Annual recurring revenue (ARR)(1) ended at $316 million, growing 34% year over year
Record subscriptions and services revenue of $78 million, growing 30% year over year
Record GAAP subscriptions and services gross margin of 84%; record non-GAAP subscriptions and services gross margin of 85%
Record adjusted EBITDA(2) of $18 million; record adjusted EBITDA margin of 14%
Record GAAP net income per share (EPS) of $0.03; record non-GAAP EPS of $0.17
Carlsbad, California – August 7, 2025 – Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security platform company, today reported financial results for the second quarter ended June 29, 2025.
“The launch of our new AI platform, Arlo Secure 6, earlier this year is driving growth in our subscriptions business and propelling the company to record financial results. Subscriptions and services revenue grew 30% to $78 million and ARR increased to $316 million, up 34% year over year. Non-GAAP subscriptions and services gross margin reached 85%, an increase of 850 basis points year over year, and contributed to a record GAAP net income per share of $0.03,” said Matthew McRae, Chief Executive Officer of Arlo Technologies. “This subscription momentum coupled with our Holiday product launches and announcement of ADT as a strategic partner positions Arlo for continuing success.”
Financial Highlights
•Ended the quarter with ARR(1) of $315.7 million, growing 34.3% year over year.
•Record subscriptions and services revenue of $78.2 million, an increase of 29.7% year over year and accounting for 60.4% of total revenues.
•Record GAAP subscriptions and services gross margin of 84.3% and non-GAAP subscriptions and services gross margin of 84.9%; each up 850 basis points year over year.
•Record GAAP gross margin of 44.9% and non-GAAP gross margin of 45.8%; each up approximately 800 basis points year over year.
•Record adjusted EBITDA(2) of $18.0 million, up 82.3% year over year with record adjusted EBITDA margin of 13.9%.
•Record GAAP net income per share of $0.03 and non-GAAP net income per share of $0.17.
•Cumulative paid accounts increased to 5.1 million, growing 28.5% year over year.
•Free cash flow (FCF)(3) of $34.0 million with FCF margin of 13.7% in the first half of 2025.
•Ended with cash and cash equivalents and short-term investments balance of $160.4 million, up $16.4 million year over year.
Page 1
Three Months Ended
Six Months Ended
June 29, 2025
March 30, 2025
June 30, 2024
June 29, 2025
June 30, 2024
(In thousands, except percentage and per share data)
Revenue
$
129,405
$
119,066
$
127,447
$
248,471
$
251,647
GAAP gross margin
44.9
%
44.3
%
36.8
%
44.6
%
37.4
%
Non-GAAP gross margin (2)
45.8
%
45.5
%
37.9
%
45.7
%
38.6
%
GAAP net income (loss) per share - basic
$
0.03
$
(0.01)
$
(0.12)
$
0.02
$
(0.22)
Non-GAAP net income per share - diluted (2)
$
0.17
$
0.15
$
0.10
$
0.33
$
0.19
_________________________
(1) ARR represents and is defined as the annualized paid subscriptions and services revenue we expect to recognize from subscription contracts, as calculated by taking the average paid subscriptions and services revenue for the reporting period multiplied by the number of subscription accounts at the end of the reporting period.
(2) Reconciliation of financial measures computed on a GAAP basis to the most directly comparable financial measures computed on a non-GAAP basis is provided at the end of this press release.
(3) FCF is calculated as net cash provided by operating activities less capital expenditures. FCF margin is the FCF divided by revenue.
Third Quarter 2025 Business Outlook (4) (5)
A reconciliation of our business outlook on a GAAP and non-GAAP basis is provided in the following table:
Three Months Ended September 28, 2025
Revenue
Net income per share - diluted
(In millions, except per share data)
GAAP
$133 - $143
$0.04 - $0.10
Estimated adjustment for stock-based compensation and other expense
—
$0.08
Non-GAAP
$133 - $143
$0.12 - $0.18
_________________________
(4) Business outlook does not include estimates for any currently unknown income and expense items which, by their nature, could arise late in a quarter, including: litigation reserves, net; impairment charges; discrete tax benefits or detriments relating to tax windfalls or shortfalls from equity awards; and any additional impacts relating to the implementation of U.S. tax reform. New material income and expense items such as these could have a significant effect on our guidance and future results.
(5) The current global tariff environment is uncertain. Our products are manufactured outside the U.S., and consequently tariffs increase our product costs, which could impact our sales and reduces our product margin. The outlook ranges include the impact of our current estimate on tariff costs.
