Exceeded $100 million of ARR, ending Q1 at
$101 million, growing 74% year over year
Revenue Growth of 51.1% year over year,
exceeding high-end of Guidance for the Quarter
Record GAAP gross profit of $33.6 million,
record non-GAAP gross profit of $34.5 million
132% Year over Year growth in Cumulative
Paid Accounts
Delivered GAAP operating loss of $8.7
million, second consecutive quarter of non-GAAP Operating Profit of
$1.0 million
Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home
security brand, today reported financial results for the first
quarter ended April 3, 2022.
Financial Highlights (1)
- Revenue of $124.8 million, an increase of 51.1% year over
year.
- GAAP gross profit of $33.6 million, an increase of 30.1% year
over year; non-GAAP gross profit of $34.5 million, an increase of
29.3% year over year and an all-time record for the company.
- GAAP gross margin of 26.9%; non-GAAP gross margin of
27.6%.
- GAAP operating loss of $8.7 million, a decrease of $2.8 million
year over year; non-GAAP operating profit of $1.0 million, an
increase of $4.1 million year over year and the second consecutive
quarter of non-GAAP operating profitability.
- GAAP net loss per diluted share of $(0.10); non-GAAP net income
per diluted share of $0.01.
"The strong growth of our service business continues to produce
exceptional results across all metrics. In Q1 revenue reached
$124.8 million for 51.1% growth year over year and above the top
end of our guidance. Fueled by highly profitable ARR that just
surpassed $100 million for the first time in Q1, Arlo posted record
non-GAAP gross profit and our second consecutive quarter of
non-GAAP operating profitability. These exceptional Q1 results
underline how the powerful combination of our recurring revenue
business model, coupled with our successful channel and product
diversification, are delivering truly transformative results for
Arlo,” said Matthew McRae, Chief Executive Officer of Arlo
Technologies. “Our team continues to execute well on many fronts –
from navigating supply chain challenges to bringing innovative,
best-in-class products and services to market – and we are excited
to continue our innovation and product and service excellence. With
a compelling customer lifetime value and industry-leading customer
retention as our base, we will look to leverage our strong
execution to grow our subscriber base and expand ARPU. This year we
will introduce a full security system with a unique all-in-one
sensor to augment our security ecosystem and will make investments
to generate awareness of our brand, expand our funnel and, thereby,
grow our household base. We look forward to reporting more to you
on the success of these initiatives which we believe will drive
incremental long term growth and profitability."
Three Months Ended
April 3, 2022
December 31, 2021
March 28, 2021
(in thousands, except
percentage and per share data)
Revenue
$
124,751
$
142,861
$
82,556
GAAP Gross Margin
26.9
%
22.2
%
31.3
%
Non-GAAP Gross Margin (1)
27.6
%
22.9
%
32.3
%
GAAP Net Loss per Diluted Share
$
(0.10
)
$
(0.08
)
$
(0.13
)
Non-GAAP Net Income (Loss) per Diluted
Share (1)
$
0.01
$
0.04
$
(0.03
)
_________________________
(1)
Reconciliation of financial measures
computed on a GAAP basis to the most directly comparable financial
measures computed on a non-GAAP basis are provided at the end of
this press release.
Financial and Business Highlights
- Service revenue of $29.9 million for Q1, for growth of 31.3%
year over year, the eleventh consecutive quarter of record service
revenue.
- Exceeded $100.0 million of ARR for the first time, ending Q1
with ARR of $101.3 million, growing 74.0% year over year. (2)
- GAAP service gross margin of 65.3%; non-GAAP service gross
margin of 65.4% in Q1 and a record for Arlo as a standalone
company. (1)
- Added a record 205,000 paid accounts in Q1, a sequential
increase of 7.9% over Q4, and a year over year increase of
79.8%.
- Announced significant expansion of our service and product
offerings with Arlo Security Systems and Arlo Safe.
- Our Pro 4 camera won Best Product’s Editor’s Choice and How-to
Geek’s Best of 2022 awards, while our customized camera developed
with Verisure was recognized with an IF design award.
_________________________
(1)
Reconciliation of financial measures
computed on a GAAP basis to the most directly comparable financial
measures computed on a non-GAAP basis are 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.
Second Quarter 2022 Business Outlook (3)
- Revenue of $105.0 million to $115.0 million.
- GAAP net loss per diluted share of $(0.19) to $(0.14), and
non-GAAP net loss per diluted share of $(0.08) to $(0.03).
