Exceeded High-End of EPS Guidance for the
Quarter
Delivered Record GAAP and Non-GAAP Gross
Margin
Service Revenue Growth of 54.8% Year Over
Year
115.3% Paid Account Growth Year Over
Year
Ended Quarter with Cash, Cash Equivalents
and Short-term Investments Balance at $177.1 million with No
Debt
Arlo Technologies, Inc. (NYSE: ARLO), a leading
internet-connected security camera brand, today reported financial
results for the first quarter ended March 28, 2021.
Financial Highlights (1)
- Revenue of $82.6 million, an increase of 26.1% year over
year.
- GAAP gross profit of $25.8 million, an increase of 552.8% year
over year; non-GAAP gross profit of $26.7 million, an increase of
451.8% year over year.
- GAAP gross margin of 31.3%; non-GAAP gross margin of
32.3%.
- GAAP net loss per diluted share of $(0.13); non-GAAP net loss
per diluted share of $(0.03).
- Cash, cash equivalents and short-term investments of $177.1
million and no debt at the end of Q1.
"Clearly, Arlo is not the same company it was a year ago. In
2020 we successfully pivoted to become services-focused to create a
more predictable, more profitable business and our strong Q1
results are further proof of our progress. We delivered revenue
above the high end of our guidance range and up 26% over last year.
With the increasing contribution of our services business, our GAAP
and non-GAAP gross margin was up 10% sequentially to reach an
all-time record and, coupled with continued operating discipline,
we improved our bottom line by more than $24 million from Q1 last
year,” said Matthew McRae, Chief Executive Officer of Arlo
Technologies. “Our entire product line-up has been refreshed and
our market leading innovation is shown in the many accolades and
'best of' reviews we receive. With our new business model, a free
three-month trial of Arlo Smart, attached to all of our refreshed
products, each quarter we set records for new accounts and
materially increase the number of subscriber additions. This is
producing a fast-growing, high margin revenue stream that we expect
to eclipse the $100 million level for the full year. With the team
executing well, I am very excited about what Arlo can accomplish in
2021."
Three Months Ended
March 28, 2021
December 31, 2020
March 29, 2020
(in thousands, except
percentage and per share data)
Revenue
$
82,556
$
114,836
$
65,450
GAAP Gross Margin
31.3
%
21.4
%
6.0
%
Non-GAAP Gross Margin (1)
32.3
%
22.4
%
7.4
%
GAAP Net Income (Loss) per Diluted
Share
$
(0.13)
$
(0.19)
$
(0.51)
Non-GAAP Net Income (Loss) per Diluted
Share (1)
$
(0.03)
$
(0.08)
$
(0.34)
_________________________
(1) Reconciliation of financial measures
computed on a GAAP basis to financial measures computed on a
non-GAAP basis are provided at the end of this press release.
Financial and Business Highlights
- Delivered record GAAP and non-GAAP gross margin.
- Reported highest GAAP and non-GAAP EPS as a public
company.
- Service revenue of $22.8 million for Q1, for growth of 54.8%
year over year, the seventh consecutive quarter of record service
revenue.
- Added a record 114,000 paid accounts in Q1, a sequential
increase of 44.3% over Q4, and a year over year increase of
356.0%.
- U.S. News and World Report 360 Reviews awarded the Pro Series
the best security camera of 2021 in the home, outdoor, and wireless
categories.
- PC Magazine and Digital Trends each named Pro 4 Series an
Editor’s Choice.
- The Pro 3 Floodlight, Essential Spotlight Camera, and the
Essential Wire-Free Video Doorbell were winners of the Red Dot
Design Awards.
- Arlo’s Essential Spotlight Camera was recognized by Pocket-Lint
as the best indoor security camera in their Best Buy 2021
Awards.
Second Quarter 2021 Business Outlook (2)
- Revenue of $80.0 million to $90.0 million.
- GAAP net loss per diluted share of $(0.33) to $(0.26), and
non-GAAP net loss per diluted share of $(0.20) to $(0.13).
A reconciliation of our business outlook on a GAAP and non-GAAP
basis is provided in the following table:
Three Months Ending June 27,
2021
Revenue
Net Loss per Diluted
Share
(in millions, except per share
data)
GAAP
$80.0 - $90.0
$(0.33) - $(0.26)
Estimated adjustments for (2):
Stock-based compensation expense
—
0.13
Tax effects of non-GAAP adjustments
—
—
Non-GAAP
$80.0 - $90.0
$(0.20) - $(0.13)
_________________________
(2) 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; acquisition-related charges; 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 of 2021 results and discuss
management’s expectations for the second quarter of 2021 today,
Wednesday, May 5, 2021 at 5:00 p.m. ET (2:00 p.m. PT). The
toll-free dial-in number for the live audio call is (866) 393-4306.
