2023-05-12 14:35:07 ET
Arlo Technologies' ( NYSE: ARLO ) stock jumped nearly 32% on Friday after the company reported top and bottom line beat for its first quarter results.
The wireless surveillance camera maker on Thursday after the bell posted Q1 Non-GAAP EPS of $0.01, beating estimates by $0.06. Revenue of $111 million was ahead of expectations by at least $6.09 million.
CEO Matthew McRae, during an earnings call with analysts, highlighted that revenue growth was helped by strong demand throughout the quarter, thereby driving its inventory lower.
McRae also added that Ping ID will use Arlo Safe as an employee benefit across their company under a partnership.
Key Q1 metrics: service revenue $43.9 million (+46.8% Y/Y), service revenue gross margin 73%, ARR at quarter-end $182.6 million (+80.2% Y/Y), paid account additions 182k bringing total to 2 million (+60.7% Y/Y), FCF $9 million (margin 8%), gross profit $35.2 million (margin 31.7%), non-GAAP gross margin $36.2 million (margin 32.6%), cash at quarter-end $118.7 million.
For the second quarter, Arlo said it expects revenue between $105-115 million and adjusted EPS between 1 and 7 cents.
The company said it is adjusting its 2023 revenue range upwards to be between $470 million and $500 million, and reiterated service revenue growth at ~45% year-over-year to about $200 million.
The Seeking Alpha consensus estimate for Q2 revenue is $108.6 million, and EPS is 1 cent. Full-year 2023 revenue estimate is $478.6 million.
ARLO stock is up 92% so far this year as of Thursday's close.
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Arlo Technologies posts results beat driven by strong demand; stock pops ~32%