Arlo IPO Filing Reveals Key Financial and Competitive Details

By: 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

**** ** ***** ** IPO ** ********** ********* ******* **** Axis. ***, **** *** released ********-**** **** ** ************ Statement*** *** ***. ****** this ******, ** ***** our ******* **** ********* this *******, *********:

  • **** ****'* **** ***** are ** **** ***
  • ***** ********* **** ****** in *** **** ** months
  • *** ************ *** ***** are ** **** * big *********
  • *** **** **** *** see ***** *** *********, the *** ******* ************ manufacturers, ** *********** *******
  • *** **** **** *** as *** ******* ******
  • *** *** ****'* ************ base **
  • ***** **** ******** *** big **** **** ** growth *** *************** ***
  • ***** **** **** **** and ***** **************

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

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

**** *** ****** ******* registered ***** **** ***** 700k ** ****** * million ** *** **** 15 ******:

********, **** ******* *.** million ******* ******* ** 2017, ***** **** *** total **** **** ***** 2014, ******* ***** ***** expansion.

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

***** **** *** $*** million ******* ** ****, at **% ****** *** Q1 ****, **** *** on **** *** **** annual ******* ** ~$*** million:

** * ***** ** scale, **** ***** ** nearly **% **** ************'* **** ********* $*** *******, *** of *** ******* ********** oriented ***** ************ *************.

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

********* ** ***** **********, 73% ** ***** **** device ****** **** **** installed *** ******* ** themselves ** **** *** help **** ******* *** family *******. ***** ***** of **** *** *******, ease ** ************ *** ease ** *** *** the **** ****** ***** attributes ********* ** ***.

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

* *** ****** ** Arlo's ***** ******, ** well ** * *** risk *** *** *******, is ***** ********** ** just * ********* *** more **** **** ** Arlo's ******.

******* **** ****** ** clearly ***** ***** ** displays, **** **** ****** them "** **** **** 20,000 ****** ********* ********", with ******** *****:

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

***** ****** ** ****'* #2 ********, **** *** also ****'* #* **********, as **** *********** **********:

*** ********* *********** ******* Amazon (***** *** ****), Google (****), *****, ***** Owl, ******* *********** (******), Samsung, *-**** *** ******. Other *********** ******* ******** local ******* **** ** Netatmo, ********, *****, ****** and ******.

******, *** ************ ** Blink *** **** ******** just **** ****, ******** the *********** ********* ******* and *************. ********, ***** has ****** *********** ********** (see**** ***** **** *******), ******** **** ******'* marketing ******, ***** ******* undermine ****'* ******.

********, **** ** ** risk ******* **** *** Amazon's ***** ******** *** hosting *****, * ******* they ******* ***********:

***** *** ***** ** AWS’s ********** **** **, it *** ********* *** agreement ** ********* ** with ** ****’ ***** written ******. ** ********, Amazon **** ******** *** Amazon ***** ***, ***** competes **** *** ******** camera ********, *** ******** acquired *** ** *** competitors, ***** *** ****. Amazon *** ****** ** hamper *** *********** *******, using ********* ** *** services ** ********

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

**** ****** ** ***********, none ** ***** ******** the * ******* **** video ************ ********* - Dahua *** *********. **** is *** * ******** simply ***** *** **** of ******* **** ********* (Ezviz) *** ***** (********) **** **** ** the ******** ******. *** the ******* *************, ** is * ******* **** as **** ** ******* on *** *** ** $1 ******* ** *******. Even ****'* **** ******* in *** ** **** be **** **** *** of ********* *** ***** branded *****, ** **** a ********** ** *** big **** *** ******.

*** ********* ** ***** and ************. ******* / Arlo *** **** **** well ** **. *** Amazon ** ****'* ********* #1 ********** ******* ** their ************ ************. ** is *** ***** **** or **** ***** *** Hikvision **** ** * serious ********* ** *** consumer ******.

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

** *** ***** ****, Arlo ** ********* ********* on *** ** *** sales, **** **% **** from *** **:

********, **** *****, ********* China, *** **** ***** and ******* *** ****** than ** ** **** sales. ********* * *** factor ** *** ******* price *********** ** ***** and *** ************* ****** the ******** ***** ******.

