Tuesday was just not Arlo Technologies' (NYSE:ARLO) day. The stock closed 16% lower following the release of the security camera maker's firsr quarter of fiscal 2020 results.
For the quarter, Arlo posted $65.5 million in revenue, which was 13% higher than in the same period last year. Per non-GAAP (adjusted) standards, net loss narrowed to $25.8 million ($0.34 per share), from Q1 2019's $35.3 million.
Neither headline result met analyst expectations. On average, prognosticators following the stock were estimating $74.1 million on the top line and an adjusted per-share net loss just shy of $0.29.
The company pointed out that its revenue for paid accounts well exceeded those for prepaid during the quarter, a shift that it says is part of its market strategy. However, like a great many businesses throughout the world, Arlo has struggled in the face of the economic slowdown caused by the SARS-CoV-2 coronavirus.
The pandemic was also the main reason it elected to withdraw its 2020 guidance, as it announced in the Q1 earnings release.
Arlo did proffer guidance for its current second quarter. It believes its revenue will be $50 million to $60 million. On the bottom line it is forecasting a non-GAAP net loss of $0.39 to $0.46 per share. Compounding the Q1 misses, however, neither projection meets the average analyst estimates of $70.7 million in revenue and a per-share net loss of $0.31.