Latest news with #MatthewMcRae
Yahoo
30-06-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Arlo Technologies's Q1 Earnings Call
Arlo's first quarter results were well received by the market, reflecting operational strength in its transition toward a services-centric business model. Management attributed performance to rapid subscriber growth and higher average revenue per user, both driven by the continued adoption of Arlo Secure 5 and premium service plans. CEO Matthew McRae highlighted that the company added 298,000 paid subscribers and saw annual recurring revenue climb to $276 million. He noted, 'This acceleration of Arlo's subscription and services business is the clear driver for our outstanding Q1 financial results.' Is now the time to buy ARLO? Find out in our full research report (it's free). Revenue: $119.1 million vs analyst estimates of $118.4 million (4.1% year-on-year decline, 0.6% beat) Adjusted EPS: $0.15 vs analyst estimates of $0.12 (28.2% beat) Adjusted EBITDA: $16.42 million vs analyst estimates of $12.33 million (13.8% margin, 33.1% beat) Operating Margin: -1.2%, up from -8.5% in the same quarter last year Market Capitalization: $1.78 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jacob Stephan (Lake Street) asked about inventory strategy ahead of potential tariff changes. CEO Matthew McRae explained that Arlo is closely monitoring inventory and expects minimal margin impact due to the services-heavy revenue mix. Logan Katzman (Raymond James) questioned the drivers behind international revenue softness, particularly in Europe. CFO Kurt Binder cited partner inventory cycles, regulatory shifts, and timing issues around Chinese New Year. Scott Searle (ROTH Capital) probed the outlook for product gross margins given cost reductions and ongoing promotions. Management emphasized that negative margins are acceptable as hardware is used primarily for customer acquisition. Scott Searle (ROTH Capital) also asked about the competitive landscape under new tariffs. McRae noted that hardware-focused competitors are more exposed, and Arlo is seeing early signs of market share gains. Hamed Khorsand (BWS Financial) inquired about ARPU growth drivers. McRae attributed increases to user migration toward premium plans and recent plan simplifications, with further gains expected as new features are introduced. In future quarters, our team will watch (1) the pace and quality of subscriber growth as Arlo Secure 6 features launch, (2) the impact of the device portfolio refresh on hardware margins and competitive positioning, and (3) the effectiveness of the new advertising strategy in boosting service conversions. The realization of planned strategic partnerships will also be a key milestone for 2025 and beyond. Arlo Technologies currently trades at $17.37, up from $10.66 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
10-06-2025
- Business
- Yahoo
ARLO Q1 Earnings Call: Services Growth Offsets Hardware Declines Amid Tariff Uncertainty
Smart security company Arlo (NYSE:ARLO) reported Q1 CY2025 results topping the market's revenue expectations , but sales fell by 4.1% year on year to $119.1 million. Its non-GAAP profit of $0.15 per share was 28.2% above analysts' consensus estimates. Is now the time to buy ARLO? Find out in our full research report (it's free). Revenue: $119.1 million vs analyst estimates of $118.4 million (4.1% year-on-year decline, 0.6% beat) Adjusted EPS: $0.15 vs analyst estimates of $0.12 (28.2% beat) Adjusted EBITDA: $16.42 million vs analyst estimates of $12.33 million (13.8% margin, 33.1% beat) Operating Margin: -1.2%, up from -8.5% in the same quarter last year Market Capitalization: $1.79 billion Arlo's first quarter results reflected a rapidly expanding subscriptions and services business, which management identified as the main factor driving performance. CEO Matthew McRae highlighted that paid subscriber accounts reached 4.9 million by quarter end, up 51% year over year, with annual recurring revenue surpassing $276 million. The company attributed this momentum to the continued adoption of premium Arlo Secure plans and the simplification of service offerings, which pushed average revenue per user to a record $13.48. COO and CFO Kurt Binder emphasized that this shift toward recurring services revenue underpinned overall profitability, even as hardware revenue declined and product gross margins remained negative. Looking forward, Arlo's leadership expects the services-first approach to remain central to growth, with further ARPU expansion anticipated from the rollout of Arlo Secure 6 and new plan structures. McRae stated, 'We are planning our largest product launch in company history for the holiday season,' which is expected to deliver 20% to 35% cost reductions on new devices and mitigate tariff impacts. Management also outlined an early rollout of advanced AI features, including enhanced audio event detection and search capabilities, to strengthen