10,697
11,450
Goodwill
11,038
11,038
Restricted cash
4,183
4,131
Other non-current assets
3,602
3,623
Total assets
$
289,762
$
285,538
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
69,878
$
55,201
Deferred revenue
21,394
18,041
Accrued liabilities
79,100
88,209
Total current liabilities
170,372
161,451
Non-current operating lease
liabilities
16,133
17,021
Other non-current liabilities
3,320
3,790
Total liabilities
189,825
182,262
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:
97,202,042 at March 31, 2024 and 95,380,281 at December 31,
2023
97
95
Additional paid-in capital
476,665
470,322
Accumulated other comprehensive income
280
320
Accumulated deficit
(377,105
)
(367,461
)
Total stockholders’ equity
99,937
103,276
Total liabilities and stockholders’
equity
$
289,762
$
285,538
ARLO TECHNOLOGIES, INC.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
Three Months Ended
March 31, 2024
December 31, 2023
April 2, 2023
(In thousands, except percentage
and per share data)
Revenue:
Products
$
67,493
$
79,168
$
67,060
Services
56,707
55,925
43,944
Total revenue
124,200
135,093
111,004
Cost of revenue:
Products
63,224
73,143
64,041
Services
13,596
14,601
11,746
Total cost of revenue
76,820
87,744
75,787
Gross profit
47,380
47,349
35,217
Gross margin
38.1
%
35.0
%
31.7
%
Operating expenses:
Research and development
20,793
16,450
17,750
Sales and marketing
17,370
18,004
15,353
General and administrative
19,348
13,282
15,622
Others
479
71
632
Total operating expenses
57,990
47,807
49,357
Loss from operations
(10,610
)
(458
)
(14,140
)
Operating margin
(8.5
)%
(0.3
)%
(12.7
)%
Interest income, net
1,386
1,199
726
Other income (loss), net
(25
)
84
(39
)
Income (loss) before income taxes
(9,249
)
825
(13,453
)
Provision for income taxes
395
133
792
Net income (loss)
$
(9,644
)
$
692
$
(14,245
)
Net income (loss) per share:
Basic
$
(0.10
)
$
0.01
$
(0.16
)
Diluted
$
(0.10
)
$
0.01
$
(0.16
)
Weighted average shares used to compute
net income (loss) per share:
Basic
96,264
94,819
89,653
Diluted
96,264
101,938
89,653
ARLO TECHNOLOGIES, INC.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Three Months Ended
March 31, 2024
April 2, 2023
(In thousands)
Cash flows from operating activities:
Net loss
$
(9,644
)
$
(14,245
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Stock-based compensation expense
18,550
14,591
Depreciation and amortization
903
1,149
Allowance for credit losses and non-cash
changes to reserves
(107
)
198
Deferred income taxes
68
127
Other
(792
)
(124
)
Changes in assets and liabilities:
Accounts receivable
8,978
13,216
Inventories
(6,275
)
6,341
Prepaid expenses and other assets
(1,672
)
(900
)
Accounts payable
14,561
(6,093
)
Deferred revenue
3,427
3,785
Accrued and other liabilities
(8,191
)
(7,716
)
Net cash provided by operating
activities
19,806
10,329
Cash flows from investing activities:
Purchases of property and equipment
(356
)
(923
)
Purchases of short-term investments
(40,802
)
(36,755
)
Proceeds from maturities of short-term
investments
40,718
15,006
Net cash used in investing activities
(440
)
(22,672
)
Cash flows from financing activities:
Proceeds related to employee benefit
plans
573
3
Restricted stock unit withholdings
(14,355
)
(4,694
)
Net cash used in financing activities
(13,782
)
(4,691
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
5,584
(17,034
)
Cash, cash equivalents and restricted
cash, at beginning of period
60,653
88,179
Cash, cash equivalents and restricted
cash, at end of period
$
66,237
$
71,145
Non-cash investing activities:
Purchases of property and equipment
included in accounts payable and accrued liabilities
$
180
$
894
ARLO TECHNOLOGIES, INC.
