Slide 1: Investor Presentation
Investor Presentation August 7, 2025 ©2025 – ALL RIGHTS RESERVED
Slide 2: Safe Harbor Disclosure
SAFE HARBOR DISCLOSURE This presentation 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
Slide 3: Arlo protects your everything.
Arlo protects your everything. Arlo is a subscription software business in the smart security segment powered by a scaled, secure, and sophisticated platform with groundbreaking AI capabilities called Arlo Intelligence. We win on focus, innovation, and our privacy pledge. Arlo’s solutions have led t
Slide 4: Arlo At A Glance
Arlo At A Glance AI-powered SaaS business in the Smart Security Space Registered Annual Recurring Service Gross Accounts Revenue Margin >11m >$315m >85% ARR Growth Paid Subscribers LTV/CAC Ratio YoY >5.0m >30% 3x The most directly comparable GAAP financial measures are presented in the GAAP to non-G
Slide 5: Six years to reach $250M of ARR is best-in-class
Six years to reach $250M of ARR is 6 or less years best-in-class 7 – 10 years 11 – 15 years 16+ years 1. The peer group is comprised of the 47 SaaS companies traded on the NYSE and Nasdaq with enterprise values of at least $250M 2. For the peer group, revenue has been used as a proxy for ARR which i
Slide 6: Large, Growing, & Underpenetrated
Global Market Estimated @ 2-3x US Large, Growing, & Underpenetrated Smart Home Security Market Broader DIY Smart Home (Consumer, US) Arlo participates in the broader home security market that is $13.4B sized in the US at $25B in 2025 Adjacent Markets Estimated @ 3-4x TAM is further expanded by Europ
Slide 7: Arlo SaaS Platform
ARLO SaaS PLATFORM A sophisticated and performant SaaS platform built over the last 10 years with artificial intelligence at its core and providing world-class smart security experiences for our users and Strategic Partners strategic partners. Subscription Services 170+ billion AI alerts per year Ar
Slide 8: Arlo Intelligence
ARLO INTELLIGENCE Object Detection Determines if a person, animal, or vehicle is within the scene during a motion event to help filter and prioritize alerts for the end user. Package Detection Specific alerts when a package is detected and quick prompts to speak with delivery person or call a friend
Slide 9: Complete Refresh of All Cameras + Expansion Next Generation Ecosystem
2025-2026 2026-2027 Complete Refresh of All Cameras + Expansion Next Generation Ecosystem The largest and most comprehensive product launch in company history arriving in time for 2025 Holiday Season and bringing new features with some surprises. Ultra 3 Updated flagship camera line up with updated
Slide 10: Our services stand out among comparable consumer-based subscriptions
Paid Account Monthly Churn Rate(1) O ur services stand o ut am o ng co m p arab le 1.0% co nsum er- b ased 3.1% sub scrip tio ns. 4.0% O ur p aid acco unt m o nthly churn is am o ng 4.6% the b est co m p ared to co nsum er sub scrip tio n p eers. 4.7% 6.8% 7.4% 8.7% S ecurity ranks 1st in sub scrip
Slide 11: What makes us different and why we'll win in the smart security market
What makes us Differentiators Why It Matters different and why Every person, every day, dedicated Singular focus on security we’ll win in the to our mission smart security Industry-leading video Video is the key to security market. capture and hardware and home automation Data usage and privacy Data
Slide 12: Operating Results
Q2 2025 OPERATING RESULTS INVESTOR PRESENTATION: AUG 2025 12 ©2025. ALL RIGHTS RESERVED.
Slide 13: Outstanding SaaS Metrics
Outstanding SaaS Metrics Metrics in Q2 2025 Cumulative paid accounts 5.1M Annual recurring revenue $316M | +34% y/y Services revenue mix 60% of total Services gross margin 85% (non-GAAP) INVESTOR PRESENTATION: AUG 2025 13 The most directly comparable GAAP financial measures are presented in the GAAP
Slide 14: Diving into retail & direct paid accounts
Diving into retail & direct paid accounts (1) shows the outstanding performance of our services Best-in-Class LTV to CAC business $12.6 $750 Retail ARPU(2) Retail LTV(4) 92% $200 14 Retail Gross Margin(3) Retail CAC(5) Retail Accounts generate > 80% of ARR INVESTOR PRESENTATION: AUG 2025 (1) Retail
