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Arlo Technologies (ARLO) Q4 Earnings Top Estimates, Revenues Up
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Arlo Technologies (ARLO - Free Report) reported fourth-quarter 2021 non-GAAP earnings of 4 cents per share, which beat the Zacks Consensus Estimate of a loss of 3 cents. The company had reported a non-GAAP loss per share of 8 cents in the prior-year quarter.
Revenues of $142.9 million beat the Zacks Consensus Estimate by 5.2% and increased 24.4% year over year.
Arlo Technologies, Inc. Price, Consensus and EPS Surprise
Product revenues (80.1% of total revenues) increased 22.6% year over year to $114.4 million.
Revenues from services (19.9% of total revenues) rose 32% year over year to $28.5 million.
Revenue from Americas (56.2% of revenues) declined 13% on a year-over-year basis to $80.4 million.
Europe, Middle East, and Africa (EMEA) revenues (37.5% of revenues) increased 250.4% year over year to $53.6 million.
Asia-Pacific (APAC) revenues (6.2% of revenues) increased 24.1% year over year to $8.9 million.
Arlo added a record of 190,000 paid accounts in the reported quarter, witnessing a sequential increase of 4.4% and a year-over-year increase of 140.5%.
Operating Details
Non-GAAP gross profit from products came in at $14.7 million, up 12.7% year over year. Non-GAAP gross profit from services increased 41.7% year over year to $18 million. In the reported quarter, total non-GAAP gross profit reached $32.7 million, up 27% year over year.
Gross margin on a non-GAAP basis in the reported quarter was 22.9%, up 50 basis points (bps) year over year.
Products gross margin was 12.8%, down 110 bps year over year. Services gross margin was 63.2%, up 430 bps from the year-ago quarter’s levels.
General & administrative expenses dropped 6.6% year over year to $6.9 million. Sales and marketing expenses declined 11% to $11 million. Additionally, research and development expenses declined 9.8% year over year to $11.3 million.
Arlo’s non-GAAP operating income was $3.5 million against a loss of $6.5 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
Total cash and cash equivalents as of Dec 31, 2021, were $175.7 million with no debt compared with $166.1 million as of Oct 3, 2021
Guidance
For first-quarter fiscal 2022, Arlo expects revenues between $110 million and $120 million. Services revenues are estimated in the $10.5-$11.5 million band.
The company expects a non-GAAP net loss between $0.06 and $0.00 per share.
Model N has an Earnings ESP of +5.0% and a Zacks Rank #2.
MODN is down 42.7% in the past year against the Zacks Internet - Software industry’s decline of 42.7% and the Computer and Technology sector’s rise of 1.8% in the past year.
LivePerson has an Earnings ESP of +4.69% and a Zacks Rank #2.
LPSN is down 63.9% in the past year compared with the Zacks Internet – Services industry’s rise of 8% and the Computer and Technology sector’s increase of 1.8%.
Paycor HCM has an Earnings ESP of +9.82% and a Zacks Rank #2.
PYCR is up 8.6% in the past year compared with the Zacks Internet – Software industry’s decline of 47.1% and the Computer and Technology sector’s rise of 1.8%.
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Arlo Technologies (ARLO) Q4 Earnings Top Estimates, Revenues Up
Arlo Technologies (ARLO - Free Report) reported fourth-quarter 2021 non-GAAP earnings of 4 cents per share, which beat the Zacks Consensus Estimate of a loss of 3 cents. The company had reported a non-GAAP loss per share of 8 cents in the prior-year quarter.
Revenues of $142.9 million beat the Zacks Consensus Estimate by 5.2% and increased 24.4% year over year.
Arlo Technologies, Inc. Price, Consensus and EPS Surprise
Arlo Technologies, Inc. price-consensus-eps-surprise-chart | Arlo Technologies, Inc. Quote
Top-Line Details
Product revenues (80.1% of total revenues) increased 22.6% year over year to $114.4 million.
Revenues from services (19.9% of total revenues) rose 32% year over year to $28.5 million.
Revenue from Americas (56.2% of revenues) declined 13% on a year-over-year basis to $80.4 million.
Europe, Middle East, and Africa (EMEA) revenues (37.5% of revenues) increased 250.4% year over year to $53.6 million.
Asia-Pacific (APAC) revenues (6.2% of revenues) increased 24.1% year over year to $8.9 million.
Arlo added a record of 190,000 paid accounts in the reported quarter, witnessing a sequential increase of 4.4% and a year-over-year increase of 140.5%.
Operating Details
Non-GAAP gross profit from products came in at $14.7 million, up 12.7% year over year. Non-GAAP gross profit from services increased 41.7% year over year to $18 million. In the reported quarter, total non-GAAP gross profit reached $32.7 million, up 27% year over year.
Gross margin on a non-GAAP basis in the reported quarter was 22.9%, up 50 basis points (bps) year over year.
Products gross margin was 12.8%, down 110 bps year over year. Services gross margin was 63.2%, up 430 bps from the year-ago quarter’s levels.
General & administrative expenses dropped 6.6% year over year to $6.9 million. Sales and marketing expenses declined 11% to $11 million. Additionally, research and development expenses declined 9.8% year over year to $11.3 million.
Arlo’s non-GAAP operating income was $3.5 million against a loss of $6.5 million reported in the year-ago quarter.
Balance Sheet & Cash Flow
Total cash and cash equivalents as of Dec 31, 2021, were $175.7 million with no debt compared with $166.1 million as of Oct 3, 2021
Guidance
For first-quarter fiscal 2022, Arlo expects revenues between $110 million and $120 million. Services revenues are estimated in the $10.5-$11.5 million band.
The company expects a non-GAAP net loss between $0.06 and $0.00 per share.
Zacks Rank & Stocks to Consider
Currently, Arlo carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Computer and Technology sector are Model N (MODN - Free Report) , LivePerson (LPSN - Free Report) and Paycor HCM (PYCR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Model N has an Earnings ESP of +5.0% and a Zacks Rank #2.
MODN is down 42.7% in the past year against the Zacks Internet - Software industry’s decline of 42.7% and the Computer and Technology sector’s rise of 1.8% in the past year.
LivePerson has an Earnings ESP of +4.69% and a Zacks Rank #2.
LPSN is down 63.9% in the past year compared with the Zacks Internet – Services industry’s rise of 8% and the Computer and Technology sector’s increase of 1.8%.
Paycor HCM has an Earnings ESP of +9.82% and a Zacks Rank #2.
PYCR is up 8.6% in the past year compared with the Zacks Internet – Software industry’s decline of 47.1% and the Computer and Technology sector’s rise of 1.8%.