RECONCILIATIONS OF GAAP MEASURES
TO NON-GAAP MEASURES
UNAUDITED STATEMENT OF OPERATIONS
DATA:
Three Months Ended
March 31, 2024
December 31, 2023
April 2, 2023
(In thousands, except percentage
data)
GAAP gross profit:
Products
$
4,269
$
6,025
$
3,019
Services
43,111
41,324
32,198
Total GAAP gross profit
47,380
47,349
35,217
GAAP gross margin:
Products
6.3
%
7.6
%
4.5
%
Services
76.0
%
73.9
%
73.3
%
Total GAAP gross margin
38.1
%
35.0
%
31.7
%
Stock-based compensation expense -
Products
1,114
692
912
Stock-based compensation expense -
Services
257
145
(51
)
Amortization of development of software
cost - Services
151
151
151
Non-GAAP gross profit:
Products
5,383
6,717
3,931
Services
43,519
41,620
32,298
Total Non-GAAP gross profit
$
48,902
$
48,337
$
36,229
Non-GAAP gross margin:
Products
8.0
%
8.5
%
5.9
%
Services
76.7
%
74.4
%
73.5
%
Total Non-GAAP gross margin
39.4
%
35.8
%
32.6
%
GAAP research and development
$
20,793
$
16,450
$
17,750
Stock-based compensation expense
(4,904
)
(2,631
)
(3,911
)
Non-GAAP research and development
$
15,889
$
13,819
$
13,839
Percentage of revenue
12.8
%
10.2
%
12.5
%
GAAP sales and marketing
$
17,370
$
18,004
$
15,353
Stock-based compensation expense
(2,240
)
(1,283
)
(1,722
)
Non-GAAP sales and marketing
$
15,130
$
16,721
$
13,631
Percentage of revenue
12.2
%
12.4
%
12.3
%
GAAP general and administrative
$
19,348
$
13,282
$
15,622
Stock-based compensation expense
(10,035
)
(5,346
)
(8,097
)
Non-GAAP general and administrative
$
9,313
$
7,936
$
7,525
Percentage of revenue
7.5
%
5.9
%
6.8
%
ARLO TECHNOLOGIES, INC.
RECONCILIATIONS OF GAAP MEASURES
TO NON-GAAP MEASURES (CONTINUED)
UNAUDITED STATEMENT OF OPERATIONS DATA
(CONTINUED):
Three Months Ended
March 31, 2024
December 31, 2023
April 2, 2023
(In thousands, except percentage
data)
GAAP total operating expenses
$
57,990
$
47,807
$
49,357
Stock-based compensation expense
(17,179
)
(9,260
)
(13,730
)
Others
(479
)
(71
)
(632
)
Non-GAAP total operating expenses
$
40,332
$
38,476
$
34,995
GAAP operating loss
$
(10,610
)
$
(458
)
$
(14,140
)
GAAP operating margin
(8.5
)%
(0.3
)%
(12.7
)%
Stock-based compensation expense
18,550
10,097
14,591
Others
630
222
783
Non-GAAP operating income
$
8,570
$
9,861
$
1,234
Non-GAAP operating margin
6.9
%
7.3
%
1.1
%
GAAP provision for income taxes
$
395
$
133
$
792
GAAP income tax rate
(4.3
)%
16.1
%
(5.9
)%
Non-GAAP provision for income taxes
$
395
$
133
$
792
Non-GAAP income tax rate
4.0
%
1.2
%
41.2
%
ARLO TECHNOLOGIES, INC.
