Arlo IPO Filing Reveals Key Financial and Competitive Details

Author: IPVM Team, Published on Jul 09, 2018

Arlo is going to IPO at a projected valuation greater than Axis. Now, Arlo has released their 175-page Form S1 Registration Statement for its IPO. Inside this report, we share our results from examining this filling, including:

  • What Arlo's 2018 sales are on pace for
  • Their explosive user growth in the past 15 months
  • How concentrated its sales are to just 3 big retailers
  • Why Arlo does not see Dahua nor Hikvision, the two biggest surveillance manufacturers, as competitive threats
  • Who Arlo does see as its biggest threat
  • How low Arlo's subscription base is
  • Where Arlo believes its big next area of growth and differentiation lie
  • Where Arlo does best and worst geographically

**** ** ***** ** *** ** ********** ********* ******* **** ****. ***, **** *** ******** ********-**** **** ** ************ ************ *** ***. ****** **** ******, ** ***** *** ******* from ********* **** *******, *********:

  • **** ****'* **** ***** *** ** **** ***
  • ***** ********* **** ****** ** *** **** ** ******
  • *** ************ *** ***** *** ** **** * *** *********
  • *** **** **** *** *** ***** *** *********, *** *** biggest ************ *************, ** *********** *******
  • *** **** **** *** ** *** ******* ******
  • *** *** ****'* ************ **** **
  • ***** **** ******** *** *** **** **** ** ****** *** differentiation ***
  • ***** **** **** **** *** ***** **************

[***************]

Nearly ** ***** ** ** ******

**** *** ****** ******* ********** ***** **** ***** **** ** nearly * ******* ** *** **** ** ******:

********, **** ******* *.** ******* ******* ******* ** ****, ***** half *** ***** **** **** ***** ****, ******* ***** ***** expansion.

2018 ***** **** ~$*** *******

***** **** *** $*** ******* ******* ** ****, ** **% growth *** ** ****, **** *** ** **** *** **** annual ******* ** ~$*** *******:

** * ***** ** *****, **** ***** ** ****** **% more ************'* **** ********* $*** *******, *** ** *** ******* ********** ******** ***** surveillance *************.

DIY ******* ******

********* ** ***** **********, **% ** ***** **** ****** ****** said **** ********* *** ******* ** ********** ** **** *** help **** ******* *** ****** *******. ***** ***** ** **** IoT *******, **** ** ************ *** **** ** *** *** the **** ****** ***** ********** ********* ** ***.

3 *** ********* - **% ** *** *****

* *** ****** ** ****'* ***** ******, ** **** ** a *** **** *** *** *******, ** ***** ********** ** just * ********* *** **** **** **** ** ****'* ******.

******* **** ****** ** ******* ***** ***** ** ********, **** Arlo ****** **** "** **** **** **,*** ****** ********* ********", with ******** *****:

Top ********** - ******

***** ****** ** ****'* #* ********, **** *** **** ****'* #1 **********, ** **** *********** **********:

*** ********* *********** ******* ****** (***** *** ****), ****** (****), Swann, ***** ***, ******* *********** (******), *******, *-**** *** ******. Other *********** ******* ******** ***** ******* **** ** *******, ********, Bosch, ****** *** ******.

******, *** ************ ** ***** *** **** ******** **** **** year, ******** *** *********** ********* ******* *** *************. ********, ***** has ****** *********** ********** (******* ***** **** *******), ******** **** ******'* ********* ******, ***** ******* ********* ****'* growth.

********, **** ** ** **** ******* **** *** ******'* ***** services *** ******* *****, * ******* **** ******* ***********:

***** *** ***** ** ***’* ********** **** **, ** *** terminate *** ********* ** ********* ** **** ** ****’ ***** written ******. ** ********, ****** **** ******** *** ****** ***** Cam, ***** ******** **** *** ******** ****** ********, *** ******** acquired *** ** *** ***********, ***** *** ****. ****** *** choose ** ****** *** *********** *******, ***** ********* ** *** services ** ********

Hikvision *** ***** ** ***********

**** ****** ** ***********, **** ** ***** ******** *** * Chinese **** ***** ************ ********* - ***** *** *********. **** is *** * ******** ****** ***** *** **** ** ******* that ********* (*****) *** ***** (********) **** **** ** *** ******** ******. *** *** ******* manufacturers, ** ** * ******* **** ** **** ** ******* on *** *** ** $* ******* ** *******. **** ****'* 2018 ******* ** *** ** **** ** **** **** *** of ********* *** ***** ******* *****, ** **** * ********** of *** *** **** *** ******.

