Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

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Equity Bottom-Up

<ul>
<li>ARLO ) changed their subscription plans at the beginning of 2024 and Q1 results are expected to show little change in consumer habits since these pricing plans were instituted</li>
<li>ARLO started 2024 with new pricing for its lowest subscription tier as cloud costs for such customers were more than the monthly subscription rate</li>
<li>The focus of the first quarter results should remain on subscriber growth, especially as holiday period hardware sales begin to transition to paid subscription</li>
</ul>


ARLO ) changed their subscription plans at the beginning of 2024 and Q1 results are expected to show little change in consumer habits since these pricing plans were instituted
ARLO started 2024 with new pricing for its lowest subscription tier as cloud costs for such customers were more than the monthly subscription rate
The focus of the first quarter results should remain on subscriber growth, especially as holiday period hardware sales begin to transition to paid subscription


<ul>
<li>ARLO continued to grow the number of paid subscribers in Q4 2023 with the added tease of ARLO crossing 3 million paid subscribers in the first quarter of 2024</li>
<li>ARLO is focusing on a service first approach where service is subsidizing the cost of hardware</li>
<li>ARLO generated revenue of $135.1 million compared to our estimate of $135.5 million. Product mix was different than we had forecast</li>
</ul>


ARLO continued to grow the number of paid subscribers in Q4 2023 with the added tease of ARLO crossing 3 million paid subscribers in the first quarter of 2024
ARLO is focusing on a service first approach where service is subsidizing the cost of hardware
ARLO generated revenue of $135.1 million compared to our estimate of $135.5 million. Product mix was different than we had forecast


<ul>
<li>ARLO maintained a steady presence of inventory and pricing during the holiday shopping of the fourth quarter and now ARLO is scheduled to report Q4 results in February</li>
<li>ARLO introduced a line of Essential cameras at Wal-Mart, which we believe was a success and should contribute to fourth quarter 2023 revenue and first quarter 2024 net subscriber adds</li>
<li>ARLO ended the September quarter with approximately 2.5 million paid subscribers. We are projecting ARLO added 170 thousand paid subscribers in the fourth quarter</li>
</ul>


ARLO maintained a steady presence of inventory and pricing during the holiday shopping of the fourth quarter and now ARLO is scheduled to report Q4 results in February
ARLO introduced a line of Essential cameras at Wal-Mart, which we believe was a success and should contribute to fourth quarter 2023 revenue and first quarter 2024 net subscriber adds
ARLO ended the September quarter with approximately 2.5 million paid subscribers. We are projecting ARLO added 170 thousand paid subscribers in the fourth quarter


<ul>
<li>ARLO reported third quarter results underscoring the continued growth in paid subscribers leading the Company to another quarter of positive free cash flow.</li>
<li>ARLO has maintained its rate of quarterly net subscriber adds throughout 2023 and is poised to cross 3 million paid subscribers by the middle of 2024.</li>
<li>ARLO reported third quarter revenue of $130.0 million compared to our forecast of $127.5 million.</li>
</ul>


ARLO reported third quarter results underscoring the continued growth in paid subscribers leading the Company to another quarter of positive free cash flow.
ARLO has maintained its rate of quarterly net subscriber adds throughout 2023 and is poised to cross 3 million paid subscribers by the middle of 2024.
ARLO reported third quarter revenue of $130.0 million compared to our forecast of $127.5 million.


<ul>
<li>ARLO reporting better than expected third quarter results would rely on paid subscriber additions remaining on their current trajectory</li>
<li>The pause in ARLO’s stock price creates greater upside potential as ARLO demonstrates its ability to generate positive earnings and free cash flow with each passing quarter</li>
<li>ARLO has released a new line up of Essential cameras. ARLO had previously indicated it would update its Essentials cameras this year ahead of the holidays</li>
</ul>


ARLO reporting better than expected third quarter results would rely on paid subscriber additions remaining on their current trajectory
The pause in ARLO’s stock price creates greater upside potential as ARLO demonstrates its ability to generate positive earnings and free cash flow with each passing quarter
ARLO has released a new line up of Essential cameras. ARLO had previously indicated it would update its Essentials cameras this year ahead of the holidays


United States

Arlo Technologies, Inc. provides software solutions. The Company offers cloud-based platform with a variety of connected devices such as security cameras. Arlo Technologies serves customers in the United States.

Arlo Technologies Inc (ARLO US)

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ARLO: Cash and GAAP Profitability

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ARLO: Pixel of a Quarter

The free cash flow ARLO should generate at such a level could neutralize dilution of stock compensation. The consistent growth in paid subscribers...

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ARLO: Picture of One Word, Buy

ARLO’s management, during the recent earnings call, unveiled their anticipation for a record-breaking Q4 in unit volume. ARLO has a “robust”...

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ARLO: Preview of the Discounted Value

We believe our current forecast of 160 thousand new paying subscribers in the third quarter could be conservative. ARLO's new Essentials cameras...

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