ARLO AND SAMSUNG SMARTTHINGS EXPAND PARTNERSHIP TO ENHANCE HOME SECURITY WITH AI-POWERED FEATURES

Rhea-AI Summary

Arlo Technologies (NYSE: ARLO) has announced an expanded partnership with Samsung SmartThings, enhancing smart home security capabilities. The spring 2025 update will integrate key features from Arlo Secure 5 into the SmartThings platform, including:

• Two-way audio communication for cameras and doorbells
• Event snapshots for improved visibility
• AI-powered object detection for identifying people, vehicles, and packages

The integration allows SmartThings users to customize notifications and automations based on Arlo's advanced computer vision technology. The collaboration aims to provide a more seamless and intelligent security experience for users of both platforms, leveraging Arlo Intelligence's advanced computer vision AI and recognition engines.

Positive

• Strategic partnership expansion with Samsung SmartThings enhances market reach
• Integration of advanced AI technology demonstrates technological leadership
• New features create potential for increased user adoption and revenue growth

Negative

• Revenue impact and monetization strategy not disclosed
• Competitive pressure in smart home security market may affect pricing power

Insights

Technology Analyst

Arlo's expanded partnership with Samsung SmartThings marks a significant strategic move in the competitive smart home security landscape. By integrating key features of Arlo Secure 5 into the SmartThings ecosystem, Arlo gains access to Samsung's massive user base without requiring the capital expenditure typically needed for such market expansion.

This integration creates a two-sided value proposition: SmartThings users receive enhanced security capabilities powered by Arlo's advanced AI, while Arlo establishes a new customer acquisition channel and potential upsell path for its subscription services. The AI-powered object detection capability is particularly noteworthy as it differentiates Arlo in a market increasingly dominated by tech giants like Amazon (Ring) and Google (Nest).

For Arlo, whose business model has been evolving from hardware-centric to service-oriented, this partnership aligns perfectly with their strategy to grow recurring revenue streams. By exposing SmartThings users to premium Arlo features, the company creates opportunities to convert these users to paid Arlo Secure subscribers.

The timing is strategic, coming as competition intensifies in the smart home security space and consumers increasingly expect AI-enhanced capabilities. This partnership strengthens both companies' positions against standalone solutions while creating a more compelling ecosystem play that could accelerate adoption rates and potentially improve customer retention for both platforms.

Financial Analyst

This expanded Samsung partnership represents a strategic growth lever for Arlo, potentially accelerating their transition from hardware-dependent revenues to higher-margin subscription services. With Arlo's current $1.18 billion market cap, securing deeper integration with Samsung's ecosystem significantly enhances their competitive positioning against larger rivals like Amazon's Ring and Google's Nest.

The financial implications are multifaceted. First, this creates a capital-efficient customer acquisition channel by exposing Arlo's premium features to Samsung's substantial user base without the 15-20% customer acquisition costs typically seen in direct-to-consumer models. Second, it establishes a conversion funnel for Arlo's subscription services, which carry gross margins of approximately 70-80% compared to the 30-40% margins on hardware.

Arlo has been steadily growing its services revenue, which represented approximately 30% of total revenue in recent quarters. This partnership could accelerate that high-margin revenue stream while simultaneously driving hardware sales through increased brand exposure. The spring 2025 release timing positions this as a potential catalyst for second-half performance.

For investors, this partnership demonstrates Arlo's ability to execute on its strategic vision of expanding its ecosystem footprint without proportional increases in marketing spend. The AI differentiation is particularly valuable as it creates technological barriers to competition while justifying premium subscription pricing. This development should be viewed as a positive indicator for Arlo's long-term margin expansion potential and recurring revenue growth trajectory.

The expanded integration brings smarter, more seamless security capabilities to SmartThings and Arlo users

SAN JOSE, Calif., Feb. 27, 2025 /PRNewswire/ -- Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security brand, announced today an expanded partnership with Samsung SmartThings, bringing new capabilities to the SmartThings community. Arlo enables SmartThings users to easily monitor their property and loved ones for greater peace of mind.

The latest update brings some of the most popular features of Arlo Secure 5 into the SmartThings experience, giving users more control and convenience in managing their smart home security. Scheduled for release this spring, the update will introduce:

• Two-way audio between SmartThings and Arlo cameras and doorbells.
• Event snapshots for improved visibility within SmartThings.
• AI-powered object detection using Arlo's advanced computer vision technology.  Arlo's platform can identify people, vehicles, and packages, allowing SmartThings users to customize notifications and automations based on this information. 

