Arlo Technologies Enters the Market With a Bang

By Chris Lange Updated Jan 11, 7:55PM EST · Published Aug 3, 11:20AM EDT

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Arlo Technologies Enters the Market With a Bang — © designer491 / iStock

Arlo Technologies Inc. (NYSE: ARLO) entered the market with a bang on Friday. The 10.215 million shares were priced at $16 apiece, below its expected price range of $18 to $20. However, the stock actually entered the market at $18.50 and has only gone up from there.

The underwriters for the offering are Merrill Lynch, Deutsche Bank, Guggenheim, Raymond James, Cowen and Imperial Capital.

This company enables users to monitor their environments and engage in real-time with their families and businesses from any location with a Wi-Fi or a cellular network internet connection through their cloud-based platform.

To date, Arlo has launched several categories of award-winning smart connected devices, including wire-free smart Wi-Fi and LTE-enabled cameras, advanced baby monitors and smart security lights. In addition, Arlo’s broad compatibility allows the platform to seamlessly integrate with third-party products and protocols.

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Since the launch of its first product in December 2014, the company has shipped over 7.5 million smart connected devices, and, as of April 1, 2018, the smart platform had over 1.9 million registered users across more than 100 countries around the world. Arlo plans to continue to introduce new smart connected devices to its platform in new categories, increase the number of registered users on the platform, keep them highly engaged through the mobile app and generate incremental recurring revenue by offering them paid subscription services.

In the filing, Arlo described its finances briefly as follows:

In 2016, Arlo grew revenue by 108% over the prior year to $184.6 million, and in 2017, Arlo further grew revenue by 101% over the prior year to $370.7 million.

The company intends to use the net proceeds from this offering for general corporate purposes.

Shares of Arlo were last seen up about 18% at $20.03, with a range of $18.30 to $20.62 on the day thus far. About 5 million shares had moved as of 11:15 a.m. Eastern.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.