Arlo Technologies, Inc. (NYSE: ARLO) reported Q1 EPS of ($0.03), $0.18 better than the analyst estimate of ($0.21). Revenue for the quarter came in at $82.6 million versus the consensus estimate of $76.81 million.

"Clearly, Arlo is not the same company it was a year ago. In 2020 we successfully pivoted to become services-focused to create a more predictable, more profitable business and our strong Q1 results are further proof of our progress. We delivered revenue above the high end of our guidance range and up 26% over last year. With the increasing contribution of our services business, our GAAP and non-GAAP gross margin was up 10% sequentially to reach an all-time record and, coupled with continued operating discipline, we improved our bottom line by more than $24 million from Q1 last year,” said Matthew McRae, Chief Executive Officer of Arlo Technologies. “Our entire product line-up has been refreshed and our market leading innovation is shown in the many accolades and 'best of' reviews we receive. With our new business model, a free three-month trial of Arlo Smart, attached to all of our refreshed products, each quarter we set records for new accounts and materially increase the number of subscriber additions. This is producing a fast-growing, high margin revenue stream that we expect to eclipse the $100 million level for the full year. With the team executing well, I am very excited about what Arlo can accomplish in 2021."

GUIDANCE:

Arlo Technologies, Inc. sees Q2 2021 EPS of ($0.20)-($0.13), versus the consensus of ($0.17). Arlo Technologies, Inc. sees Q2 2021 revenue of $80-90 million, versus the consensus of $82.83 million.

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