A reconciliation of our business outlook on a GAAP and non-GAAP
basis is provided in the following table:
Three Months Ending July 3,
2022
Revenue
Net Loss per Diluted
Share
(in millions, except per share
data)
GAAP
$105.0 - $115.0
$(0.19) - $(0.14)
Estimated adjustments for (3):
Stock-based compensation expense
—
0.11
Tax effects of non-GAAP adjustments
—
—
Non-GAAP
$105.0 - $115.0
$(0.08) - $(0.03)
_________________________
(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; 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 2022 results and discuss
management’s expectations for the second quarter of 2022 today,
Tuesday, May 10, 2022 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, including wire-free smart
Wi-Fi and LTE-enabled security cameras, indoor security cameras,
audio and video doorbells, and floodlights.
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.
© 2022 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 (the "Company") 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, GAAP and
non-GAAP gross margins, operating margins, tax rates, expenses, and
cash outlook; the Company's recurring revenue business model and
its channel and product diversification; the commercial launch and
momentum of new products and services; including a full security
system with all-in one sensor; strategic objectives and
initiatives, including the Company's collaboration with Verisure;
expectations regarding market expansion and future growth; plans to
invest in product innovation; the Company's future product
offerings; supply chain challenges; the impact of COVID-19 on the
Company's business; and quotes from the Company'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; the Company may be unsuccessful in
developing and expanding its sales and marketing capabilities; the
Company may not be able to increase sales of its paid subscription
services; 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 not receive the minimum commitment
amounts from Verisure; the COVID-19 pandemic could continue to have
an adverse impact on the Company's business, operations and the
markets and communities in which the Company and its partners and
customers operate; the Company may fail to successfully continue to
effect operating expense savings; changes in the level of the
Company'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; and the actions and
financial health of the Company's customers. 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 the Company 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 “Risk
Factors” in the Company's 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. The Company 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 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 separation
expense, stock-based compensation 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:
Separation expense consists of expenses that are related to the
separation of our business from NETGEAR. These consist primarily of
costs of legal and professional services for IPO-related litigation
associated with our separation from NETGEAR. 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, 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 items are the result of either unique or unplanned events,
including, when applicable: 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.
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
April 3, 2022
December 31,
2021
(In thousands, except share
and per share data)
ASSETS
Current assets:
Cash and cash equivalents
$
100,975
$
175,749
Short-term investments (amortized cost of
$44,612 and $—)
44,566
—
Accounts receivable, net (net of allowance
for credit losses of $339 and $337)
78,054
79,564
Inventories
37,038
38,390
Prepaid expenses and other current
assets
9,015
9,919
Total current assets
269,648
303,622
Property and equipment, net
8,522
9,595
Operating lease right-of-use assets,
net
13,797
14,814
Goodwill
11,038
11,038
Restricted cash
4,114
4,107
Other non-current assets
4,671
4,314
Total assets
$
311,790
$
347,490
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
68,266
$
84,098
Deferred revenue
16,460
29,442
Accrued liabilities
91,732
97,377
Income tax payable
45
12
Total current liabilities
176,503
210,929
Non-current deferred revenue
915
1,344
Non-current operating lease
liabilities
20,308
21,470
Non-current income taxes payable
94
94
Other non-current liabilities
1,966
1,001
Total liabilities
199,786
234,838
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:
85,834,841 at April 3, 2022 and 84,453,212 at December 31, 2021
86