The international dial-in number for the live audio call is (734)
385-2616. The conference ID for the call is 3849854. 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 (NYSE: 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. The company’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, including
wire-free smart Wi-Fi and LTE-enabled security cameras, indoor
security cameras, video doorbells, and floodlight.
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 doesn't
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.
© 2021 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:
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 Arlo Technologies, Inc.’s expectations or beliefs
concerning future events based on information available at the time
such statements were made and include statements regarding: Arlo’s
future operating performance and financial condition, expected
revenue, GAAP and non-GAAP gross margins, operating margins, and
tax expense; expectations regarding market expansion and future
growth; plans to invest in product innovation; Arlo's future
product offerings; and the quote from Arlo's Chief Executive
Officer. These statements are based on management's current
expectations and are subject to certain risks and uncertainties,
including the following: future demand for the Company's products
may be lower than anticipated; consumers may choose not to adopt
the Company's new product offerings or adopt competing products;
product performance may be adversely affected by real world
operating conditions; the Company may be unsuccessful or experience
delays in manufacturing and distributing its new and existing
products; telecommunications service providers may choose to slow
their deployment of the Company's products or utilize competing
products; the Company may be unable to collect receivables as they
become due; the Company may fail to manage costs, including the
cost of developing new products and manufacturing and distribution
of its existing offerings; the Company may incur additional costs
and charges associated with the transactions contemplated by the
Verisure partnership; the Company may not receive the minimum
commitment amounts from Verisure; the COVID-19 pandemic could have
an adverse impact on the Company's business, operations and the
markets and communities in which Arlo and its partners and
customers operate; the Company may fail to successfully continue to
effect operating expense savings; changes in the level of Arlo's
cash resources and the Company's planned usage of such resources;
changes in the Company's stock price and developments in the
business that could increase the Company's cash needs; fluctuations
in foreign exchange rates; the actions and financial health of the
Company's customers; the anticipated financial capacity under
Arlo's revolving credit line may not be available when expected, or
at all; and the Company may not be able to carry out its
restructuring plan. 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 Arlo and its business are detailed in the
Company's periodic filings with the Securities and Exchange
Commission, including, but not limited to, those risks and
uncertainties listed in the section entitled “Part I - Item 1A.
Risk Factors,” in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2020, filed with the Securities and
Exchange Commission on February 26, 2021 and other periodic filings
with the Securities and Exchange Commission. Given these
circumstances, you should not place undue reliance on these
forward-looking statements. Arlo undertakes 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 provision for income
taxes, non-GAAP net income (loss) and non-GAAP net income (loss)
per diluted share. These supplemental measures exclude adjustments
for separation expense, stock-based compensation expense,
amortization of intangibles, activist shareholder response costs,
restructuring and other charges, strategic initiative and
transaction expenses, gain on sale of business, litigation
reserves, 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:
Separation expense consists of expenses that are related to the
separation of our business from NETGEAR. These consist primarily of
third-party consulting fees, legal fees, IT costs, employee bonuses
for services related to the separation, and other one-time expenses
incurred to complete the separation. We consider our operating
results without these charges when evaluating our ongoing
performance and forecasting our earnings trends, and therefore
exclude such charges when presenting non-GAAP financial measures.
We believe that the assessment of our operations excluding these
costs is relevant to our assessment of internal operations and
comparisons to the performance of our competitors.
Stock-based compensation expense consists of non-cash charges
for the estimated fair value of stock options, performance-based
stock options, restricted stock units and shares under the employee
stock purchase plan granted to employees. 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.
Amortization of intangibles consists primarily of non-cash
charges that can be impacted by, among other things, the timing and
magnitude of acquisitions. We consider our operating results
without these charges when evaluating our ongoing performance and
forecasting our earnings trends, and therefore exclude such charges
when presenting non-GAAP financial measures. We believe that the
assessment of our operations excluding these costs is relevant to
an assessment of our internal operations and comparisons to our
prior and future periods and to the performance of our
competitors.
Strategic initiative and transaction expenses consist of legal
fees associated with the strategic review of the Company and legal
fees, accounting fees and other one-time costs incurred to complete
the Verisure transaction. We consider our operating results without
these charges when evaluating our ongoing performance and
forecasting our earnings trends, and therefore exclude such charges
when presenting non-GAAP financial measures. We believe that the
assessment of our operations excluding these costs is relevant to
our assessment of internal operations and comparisons to the
performance of our competitors.