** * ***** ** contrast, ***** ****'* **** APAC ******* *** **** than $** *******, ********* EZVIZ's **** *******, ****** overwhelmingly ** ***** ******** inside ** ***** *** ~$150 ******* (* ******* RMB).

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

*** ******* *** **** is **** *** ************ uptake. ***** **** ******** from ********* **** ***** service, **** ********** ***** long-term ********* ****** *** profits.

***** **** ***** *** growth ** ***********, ******** to *** *** ****** 2 ******* **** **** and ****** ***** ****** in **** ****, ** is ***** ****:

****’* **** ******** ********** base *** ***** **** over **,*** *********** ** of ******** **, **** to **** **,*** *********** as ** ***** *, 2018.

**** ** ********** ** improve **** **** **** new ********, ** ** describes:

**** *** ****** ****** of ******* ***** ********** ****, ** ********** additional ********, **** ** person ********* ************, **** functionality *** ******-**** *************, which ******* *** **** experience *** ***** ** expect **** ******** *** paid ************ ******* ****** rate *** ******* *** users ** *** **** platform.

***** **** ** ******* these ************, **** *** just ******** $*.** *** a ****** *** ***** while ***** ****** * days ** ******* *** free.

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

**** **** ***** ************ companies *****, **** ** betting *** ** '**' / ********* ************, ********* examples ** ****** ******** like:

** *** ** ************ further ****** ******* ******* learning, ** **** ** introduce *** ************-***** ******** that ***** *** *****’ habits *** *****, **** as ****** *** ******* automatically **** *** **** is ** ******** ** turning ** * ******* when *** **** ****** to ****.

******, **** ********** **** they *** ***** '*******' 'donated' ** ***** ***** to ******* ***** ********:

********** ************.** *** ****** ******** and ******* ******** ** continually ******* *** *********** of *** ********* *** computer ****** **********. *** algorithms *** ******* ***** thousands ** ***** ** high-quality, ****-******* *******. **** continual ******** *** ********** allows ** ** ******* what ** ******* ** be ******** **-******* ********, such ** ****** ********* capabilities ****** **** * 90% ******** ****.

***, ** ***, ****'* AI ********* *** **** speculative **** ***** ** this *****. **** ********* could ****** * *********** factor, ******** *** ***** competitors, *** ** ** too ***** ** ****** this *******.

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

*** *******'* **** ***** margins **** **** ***** 25%, *******, ** ******** from **** **** ** was **** **** **%

***** ***** ***** ******* are ********* *** ***** than *** ********** ******, the ****** ***** ******** at **** ***, ******, Costco, ***., ****** **** to **** ************* ***** sales *** ********* ***** as * ********** ** revenue **** ******* ********** oriented *************.

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

**** **** ***** ************* is ********* ** *******:

************* *** ** *** manufacturing *** ******** ****** in *** **** ******* region, ********* ** *******

** *** **** ****, they **** '******* *******' in **** **** *** the ***:

** **** *********** *** own ******* ******* ************ based ** **** **** and ******** *****, ***** is *********** *** ******** and ********** ******* *** product ******* ** *** premises ** *** *************.

********, **** **** ***** main *** ********* ***** Foxconn (*** **** ********* iPhones):

*** ** *** ******** are ************, *********, ****** and ********* ******** ** a ******* ****** ** third-party ******** ****** ************* (“ODMs”). ** **** *****, we **** ** ***** manufacturers ** ******* ********** and, ** **** *****, subcontract *********** ****. ** currently ********* ************* ** Foxconn ***********, *** ***** Industrial ***. *** ***** Networks, ***.

Website ********

**** ***** ******* ******** as * **** ** brand ******** *** ********** to *********:

** **** *** ****, the ****** ** ****** visitors ** *** **** Community ******* ******* *.* million *** *.* *******, respectively.

***** **** ** * minor *****, ** *** skeptical ** *** **** are ********** ****** ****** visitors. ***, ** ***** be ***,*** **** ****** visitors **** ****** ***** claimed, ***** ** **** to ******* *** * 'community'/support *******. ********, *********, uniques *** ********** ** a ******* *****, ****** than ********** / *********** duplicated **** * ****.