84
Additional paid-in capital
409,242
401,367
Accumulated other comprehensive income
(46
)
—
Accumulated deficit
(297,278
)
(288,799
)
Total stockholders’ equity
112,004
112,652
Total liabilities and stockholders’
equity
$
311,790
$
347,490
ARLO TECHNOLOGIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
April 3, 2022
December 31, 2021
March 28, 2021
(in thousands, except
percentage and per share data)
Revenue:
Products
$
94,825
$
114,396
$
59,761
Services
29,926
28,465
22,795
Total revenue
124,751
142,861
82,556
Cost of revenue:
Products
80,777
100,476
47,157
Services
10,399
10,669
9,592
Total cost of revenue
91,176
111,145
56,749
Gross profit
33,575
31,716
25,807
Gross margin
26.9
%
22.2
%
31.3
%
Operating expenses:
Research and development
16,379
13,644
14,791
Sales and marketing
13,168
12,464
11,207
General and administrative
12,621
12,584
11,227
Separation expense
79
254
54
Total operating expenses
42,247
38,946
37,279
Loss from operations
(8,672
)
(7,230
)
(11,472
)
Operating margin
(7.0
)%
(5.1
)%
(13.9
)%
Interest income (expense), net
(5
)
(15
)
24
Other income (expense), net
411
605
909
Loss before income taxes
(8,266
)
(6,640
)
(10,539
)
Provision for income taxes
213
152
180
Net loss
$
(8,479
)
$
(6,792
)
$
(10,719
)
Net loss per share:
Basic
$
(0.10
)
$
(0.08
)
$
(0.13
)
Diluted
$
(0.10
)
$
(0.08
)
$
(0.13
)
Weighted average shares used to compute
net loss per share:
Basic
85,222
84,367
80,370
Diluted
85,222
84,367
80,370
ARLO TECHNOLOGIES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
April 3, 2022
March 28, 2021
(In thousands)
Cash flows from operating
activities:
Net loss
$
(8,479
)
$
(10,719
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock-based compensation expense
9,589
8,340
Depreciation and amortization
1,302
1,547
Allowance for credit losses and inventory
reserves
(135
)
(562
)
Deferred income taxes
(9
)
(130
)
Premium amortization (discount accretion)
on investments, net
28
(3
)
Changes in assets and liabilities:
Accounts receivable, net
1,508
26,522
Inventories
1,490
9,296
Prepaid expenses and other assets
556
361
Accounts payable
(15,676
)
(34,647
)
Deferred revenue
(13,411
)
(8,101
)
Accrued and other liabilities
(1,320
)
(22,072
)
Net cash used in operating activities
(24,557
)
(30,168
)
Cash flows from investing
activities:
Purchases of property and equipment
(298
)
(803
)
Purchases of short-term investments
(44,640
)
—
Proceeds from maturities of short-term
investments
—
15,000
Net cash provided by (used in) investing
activities
(44,938
)
14,197
Cash flows from financing
activities:
Proceeds related to employee benefit
plans
1,388
6,133
Restricted stock unit withholdings
(6,660
)
(4,177
)
Net cash provided by (used in) financing
activities
(5,272
)
1,956
Net decrease in cash and cash equivalents
and restricted cash
(74,767
)
(14,015
)
Cash and cash equivalents and restricted
cash, at beginning of period
179,856
190,291
Cash and cash equivalents and restricted
cash, at end of period
$
105,089
$
176,276
Non-cash investing and financing
activities:
Purchases of property and equipment
included in accounts payable and accrued liabilities
$
310
$
82
ARLO TECHNOLOGIES,
INC.
RECONCILIATIONS OF GAAP
MEASURES TO NON-GAAP MEASURES
UNAUDITED STATEMENT OF OPERATIONS
DATA:
Three Months Ended
April 3, 2022
December 31,
2021
March 28, 2021
(in thousands, except
percentage data)
GAAP gross profit:
Products
$
14,048
$
13,920
$
12,604
Services
19,527
17,796
13,203
Total GAAP gross profit
33,575
31,716
25,807
GAAP gross margin:
Products
14.8
%
12.2
%
21.1
%
Services
65.3
%
62.5
%
57.9
%
Total GAAP gross margin
26.9
%
22.2
%
31.3
%
Stock-based compensation expense -
Products
855
776
874
Stock-based compensation expense -
Services
55
191
—
Non-GAAP gross profit:
Products
14,903
14,696
13,478
Services
19,582
17,987
13,203
Total Non-GAAP gross profit
$
34,485
$
32,683
$
26,681
Non-GAAP gross margin:
Products
15.7
%
12.9
%
22.6
%
Services
65.4
%
63.2
%
57.9
%
Total Non-GAAP gross margin
27.6
%
22.9
%
32.3
%
GAAP research and development
$
16,379
$
13,644
$
14,791
Stock-based compensation expense
(2,302
)
(2,391
)
(2,556
)
Non-GAAP research and development
$
14,077
$
11,253
$
12,235
GAAP sales and marketing
$
13,168
$
12,464
$
11,207
Stock-based compensation expense
(1,380
)
(1,444
)
(1,190
)
Non-GAAP sales and marketing
$
11,788
$
11,020
$
10,017
GAAP general and administrative
$
12,621
$
12,584
$
11,227
Stock-based compensation expense
(4,997
)
(5,680
)
(3,720
)
Litigation reserves, net
(47
)
(3
)
(10
)
Non-GAAP general and administrative
$
7,577
$
6,901
$
7,497
ARLO TECHNOLOGIES,
INC.