Gain on sale of business represents gain from sale of the
Company's commercial operations in Europe. We consider our
operating results without this gain when evaluating our ongoing
performance and forecasting our earnings trends, and therefore
exclude such gain when presenting non-GAAP financial measures. We
believe that the assessment of our operations excluding the gain is
relevant to our assessment of internal operations and comparisons
to the performance of our competitors.
Other items are the result of either unique or unplanned events,
including, when applicable: restructuring and other charges and
litigation reserves, net. 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.
Tax effects consist of the various above adjustments that we
incorporate into non-GAAP measures in order to provide a more
meaningful measure on non-GAAP net income. We also believe
providing financial information with and without the income tax
effects relating to our non-GAAP financial measures provides our
management and users of the financial statements with better
clarity regarding the on-going performance of our business.
Source: Arlo-F
ARLO TECHNOLOGIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
As of
March 28, 2021
December 31,
2020
(In thousands, except share
and per share data)
ASSETS
Current assets:
Cash and cash equivalents
$
172,113
$
186,127
Short-term investments (amortized cost of
$5,000 and $19,996)
5,000
19,997
Accounts receivable, net (net of allowance
for credit losses of $519 and $519)
51,121
77,643
Inventories
55,972
64,705
Prepaid expenses and other current
assets
7,705
8,076
Total current assets
291,911
356,548
Property and equipment, net
14,596
15,821
Operating lease right-of-use assets,
net
22,950
23,998
Goodwill
11,038
11,038
Restricted cash
4,163
4,164
Other non-current assets
2,536
2,399
Total assets
$
347,194
$
413,968
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
27,054
$
62,171
Deferred revenue
54,999
53,142
Accrued liabilities
97,154
121,766
Income tax payable
223
267
Total current liabilities
179,430
237,346
Non-current deferred revenue
6,605
16,563
Non-current operating lease
liabilities
23,897
25,029
Non-current income taxes payable
104
104
Other non-current liabilities
828
1,159
Total liabilities
210,864
280,201
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:
81,250,176 at March 28, 2021 and 79,336,242 at December 31,
2020
81
79
Additional paid-in capital
379,738
366,455
Accumulated other comprehensive income
—
3
Accumulated deficit
(243,489
)
(232,770
)
Total stockholders’ equity
136,330
133,767
Total liabilities and stockholders’
equity
$
347,194
$
413,968
ARLO TECHNOLOGIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 28, 2021
December 31,
2020
March 29, 2020
(in thousands, except
percentage and per share data)
Revenue:
Products
$
59,761
$
93,271
$
50,723
Services
22,795
21,565
14,727
Total revenue
82,556
114,836
65,450
Cost of revenue:
Products
47,157
81,424
52,188
Services
9,592
8,874
9,309
Total cost of revenue
56,749
90,298
61,497
Gross profit
25,807
24,538
3,953
Gross margin
31.3
%
21.4
%
6.0
%
Operating expenses:
Research and development
14,791
15,266
15,243
Sales and marketing
11,207
13,593
11,038
General and administrative
11,227
11,338
18,784
Separation expense
54
10
79
Gain on sale of business
—
—
(292
)
Total operating expenses
37,279
40,207
44,852
Loss from operations
(11,472
)
(15,669
)
(40,899
)
Operating margin
(13.9
)%
(13.6
)%
(62.5
)%
Interest income
24
42
535
Other income (expense), net
909
599
1,183
Loss before income taxes
(10,539
)
(15,028
)
(39,181
)
Provision for income taxes
180
182
145
Net loss
$
(10,719
)
$
(15,210
)
$
(39,326
)
Net loss per share:
Basic
$
(0.13
)
$
(0.19
)
$
(0.51
)
Diluted
$
(0.13
)
$
(0.19
)
$
(0.51
)
Weighted average shares used to compute
net loss per share:
Basic
80,370
79,164
76,560
Diluted
80,370
79,164
76,560
ARLO TECHNOLOGIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 28, 2021
March 29, 2020
(In thousands)
Cash flows from operating
activities:
Net loss
$
(10,719
)
$
(39,326
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
1,547
2,773
Stock-based compensation expense
8,340
12,773
Allowance for credit losses and inventory
reserves
(562
)
1,709
Gain on sale of business
—
(292
)
Deferred income taxes
(130
)
100
Premium amortization (discount accretion)
on investments, net
(3
)
(5
)
Changes in assets and liabilities:
Accounts receivable, net
26,522
65,685
Inventories
9,296
6,142
Prepaid expenses and other assets
361
5,273
Accounts payable
(34,647
)
(71,834
)
Deferred revenue
(8,101
)
(6,251
)
Accrued and other liabilities
(22,072
)
(25,651
)
Net cash used in operating activities
(30,168
)
(48,904
)
Cash flows from investing
activities:
Purchases of property and equipment
(803
)
(1,111
)
Purchases of short-term investments
—
(20,096
)
Maturities of short-term investments
15,000
10,000
Net cash provided by (used in) investing
activities
14,197
(11,207
)
Cash flows from financing
activities:
Proceeds related to employee benefit
plans
6,133
1,854
Restricted stock unit withholdings
(4,177
)
(2,020
)
Net cash provided by (used in) financing
activities
1,956
(166
)
Net decrease in cash and cash equivalents
and restricted cash
(14,015
)
(60,277
)
Cash and cash equivalents and restricted
cash, at beginning of period
190,291
240,819
Cash and cash equivalents and restricted
cash, at end of period
$
176,276
$
180,542
Non-cash investing and financing
activities:
Purchases of property and equipment
included in accounts payable and accrued liabilities
$
82
$
323
ARLO TECHNOLOGIES,
INC.
