Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

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Equity Bottom-Up

<ul>
<li>ARLO grew the number of paid subscribers faster than expected in the first quarter, but it was the contract extension with Verisure that was the big news of the day</li>
<li>ARLO and Verisure have had an agreement for five years expiring later this year. The new agreement is through 2029</li>
<li>The growth in paid subscribers in Q1 puts ARLO on pace to achieve 4 million total paid subscribers by the end of 2024, after hitting 3 million in February 2024</li>
</ul>


ARLO grew the number of paid subscribers faster than expected in the first quarter, but it was the contract extension with Verisure that was the big news of the day
ARLO and Verisure have had an agreement for five years expiring later this year. The new agreement is through 2029
The growth in paid subscribers in Q1 puts ARLO on pace to achieve 4 million total paid subscribers by the end of 2024, after hitting 3 million in February 2024


<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.


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.

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Arlo Technologies Inc (ARLO US)

ARLO: Risk Removed

ARLO reported in line first quarter results and second quarter guidance. However, it was the renewal of its agreement with Verisure that is most...

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ARLO: Service Changes and Q1

ARLO changed pricing on their service tiers the Company has instituted usage limits. We interpret the changes as ARLO still trying to balance their...

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ARLO: Cash and GAAP Profitability

There could be more subscribers coming from partners we expect ARLO to begin reaching a tipping point as the ARPU from direct retail customers...

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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”...

BWS Financial Inc

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