Page 2
Investor Conference Call / Webcast Details
Arlo will review the second quarter 2025 results and discuss management’s expectations for the third quarter 2025 today, Thursday, August 7, 2025 at 5:00 p.m. ET (2:00 p.m. PT). To view the accompanying presentation, a live webcast of the conference call will be available on Arlo’s Investor Relations website at https://investor.arlo.com. The toll-free dial-in number for the live audio call is (833) 470-1428. The international dial-in number for the live audio call is (404) 975-4839. The conference ID for the call is 290612. A replay of the call will be available via the web at https://investor.arlo.com.
About Arlo Technologies, Inc.
Arlo is an award-winning, industry leader that is transforming the ways in which people can protect everything that matters to them with advanced home, business, and personal security solutions. Arlo’s deep expertise in AI- and CV-powered analytics, cloud services, user experience and product design, and innovative wireless and RF connectivity enables the delivery of a seamless, smart security experience for Arlo users that is easy to set up and interact with every day. Arlo’s 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. To date, Arlo has launched several categories of award-winning connected devices, software and services. These include wire-free, smart Wi-Fi and LTE-enabled security cameras, video doorbells, floodlights, security system, and Arlo's subscription services: Arlo Secure and Arlo Safe.
With a mission to bring users peace of mind, Arlo is as passionate about protecting user privacy as it is about safeguarding homes and families. Arlo is committed to implementing industry standards for data protection designed to keep users’ personal information private and in their control. Arlo does not monetize personal data, provides enhanced controls for user data, supports privacy legislation, keeps user data safely secure, and puts security at the forefront of company culture.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 for Arlo Technologies, Inc.:
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent our expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding our potential future business, operating performance and financial condition, including descriptions of our expected revenue and profitability (and related timing), GAAP and non-GAAP gross margins, adjusted EBITDA and adjusted EBITDA margins, tax rates, expenses, cash outlook, free cash flow and free cash flow margins; strategic objectives and initiatives; the recurring revenue business model; expectations regarding market expansion and future growth, including with respect to our long-range plan targets; expectations regarding the ability of our new AI platform, Arlo Secure 6, to drive growth and propel us to record financial results; expectations regarding our subscription momentum, holiday product launches and recent strategic partnerships to position us for continuing success; and others. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including the following: future demand for our products may be lower than anticipated, including due to inflation, fluctuating consumer confidence, banking failures and rising interest rates; we may be unsuccessful in developing and expanding our sales and marketing capabilities; we may not be able to increase sales of our paid subscription services; consumers may choose not to adopt our new product offerings or adopt competing products; product performance may be adversely affected by real world operating conditions; we may be unsuccessful or experience delays in manufacturing and distributing our new and existing products; and we may fail to manage costs and cost saving initiatives, the cost of developing new products and manufacturing and distribution of our existing offerings. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements.
The recent announcements of substantial new U.S. and international tariffs have created a dynamic and unpredictable trade landscape, which is adversely impacting, and may continue to adversely impact, our business. Current or future tariffs impacting our products, which are manufactured outside of the United States, have raised and may further raise our product costs. In addition, other trade restrictions could negatively impact our ability to obtain finished products from our ex-U.S. manufacturers and suppliers and, therefore, delay or impede our product deliveries. Tariff-related cost pressures and supply chain disruptions may lead to reputational harm if we are unable to deliver products or services on expected timelines or if any price increases are poorly received by customers or business partners. Furthermore, ongoing uncertainty regarding trade disputes and other political tensions between the United States and other countries, particularly in Asia, may also exacerbate unfavorable macroeconomic conditions, which may negatively impact international customer demand for our products or services and may lead to increased preference for local competitors. While we continue to monitor these developments, the full impact of these risks remains uncertain, and any prolonged economic downturn, escalation in trade tensions or deterioration in international perception of U.S.-based companies could materially and adversely affect our business, results of operations and financial condition.
Further information on potential risk factors that could affect our business are detailed in our periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Risk Factors” in the most recently filed Annual Report and Quarterly Report filed with the Securities and Exchange Commission (the “SEC”) and subsequent filings with the SEC. Given these circumstances, you should not place undue reliance on these forward-looking statements. We undertake no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Non-GAAP Financial Measures:
To supplement our unaudited financial data prepared on a basis consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), we disclose certain non-GAAP financial measures that exclude certain charges, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income (loss) and non-GAAP net income (loss) per diluted share. These supplemental measures exclude adjustments for stock-based compensation expense, restructuring charges, write-off of deferred financing costs, separation expenses, amortization
Page 4
of software development cost, depreciation expenses, litigation reserves, net, and the related tax effects. In addition, we use free cash flow as a non-GAAP measure when assessing the sources of liquidity, capital resources, and quality of earnings. We believe that free cash flow is helpful in understanding our capital requirements and provides an additional means to reflect the cash flow trends in our business.