RECONCILIATIONS OF GAAP
MEASURES TO NON-GAAP MEASURES
UNAUDITED STATEMENT OF
OPERATIONS DATA:
Three Months Ended
March 28, 2021
December 31,
2020
March 29, 2020
(in thousands, except
percentage data)
GAAP gross profit:
Products
$
12,604
$
11,847
$
(1,465
)
Services
13,203
12,691
5,418
Total GAAP gross profit
25,807
24,538
3,953
GAAP gross margin:
Products
21.1
%
12.7
%
(2.9
)%
Services
57.9
%
58.9
%
36.8
%
Total GAAP gross margin
31.3
%
21.4
%
6.0
%
Stock-based compensation expense
874
955
503
Amortization of intangibles
—
237
356
Restructuring and other charges
—
—
23
Non-GAAP gross profit:
Products
13,478
13,039
(583
)
Services
13,203
12,691
5,418
Total Non-GAAP gross profit
$
26,681
$
25,730
$
4,835
Non-GAAP gross margin:
Products
22.6
%
14.0
%
(1.2
)%
Services
57.9
%
58.9
%
36.8
%
Total Non-GAAP gross margin
32.3
%
22.4
%
7.4
%
GAAP research and development
$
14,791
$
15,266
$
15,243
Stock-based compensation expense
(2,556
)
(2,795
)
(1,660
)
Non-GAAP research and development
$
12,235
$
12,471
$
13,583
GAAP sales and marketing
$
11,207
$
13,593
$
11,038
Stock-based compensation expense
(1,190
)
(1,211
)
(751
)
Non-GAAP sales and marketing
$
10,017
$
12,382
$
10,287
GAAP general and administrative
$
11,227
$
11,338
$
18,784
Stock-based compensation expense
(3,720
)
(3,948
)
(9,859
)
Restructuring and other charges
—
—
(21
)
Strategic initiative and transaction
expenses
—
(2
)
(545
)
Litigation reserves, net
(10
)
—
(7
)
Non-GAAP general and administrative
$
7,497
$
7,388
$
8,352
ARLO TECHNOLOGIES,
INC.
RECONCILIATIONS OF GAAP
MEASURES TO NON-GAAP MEASURES (CONTINUED)
UNAUDITED STATEMENT OF
OPERATIONS DATA (CONTINUED):
Three Months Ended
March 28, 2021
December 31,
2020
March 29, 2020
(in thousands, except
percentage and per share data)
GAAP total operating expenses
$
37,279
$
40,207
$
44,852
Separation expense
(54
)
(10
)
(79
)
Strategic initiative and transaction
expenses
—
(2
)
(545
)
Stock-based compensation expense
(7,466
)
(7,954
)
(12,270
)
Restructuring and other charges
—
—
(21
)
Litigation reserves, net
(10
)
—
(7
)
Gain on sale of business
—
—
292
Non-GAAP total operating expenses
$
29,749
$
32,241
$
32,222
GAAP operating loss
$
(11,472
)
$
(15,669
)
$
(40,899
)
GAAP operating margin
(13.9
)%
(13.6
)%
(62.5
)%
Separation expense
54
10
79
Strategic initiative and transaction
expenses
—
2
545
Stock-based compensation expense
8,340
8,909
12,773
Amortization of intangibles
—
237
356
Restructuring and other charges
—
—
44
Litigation reserves, net
10
—
7
Gain on sale of business
—
—
(292
)
Non-GAAP operating loss
$
(3,068
)
$
(6,511
)
$
(27,387
)
Non-GAAP operating margin
(3.7
)%
(5.7
)%
(41.8
)%
GAAP provision for income taxes
$
180
$
182
$
145
GAAP income tax rate
(1.7
)%
(1.2
)%
(0.4
)%
Tax effects
—
(3
)
29
Non-GAAP provision for income taxes
$
180
$
185
$
116
Non-GAAP income tax rate
(8.4
)%
(3.2
)%
(0.5
)%
GAAP net loss
$
(10,719
)
$
(15,210
)
$
(39,326
)
Separation expense
54
10
79
Strategic initiative and transaction
expenses
—
2
545
Stock-based compensation expense
8,340
8,909
12,773
Amortization of intangibles
—
237
356
Restructuring and other charges
—
—
44
Litigation reserves, net
10
—
7
Gain on sale of business
—
—
(292
)
Tax effects
—
(3
)
29
Non-GAAP net loss
$
(2,315
)
$
(6,055
)
$
(25,785
)
ARLO TECHNOLOGIES,
INC.