the value proposition for customers. While tariff changes introduce some uncertainty, the company expects minimal impact on consolidated margins due to the predominance of services revenue. Management attributed the quarter's results to accelerated subscriber growth, increased ARPU, and robust cost discipline, while addressing ongoing challenges in product margins and international markets. Subscription and ARPU growth: Arlo's record services revenue stemmed from accelerated paid subscriber additions and a higher average revenue per user, driven largely by customer migration to premium Arlo Secure plans and recent plan simplification. Product revenue under pressure: Hardware sales remained soft due to industry-wide declines in average selling prices (ASPs), which management described as a deliberate strategy to use devices as a customer acquisition tool rather than a profit center. Negative product gross margins: Promotional pricing and aggressive discounting to remain competitive led to continued negative gross margins in the hardware segment, though combined gross margins improved as services revenue became a larger share of the mix. International segment dynamics: The EMEA region, particularly the Verisure partnership, faced temporary headwinds from inventory destocking, supply chain timing around the Chinese New Year, and regulatory changes such as USB-C standardization, resulting in lower international revenue contributions. Operational discipline and efficiency: Cost controls, especially in R&D spending, contributed to lower operating expenses and record free cash flow, supporting profitability despite the shift in business mix and competitive pressures. Arlo's guidance is shaped by momentum in subscriptions, upcoming product launches, and ongoing efforts to manage tariff-related cost risks and industry pricing trends. Holiday product refresh: The planned launch of over 100 new device SKUs later in the year is expected to achieve 20% to 35% reductions in cost of goods sold and help offset potential tariff increases, while supporting customer acquisition during peak retail periods. Advanced AI feature rollout: Early deployment of Arlo Secure 6 features—including enhanced audio detection and expanded event search—aims to further increase ARPU and subscriber retention as customers shift to higher-value service tiers. Tariff and supply chain risks: Management has modeled for a continuation of the current 10% tariff regime and is closely monitoring potential changes post-July. While most revenue and profit are insulated due to the services mix, hardware cost management and inventory positioning remain key uncertainties. In the coming quarters, the StockStory team will watch (1) the pace of subscriber and ARPU growth as new AI features and Arlo Secure 6 roll out, (2) execution on the upcoming large-scale device refresh and its impact on customer acquisition and margins, and (3) the company's ability to navigate evolving tariff regimes and manage hardware costs. The realization of new strategic partnerships will also be a key marker for sustained growth. Arlo Technologies currently trades at a forward P/E ratio of 27×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Malay Mail
10-06-2025
- Business
- Malay Mail
Arlo Announces New Audio AI Smart Home Security Feature In Upgrade To Secure Plus Service Plan
Newly Added Arlo Intelligence-Powered Feature Empowers Arlo Secure Subscribers to Make Better Informed Decisions to Protect What Matters Most . Scream Detection: When your camera hears a scream, you'll get an alert so you can act quickly if needed. When your camera hears a scream, you'll get an alert so you can act quickly if needed. Gunshot Detection: At the sound of gunfire, receive an alert about serious activity and view live video At the sound of gunfire, receive an alert about serious activity and view live video Dog Bark Detection: When your dog barks, you'll be notified so you can view live video and determine if it's reacting to a threat or the next door neighbour's cat. When your dog barks, you'll be notified so you can view live video and determine if it's reacting to a threat or the next door neighbour's cat. Glass Break Detection: Get an alert when your camera hears glass breaking and view live video, check your house or car, and notify family at home of suspicious activity. SINGAPORE - Media OutReach Newswire - 10 June 2025 - Arlo Technologies, Inc (NYSE: ARLO), a leading smart home security brand, has just announced the next evolution of Arlo's industry-leading home security subscription service in Australia & New Zealand featuring groundbreaking AI technology, Advanced Audio Detection."Arlo continues to push the boundaries of what's possible in home security with our relentless focus on industry-first innovations," said Matthew McRae, Chief Executive Officer at Arlo. "Leveraging Arlo Intelligence, a high-performance smart security AI engine with robust detection