SAN JOSE, Calif. - Arlo Technologies , Inc. (NYSE: NYSE:ARLO), known for its smart home security products, today announced a strategic partnership with insurance giant Allstate to provide enhanced protection plans for customers. This collaboration aims to offer an extended three-year protection for products purchased through Arlo's website, starting with the availability of Allstate Protection Plans on Arlo.com purchases.
Matthew McRae, CEO of Arlo Technologies, emphasized the common goal of safeguarding what customers value most, highlighting the synergy between Arlo's innovation and Allstate's expertise in protection and services. The partnership is expected to deliver a more seamless customer experience, leveraging the technological and service strengths of both companies.
Allstate Protection Plans are designed to offer product protection and support, and will now be available for Arlo's line of DIY security products, which includes cameras, video doorbells, floodlights, and home security systems. Suren Gupta, President of Protection Products and Enterprise Services at Allstate, noted the emotional importance of home security and the commitment to ensuring customer peace of mind.
Arlo, recognized for its AI- and CV-powered analytics and user-friendly product design, continues to focus on providing secure and private smart security solutions to its users. Allstate Protection Plans, a subsidiary of The Allstate Corporation (NYSE:ALL), serves over 140 million customers and is known for its customer-centric service approach.
This partnership announcement is based on a press release statement.
In other recent news, Arlo Technologies reported significant growth in its first-quarter financial results for 2024. The company achieved a 58% year-over-year increase in paid accounts, reaching 3.2 million, and a 24% growth in annual recurring revenue, which amounted to $227 million.
Service revenue, driven by pricing increases and growth in paid accounts, accounted for 46% of total revenue. Total revenue also saw a rise, up by 12% year-over-year to $124.2 million. In addition, Arlo renewed its strategic partnership with Verisure for another five years.
Looking forward, Arlo has provided estimates for the second quarter, projecting revenue to be between $120 million and $130 million, and non-GAAP net income per diluted share to range from $0.06 to $0.12. Analysts note that the company is well-positioned in the consumer market with its low-cost Essential 2 camera portfolio and is expected to maintain a non-GAAP service gross margin of around 75% for the year.
Despite projections of a muted macroeconomic environment in 2024, Arlo remains focused on its long-range plan, targeting 10 million paid accounts, $700 million in annual recurring revenue, and over 25% non-GAAP operating margin by 2030.
InvestingPro Insights
As Arlo Technologies (NYSE: ARLO) forges a new partnership with Allstate to enhance customer protection plans, the company's financial health and market performance offer additional insights for investors. Arlo's strategy to offer extended protection for its smart home security products is backed by a solid balance sheet, as one of the InvestingPro Tips highlights that the company holds more cash than debt. This financial stability may provide the firm with the agility needed to capitalize on such strategic partnerships and potentially fuel further growth.
From a market perspective, Arlo's stock has experienced a significant uptick in the past six months, boasting a 38.68% return, which aligns with the company's positive momentum following the announcement of the Allstate collaboration. This growth trajectory is complemented by a notable 5.81% increase in revenue over the last twelve months as of Q1 2024, as per the InvestingPro Data. While the company's P/E ratio stands at a negative figure of -69.08, indicating that it is not currently profitable, analysts predict profitability this year, which could signal a turning point for the company's earnings.
Investors interested in a deeper analysis can find additional InvestingPro Tips on Arlo Technologies by visiting https://www.investing.com/pro/ARLO. With 10 tips currently available, including insights on earnings revisions and price/book multiples, InvestingPro offers a comprehensive look at the factors influencing Arlo's market position. For those seeking to enhance their investment strategy, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking even more expert analysis and data.
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