Beginning in the first quarter of 2025, we no longer present non-GAAP operating income (loss) as our management no longer uses this metric for purposes of understanding and evaluating our operating performance.
These non-GAAP measures are not in accordance with, or an alternative for GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.
In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our operating performance on a period-to-period basis because such items are not, in our view, related to our ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP measures, provide useful information to investors by offering:
•the ability to make more meaningful period-to-period comparisons of our on-going operating results;
•the ability to better identify trends in our underlying business and perform related trend analyses;
•a better understanding of how management plans and measures our underlying business; and
•an easier way to compare our operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.
The following are explanations of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding them in the reconciliations of these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges for the estimated fair value of restricted stock units (RSU), performance-based restricted stock units, and shares under the employee stock purchase plan granted to employees, and the payroll taxes associated with stock-based compensation. We believe that the exclusion of these charges provides for more accurate comparisons of our operating results to peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, we believe it is useful to investors to understand the specific impact stock-based compensation expense has on our operating results.
Other non-GAAP items are the result of either unique or unplanned events, including, when applicable: restructuring charges, write-off of deferred financing costs, separation expenses, amortization of software development cost, depreciation expenses, litigation reserves, net, and the related tax effects. It is difficult to predict the occurrence or estimate the amount or timing of these items in advance. Although these events are reflected in our GAAP financial statements, these unique transactions may limit the comparability of our on-going operations with prior and future periods. The amounts result from events that often arise from unforeseen circumstances, which often occur outside of the ordinary course of continuing operations. Therefore, the amounts do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred.
Source: Arlo-F
***Financial Tables
Page 5
ARLO TECHNOLOGIES, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of
June 29, 2025
December 31, 2024
(In thousands, except share and per share data)
ASSETS
Current assets:
Cash and cash equivalents
$
71,244
$
82,032
Short-term investments
89,157
69,419
Accounts receivable, net
61,450
57,332
Inventories
30,877
40,633
Prepaid expenses and other current assets
15,889
13,190
Total current assets
268,617
262,606
Property and equipment, net
8,980
4,765
Operating lease right-of-use assets, net
14,147
15,698
Goodwill
11,038
11,038
Long-term investment
12,500
—
Other non-current assets
4,459
4,293
Total assets
$
319,741
$
298,400
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
50,178
$
63,784
Deferred revenue
42,107
27,248
Accrued liabilities
89,998
85,730
Total current liabilities
182,283
176,762
Non-current operating lease liabilities
16,603
18,357
Other non-current liabilities
2,581
2,372
Total liabilities
201,467
197,491
Commitments and contingencies
Stockholders’ Equity:
Preferred stock: $0.001 par value; 50,000,000 shares authorized; none issued or outstanding
—
—
Common stock: $0.001 par value; 500,000,000 shares authorized; shares issued and outstanding: 104,288,914 at June 29, 2025 and 100,885,158 at December 31, 2024
104
101
Additional paid-in capital
513,854
498,739
Accumulated other comprehensive income (loss)
(8)
34
Accumulated deficit
(395,676)
(397,965)
Total stockholders’ equity
118,274
100,909
Total liabilities and stockholders’ equity
$
319,741
$
298,400
Page 6
ARLO TECHNOLOGIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Six Months Ended
June 29, 2025
March 30, 2025
June 30, 2024
June 29, 2025
June 30, 2024
(In thousands, except percentage and per share data)
Revenue:
Subscriptions and services
$
78,175
$
68,849
$
60,261
$
147,024
$
116,968
Products
51,230
50,217
67,186
101,447
134,679
Total revenue
129,405
119,066
127,447
248,471
251,647
Cost of revenue:
Subscriptions and services
12,235
12,265
14,557
24,500
28,153
Products
59,095
54,074
66,036
113,169
129,260
Total cost of revenue
71,330
66,339
80,593
137,669
157,413
Gross profit
58,075
52,727
46,854
110,802
94,234
