Top Reason People Don’t Buy Arlo Is ‘They Have Not Heard of Arlo’: CEO
Smart home security brand Arlo Technologies began the rollout this month of a targeted brand awareness campaign, themed “Protect Your Everything,” that focuses on “new household formation to drive incremental subscription revenue,” said CEO Matthew McRae on a Q2 earnings…
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call Tuesday. Arlo expects the “bulk of the increase” in point-of-sale activity emanating from the campaign “to materialize in 2023,” said McRae, a former Vizio chief technology officer. Though Arlo products and services “regularly garner best-in-class accolades, the number one reason people don't buy Arlo products is because they have not heard of Arlo,” he said. Arlo also plans to expand the Arlo product portfolio “to address new segments and new markets,” he said. It’s debuting a new app, called Arlo Safe, to provide personal protection for an individual or entire family by offering “one-touch emergency health” and other safety features, he said. Arlo also plans to bow a new security system to bring “full sensor-based security functionality to our ecosystem of smart cameras,” he said. “Both of these provide significant opportunities to drive new subscriptions, and we expect these to be available before the end of the year.” Arlo is tracking macroeconomic trends closely, “and while they may portend a softness in consumer demand and higher execution risks in the second half of this year, our confidence in reaching our long-range-plan targets remains unchanged,” he said. Arlo revenue in Q2 was $119 million, up 21% year over year, and “well above the top end of our guidance,” said McRae. The company exited the quarter with $117 million in annualized recurring revenue from paid service accounts, up 67% from the 2021 quarter, he said.