RECONCILIATIONS OF GAAP MEASURES
TO NON-GAAP MEASURES (CONTINUED)
UNAUDITED STATEMENT OF OPERATIONS DATA
(CONTINUED):
Three Months Ended
March 31, 2024
December 31, 2023
April 2, 2023
(In thousands, except percentage
and per share data)
GAAP net income (loss)
$
(9,644
)
$
692
$
(14,245
)
Stock-based compensation expense
18,550
10,097
14,591
Others
630
222
783
Non-GAAP net income
$
9,536
$
11,011
$
1,129
GAAP net income (loss) per share - basic
and diluted
$
(0.10
)
$
0.01
$
(0.16
)
Stock-based compensation expense
0.18
0.10
0.17
Others
0.01
—
—
Non-GAAP net income - diluted
$
0.09
$
0.11
$
0.01
Shares used in computing GAAP net income
(loss) - basic and diluted
96,264
94,819
89,653
Shares used in computing non-GAAP net
income - diluted
103,803
101,938
93,236
Free cash flow:
Net cash provided by operating
activities
$
19,806
$
7,935
$
10,329
Less: Purchases of property and
equipment
(356
)
(399
)
(923
)
Free cash flow (1)
$
19,450
$
7,536
$
9,406
Free cash flow margin (1)
15.7
%
5.6
%
8.5
%
_________________________
(1)
Free cash flow is calculated as
net cash provided by operating activities less capital
expenditures. Free cash flow margin is the free cash flow divided
by revenue.
ARLO TECHNOLOGIES, INC.
UNAUDITED SUPPLEMENTAL FINANCIAL
INFORMATION
As of and for the three months
ended
March 31, 2024
December 31, 2023
October 1, 2023
July 2, 2023
April 2, 2023
(In thousands, except headcount
and per share data)
Cash, cash equivalents and short-term
investments
$
142,863
$
136,496
$
126,049
$
123,675
$
118,673
Accounts receivable, net
$
56,496
$
65,360
$
70,313
$
57,327
$
52,837
Days sales outstanding
41
44
49
45
44
Inventories
$
44,676
$
38,408
$
53,496
$
39,429
$
39,922
Inventory turns
5.7
7.6
5.5
6.1
6.4
Weeks of channel inventory:
U.S. retail channel
12.9
11.1
10.9
9.7
14.6
U.S. distribution channel
11.4
20.5
7.4
9.3
17.6
APAC distribution channel
6.4
3.9
7.2
7.7
5.8
Deferred revenue
(current and non-current)
$
21,540
$
18,114
$
17,706
$
17,702
$
15,289
Cumulative registered accounts (1)
9,173
8,652
8,193
7,860
7,510
Cumulative paid accounts (2)
3,235
2,813
2,486
2,289
2,044
Annual recurring revenue (ARR) (3)
$
226,968
$
210,078
$
199,993
$
193,633
$
182,583
Headcount
373
363
353
345
334
Non-GAAP diluted shares
103,803
101,938
102,116
99,187
93,236
_________________________
(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).
(3)
In the first fiscal quarter of
2024, we changed the methodology on paid service revenue
recognition from a mid-month convention to a daily recognition
model which recognizes paid service revenue based on the number of
service days within the fiscal reporting period, commencing on the
start date of the subscription and continuing over the term of the
arrangement. Accordingly, the methodology used to calculate ARR was
also changed as of March 31, 2024 and is now calculated by taking
the average daily paid service revenue of the last calendar month
in the fiscal quarter, multiplied by 365 days. We believe the daily
recognition model aligns with our customers’ subscription period
and service usage and allows for a more precise measurement of paid
service revenue relative to the former methodology of a mid-month
convention, which was based on paid service revenue for the last
calendar month in the fiscal quarter, multiplied by 12 months. This
change in calculation methodology has no material impact on our
financial statements or any previously reported ARR numbers.
REVENUE BY GEOGRAPHY
Three Months Ended
March 31, 2024
December 31, 2023
April 2, 2023
(In thousands, except percentage
data)
Americas
$
57,169
46.0
%
$
86,702
64.2
%
$
56,632
51.0
%
EMEA
61,380
49.4
%
42,433
31.4
%
48,472
43.7
%
APAC
5,651
4.6
%
5,958
4.4
%
5,900
5.3
%
Total
$
124,200
100.0
%
$
135,093
100.0
%
$
111,004
100.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509800435/en/
Arlo Investor Relations Tahmin Clarke investors@arlo.com
Grafico Azioni Arlo Technologies (NYSE:ARLO)
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Grafico Azioni Arlo Technologies (NYSE:ARLO)
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