Arlo Technologies, Inc. (NYSE: ARLO)

Arlo Technologies Inc is transforming the ways in which people can protect everything that matters to them with advanced home business and personal security services that combine a globally scaled cloud platform advanced monitoring and analytics capabilities and award winning app controlled devices to create a personalized security ecosystem. Arlo’s deep expertise in cloud services cutting edge artificial intelligence and computer vision analytics wireless connectivity and intuitive user experience design delivers seamless smart home security for Arlo users that is easy to setup and engage with every day. Our highly secure 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 rooted in a commitment to safeguard privacy for our users and their personal data.

Arlo generates revenue through the sale of smart security devices and subscription services. The company offers several categories of award winning smart security devices including smart Wi-Fi and LTE enabled cameras video doorbells floodlight cameras and home security systems. Subscription services such as Arlo Secure Arlo Total Security and Arlo Safe provide advanced AI based detection DIY home security professional monitoring enhanced Emergency Response capability comprehensive subscription service with professional monitoring and security hardware and a personal safety service with panic button accessory. Arlo SmartCloud is a SaaS solution that delivers advanced smart security cloud services with Arlo Intelligence for businesses looking to rapidly integrate and deploy smart security at scale. These subscription services create incremental recurring revenue as the company increases the number of registered accounts on its platform and keeps them highly engaged through its mobile app.

The company operates through the following segments.

• Arlo Secure is our subscription service that provides advanced AI based detection DIY home security as well as professional monitoring and an enhanced Emergency Response capability. These premium services boast support for unlimited household security devices along with advanced AI object detection and smarter more interactive notifications. Additionally the 24 7 one touch Emergency Response is available with the Secure Premium plan enabling Arlo users to directly dispatch first responders during an emergency for quicker action.

• Arlo Total Security is a comprehensive subscription service that offers 24 7 professional monitoring and security hardware with affordable monthly pricing and no upfront costs. At the heart of this innovative subscription service is Arlo’s Home Security System which uses a first of its kind all in one multi sensor capable of eight different sensing functions. With its all in one design the Arlo multi sensor can be placed anywhere from walls to windows and doors to underneath sinks and water heaters to detect motion door window openings and tilt water leaks freezing temperatures lighting changes and T3 T4 smoke CO alarm audio sirens. Managed through the Arlo Secure App the award winning security system pairs with Arlo's advanced video security cameras such as the Arlo Pro 6 to enable video verification by 24 7 Professional Monitoring security experts of an emergency situation.

• Arlo Safe is a personal safety service with a panic button accessory featuring one tap 24 7 Emergency Response family safety and more. Ideal for everyone from city dwellers walking home at night to college students out with friends teenagers walking to from school daily commuters or even elderly family members Arlo Safe is an all encompassing 24 7 personal safety solution for ultimate peace of mind while on the go. Features including 24 7 live agent emergency support location sharing family check ins and safety alerts provide on the go protection to keep the user safe in a time of need. Working in tandem with the Arlo Safe app the Arlo Safe button can be used to alert safety experts and rapidly send emergency responders to the user’s location anytime day or night.

• Arlo SmartCloud is a SaaS solution that delivers advanced smart security cloud services with Arlo Intelligence for businesses looking to rapidly integrate and deploy smart security at scale. Its comprehensive offering includes computer vision multi object detection audio analysis security services scaled storage and numerous ecosystem integrations. Arlo SmartCloud is a fully managed robust global platform built for security scalability and reliability that can be deployed as part of advanced subscription services for hardware companies automotive companies service providers insurance companies home builders smart communities smart cities traditional security companies and other related verticals.

Arlo believes it is well positioned to compete within the broader smart security market both within and beyond the home as it continues to launch new services and product lines on its highly secure globally scaled platform. The principal competitive factors impacting the market for its services and products include price service offerings functionality brand technology design distribution channels and customer service. Arlo believes it competes favorably in these areas based on its market position in the U S consumer network connected camera systems market best in class technology direct relationship with users and user engagement trusted Arlo platform strong Arlo brand and channel partners and deep strategic partnerships with key suppliers such as Infineon Technologies Americas Corp OmniVision Technologies Inc Realtek Semiconductor Corp and Qualcomm Incorporated. The company faces competition from large global technology companies such as Amazon Blink and Ring and Google Nest security service vendors such as ADT telecom service providers such as AT&T Verizon and Comcast and other companies such as TP Link Eufy and Wyze.

Arlo serves individuals and business owners who use smart security devices to protect their loved ones and property. Outside of the home the company has seen adoption of its cellular enabled products in a variety of use cases such as neighborhood watch construction site monitoring wildlife and outdoor trail surveillance and event monitoring. Arlo believes the small business government and direct home monitoring channels provide growth areas in addition to its retail and e commerce presence. The company sells its products through multiple sales channels worldwide including traditional and online retailers wholesale distributors broadcast channels wireless carriers security solution providers and directly to consumers through its own online store. Specific retail partners include Amazon Best Buy Walmart Sam’s Club Home Depot Lowe’s and Costco. Wholesale distributors include Synnex Corporation and D&H Distributing Company. Broadcast channels include HSN and QVC. Wireless carriers include AT&T T-Mobile Verizon Telstra and Vodafone. Security solution providers include Verisure. Arlo.com is the online direct to consumer store launched in the third quarter of 2019.