RECONCILIATIONS OF GAAP
MEASURES TO NON-GAAP MEASURES (CONTINUED)
UNAUDITED STATEMENT OF OPERATIONS DATA
(CONTINUED):
Three Months Ended
March 28, 2021
December 31,
2020
March 29, 2020
(in thousands, except
percentage and per share data)
NET LOSS PER DILUTED SHARE:
GAAP net loss per diluted share
$
(0.13
)
$
(0.19
)
$
(0.51
)
Strategic initiative and transaction
expenses
—
—
0.01
Stock-based compensation expense
0.10
0.11
0.16
Non-GAAP net loss per diluted share
$
(0.03
)
$
(0.08
)
$
(0.34
)
Shares used in computing GAAP net loss per
diluted share
80,370
79,164
76,560
Shares used in computing non-GAAP net loss
per diluted share
80,370
79,164
76,560
ARLO TECHNOLOGIES,
INC.
UNAUDITED SUPPLEMENTAL
FINANCIAL INFORMATION
Three Months Ended
March 28, 2021
December 31,
2020
September 27,
2020
June 28, 2020
March 29, 2020
(in thousands, except
headcount and per share data)
Cash, cash equivalents and short-term
investments
$
177,113
$
206,124
$
193,611
$
205,454
$
206,582
Cash, cash equivalents and short-term
investments per diluted share
$
2.20
$
2.60
$
2.46
$
2.64
$
2.70
Accounts receivable, net
$
51,121
$
77,643
$
56,431
$
46,466
$
61,376
Days sales outstanding
54
64
47
63
83
Inventories
$
55,972
$
64,705
$
69,038
$
65,814
$
61,027
Inventory turns
3.4
5.0
4.6
3.1
3.4
Weeks of channel inventory:
U.S. retail channel
12.5
9.2
8.4
6.6
13.7
U.S. distribution channel
9.6
11.7
8.6
8.4
20.3
APAC distribution channel
6.9
2.8
4.2
6.8
6.0
Deferred revenue (current and
non-current)
$
61,604
$
69,705
$
38,530
$
54,546
$
59,848
Cumulative registered accounts (1)
5,275
5,047
4,774
4,518
4,245
Cumulative paid accounts (2)
549
435
356
298
255
Headcount
355
359
358
355
356
Non-GAAP diluted shares
80,370
79,164
78,662
77,885
76,560
_________________________
(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 particular
period, and includes accounts owned by Verisure S.a.r.l.. 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 people.
(2)
Paid accounts worldwide measured as any
account where a subscription to a paid service is being collected
(either by the Company or by the Company’s customers or channel
partners), plus paid service plans of a duration of more than 3
months bundled with products (such bundles being counted as a paid
account after 90 days have elapsed from the date of registration).
Paid accounts includes accounts transferred to Verisure
S.a.r.l..
REVENUE BY GEOGRAPHY
Three Months Ended
March 28, 2021
December 31,
2020
March 29, 2020
(in thousands, except
percentage data)
Americas
$
49,636
60
%
$
92,301
81
%
$
50,170
77
%
EMEA
24,591
30
%
15,302
13
%
7,258
11
%
APAC
8,329
10
%
7,233
6
%
8,022
12
%
Total
$
82,556
100
%
$
114,836
100
%
$
65,450
100
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210505005992/en/
Arlo Investor Relations Erik Bylin investors@arlo.com (510)
315-1004
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