*** ********* ** ***** *** ************. ******* / **** *** done **** **** ** **. *** ****** ** ****'* ********* #1 ********** ******* ** ***** ************ ************. ** ** *** clear **** ** **** ***** *** ********* **** ** * serious ********* ** *** ******** ******.

Heavily ** ********* *** *****

** *** ***** ****, **** ** ********* ********* ** *** US *** *****, **** **% **** **** *** **:

********, **** *****, ********* *****, *** **** ***** *** ******* far ****** **** ** ** **** *****. ********* * *** factor ** *** ******* ***** *********** ** ***** *** *** protectionism ****** *** ******** ***** ******.

** * ***** ** ********, ***** ****'* **** **** ******* was **** **** $** *******, ********* *****'* **** *******, ****** overwhelmingly ** ***** ******** ****** ** ***** *** ~$*** ******* (1 ******* ***).

Low *********** - ***** *%

*** ******* *** **** ** **** *** ************ ******. ***** Arlo ******** **** ********* **** ***** *******, **** ********** ***** long-term ********* ****** *** *******.

***** **** ***** *** ****** ** ***********, ******** ** *** now ****** * ******* **** **** *** ****** ***** ****** in **** ****, ** ** ***** ****:

****’* **** ******** ********** **** *** ***** **** **** **,*** subscribers ** ** ******** **, **** ** **** **,*** *********** as ** ***** *, ****.

**** ** ********** ** ******* **** **** **** *** ********, as ** *********:

**** *** ****** ****** ** ******* ***** ********** ****, ** ********** ********** ********, **** ** ****** ********* capabilities, **** ************* *** ******-**** *************, ***** ******* *** **** experience *** ***** ** ****** **** ******** *** **** ************ service ****** **** *** ******* *** ***** ** *** **** platform.

***** **** ** ******* ***** ************, **** *** **** ******** $2.99 *** * ****** *** ***** ***** ***** ****** * days ** ******* *** ****.

AI - *** ****** ******

**** **** ***** ************ ********* *****, **** ** ******* *** on '**' / ********* ************, ********* ******** ** ****** ******** like:

** *** ** ************ ******* ****** ******* ******* ********, ** plan ** ********* *** ************-***** ******** **** ***** *** *****’ habits *** *****, **** ** ****** *** ******* ************* **** the **** ** ** ******** ** ******* ** * ******* when *** **** ****** ** ****.

******, **** ********** **** **** *** ***** '*******' '*******' ** their ***** ** ******* ***** ********:

********** ************.** *** ****** ******** *** ******* ******** ** *********** ******* the *********** ** *** ********* *** ******** ****** **********. *** algorithms *** ******* ***** ********* ** ***** ** ****-*******, ****-******* content. **** ********* ******** *** ********** ****** ** ** ******* what ** ******* ** ** ******** **-******* ********, **** ** person ********* ************ ****** **** * **% ******** ****.

***, ** ***, ****'* ** ********* *** **** *********** **** clear ** **** *****. **** ********* ***** ****** * *********** factor, ******** *** ***** ***********, *** ** ** *** ***** to ****** **** *******.

Gross ******* ********

*** *******'* **** ***** ******* **** **** ***** **%, *******, it ******** **** **** **** ** *** **** **** **%

***** ***** ***** ******* *** ********* *** ***** **** *** commercial ******, *** ****** ***** ******** ** **** ***, ******, Costco, ***., ****** **** ** **** ************* ***** ***** *** marketing ***** ** * ********** ** ******* **** ******* ********** oriented *************.

Manufacturing - ********* *******

**** **** ***** ************* ** ********* ** *******:

************* *** ** *** ************* *** ******** ****** ** *** Asia ******* ******, ********* ** *******

** *** **** ****, **** **** '******* *******' ** **** Kong *** *** ***:

** **** *********** *** *** ******* ******* ************ ***** ** Hong **** *** ******** *****, ***** ** *********** *** ******** and ********** ******* *** ******* ******* ** *** ******** ** our *************.

********, **** **** ***** **** *** ********* ***** ******* (*** also ********* *******):

*** ** *** ******** *** ************, *********, ****** *** ********* packaged ** * ******* ****** ** *****-***** ******** ****** ************* (“ODMs”). ** **** *****, ** **** ** ***** ************* ** procure ********** ***, ** **** *****, *********** *********** ****. ** currently ********* ************* ** ******* ***********, *** ***** ********** ***. and ***** ********, ***.

Website ********

**** ***** ******* ******** ** * **** ** ***** ******** and ********** ** *********:

** **** *** ****, *** ****** ** ****** ******** ** the **** ********* ******* ******* *.* ******* *** *.* *******, respectively.