and recognition capabilities, Arlo Secure delivers a smarter, more personalised security experience that empowers quick and informed decision making." Arlo Secure Plus enhances the features of Arlo devices and completes the security experience to provide consumers with total protection. Powered by Arlo Intelligence, Arlo Secure provides an intuitive, informed security experience with real, tangible value to users. Its comprehensive suite of AI features help users better understand what's happening in and around their homes, allowing for quick and appropriate responses to potential emergency Secure Plus has now expanded on the previously introduced Person Recognition, Vehicle Recognition, and Custom Detection capabilities to add Advanced Audio Detection. This new capability notifies users when critical sounds such as screams, gunshots, dog barks, glass breaking, or Smoke/CO alarms are detected. Each alert is designed to provide real-time awareness and enable swift action, further strengthening Arlo's commitment to proactive, intelligent Audio Detection includes:Across Australia and New Zealand, Advanced Audio Detection will be supported on the Essential Indoor 2K & Wired Floodlight and available to customers starting this month. A 30-day trial of Arlo Secure Plus is included with the purchase of these and other Arlo more information on the full range of Arlo smart home security products and comprehensive list of features and services, visit Hashtag: #Arlo The issuer is solely responsible for the content of this announcement. 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. Arlo has recently 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 service, Arlo Secure. 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 provides enhanced controls for user data, supports privacy legislation, keeps user data safely secure, and puts security at the forefront of company 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" or "Arlo") expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding lowering the barrier of entry and broadening the market for DIT security and Arlo cameras, Arlo video doorbells, Arlo Secure, Arlo Secure Plus, and future Arlo products. 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 utilize payment plans or to adopt the Company's new product offerings, or may adopt competing products; and product performance may be adversely affected by real-world operating conditions. 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 risk factors described in the Company's most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q and subsequent 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.
The Sun
10-06-2025
- Business
- The Sun
Arlo Announces New Audio AI Smart Home Security Feature In Upgrade To Secure Plus Service Plan
SINGAPORE - Media OutReach Newswire - 10 June 2025 - Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security brand, has just announced the next evolution of Arlo's industry-leading home security subscription service in Australia & New Zealand featuring groundbreaking AI technology, Advanced Audio Detection. 'Arlo continues to push the boundaries of what's possible in home security with our relentless focus on industry-first innovations,' said Matthew McRae, Chief Executive Officer at Arlo. 'Leveraging Arlo Intelligence, a high-performance smart security AI engine with robust detection and recognition capabilities, Arlo Secure delivers a smarter, more personalised security experience that empowers quick and informed decision making.' Arlo Secure Plus enhances the features of Arlo devices and completes the security experience to provide consumers with total protection. Powered by Arlo Intelligence, Arlo Secure provides an intuitive, informed security experience with real, tangible value to users. Its comprehensive suite of AI features help users better understand what's happening in and around their homes, allowing for quick and appropriate responses to potential emergency events. Arlo Secure Plus has now expanded on the previously introduced Person Recognition, Vehicle Recognition, and Custom Detection capabilities to add Advanced Audio Detection. This new capability notifies users when critical sounds such as screams, gunshots, dog barks, glass breaking, or Smoke/CO alarms are detected. Each alert is designed to provide real-time awareness and enable swift action, further strengthening Arlo's commitment to proactive, intelligent security. Advanced Audio Detection includes: • Scream Detection: When your camera hears a scream, you'll get an alert so you can act quickly if needed. • Gunshot Detection: At the sound of gunfire, receive an alert about serious activity and view live video • Dog Bark Detection: When your dog barks, you'll be notified so you can view live video and determine if it's reacting to a threat or the next door neighbour's cat. • Glass Break Detection: Get an alert when your camera hears glass breaking and view live video, check your house or car, and notify family at home of suspicious activity. Across Australia and New Zealand, Advanced Audio Detection will be supported on the Essential Indoor 2K & Wired Floodlight and available to customers starting this month. A 30-day trial of Arlo Secure Plus is included with the purchase of these and other Arlo products. For more information on the full range of Arlo smart home security products and comprehensive list of features and services, visit
