2023-03-07 16:25:58 ET
Arlo Technologies ( NYSE: ARLO ) was 4.9% higher in early postmarket trading after posting its fourth-quarter earnings, which beat expectations on top and bottom lines as the company recorded a better-than-expected drop in its revenues.
Revenues fell 17% to $118.5M in Q4, while consensus had expected a 25% drop to $107.4M. Service revenues rose nearly 35% to a record $38.3M in the quarter, and services gross margin (non-GAAP) was 69.7%.
At quarter's end, the company was logging annual recurring revenues of $137.8M, a 53% increase year-over-year.
Adjusted gross profit rose 1.6% to $33.2M, on a margin of 28%.
The company added 189,000 paid accounts in Q4, down fractionally from the prior-year quarter.
"Our high-margin subscription business continues its strong growth, adding almost 800,000 paid accounts in 2022 and surpassing 2M total paid accounts next week," CEO Matthew McRae said. "This milestone reflects an inflection point in our business that will lead to record levels of profitability for Arlo going forward."
Cash and equivalents came to $84M, down 52% year-over-year.
For the first quarter, it's guiding to revenue of $100M-$110M (above consensus for $94.7M), and non-GAAP earnings per share of -$0.07 to -$0.01 (vs. a forecast for -$0.07).
Conference call to come at 5 p.m. ET .
For further details see:
Arlo jumps 5% on Q4 earnings beat, strong outlook for first quarter