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    Rian Bisson • Craig-Hallum Capital Group

    Rian Bisson's questions to Arlo Technologies Inc (ARLO) leadership

    Rian Bisson's questions to Arlo Technologies Inc (ARLO) leadership • Q2 2025

    Question

    Rian Bisson of Craig-Hallum Capital Group, on for Tony Stoss, asked about the monthly churn rate, noting it was around 1% in the quarter, and questioned if this represents a new, lower baseline compared to the historical 1.1-1.3% range.

    Answer

    CEO Matthew McRae acknowledged the strong 1% churn result for the quarter, attributing it to the success of several internal retention initiatives hitting simultaneously. However, he stated that the company is maintaining its official expected range of 1.1% to 1.3% due to seasonality and rapid growth, while also highlighting that the company's operational improvements are having a tangible, positive impact.

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    Rian Bisson's questions to Arlo Technologies Inc (ARLO) leadership • Q1 2025

    Question

    Speaking on behalf of Tony Stoss, Rian Bisson asked for an update on key service metrics, specifically what Arlo is seeing in terms of subscriber churn and conversion rates following the recent changes to service plans and pricing.

    Answer

    CEO Matthew McRae responded that all service metrics have a 'green light'. He acknowledged a small, temporary spike in churn immediately following the plan changes, which was expected and consistent with past price adjustments. However, he confirmed that churn has since returned to normal levels and is continuing to improve. McRae also stated that conversion rates look 'great' across all cohorts, contributing to the overall strength of the services business.

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