Arlo Investment Case Summary
Arlo Technology (ARLO) is a maker of connected cameras and related software that was spun out of NETGEAR (NTGR) with an IPO on August 2, 2018 at $16/share. Shares traded higher immediately following the IPO and reached $23 before starting their steady decline to the current $2.15.
There are two main reasons for the massive reset. The first is that their product revenue declined in 2019 to return to 2017 levels. The second is that their "attach rate" for paying subscriptions was very low. It also didn't help that . . .