Slide 15: Paid Accounts & Annual Recurring Revenue (ARR)
Paid Accounts & Annual Recurring Revenue (ARR) 5,115 $315.7 4,897 29% 34% $276.4 Y/Y Growth 4,599 Y/Y Growth $257.3 4,235 $241.6 3,980 $235.0 $227.0 3,235 $210.1 2,813 $200.0 $193. 6 2,486 2,289 Q2 ‘23 Q3‘23 Q4 ‘23 Q1’24 Q2 ‘24 Q3 ‘24 Q4 ‘24 Q1’25 Q2 ‘25 Q2 ‘23 Q3 ‘23 Q4 ‘23 Q1’24 Q2 ‘24 Q3 ‘24 Q4 ‘
Slide 16: Subscription and Service Revenue & Non-GAAP Gross Margin
Subscription and Service Revenue & Non-GAAP Gross Margin 84.9% $78.2 83.1% $68.8 81.7% $64.1 $61.9 $60.3 77.4% $56.7 76.7% 76.4% $55.9 75.2% $51.0 $50.3 74.4% 74.1% Q2 ‘23 Q3 ‘23 Q4 ‘23 Q1’24 Q2 ‘24 Q3 ‘24 Q4 ‘24 Q1’25 Q2 ‘25 Q2 ‘23 Q3 ‘23 Q4 ‘23 Q1’24 Q2 ‘24 Q3 ‘24 Q4 ‘24 Q1’25 Q2 ‘25 Subscriptions
Slide 17: Adjusted EBITDA & Free Cash Flow
Adjusted EBITDA & Free Cash Flow 79% 33% Y/Y Growth $34.4 Y/Y Growth $34.0 +$15.2m +$8.4m $25.6 $19.2 YTD YTD YTD YTD Q2’24 Q2’25 Q2’24 Q2’25 Adjusted EBITDA Free C ash Flo w (millions) (millions) INVESTOR PRESENTATION: AUG 2025 17 The most directly comparable GAAP financial measures are presented i
Slide 18: Balance Sheet Metrics
Balance Sheet Metrics 44 $160 43 7.7 $153 6.3 $144 34 5.8 Q2 ‘24 Q1’25 Q2 ‘25 Q2 ‘24 Q1’25 Q2 ‘25 Q2 ‘24 Q1’25 Q2 ‘25 Cash & ST Investments DSO Inventory Turns (millions) (days) (times) Q1 ‘25 Cash and ST Investments is net of $15.2M of shares repurchased and an investment in Origin Wireless of $12.
Slide 19: Financial Outlook
Looking Ahead Financial Outlook INVESTOR PRESENTATION: AUG 2025 19 ©2025. ALL RIGHTS RESERVED.
Slide 20: Powerful SaaS Business Model
Powerful SaaS Business Model Acquire new subscriptions through highly efficient retail Convert new households and paid accounts with 1 channels and strategic partnerships compelling subscription services 2 • Optimize customer acquisition costs • High Conversion/Attach Rate • Expand global distributi
Slide 21: Q3 and Full Year 2025 Guidance
Q3 2025 Guide Full Year 2025 Guide Total Revenue $133 - $143M $510 - $540M Consolidated Earnings per Share $0.12 - $0.18 $0.56 - $0.66 (non-GAAP) Subscriptions Subscription and $310M+ Services Revenue Service Gross Margin >85% (non-GAAP) INVESTOR PRESENTATION: AUG 2025 21 ©2025. ALL RIGHTS RESERVED.
Slide 22: Rule of 40 for CY 2025 Guidance Range
S E L E C T E D U S L I S T E D S O F T WA R E C O M PA N I E S W I T H CY 2025E RULE OF 40 OF 35% - 45% Rule of 40 for CY 2025 Guidance Range ~40% ARR Growth Estimate for CY 2025 ~25% Current Service Revenue Multiple <6.0x Revenue multiple for all companies Multiple for companies with >20% rev grow
Slide 23: Original Long-Range Plan vs Current Long-Range Plan
Original Long-Range Plan Current Long-Range Plan MARCH 2022 TARGETS FOR ≤ 2027 TARGETS FOR ≤ 2030 5 Million 10 Million Paid Accounts Paid Accounts $300 Million $700 Million In ARR In ARR ≥10% >25% In Adjusted EBITDA Margin In Adjusted EBITDA Margin INVESTOR PRESENTATION: AUG 2025 23 ©2025. ALL RIGHT
Slide 24: Operational Momentum in 2025
Operational Momentum in 2025 Arlo is set up for a successful year with past investments coming to fruition and numerous opportunities to drive service revenue growth and shareholder value. 1 SaaS Platform Innovation Powerful AI features and platform enhancements 2 Comprehensive Device Launch The lar
Slide 25: ©2025 – ALL RIGHTS RESERVED
©2025 – ALL RIGHTS RESERVED
Slide 26: Appendix: GAAP to non-GAAP Reconciliations
Appendix GAAP to non-GAAP Reconciliations ©2025. ALL RIGHTS RESERVED.
Slide 27: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliations of GAAP Measures to Non-GAAP Measures Gross Profit, In Thousands, except percentage data INVESTOR PRESENTATION: AUGUST 2025 27 ©2025. ALL RIGHTS RESERVED.
Slide 28: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliations of GAAP Measures to Non-GAAP Measures Adjusted EBITDA, In Thousands, except percentage data INVESTOR PRESENTATION: AUGUST 2025 28 ©2025. ALL RIGHTS RESERVED.
Slide 29: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliations of GAAP Measures to Non-GAAP Measures Free Cash Flow (Usage), In Thousands, except percentage data INVESTOR PRESENTATION: AUGUST 2025 29 ©2025. ALL RIGHTS RESERVED.