Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

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Equity Bottom-Up

<ul>
<li>ARLO has the help of a product purchase agreement to smooth out lumpiness in consumer spending in the current macroenvironment</li>
<li>While ARLO is targeting a higher income consumer with products that are priced higher than competition, there is still a risk that could have played out in September.</li>
<li>Number of paid subscribers should continue to rise in the third quarter with possibility it could be materially higher than our forecast</li>
</ul>


ARLO has the help of a product purchase agreement to smooth out lumpiness in consumer spending in the current macroenvironment
While ARLO is targeting a higher income consumer with products that are priced higher than competition, there is still a risk that could have played out in September.
Number of paid subscribers should continue to rise in the third quarter with possibility it could be materially higher than our forecast


<ul>
<li>ARLO deciding to spend more on brand awareness this year has given reason for some investors to move to the sidelines</li>
<li>ARLO’s second quarter results were better than expected and we believe the third quarter has trended better than expected as well</li>
<li>The timing of switching CFOs was a surprise since five months prior ARLO had established its ad spending strategy.</li>
</ul>


ARLO deciding to spend more on brand awareness this year has given reason for some investors to move to the sidelines
ARLO’s second quarter results were better than expected and we believe the third quarter has trended better than expected as well
The timing of switching CFOs was a surprise since five months prior ARLO had established its ad spending strategy.


<ul>
<li>ARLO continues to demonstrate the strength of its paid subscription service by reporting its third straight quarter of non-GAAP net income.</li>
<li>ARLO’s ability to grow the number of paid subscribers each quarter has pushed the business to achieve annual recurring revenue (“ARR”) of $116.6 million</li>
<li>ARLO added 206 thousand paid subscribers in the second quarter. This was the second straight quarter where the number of net additions was over 200 thousand for the quarter</li>
</ul>


ARLO continues to demonstrate the strength of its paid subscription service by reporting its third straight quarter of non-GAAP net income.
ARLO’s ability to grow the number of paid subscribers each quarter has pushed the business to achieve annual recurring revenue (“ARR”) of $116.6 million
ARLO added 206 thousand paid subscribers in the second quarter. This was the second straight quarter where the number of net additions was over 200 thousand for the quarter


<ul>
<li>ARLO continued to grow the number of paid subscribers as consumers see the benefits of having an alert for their installed security cameras</li>
<li>ARLO reported a positive net income for the second straight quarter just as the firm is getting ready to launch a new brand awareness campaign in 2H22</li>
<li>ARLO reiterated its plans to increase marketing expense in the second half of 2022 to accelerate growth in 2023</li>
</ul>


ARLO continued to grow the number of paid subscribers as consumers see the benefits of having an alert for their installed security cameras
ARLO reported a positive net income for the second straight quarter just as the firm is getting ready to launch a new brand awareness campaign in 2H22
ARLO reiterated its plans to increase marketing expense in the second half of 2022 to accelerate growth in 2023


<ul>
<li>ARLO has proven its service business model can be profitable and is now planning to invest more in growth initiatives to drive market share gains to add paid subscribers faster</li>
<li>The faster than expected pace has given ARLO the means to strategically invest in its business to accelerate its service revenue. </li>
<li>Looking ahead to the end of 2022, ARLO could be on the cusp of nearly 2 million paid subscribers before realizing the benefits of the increased marketing</li>
</ul>


ARLO has proven its service business model can be profitable and is now planning to invest more in growth initiatives to drive market share gains to add paid subscribers faster
The faster than expected pace has given ARLO the means to strategically invest in its business to accelerate its service revenue. 
Looking ahead to the end of 2022, ARLO could be on the cusp of nearly 2 million paid subscribers before realizing the benefits of the increased marketing


ARLO: Accelerating Growth Story, PT to $15

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)

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ARLO: Capturing Paid Subscriber Growth

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ARLO: Prepping for Acceleration

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ARLO: Accelerating Growth Story, PT to $15

ARLO reported a net profit in Q4 proving the service first business model can be profitable. Now, management intends to increase more into the...

BWS Financial Inc

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