ARLO SURPASSES 4 MILLION PAID SUBSCRIPTION ACCOUNTS

Rhea-AI Summary

Arlo Technologies announced on July 9, 2024, that their AI-powered subscription service has exceeded 4 million paid accounts. This growth highlights the value consumers place on Arlo's subscription plans and overall service. CEO Matthew McRae stated that Arlo will continue to invest in AI and SaaS platforms, introducing new features to enhance their market leadership.

Arlo's subscription plans, starting at $7.99 per month, offer 30 days of secure cloud storage, smart notifications, advanced object detection, and more. The top-tier plan, Safe & Secure Pro, includes 24/7 professional monitoring and emergency response. Other features include family safety tracking, crash detection, and 4K cloud-based video recording.

Arlo plans to release new service plans with advanced AI features later this year.

Positive

• Exceeded 4 million paid subscription accounts as of July 9, 2024.
• Subscription plans start at $7.99 per month, indicating affordability.
• Top-tier plans offer 24/7 professional monitoring and emergency response.
• Investment in AI and SaaS platforms for continued growth and new features.

Negative

• No financial metrics provided in the announcement.

Insights

Financial Analyst

Arlo Technologies reaching 4 million paid subscription accounts is a significant milestone that reflects the company's ability to attract and retain customers within the highly competitive smart home security market. This growth in subscribers translates directly into revenue stability and predictability due to the recurring nature of subscription fees. For investors, the increase in subscription accounts can signify a positive outlook for Arlo’s future financial performance. The predictable revenue stream from subscriptions can support continued investment in AI technologies and infrastructure, potentially positioning Arlo as a leader in smart home security.

From a financial perspective, this milestone could lead to improved earnings and cash flow. It also enhances the company's valuation as recurring revenue is often valued higher due to its stability compared to one-time hardware sales. However, investors should also consider potential costs associated with maintaining and upgrading the AI and SaaS platforms to remain competitive, which could affect margins in the short term.

Tech Expert

The announcement highlights Arlo's commitment to advancing its subscription service with AI capabilities. Features such as advanced object detection, smart notifications and crash detection are key differentiators in the market. These features rely on sophisticated machine learning algorithms that can process vast amounts of data to offer precise and actionable alerts to users. This technological advancement is important in offering a competitive edge over other smart home security solutions.

For investors, understanding the technological backbone is vital. The success of these AI-powered features heavily depends on the robustness and reliability of the underlying technology. Continuous improvements and innovations in AI can lead to better customer satisfaction and lower churn rates, ultimately enhancing long-term subscription growth and customer loyalty. However, the rapid pace of technological advancement requires constant investment and could also lead to software vulnerabilities that need addressing promptly.

Market Research Analyst

The achievement of reaching 4 million paid subscribers demonstrates a strong product-market fit and effective marketing strategy. Arlo’s focus on comprehensive security solutions, which include 24/7 professional monitoring and family safety features, aligns well with current consumer demands for enhanced home security. The ability to offer diverse plans from basic to premium subscriptions ensures that Arlo can cater to a broad audience, from budget-conscious consumers to those seeking premium services.

From a market perspective, the increasing subscriber base indicates a growing trust in Arlo’s brand and services. This can lead to increased market share, especially in regions where smart home security adoption is rising. However, investors should be aware of the competitive landscape, as companies like Ring and Nest are also vying for a share of the smart home market. Continued innovation and customer engagement will be important for sustaining growth and retaining market leadership.

Continued Subscription Growth Illustrates True User Benefits of Arlo Subscription Plans

SAN JOSE, Calif., July 9, 2024 /PRNewswire/ -- Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security brand, today announced its AI-powered subscription service has surpassed a milestone of 4 million paid accounts. Arlo's continued subscription growth is a testament of the benefits and value that consumers place on its subscription plans and the overall power of its service business.

"Subscriptions to Arlo's AI-powered service continue to grow in 2024, and we are proud to have achieved the 4 million subscriber milestone," said Matthew McRae, Chief Executive Officer of Arlo. "Arlo will continue to invest in our AI and SaaS platform and roll out numerous exciting new features and AI capabilities to further our position as the leader in the market. The team remains committed to providing an incredible user experience for current and new subscribers."

