Arlo Technologies, Inc. (ARLO) Q2 2025 Earnings Call

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WEBVTT 00:00:00.000 -- 00:00:05.040 percent year over year to deliver $78 million in subscriptions 00:00:05.040 -- 00:00:10.300 and services revenue. This growth was driven by new customers continuing 00:00:10.300 -- 00:00:15.340 to select our premium service tiers as well as the realization of the full 00:00:15.340 -- 00:00:20.220 financial benefit in this quarter of our structured rate plans. 00:00:20.220 -- 00:00:25.480 Strong ARPU growth and customer retention combined with our optimized LTV to 00:00:25.480 -- 00:00:30.640 CAC ratio are the backbone of our performance in Q2 and into 00:00:30.640 -- 00:00:35.660 the future. Our subscriber base maintained its strong growth trajectory as 00:00:35.660 -- 00:00:40.820 we exited the quarter at 5.1 million paid accounts, an increase of 00:00:40.820 -- 00:00:46.740 29% year over year. In Q2, we generated 218,000 00:00:46.740 -- 00:00:52.700 new paid additions, handily exceeding our prior range of paid subscriber additions. 00:00:52.700 -- 00:00:57.840 As Matt mentioned, with strong subscriber momentum and the verisur true up behind 00:00:57.840 -- 00:01:02.840 us, we have increased visibility to establish a new target of 00:01:02.840 -- 00:01:04.260 190,000 00:01:04.260 -- 00:01:09.040 to 230,000 paid subscriber additions per quarter. 00:01:09.040 -- 00:01:14.200 Improving ARPU trends and continued strength in paid additions drove our annual 00:01:14.200 -- 00:01:20.200 recurring revenue to $316 million, up more than 34% 00:01:20.200 -- 00:01:26.080 over the same period last year. The total revenue for the second quarter of 2025 00:01:26.080 -- 00:01:31.120 came in at $129 million, up slightly from the prior 00:01:31.120 -- 00:01:36.120 year period. Remarkably, subscriptions and services revenue comprised 00:01:36.120 --...