Arlo IPO - Investment case Presentation

Arlo, a spin-off from NETGEAR, is a provider of cloud-based security monitoring services and products such as cameras, doorbells, and lights, which are augmented by software and compatibility with third party internet-of-things products and protocols such as Amazon Alexa and IFTTT.

Strengths & Opportunities

• Gaining market share
• Strong brand name and channel partnerships
• DIY systems with compatibility with broad range of third-party IoT products
• Well-positioned to benefit from shifting industry trends
• Improving gross margins and profitability

Risks & Concerns

• Heavily crowded market with competitors offering a broader set of features and services
• Amazon launched its own IP camera and seems very serious about that business
• Arlo's lack of product differentiation
• Pricing pressure
• Revenue growth seems to have slowed down significantly in last 2 quarters