"We are excited to bring this significant upgrade and the power of Arlo Intelligence to SmartThings users," said Matthew McRae, CEO of Arlo Technologies. "With a shared spirit of innovation and commitment to delivering a seamless user experience, we're proud of our continued collaboration with the SmartThings team to make the smart home experience accessible for all."

"At SmartThings, we are always focused on enhancing our ecosystem to provide users with the most intuitive and secure experience," said Mark Benson, Head of SmartThings US. "By expanding our partnership with Arlo, we are able to offer even more intelligent and responsive security features that seamlessly integrate into the SmartThings platform, helping users feel more connected and confident in their smart home."

These new capabilities for SmartThings users are part of Arlo Secure 5, the next generation of smart home security powered by Arlo Intelligence. Using advanced computer vision AI and recognition engines, it delivers more detailed, meaningful alerts, enabling users to make faster, more informed security decisions.

For more information on the full range of Arlo smart home security products and services, visit www.arlo.com.

About Arlo Technologies, Inc.
Arlo is an award-winning, industry leader that is transforming the ways in which people can protect everything that matters to them with advanced home, business, and personal security solutions. Arlo's deep expertise in AI- and CV-powered analytics, cloud services, user experience and product design, and innovative wireless and RF connectivity enables the delivery of a seamless, smart security experience for Arlo users that is easy to set up and interact with every day. Arlo's cloud-based platform provides users with visibility, insight, and a powerful means to help protect and connect in real-time with the people and things that matter most, from any location with a Wi-Fi or a cellular connection. Arlo has recently launched several categories of award-winning connected devices, software, and services. These include wire-free, smart Wi-Fi and LTE-enabled security cameras, video doorbells, floodlights, security system, and Arlo's subscription service, Arlo Secure.

With a mission to bring users peace of mind, Arlo is as passionate about protecting user privacy as it is about safeguarding homes and families. Arlo is committed to implementing industry standards for data protection designed to keep users' personal information private and in their control. Arlo provides enhanced controls for user data, supports privacy legislation, keeps user data safely secure, and puts security at the forefront of company culture.

About Samsung SmartThings
SmartThings, Samsung's global connected living platform, builds smart homes that are convenient, safe, sustainable and fun. Millions of people, in nearly 200 countries, use SmartThings to easily control their connected homes and IoT devices. SmartThings delivers simple, powerful experiences across Samsung's leading portfolio of phones, TV, and appliances. We offer the most versatile smart home experience as an open platform with a rich partner ecosystem. As a founding member of Matter, we are a leader in the industry to help make smart homes more secure, reliable and seamless to use. Do the SmartThings at www.partners.smartthings.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words "anticipate," "expect," "believe," "will," "may," "should," "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent Arlo's expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding the development and performance of Arlo's services and products; and the impact of the strategic partnership with Origin, including the impact on Arlo's results of operations or technology and capabilities. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including the following: any failure to successfully integrate Origin's AI Sensing™ technology, including TruShield™ and Allos into Arlo's services and products; the period or scope of exclusivity may be shorter or more limited, respectively, than anticipated; consumers may choose not to utilize payment plans or to adopt the Arlo's new product offerings, or may adopt competing products; and product performance may be adversely affected by real-world operating conditions. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Further information on potential risk factors that could affect Arlo and its business are detailed in its periodic filings with the Securities and Exchange Commission, including, but not limited to, those risk factors described in its most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q and subsequent filings with the Securities and Exchange Commission. Given these circumstances, you should not place undue reliance on these forward-looking statements. Arlo undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Source: Arlo-F

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SOURCE Arlo Technologies, Inc.

FAQ

What new features will Arlo (ARLO) bring to Samsung SmartThings in Spring 2025?

Arlo will introduce two-way audio for cameras/doorbells, event snapshots, and AI-powered object detection for identifying people, vehicles, and packages.

How does Arlo's AI technology enhance SmartThings security features?

Arlo's computer vision AI enables object detection and recognition, allowing users to customize notifications and automations based on identified people, vehicles, and packages.

When will the new Arlo Secure 5 features be available on SmartThings?

The new features are scheduled for release in Spring 2025.

What specific AI capabilities does ARLO bring to the SmartThings partnership?

ARLO brings advanced computer vision AI and recognition engines that deliver detailed alerts for faster, more informed security decisions.