Arlo Secure enhances the features of Arlo devices and completes the security experience to provide consumers with total protection. Subscription plans allow users to act faster with one tap to protect their home and family, featuring 30 days of secure cloud storage of video recordings, smart interactive notifications, advanced object detection with AI, smart activity zones, and much more. Plans currently start at $7.99 per month, with options for unlimited cameras and advanced features including 24/7 Professional Monitoring for enhanced peace of mind.

Features of Arlo Secure, Secure Plus and Safe & Secure Pro subscriptions include¹: 

• 24/7 Emergency Response (Arlo Secure Plus, Safe & Secure Pro) – With one touch, dispatch fire, police, or medical responders to the camera's location. If directed by the user, Arlo's Emergency Response team can also provide critical location information to responders en route to better prepare them, such as gate codes, medical conditions of family members, and pet details.
• 24/7 Professional Monitoring (Arlo Safe & Secure Pro) – Grants access to highly trained live Security Experts who monitor and respond to emergency situations.
• Family Safety (Arlo Safe & Secure Pro) – Never miss a moment with the ability to know where opt-in family members have been, see their current location, or send help directly to them in an emergency via the Arlo Safe app.
• Crash Detection & Response (Arlo Safe & Secure Pro) – Advanced impact detection expedites emergency response in the event of a vehicle accident by sharing appropriate location and medical information with first responders via the Arlo Safe app.
• 4K Cloud-based Video Recording (All plans) – View 30 days of recordings securely stored on Arlo's SmartCloud platform for ultimate peace of mind and protection even if the device is damaged or stolen in a break-in, storm, or other physical incident.
• Smart Interactive Notifications (All plans) – Users can take quicker action by responding to rich notifications or viewing an animated preview of a video through the lock screen on their smartphone or other smart device.
• Advanced Object Detection with AI (All plans) – Arlo processes and filters 50 million events each day through advanced object detection backed by visual artificial intelligence, allowing for better recognition of people, packages, vehicles, and animals to add key context to notifications and reduce unwanted alerts.
• Smart Activity Zones (All plans) – Users can reduce unwanted notifications by highlighting specific areas on their property where they want motion to be detected, eliminating notifications from irrelevant movement such as tree branches or vehicle traffic on the street.
• Priority Care & Support (All plans) – Subscribers get priority technical support through the in-app Help Center with omnichannel access to phone, chat, community, or self-help articles.

Arlo subscribers can look forward to new releases later this year, including new service plans that integrate cutting-edge AI features to improve home security.

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. To date, Arlo has 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 services: Arlo Secure and Arlo Safe.

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 does not monetize personal data, provides enhanced controls for user data, supports privacy legislation, keeps user data safely secure, and puts security at the forefront of company culture.

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 Technologies, Inc.'s (the "Company" or "Arlo") expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding lowering the barrier of entry and broadening the market for DIT security and Arlo cameras, Arlo video doorbells, Arlo Secure, Arlo Secure Plus, and future Arlo products. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including the following: future demand for the Company's products may be lower than anticipated; consumers may choose not to utilize payment plans or to adopt the Company'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 the Company's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risk factors described in the Company's 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.

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1} Some features are subject to device capabilities and not available in all regions. Visit https://www.arlo.com/en-us/arlosecure.html to learn more.

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SOURCE Arlo Technologies, Inc.

FAQ

What milestone did Arlo Technologies reach on July 9, 2024?

Arlo Technologies surpassed 4 million paid subscription accounts.

What is the starting price for Arlo's subscription plans?

Arlo's subscription plans start at $7.99 per month.

What features are included in Arlo's Safe & Secure Pro plan?

The Safe & Secure Pro plan includes 24/7 professional monitoring, emergency response, family safety tracking, crash detection, and 4K cloud-based video recording.

What kind of AI features does Arlo's subscription service offer?

Arlo's service includes advanced object detection, smart activity zones, and smart interactive notifications.

What future plans did Arlo Technologies announce?

Arlo plans to release new service plans with cutting-edge AI features later this year.