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

****** ******** ***** **** year, **** **** *** the ***** *****/********* *** actually ** ******. ** will ****** *** ******** as **** **********.

Comments (13)

***** **** ******** ***** for ** *** *** expressed ******* ***** ******* their ******** ** *** since ****** ** * competitor. * ****** *** many ***** ********* *** concerned *** ******* *** alternative ******* ********* ** Amazon ******* * ****** player ** ** **** industries. ****, ** *** all ** *** ******* in *** **** ***** as **** **** ***** offerings *** **** ****** run **** ******* *** servers.

***** **** ***** *** growth ** ***********, ******** to *** *** ****** 2 ******* **** **** and ****** ***** ****** in **** ****, ** is ***** ****...

****** ******** ******* ******* for ****** **% ** their ******* *** ******** have * **** ****** gp **** ******* *****.

*** **** ******** '*******' services ** ***** ******* revenue, *.*., *** ****** subscriptions. ***** ***********:

******* ******* ********** ******* recognized ******** ** ******* services *** **** ******* subscriptions. *** ******* ******** pertain ** ******* ***** are **** **** *** Arlo ******* ******** ********, providing ***** **** *** ability ** ***** *** access **** *** ** to **** ******* *** a ******* *****-*** ******. Our **** ************ ******** relate ** ***** ** subscription ***** ** *** registered *****.

**** *****, *** ***** doesn’t **** ** ** a ******* *********.

*** ********, ** *** prepaid ******* ** ********* for *** ******, **** is *** * ****** limitation ***?

** *** **** ** make * *** ******* for ****** *?

*** **** **** * cameras, *** **** ** pay,****:

* ******* **** *** percentage ** **** ***** with **** **** * cameras ** ***** *****.

*** **** **** * cameras, *** **** ** pay...

* ****** ** **** would ***** ******** ******* creation ** ******** ** address ** *** *******.

*** ********** ** ****** who **** **** **** 5 ******* *** ***** go ******* *** ****** of *********** * ******** to ***** $** * month ** ****** ***** small *** ********* *** much ** * ********* risk.

****, ** *** ******* are *** ** *** base / **** ****, presumably **** ***** *** be * ****** *******..

* ******* **** *** percentage ** **** ***** with **** **** * cameras ** ***** *****.

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

* ******* ********** **** owning ** ******* ***** Arlo *******.

** ***** *** ** have **** **** *, I ***** ******* **** fact **** *** **** them **** ******* ****** customers.

********** ******, ** *** buy *** ******** ****, you *** ****** ******** accounts *** **** ***, but ***** *** *** access *** *** ******* in *** *** ** using ***** ******* ******* feature.

'*******'

* ***'* *** ***** Arlo ***** ***** **** they ******** * '******' but ** *** **** well ******* *** **** station, *.*.:

**** ******* ** ***** low ******** ** ***** video ************ ***** ********* I've ****. *** ** the **** ****** **** has **** ***** *********** back ** *** **** compared ** **** ****** a *** **** ***. These ****** **** *** cloud ****** **** **** compelling.

** *** ******* ****** to ****** ******* ** quite **** ********.

**** ******* ***** ** based ** ** ******* events ** *** *******. Live ****** ** **-****** for **** ****** *** connection **** ******** ** camera.

****** *** **********. **** that **** ** ***** is ********** ******** *** recording ** **** ** a ********** ****** ** seperate ** ****** *****? Do *** **** *** max *** **** ** resolution *** ***** **** video ** ******** **?

***, ** ** **** moment ******* ** ** seconds ********* *** *****. You *** ****** ** settings ** ****** ** to *** ******* *** camera.

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

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

*** ****** ** *** 24/7 ********** ********* ***** to ******** ****** *****: 14days @ $*.** *** 30days @ $**.**.

** ****** ****** ******* (quality ********) *** * cloud ********* *** **** view ****** ******* ***** be *********. ***** **** connects ** **** **** to ****** ******** *** main **** ***** ** cloud *******. ** **** complete ********** **** ** know ********** ** ******* storage **** *** ******.

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