Arlo sold 10.2 million shares of its stock for US$16 each on the opening trading day. It closed at US$22.10 per share with 38% of growth. The company’s market capital is currently about US$1.6 billion. Netgear sold only about 20% of Arlo’s total share in the IPO. Existing Netgear shareholders hold the rest.
Matthew McRae, an ex-senior vice president of strategy at Netgear who joined the company at the end of 2017, is the current CEO of Arlo.
Arlo started from making Wi-Fi home security cameras and later has extended its products into LTE and battery-powered outdoor camera, and doorbell kits working with its cameras.
Hardware devices sales accounts for more than 90% of Arlo’s revenue. Another income, security services, takes about 8% of the company’s total revenue, growing by 43%, year-over-year.
Arlo’s devices work with voice assistants from Amazon and Google, meanwhile, the company competes directly against their products, including Amazon’s smart doorbell unit Ring and Google’s Nest.
How these tech giants develop their strategies in the smart home market and how Arlo keeps its advantage among them, will become a key factors deciding Arlo’s stock price performance.
One day after Arlo IPO, its security camera encountered offline issues. The service outage lasted from 4pm to 7:30pm on 4th August. Arlo device owners could only see “intermittent login errors” which prevented them from signing in or watching motion detection recordings. Some also couldn’t watch live streams or connect to the service.
Arlo later resolved the issue. It wasn’t the first outage from Arlo in recent months.