ARLO TECHNOLOGIES Reports Q2 Earnings for Fiscal Year 2023
August 14, 2023
🌥️Earnings Overview
On August 10 2023, ARLO TECHNOLOGIES ($NYSE:ARLO) announced their financial results for the second quarter of Fiscal Year 2023 (ending June 30 2023). Total revenue for the quarter was USD 115.1 million, representing a decrease of 3.3% compared to the same period the year before. Net income was USD -7.4 million, an improvement from the prior year’s results of -11.6 million.
Share Price
The stock opened at $10.1 and closed at $10.2, showing an increase of 0.9% from the last closing price of 10.1. This positive result for ARLO TECHNOLOGIES suggests that investors are continuing to show confidence in the company’s ability to deliver on its long-term goals and to continue to innovate and provide high-quality products and services. Investors were likely encouraged by the reported increase in revenue and net income, which was driven by strong sales in the consumer electronics and technology sectors.
Overall, ARLO TECHNOLOGIES has been able to sustain its strong financial performance amidst a challenging market environment, and this latest report reinforces the company’s commitment to delivering value for shareholders. Going forward, the company plans to focus on developing new products and services to continue to drive growth and profitability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arlo Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 472.76 | -58.2 | -12.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arlo Technologies. More…
| Operations | Investing | Financing |
| 6.33 | -14.49 | -15.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arlo Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 269.02 | 187.26 | 0.87 |
Key Ratios Snapshot
Some of the financial key ratios for Arlo Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.4% | – | -12.1% |
| FCF Margin | ROE | ROA |
| 0.6% | -42.6% | -13.3% |
Analysis
At GoodWhale, we conducted an analysis of ARLO TECHNOLOGIES‘s wellbeing. The Star Chart shows that ARLO TECHNOLOGIES is strong in asset, growth, but weak in dividend and profitability. With an intermediate health score of 4/10 with regard to its cashflows and debt, ARLO TECHNOLOGIES is likely to sustain future operations in times of crisis. We classify ARLO TECHNOLOGIES as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Such a company may be attractive to value investors, who are focused on the current financial performance of the business and looking for it to increase in the future. On the other hand, growth investors may also be interested in ARLO TECHNOLOGIES due to its potential for future growth, as well as its presence in a fast-growing industry. Ultimately, any investor looking to invest in a company with a strong asset base and potential for future growth should consider ARLO TECHNOLOGIES. More…
Peers
The company was founded in 2007 and is headquartered in San Mateo, California. Arlo has a wide range of products that cater to both home and business security needs. The company offers both indoor and outdoor cameras, as well as video doorbells and security lights. Arlo’s products are easy to install and can be controlled via the company’s mobile app. Arlo’s main competitors are Thruvision Group PLC, Senstar Technologies Ltd, and Synectics PLC. These companies also offer security cameras and systems, but they each have their own unique selling points. Thruvision Group PLC is a UK-based company that specializes in body-worn cameras. Senstar Technologies Ltd is a Canadian company that offers a wide range of security solutions, including video surveillance, access control, and perimeter security. Synectics PLC is a UK-based company that specializes in video surveillance systems.
– Thruvision Group PLC ($LSE:THRU)
Thruvision Group is a technology company that provides solutions for security, crowd management, and people flow management. The company has a market cap of 33.72M as of 2022 and a ROE of -12.33%. Thruvision’s solutions are used in a variety of settings, including airports, stadiums, and mass transit systems.
– Senstar Technologies Ltd ($NASDAQ:SNT)
Senstar Technologies Ltd is a Canadian company that specializes in the development and manufacture of physical security products. The company has a market capitalization of $39.28 million and a return on equity of -3.59%. Senstar’s products are used in a variety of industries, including government, healthcare, finance, retail, and education.
– Synectics PLC ($LSE:SNX)
Synetec PLC is a provider of technology solutions. The company operates in three segments: Solutions, Services, and Software. The Solutions segment offers technology solutions that help organizations to be more efficient and effective. The Services segment provides professional services that help organizations to implement and use the company’s solutions. The Software segment develops and sells software products that complement the company’s solutions.
Summary
Investors in ARLO TECHNOLOGIES have seen a mixed result for the second quarter of Fiscal Year 2023. Total revenue dropped 3.3% year over year to $115.1 million, however net income improved from -11.6 million to -7.4 million. Despite the decrease in revenue, the company has seen a substantial improvement in net income, showing that its cost-cutting measures have been effective. Investors should keep an eye on how ARLO TECHNOLOGIES performs in the upcoming quarters as it attempts to drive further efficiency and improve profitability.