Arabian Post
10-06-2025
- Business
- Arabian Post
Arlo Announces New Audio AI Smart Home Security Feature In Upgrade To Secure Plus Service Plan
Newly Added Arlo Intelligence-Powered Feature Empowers Arlo Secure Subscribers to Make Better Informed Decisions to Protect What Matters Most SINGAPORE – Media OutReach Newswire – 10 June 2025 – Arlo Technologies, Inc . (NYSE: ARLO), a leading smart home security brand, has just announced the next evolution of Arlo's industry-leading home security subscription service in Australia & New Zealand featuring groundbreaking AI technology, Advanced Audio Detection. 'Arlo continues to push the boundaries of what's possible in home security with our relentless focus on industry-first innovations,' said Matthew McRae, Chief Executive Officer at Arlo. 'Leveraging Arlo Intelligence, a high-performance smart security AI engine with robust detection and recognition capabilities, Arlo Secure delivers a smarter, more personalised security experience that empowers quick and informed decision making.' ADVERTISEMENT Arlo Secure Plus enhances the features of Arlo devices and completes the security experience to provide consumers with total protection. Powered by Arlo Intelligence, Arlo Secure provides an intuitive, informed security experience with real, tangible value to users. Its comprehensive suite of AI features help users better understand what's happening in and around their homes, allowing for quick and appropriate responses to potential emergency events. Arlo Secure Plus has now expanded on the previously introduced Person Recognition, Vehicle Recognition, and Custom Detection capabilities to add Advanced Audio Detection. This new capability notifies users when critical sounds such as screams, gunshots, dog barks, glass breaking, or Smoke/CO alarms are detected. Each alert is designed to provide real-time awareness and enable swift action, further strengthening Arlo's commitment to proactive, intelligent security. Advanced Audio Detection includes: Scream Detection: When your camera hears a scream, you'll get an alert so you can act quickly if needed. When your camera hears a scream, you'll get an alert so you can act quickly if needed. Gunshot Detection: At the sound of gunfire, receive an alert about serious activity and view live video At the sound of gunfire, receive an alert about serious activity and view live video Dog Bark Detection: When your dog barks, you'll be notified so you can view live video and determine if it's reacting to a threat or the next door neighbour's cat. When your dog barks, you'll be notified so you can view live video and determine if it's reacting to a threat or the next door neighbour's cat. Glass Break Detection: Get an alert when your camera hears glass breaking and view live video, check your house or car, and notify family at home of suspicious activity. Across Australia and New Zealand, Advanced Audio Detection will be supported on the Essential Indoor 2K & Wired Floodlight and available to customers starting this month. A 30-day trial of Arlo Secure Plus is included with the purchase of these and other Arlo products. For more information on the full range of Arlo smart home security products and comprehensive list of features and services, visit ADVERTISEMENT Hashtag: #Arlo The issuer is solely responsible for the content of this announcement. 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. Arlo has recently 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 service, Arlo Secure. 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 provides enhanced controls for user data, supports privacy legislation, keeps user data safely secure, and puts security at the forefront of company culture. 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' or 'Arlo') expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding lowering the barrier of entry and broadening the market for DIT security and Arlo cameras, Arlo video doorbells, Arlo Secure, Arlo Secure Plus, and future Arlo products. 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 utilize payment plans or to adopt the Company's new product offerings, or may adopt competing products; and product performance may be adversely affected by real-world operating conditions. 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 risk factors described in the Company's most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q and subsequent 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.