Gross margin
44.9
%
44.3
%
36.8
%
44.6
%
37.4
%
Operating expenses:
Research and development
18,489
16,165
19,561
34,654
40,354
Sales and marketing
21,103
20,203
17,698
41,306
35,068
General and administrative
16,334
17,785
21,430
34,119
40,778
Other operating expense
216
25
966
241
1,445
Total operating expenses
56,142
54,178
59,655
110,320
117,645
Income (loss) from operations
1,933
(1,451)
(12,801)
482
(23,411)
Operating margin
1.5
%
(1.2)
%
(10.0)
%
0.2
%
(9.3)
%
Interest income, net
1,344
1,316
1,495
2,660
2,881
Other non-operating expense, net
(407)
(198)
(18)
(605)
(43)
Income (loss) before income taxes
2,870
(333)
(11,324)
2,537
(20,573)
Provision (benefit) for income taxes
(254)
502
236
248
631
Net income (loss)
$
3,124
$
(835)
$
(11,560)
$
2,289
$
(21,204)
Net income (loss) per share:
Basic
$
0.03
$
(0.01)
$
(0.12)
$
0.02
$
(0.22)
Diluted
$
0.03
$
(0.01)
$
(0.12)
$
0.02
$
(0.22)
Weighted average shares to compute net income (loss) per share:
Basic
103,885
102,217
97,843
103,060
97,051
Diluted
108,061
102,217
97,843
107,692
97,051
Page 7
ARLO TECHNOLOGIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 29, 2025
June 30, 2024
(In thousands)
Cash flows from operating activities:
Net income (loss)
$
2,289
$
(21,204)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation expense, net of amounts of capitalized
31,995
39,470
Depreciation and amortization
1,687
1,684
Allowance for credit losses and non-cash changes to reserves
—
(225)
Deferred income taxes
(107)
(5)
Discount accretion on investments and other
(1,390)
(1,615)
Changes in assets and liabilities:
Accounts receivable, net
(4,188)
3,805
Inventories
9,826
(6,785)
Prepaid expenses and other assets
(2,758)
(2,254)
Accounts payable
(13,888)
18,785
Deferred revenue
14,956
5,582
Accrued and other liabilities
1,327
(10,970)
Net cash provided by operating activities
39,749
26,268
Cash flows from investing activities:
Purchases of property and equipment, including capitalized software
(5,778)
(651)
Purchases of short-term investments
(83,390)
(111,519)
Purchase of long-term investment
(12,500)
—
Proceeds from maturities of short-term investments
65,000
111,902
Net cash used in investing activities
(36,668)
(268)
Cash flows from financing activities:
Proceeds related to employee benefit plans
2,280
2,380
Repurchase of common stock
(16,149)
—
Restricted stock unit withholdings
—
(22,481)
Net cash used in financing activities
(13,869)
(20,101)
Net increase (decrease) in cash, cash equivalents, and restricted cash
(10,788)
5,899
Cash, cash equivalents, and restricted cash, at beginning of period
82,032
60,653
Cash, cash equivalents, and restricted cash, at end of period
$
71,244
$
66,552
Non-cash investing activities:
Purchases of property and equipment included in accounts payable and accrued liabilities
$
566
$
233
Stock-based compensation expense capitalized for software development
$
868
$
—
Page 8
ARLO TECHNOLOGIES, INC.
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES
UNAUDITED STATEMENT OF OPERATIONS DATA:
Three Months Ended
Six Months Ended
June 29, 2025
March 30, 2025
June 30, 2024
June 29, 2025
June 30, 2024
(In thousands, except percentage data)
GAAP gross profit:
Subscriptions and services
$
65,940
$
56,584
$
45,704
$
122,524
$
88,815
Products
(7,865)
(3,857)
1,150
(11,722)
5,419
Total GAAP gross profit
58,075
52,727
46,854
110,802
94,234
GAAP gross margin:
Subscriptions and services
84.3
%
82.2
%
75.8
%
83.3
%
75.9
%
Products
(15.4)
%
(7.7)
%
1.7
%
(11.6)
%
4.0
%
Total GAAP gross margin
44.9
%
44.3
%
36.8
%
44.6
%
37.4
%
Stock-based compensation expense - Subscriptions and services cost
99
361
165
460
422
Stock-based compensation expense - Products cost
786
756
1,127
1,542
2,241
Amortization of software development cost
341
272
151
613
302
Non-GAAP gross profit:
Subscriptions and services
66,380
57,217
46,020
123,597
89,539
Products
(7,079)
(3,101)
2,277
(10,180)
7,660
Total Non-GAAP gross profit
$
59,301
$
54,116
$
48,297
$
113,417
$
97,199
Non-GAAP gross margin:
Subscriptions and services
84.9
%
83.1
%
76.4
%
84.1
%
76.6
%
Products
(13.8)
%
(6.2)
%
3.4
%
(10.0)
%
5.7
%
Total Non-GAAP gross margin
45.8
%
45.5
%
37.9
%
45.7
%
38.6
%
GAAP net income (loss)
$
3,124
$
(835)
$
(11,560)
$
2,289
$
(21,204)
Stock-based compensation expense
14,983
17,012
20,920
31,995
39,470
Depreciation and amortization
858
829
782
1,687
1,684
Other operating expense
216
25
966
241
1,445
Interest income, net
(1,344)
(1,316)
(1,495)
(2,660)
(2,881)
Other non-operating expense, net
407
198
18
605
43
Provision (benefit) for income taxes
(254)
502
236
248
631
Adjusted EBITDA
$
17,990
$
16,415
$
9,867
$
34,405
$
19,188
Adjusted EBITDA margin
13.9
%
13.8
%
7.7
%
13.8
%
7.6
%
Page 9
ARLO TECHNOLOGIES, INC.
