Analyst Summary:
Arlo Technologies, a leading smart home security brand, reported its fourth quarter and full-year 2022 financial results on March 7, 2023. The company added nearly 800,000 paid accounts in 2022 and surpassed 2 million total paid accounts, reflecting an inflection point in its business that is expected to lead to record levels of profitability. Arlo’s GAAP revenue was $118.5 million, a decrease of 17%, while its non-GAAP revenue was $137.8 million, growing 52% year-over-year. The company's GAAP gross margin was 27% and non-GAAP gross margin was 28%. Arlo expects to become non-GAAP profitable in 2023.
CEO Matthew McRae said, "Armed with a slate of critically acclaimed products and a new strategic partnership with Citizens Pay, Arlo is poised to disrupt the antiquated home security market and deliver even greater shareholder value in 2023 as we drive to full year non-GAAP profitability."
The company's plans for the future include expanding its product portfolio with Arlo Safe and the Security System, developing sales and marketing capabilities, increasing sales of paid subscription services, and pursuing strategic objectives and initiatives.