Revenue ProjectionARLO is projecting fourth quarter revenue of $116 million to $126 million, which is down sequentially and drawing much of the negative reaction in ARLO’s stock price.
Service Revenue TimingThe lower service revenue could be from timing of when a customer signs up for a paid plan.
Subscriber Growth ConcernsARLO’s stock has been under pressure since reporting second quarter results most likely due to concerns over actual number of quarterly retail subscriber adds in the quarter and the need to maintain product gross margin at or below 5 percent to maintain subscriber.