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
UNAUDITED STATEMENT OF OPERATIONS DATA (CONTINUED):
Three Months Ended
Six Months Ended
June 29, 2025
March 30, 2025
June 30, 2024
June 29, 2025
June 30, 2024
(In thousands, except percentage and per share data)
GAAP net income (loss)
$
3,124
$
(835)
$
(11,560)
$
2,289
$
(21,204)
Stock-based compensation expense
14,983
17,012
20,920
31,995
39,470
Others
708
297
1,117
1,005
1,747
Non-GAAP net income
$
18,815
$
16,474
$
10,477
$
35,289
$
20,013
GAAP net income (loss) per share - basic
$
0.03
$
(0.01)
$
(0.12)
$
0.02
$
(0.22)
Stock-based compensation expense
0.14
0.16
0.21
0.30
0.39
Others
—
—
0.01
0.01
0.02
Non-GAAP net income per share - diluted
$
0.17
$
0.15
$
0.10
$
0.33
$
0.19
Shares used in computing GAAP net income (loss) - basic
103,885
102,217
97,843
103,060
97,051
Shares used in computing non-GAAP net income - diluted
108,061
108,285
106,127
107,692
105,441
Free cash flow:
Net cash provided by operating activities
$
8,830
$
30,919
$
6,463
$
39,749
$
26,268
Less: purchases of property and equipment, including capitalized software
(2,975)
(2,803)
(295)
(5,778)
(651)
Free cash flow (1)
$
5,855
$
28,116
$
6,168
$
33,971
$
25,617
Free cash flow margin (1)
4.5
%
23.6
%
4.8
%
13.7
%
10.2
%
_________________________
(1) Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Free cash flow margin is the free cash flow divided by revenue.
Page 10
ARLO TECHNOLOGIES, INC.
UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION
As of and for the three months ended
June 29, 2025
March 30, 2025
December 31, 2024
September 29, 2024
June 30, 2024
(In thousands, except headcount and per share data)
Cash, cash equivalents and short-term investments
$
160,401
$
153,106
$
151,451
$
146,574
$
144,005
Accounts receivable, net
$
61,450
$
46,054
$
57,332
$
68,567
$
61,746
Days sales outstanding
43
34
44
45
44
Inventories
$
30,877
$
34,559
$
40,633
$
51,975
$
45,227
Inventory turns
7.7
6.3
6.4
5.8
5.8
Weeks of channel inventory:
U.S. retail channel
12.5
12.8
7.7
14.2
14.8
U.S. distribution channel
11.0
12.6
9.4
7.1
12.5
APAC distribution channel
8.2
8.4
8.5
7.5
3.9
Deferred revenue (current and non-current)
$
42,544
$
43,177
$
27,551
$
24,827
$
23,695
Cumulative registered accounts (1)
11,237
10,930
10,823
10,383
9,987
Cumulative paid accounts (2)
5,115
4,897
4,599
4,235
3,980
Annual recurring revenue (ARR) (3)
$
315,655
$
276,357
$
257,332
$
241,572
$
234,981
Headcount
382
369
360
355
362
Non-GAAP diluted shares
108,061
108,285
107,125
107,294
106,127
_________________________
(1) We define our registered accounts at the end of a particular period as the number of unique registered accounts on the Arlo platform as of the end of such period. The number of registered accounts does not necessarily reflect the number of end-users on the Arlo platform as one registered account may be used by multiple end-users to monitor the devices attached to that household.
(2) Paid accounts are defined as any account worldwide where a subscription to a paid service is being collected (either by us or by our customers or channel partners, including Verisure).
(3) ARR represents and is defined as the annualized paid subscriptions and services revenue we expect to recognize from subscription contracts, as calculated by taking the average paid subscriptions and services revenue for the reporting period multiplied by the number of subscription accounts at the end of the reporting period.