RECONCILIATIONS OF GAAP
MEASURES TO NON-GAAP MEASURES (CONTINUED)
UNAUDITED STATEMENT OF OPERATIONS DATA
(CONTINUED):
Three Months Ended
April 3, 2022
December 31,
2021
March 28, 2021
(in thousands, except
percentage and per share data)
GAAP total operating expenses
$
42,247
$
38,946
$
37,279
Separation expense
(79
)
(254
)
(54
)
Stock-based compensation expense
(8,679
)
(9,515
)
(7,466
)
Litigation reserves, net
(47
)
(3
)
(10
)
Non-GAAP total operating expenses
$
33,442
$
29,174
$
29,749
GAAP operating loss
$
(8,672
)
$
(7,230
)
$
(11,472
)
GAAP operating margin
(7.0
)%
(5.1
)%
(13.9
)%
Separation expense
79
254
54
Stock-based compensation expense
9,589
10,482
8,340
Litigation reserves, net
47
3
10
Non-GAAP operating income (loss)
$
1,043
$
3,509
$
(3,068
)
Non-GAAP operating margin
0.8
%
2.5
%
(3.7
)%
GAAP other income (expense),
net
$
411
$
605
$
909
Employee Retention Credit
(39
)
(103
)
—
Non-GAAP other income (expense), net
$
372
$
502
$
909
GAAP provision for income taxes
$
213
$
152
$
180
GAAP income tax rate
(2.6
)%
(2.3
)%
(1.7
)%
Tax effects
—
—
—
Non-GAAP provision for income taxes
$
213
$
152
$
180
Non-GAAP income tax rate
15.1
%
3.8
%
(8.4
)%
ARLO TECHNOLOGIES,
INC.
RECONCILIATIONS OF GAAP
MEASURES TO NON-GAAP MEASURES (CONTINUED)
UNAUDITED STATEMENT OF OPERATIONS DATA
(CONTINUED):
Three Months Ended
April 3, 2022
December 31,
2021
March 28, 2021
(in thousands, except
percentage and per share data)
GAAP net loss
$
(8,479
)
$
(6,792
)
$
(10,719
)
Separation expense
79
254
54
Stock-based compensation expense
9,589
10,482
8,340
Litigation reserves, net
47
3
10
Employee Retention Credit
(39
)
(103
)
—
Tax effects
—
—
—
Non-GAAP net income (loss)
$
1,197
$
3,844
$
(2,315
)
NET LOSS PER SHARE - BASIC AND
DILUTED:
GAAP net loss per share - basic and
diluted
$
(0.10
)
$
(0.08
)
$
(0.13
)
Stock-based compensation expense
0.11
0.12
0.10
Non-GAAP net income (loss) - diluted
$
0.01
$
0.04
$
(0.03
)
Shares used in computing GAAP net income
(loss) - basic
85,222
84,367
80,370
Shares used in computing non-GAAP net
income (loss) - diluted
93,135
90,679
80,370
ARLO TECHNOLOGIES,
INC.
UNAUDITED SUPPLEMENTAL
FINANCIAL INFORMATION
Three Months Ended
April 3, 2022
December 31,
2021
October 3, 2021
June 27, 2021
March 28, 2021
(in thousands, except
headcount and per share data)
Cash, cash equivalents and short-term
investments
$
145,541
$
175,749
$
166,057
$
178,698
$
177,113
Cash, cash equivalents and short-term
investments per diluted share
$
1.56
$
1.94
$
1.98
$
2.18
$
2.20
Accounts receivable, net
$
78,054
$
79,564
$
70,124
$
51,890
$
51,121
Days sales outstanding
58
50
62
48
54
Inventories
$
37,038
$
38,390
$
39,769
$
43,155
$
55,972
Inventory turns
8.7
10.5
7.6
5.7
3.4
Weeks of channel inventory:
U.S. retail channel
15.8
7.0
14.0
8.0
12.5
U.S. distribution channel
10.5
8.5
8.0
12.5
9.6
APAC distribution channel
18.1
8.9
10.2
8.6
6.9
Deferred revenue (current and
non-current)
$
17,375
$
30,786
$
41,686
$
50,903
$
61,604
Cumulative registered accounts (1)
6,389
6,131
5,822
5,527
5,275
Cumulative paid accounts (2)
1,272
1,067
877
695
549
Annual recurring revenue (ARR) (3)
$
101,341
$
90,100
$
80,400
$
69,753
$
58,238
Headcount
358
353
346
349
355
Non-GAAP diluted shares
93,135
90,679
83,809
82,134
80,370
_________________________
(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. 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.
(3)
Effective as of the third quarter of 2021,
we adopted ARR as one of the key indicators of our business
performance. 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. The ARR for the comparative periods presented
was derived following the same methodology. 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
April 3, 2022
December 31,
2021
March 28, 2021
(in thousands, except
percentage data)
Americas
$
68,466
55
%
$
80,354
56
%
$
49,636
60
%
EMEA
49,975
40
%
53,609
38
%
24,591
30
%
APAC
6,310
5
%
8,898
6
%
8,329
10
%
Total
$
124,751
100
%
$
142,861
100
%
$
82,556
100
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220510005687/en/
Arlo Investor Relations Erik Bylin investors@arlo.com (510)
315-1004
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