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NEWS RELEASE arlo Arlo Reports Third Quarter 2021 Results Exceeded High - End of both Revenue and non - GAAP EPS Guidance for the Quarter Announced Annual Recurring Revenue of $ 80 million , growing 103 % year over year 42 % Year over Year growth in Service Revenue 146 % Year over Year growth in Cumulative Paid Accounts Ended Quarter with Cash , Cash Equivalents and Short - term Investments Balance at $ 166.1 million , with No Debt Carlsbad , California - November 9 , 2021 - Arlo Technologies , Inc. ( NYSE : ARLO ) , a leading internet - connected security camera brand , today reported financial results for the third quarter ended October 3 , 2021 . Financial Highlights ( 1 ) • • Revenue of $ 111.1 million , an increase of 0.8 % year over year . GAAP gross profit of $ 24.3 million , an increase of 13.7 % year over year ; non - GAAP gross profit of $ 25.1 million , an increase of 10.7 % year over year . • GAAP gross margin of 21.9 % ; non - GAAP gross margin of 22.6 % . • GAAP net loss per diluted share of $ ( 0.18 ) ; non - GAAP net loss per diluted share of $ ( 0.08 ) . • Cash , cash equivalents and short - term investments of $ 166.1 million and no debt . " I am proud to say the Arlo team delivered strong results across the entire business in Q3 . Revenue and non - GAAP EPS both came in above the high end of our guidance range , as our team navigated considerable global supply chain challenges . Our new business model for services continued to gather momentum , adding a record 182,000 paid accounts in the quarter , an increase of 214 % year over year . We surpassed 900,000 total paid accounts on October 18th , which we believe puts us on a clear path to meet our 1,000,000 paid account goal significantly ahead of our year - end earnings call and exceed $ 100 million in service revenue this year . Our impressive paid account growth propelled our service revenue to a record $ 27.0 million , up 42 % year over year , while our non - GAAP service gross margin of 59.5 % was also a record for Arlo as a standalone company . In addition , to provide new insight into our rapidly growing services business , we reported our Annual Recurring Revenue ( or ARR ) as $ 80 million dollars in Q3 , growing 103 % year over year . Our ARR is the fastest growing and highest margin portion of our total services revenue and represents the annualized recurring service revenue we derive from our paid accounts . " said Matthew McRae , Chief Executive Officer of Arlo Technologies . " While our product revenue was constrained by global supply chain challenges , our total revenue grew year over year by 0.8 % and was significantly over - indexed by non - GAAP gross profit , which grew 10.7 % year - over - year . Our innovation continues on all fronts . We are pleased with the early results we are seeing from the recent launch of Arlo Secure and Arlo Secure Plus , our new Service plans , which extend Arlo's technological leadership , while adding significant value to our customers . Our industry - leading hardware continues to garner acclaim , winning multiple awards , while we just launched the new Arlo Go 2 smart - security camera exclusively with Verizon . With tremendous progress across the business , we are raising our revenue guidance for Q4 , raising guidance for full year , and raising guidance for our year - end cash balance . " Page 1