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BWS Financial Inc

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<ul>
<li>ARLO announced it had reached 4 million paid accounts approximately four months after achieving 3 million paid accounts. </li>
<li>The pace of growth is most likely the result of catch-up calculations related to Verisure. However, this should not take away from the magnitude of increase in the number.</li>
<li>The higher baseline of subscriber numbers should change the annualized recurring revenue (“ARR”) for ARLO compared to the end of the first quarter.  </li>
</ul>


ARLO announced it had reached 4 million paid accounts approximately four months after achieving 3 million paid accounts. 
The pace of growth is most likely the result of catch-up calculations related to Verisure. However, this should not take away from the magnitude of increase in the number.
The higher baseline of subscriber numbers should change the annualized recurring revenue (“ARR”) for ARLO compared to the end of the first quarter.  


External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

<ul><li>Anticipate significant downward revision in Arlo Technologies' long-term revenue guidance</li><li>Management's lack of transparency regarding key performance indicators may have misled investors</li><li>Initiate a short position before Feb. 29th guidance update to benefit from potential share price decline.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Anticipate significant downward revision in Arlo Technologies' long-term revenue guidanceManagement's lack of transparency regarding key performance indicators may have misled investorsInitiate a short position before Feb. 29th guidance update to benefit from potential share price decline.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Arlo Technologies Inc (ARLO) - Wednesday, Feb 28, 2024

<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


United States

CTS Corporation designs and manufactures electronic components and sensors to original equipment manufacturers in the automotive, communications, medical, defense and aerospace, industrial and computer markets.

PC Connection, Inc. is a direct marketer of personal computers and related peripherals, software, accessories, and networking products. The Company sells to small and medium-sized businesses. PC Connection carries high turnover products in inventory, and in addition provides customer service and technical support.

Benchmark Electronics, Inc. provides contract electronics manufacturing and design services.  The Company serves original equipment manufacturers of medical devices, industrial control equipment, testing and instrumentation products, and telecommunications equipment.  Benchmark also offers product design, printed circuit board layout, prototyping and test development services.

Knowles Corporation designs and manufactures advanced acoustic components. The Company produces components for hearing aids and surface mount microphones for cell phones and consumer electronics. Knowles offers its products around the world.

Hollysys Automation Technologies Ltd. manufactures automation and control systems.  The Company produces process, industrial, rail and subway, and nuclear power plant automation equipment.

Hollysys Automation Technologies (HOLI US)

TTM Technologies, Inc. is an independent provider of time-critical, one-stop manufacturing services for printed circuit boards.  The circuit boards serve as a foundation for electronic products such as routers, switches, servers, memory modules, and cellular base stations. The Company's customers include original equipment manufacturers and electronic manufacturing services companies.

ePlus inc. provides IT hardware, software and services. The Company offers IT solutions for data center, cloud computing, security, managed and professional services, lease financing, proprietary software, and other related products. ePlus focuses on serving the middle market and larger commercial enterprises as well as state and local governments.

Rogers Corporation manufactures and markets specialty materials and components for applications in the communications, computer, imaging, consumer, and transportation markets.  The Company's products include elastomers, high frequency circuit materials, flexible circuit materials, molding materials, and composite materials.  Rogers sells its products around the world.

ScanSource, Inc. is a value-added wholesale distributor of specialty technology products to the reseller market.  The Company provides automatic identification and point-of-sale products, as well as telephony and computer telephony integration products. ScanSource distributes its products in the United States and internationally.

OSI Systems, Inc. produces medical monitoring and anesthesia systems; security and inspection systems; and lasers, optics, and optoelectronic components.  The Company's products include blood pressure monitors, anesthesia machines and hemoglobin saturation monitors; systems for inspecting baggage, people, and vehicles; and lasers, lenses, prisms, and microelectronic components.

Topcorn Corporation manufactures and sells measuring equipment and medical equipment primarily for ophthalmologist use. The Company also manufactures industrial products including projectors and optical devices.

KCE Electronics Public Company Limited and its subsidiaries manufacture and export single-layered, multi-layered, and double-sided printed circuit boards (PCBs) under its KCE trademark.  Multi-layered PCBs are used mainly in high technology equipment and high precision instruments.  Double-sided PCBs are used largely in telecommunication and computing equipment.

Nippon Electric Glass Co., Ltd. manufactures a wide range of glass related products.  The Company's products include fluorescent light tubes, lenses for light-emitting diodes (LEDs), ceramic integrated circuits (IC) packages, bulbs for cathode ray tube (CRT) displays, and precision sheet glass for liquid crystal displays (LCDs).

Chengdu Santai Holding Group Co., Ltd. is a manufacturer and solutions provider in the security industry. The Company's products include QMS, note management systems, DVR, monitoring solutions, face identification, and fingerprint identification.

Wuhu Token Science Co., Ltd. researches, produces and sells vacuum thin film material for flat panel displays.  The Company's products are liquid crystal display conductive film glass, touch-screen conductive film glass, and mobile phone panel material.

Codan Limited develops rugged and electronics solutions for international government, corporate, NGO and consumer markets. The company's line of business includes provision of radio communications, metal detection and tracking solutions.

Shenzhen Topband Co., Ltd. researches, manufactures and markets electronic intelligent controllers for electric household appliances.

Lotte Energy Materials Corporation manufactures and distributes electric foils. The Company produces printed circuit board and lithium ion secondary batteries elecfoil, electrolytic and epoxy copper foil, electrolytic capacitor aluminum foil, and other related products. Lotte Energy Materials also offers energy and glass and window construction services.

Beijing Zhongke Sanhuan High-Tech Co., Ltd. develops and manufactures rare earth permanent magnetic materials and products.  The Company's main product is neodymium iron boron magnetic materials.

Beijing Zhong Ke San Huan Hi Tech (000970 CH)

Amano Corporation manufactures electric time recorders and information systems. The Company also produces time stamps and parking lot traffic and fee collection management systems.  The Company produces environment related systems such as dust collectors, air filters, and gas/water cleaning equipment.

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: Accelerated Pace of Growth

ARLO reached 4 million paid accounts. This is an accelerated pace from when ARLO reached 3 million paid accounts at the end of February. We are now...

BWS Financial Inc

Arlo Technologies Inc (ARLO) - Wednesday, Feb 28, 2024

Anticipate significant downward revision in Arlo Technologies' long-term revenue guidance. Management's lack of transparency regarding key...

Value Investors Club

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...

BWS Financial Inc

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...

BWS Financial Inc

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...

BWS Financial Inc

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