Arlo Technologies Reports Strong 2024 Financial Results

Arlo Technologies ( (ARLO) ) has released its Q4 earnings. Here is a breakdown of the information Arlo Technologies presented to its investors.

Arlo Technologies, Inc. is a leading smart home security platform company that offers advanced security solutions powered by AI and cloud services, providing users with real-time protection and connectivity from any location.

In its latest earnings report, Arlo Technologies announced a robust financial performance for the fourth quarter and full year 2024, highlighting significant growth in annual recurring revenue (ARR) and service revenue, both exceeding 20% year over year. The company also reported a record service gross margin and a substantial increase in free cash flow.

Key financial metrics from the report include an ARR of $257.3 million, a 22.5% increase year over year, and a service revenue of $243.0 million, up 20.8%. Arlo achieved a record non-GAAP service gross margin of 81.7% and a free cash flow of $48.6 million, marking a 37% growth. The company also expanded its subscriber base significantly, with cumulative paid accounts growing by 63.5% year over year.

Strategically, Arlo announced new partnerships with Origin AI and RapidSOS, aimed at enhancing its security solutions and emergency response capabilities. The company also expanded its collaboration with Samsung to introduce new security features to the SmartThings community.

Looking ahead, Arlo Technologies remains optimistic about its growth trajectory, driven by strategic partnerships and innovations like the AI-driven Arlo Secure 5.0. The company aims to further differentiate itself in the smart security market and achieve its long-term financial targets.