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NEWS RELEASE arlo Arlo Reports First Quarter 2021 Results Exceeded High - End of EPS Guidance for the Quarter Delivered Record GAAP and Non - GAAP Gross Margin Service Revenue Growth of 54.8 % Year Over Year 115.3 % Paid Account Growth Year Over Year Ended Quarter with Cash , Cash Equivalents and Short - term Investments Balance at $ 177.1 million with No Debt SAN JOSE , California - May 5 , 2021 - Arlo Technologies , Inc. ( NYSE : ARLO ) , a leading internet - connected security camera brand , today reported financial results for the first quarter ended March 28 , 2021 . Financial Highlights ( 1 ) • Revenue of $ 82.6 million , an increase of 26.1 % year over year . • GAAP gross profit of $ 25.8 million , an increase of 552.8 % year over year ; non - GAAP gross profit of $ 26.7 million , an increase of 451.8 % year over year . • GAAP gross margin of 31.3 % ; non - GAAP gross margin of 32.3 % . • GAAP net loss per diluted share of $ ( 0.13 ) ; non - GAAP net loss per diluted share of $ ( 0.03 ) . • Cash , cash equivalents and short - term investments of $ 177.1 million and no debt at the end of Q1 . " Clearly , Arlo is not the same company it was a year ago . In 2020 we successfully pivoted to become services - focused to create a more predictable , more profitable business and our strong Q1 results are further proof of our progress . We delivered revenue above the high end of our guidance range and up 26 % over last year . With the increasing contribution of our services business , our GAAP and non - GAAP gross margin was up 10 % sequentially to reach an all - time record and , coupled with continued operating discipline , we improved our bottom line by more than $ 24 million from Q1 last year . " said Matthew McRae , Chief Executive Officer of Arlo Technologies . “ Our entire product line - up has been refreshed and our market leading innovation is shown in the many accolades and " best of " reviews we receive . With our new business model , a free three - month trial of Arlo Smart , attached to all of our refreshed products , each quarter we set records for new accounts and materially increase the number of subscriber additions . This is producing a fast - growing , high margin revenue stream that we expect to eclipse the $ 100 million level for the full year . With the team executing well , I am very excited about what Arlo can accomplish in 2021. " March 28 , 2021 Three Months Ended December 31 , 2020 March 29 , 2020 ( in thousands , except percentage and per share data ) Revenue GAAP Gross Margin Non - GAAP Gross Margin ( 1 ) GAAP Net Income ( Loss ) per Diluted Share $ 82,556 $ 114,836 $ 65,450 31.3 % 21.4 % 6.0 % 32.3 % 22.4 % 7.4 % $ ( 0.13 ) $ ( 0.19 ) $ ( 0.51 ) Non - GAAP Net Income ( Loss ) per Diluted Share ( 1 ) $ ( 0.03 ) $ ( 0.08 ) $ ( 0.34 ) ( 1 ) Reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non - GAAP basis are provided at the end of this press release . Page 1