Shares of Arlo Technologies (NYSE: ARLO) have soared today, up by 23% as of noon EST, after the company reported fourth-quarter earnings. The smart-home technology specialist beat expectations for both the top and bottom lines.
Revenue in the fourth quarter was roughly flat at $122.4 million, which was slightly ahead of the consensus estimate of $121 million. That translated into an adjusted net loss per share of $0.26, while analysts were expecting Arlo to lose $0.31 per share on an adjusted basis. On a GAAP basis, Arlo posted positive earnings per share of $0.26. Service revenue increased 24% for the full year.
"Arlo finished 2019 with strong execution in the market, meeting or beating our guidance, while delivering on our strategic and operational initiatives to position us to make greater strides in 2020," CEO Matthew McRae said in a statement. "We closed on our strategic partnership with Verisure, securing future revenue growth and channel expansion opportunities while improving our liquidity and our path to profitability."
Arlo issued guidance that calls for Q1 revenue of $60 million to $70 million, which should translate into an adjusted net loss of $0.33 to $0.36 per share. Wall Street is currently modeling for $74.1 million in sales and an adjusted net loss of $0.29 per share this quarter.
For full-year 2020, the company expects revenue of $370 million to $400 million, compared to the consensus estimate of $414.5 million in sales. Adjusted operating loss for the year is expected to be $65 million to $75 million.