***** **** ** * ***** *****, ** *** ********* ** how **** *** ********** ****** ****** ********. ***, ** ***** be ***,*** **** ****** ******** **** ****** ***** *******, ***** is **** ** ******* *** * '*********'/******* *******. ********, *********, uniques *** ********** ** * ******* *****, ****** **** ********** / *********** ********** **** * ****.

Upcoming - ********* *** ***

****** ******** ***** **** ****, **** **** *** *** ***** price/valuation *** ******** ** ******. ** **** ****** *** ******** as **** **********.

Comments (13)

***** **** ******** ***** *** ** *** *** ********* ******* about ******* ***** ******** ** *** ***** ****** ** * competitor. * ****** *** **** ***** ********* *** ********* *** looking *** *********** ******* ********* ** ****** ******* * ****** player ** ** **** **********. ****, ** *** *** ** the ******* ** *** **** ***** ** **** **** ***** offerings *** **** ****** *** **** ******* *** *******.

***** **** ***** *** ****** ** ***********, ******** ** *** now ****** * ******* **** **** *** ****** ***** ****** in **** ****, ** ** ***** ****...

****** ******** ******* ******* *** ****** **% ** ***** ******* and ******** **** * **** ****** ** **** ******* *****.

*** **** ******** '*******' ******** ** ***** ******* *******, *.*., not ****** *************. ***** ***********:

******* ******* ********** ******* ********** ******** ** ******* ******** *** paid ******* *************. *** ******* ******** ******* ** ******* ***** are **** **** *** **** ******* ******** ********, ********* ***** with *** ******* ** ***** *** ****** **** *** ** to **** ******* *** * ******* *****-*** ******. *** **** subscription ******** ****** ** ***** ** ************ ***** ** *** registered *****.

**** *****, *** ***** *****’* **** ** ** * ******* breakdown.

*** ********, ** *** ******* ******* ** ********* *** *** device, **** ** *** * ****** ********** ***?

** *** **** ** **** * *** ******* *** ****** 6?

*** **** **** * *******, *** **** ** ***,****:

* ******* **** *** ********** ** **** ***** **** **** than * ******* ** ***** *****.

*** **** **** * *******, *** **** ** ***...

* ****** ** **** ***** ***** ******** ******* ******** ** incoming ** ******* ** *** *******.

*** ********** ** ****** *** **** **** **** * ******* and ***** ** ******* *** ****** ** *********** * ******** to ***** $** * ***** ** ****** ***** ***** *** therefore *** **** ** * ********* ****.

****, ** *** ******* *** *** ** *** **** / head ****, ********** **** ***** *** ** * ****** *******..

* ******* **** *** ********** ** **** ***** **** **** than * ******* ** ***** *****.

***** ************ *****

* ******* ********** **** ****** ** ******* ***** **** *******.

** ***** *** ** **** **** **** *, * ***** imagine **** **** **** *** **** **** **** ******* ****** customers.

********** ******, ** *** *** *** ******** ****, *** *** create ******** ******** *** **** ***, *** ***** *** *** access *** *** ******* ** *** *** ** ***** ***** account ******* *******.

'*******'

* ***'* *** ***** **** ***** ***** **** **** ******** a '******' *** ** *** **** **** ******* *** **** station, *.*.:

**** ******* ** ***** *** ******** ** ***** ***** ************ cloud ********* *'** ****. *** ** *** **** ****** **** has **** ***** *********** **** ** *** **** ******** ** just ****** * *** **** ***. ***** ****** **** *** cloud ****** **** **** **********.

** *** ******* ****** ** ****** ******* ** ***** **** actually.

**** ******* ***** ** ***** ** ** ******* ****** ** low *******. **** ****** ** **-****** *** **** ****** *** connection **** ******** ** ******.

****** *** **********. **** **** **** ** ***** ** ********** activity *** ********* ** **** ** * ********** ****** ** seperate ** ****** *****? ** *** **** *** *** *** rate ** ********** *** ***** **** ***** ** ******** **?

***, ** ** **** ****** ******* ** ** ******* ********* per *****. *** *** ****** ** ******** ** ****** ** to *** ******* *** ******.

******* ******:*****://**.****.***/****/***-****-*********-***-*******-*****-**-****-******-***

*****://**.****.***/****/***-****-*********-****-**-****-******-***-****-**-**-*********-*****

*** ****** ** *** **/* ********** ********* ***** ** ******** actual *****: ****** @ $*.** *** ****** @ $**.**.

** ****** ****** ******* (******* ********) *** * ***** ********* and **** **** ****** ******* ***** ** *********. ***** **** connects ** **** **** ** ****** ******** *** **** **** would ** ***** *******. ** **** ******** ********** **** ** know ********** ** ******* ******* **** *** ******.

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