ARLO SURPASSES 3 MILLION PAID SUBSCRIPTION ACCOUNTS

Rhea-AI Summary

Arlo Technologies, Inc. announces surpassing 3 million paid accounts for its AI-powered subscription service, showcasing ongoing innovation success. Arlo offers various subscription plans starting at $12.99 per month, including features like 24/7 Emergency Response, Professional Monitoring, Family Safety, Crash Detection, 4K Cloud-based Video Recording, Advanced Object Detection with AI, Smart Activity Zones, and Priority Care & Support.

Market Research Analyst

The announcement by Arlo Technologies, Inc. regarding surpassing 3 million paid accounts for its AI-powered subscription service represents a significant milestone for the company and the smart home security industry. This achievement not only demonstrates strong market adoption but also indicates a successful strategy in the company's innovation and expansion of its services. A key aspect of this growth is the low churn rate, which suggests high customer satisfaction and the stickiness of Arlo's product offerings.

The subscription model, particularly in the tech sector, is a critical revenue driver as it provides predictable, recurring income and helps companies to scale efficiently. The tiered pricing strategy, starting at $12.99 and scaling up to $24.99 per month, allows Arlo to tap into different segments of the market, catering to varying customer needs and willingness to pay. The introduction of new features and AI capabilities is expected to further drive subscription growth and could potentially increase the average revenue per user (ARPU), a crucial metric for investors.

It's important to note that the smart home security market is highly competitive, with tech giants and startups alike vying for market share. Arlo's continued innovation and feature rollout could help maintain its competitive edge. However, investors should monitor the market dynamics closely, including competitor moves and consumer preferences, as these could impact Arlo's market position and growth trajectory.

Financial Analyst

Arlo Technologies' surpassing of the 3 million subscriber mark earlier than expected is a bullish signal for investors, as it reflects both the company's operational execution and the market's positive reception to its offerings. The company's focus on AI and SaaS platforms is a strategic move in an industry that values technological advancement and integration. Investors should consider the implications of this subscriber growth on the company's future revenue streams and profitability.

Furthermore, the expansion of Arlo's service business, including premium features such as 24/7 Emergency Response and Professional Monitoring, represents an upselling opportunity that could improve the company's margins. The financial health of Arlo can be further assessed by examining the cost of acquiring new subscribers and the lifetime value of these subscribers, which are key indicators of the sustainability of the company's growth.

As the company rolls out additional features and capabilities, the capital expenditures and research and development costs associated with these innovations should be evaluated against the potential for increased revenue and market share. Investors should also consider the company's guidance for future earnings and any changes in operational expenses as a result of the expanded service offerings.

Technology Industry Analyst

The announcement of Arlo Technologies' growth in subscription services is indicative of a larger trend in the technology industry towards service-based business models. Arlo's focus on AI and machine learning capabilities within its security solutions is reflective of the industry's emphasis on smart, connected home devices. The company's ability to process and filter 50 million events each day showcases the scale at which modern security systems operate and the importance of AI in managing vast amounts of data.

Arlo's innovation, such as the Smart Interactive Notifications and Advanced Object Detection, highlights the importance of user experience in the technology sector. These features are designed to reduce false alarms and enhance the relevance of notifications, which is a common challenge in the security industry. The integration of high-quality video recordings and cloud storage also emphasizes the growing need for cybersecurity measures in smart home devices.

As Arlo continues to release new features and services, it's crucial to monitor how these innovations align with consumer privacy concerns and regulatory standards. The company's ability to navigate these issues while continuing to innovate will be key to its long-term success in a market that is becoming increasingly aware of data security and privacy.

Continued Subscription Growth Illustrates Success of Ongoing Innovation and Arlo's Robust Hardware and Software Solutions

SAN JOSE, Calif., Feb. 29, 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 3 million paid accounts. Arlo's continued subscription growth illustrates the success of its ongoing innovations and a robust ecosystem of security solutions for home, business, and personal safety.

"Arlo launched the first consumer AI subscription in June of 2018, revolutionizing the security market and foretelling the incredible value the technology can create for users across many industries. Since then, we have continued to invest in our AI and SaaS platform which is at the core of Arlo's incredible user experience and low churn rates," said Matthew McRae, Chief Executive Officer of Arlo. "The 3 million subscriber milestone, which came earlier than expectations, is a testament to the true user benefits of our plans and the overall power of our service business. Arlo's innovation will continue as we roll out numerous exciting new features and AI capabilities over the course of this year that will drive further subscriptions and continue our position as the true leader in the market."

Arlo Secure subscription plans currently start at $12.99 per month to support unlimited home security devices with up to 4K video recordings. For those who want even greater peace of mind, Arlo Secure Plus grants access to the potentially lifesaving 24/7 Emergency Response feature for $17.99 per month. The Arlo Safe & Secure Pro plan for $24.99 per month provides the best value for complete security at home, 24/7 Professional Monitoring, and safety on the go. 

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.

Throughout the rest of the year, Arlo will continue to focus on releasing leading-edge features and services to enhance the security and protection of current and new subscribers.

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.

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 is the milestone announced by Arlo Technologies, Inc. in the press release?

Arlo Technologies, Inc. announced surpassing 3 million paid accounts for its AI-powered subscription service.

What are the subscription plans offered by Arlo Technologies, Inc. and their starting prices?

Arlo Secure subscription plans start at $12.99 per month, Arlo Secure Plus is priced at $17.99 per month, and Arlo Safe & Secure Pro is available for $24.99 per month.

What features are included in the Arlo Secure, Secure Plus, and Safe & Secure Pro subscription plans?

Features include 24/7 Emergency Response, 24/7 Professional Monitoring, Family Safety, Crash Detection & Response, 4K Cloud-based Video Recording, Smart Interactive Notifications, Advanced Object Detection with AI, Smart Activity Zones, and Priority Care & Support.

Where can one find more information on Arlo smart home security products and services?

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