Arlo Technologies reports Q2 EPS 17c, consensus 15c

Reports Q2 revenue $129.4M, consensus $123.5M. Ended the quarter with ARR(1) of $315.7 million, growing 34.3% year over year. Record subscriptions and services revenue of $78.2 million, an increase of 29.7% year over year and accounting for 60.4% of total revenues. “The launch of our new AI platform, Arlo Secure 6, earlier this year is driving growth in our subscriptions business and propelling the company to record financial results. Subscriptions and services revenue grew 30% to $78 million and ARR increased to $316 million, up 34% year over year. Non-GAAP subscriptions and services gross margin reached 85%, an increase of 850 basis points year over year, and contributed to a record GAAP net income per share of $0.03,” said Matthew McRae, CEO. “This subscription momentum coupled with our Holiday product launches and announcement of ADT as a strategic partner positions Arlo for continuing success.”