Aaron Lee

Dong Wang

Andrew Crum

Colin Loyet

Colin Milliet

Douglas Creutz

- Arlo Technologies is successfully transitioning to a services business, reporting **$316 million** in Annual Recurring Revenue (ARR), up **34%**, and over **5 million** paid subscribers.  **[1743759_2137508_0]** 
- The company targets reaching **10 million** paid subscribers and **$700 million** ARR, with operating margins exceeding **25%**, potentially ahead of the initial 2030 timeline.  **[1743759_2137508_0]** 
- Future subscriber growth is expected to be driven primarily by strategic accounts (B2B2C), contributing **60%** of incremental subscribers, alongside continued growth from retail and direct channels.  **[1743759_2137508_0]** **[1743759_2137508_3]** 
- Arlo has demonstrated strong pricing power in its services, increasing Average Revenue Per User (ARPU) by over **50%** to over **$15** with minimal impact on churn, supported by an **85%** service gross margin.  **[1743759_2137508_5]** **[1743759_2137508_6]** 
- A major hardware refresh is currently shipping, which is expected to reduce Costs of Goods Sold (COGS) by **20%-30%**, while annual software updates, such as Arlo Secure 6, continue to enhance AI capabilities.  **[1743759_2137508_1]**

Arlo Technologies Outlines Long-Term Subscriber and Revenue Growth Targets

- Thi La assumed the role of CEO in **July of this year (2025)**, outlining key strategic priorities including accelerating product cadence, unlocking margin opportunities through operational efficiency and M&A synergy, global expansion with a focus on Asia and Latin America, and enhancing the direct-to-consumer business, alongside investments in new categories such as sim equipment and AI workstations.  **[1743759_2137551_0]** 
- The company is benefiting from market tailwinds, with **NVIDIA 5000 series** and **AMD 9000 series** GPU launches contributing to **30% growth** in the gaming components and system segment in **Q2**.  **[1743759_2137551_1]**  The sim racing market is estimated at **$1 billion** and growing at **double digits annually**, with Fanatec fully integrated and rolling out globally.  **[1743759_2137551_1]**  Highly anticipated content, such as **Grand Theft Auto VI**, is also expected to drive hardware sales.  **[1743759_2137551_1]** 
- Corsair has significantly reduced its debt from approximately **$550 million** to **$125 million**, with the debt recently extended for **five more years**, and prioritizes capital allocation for growth through internal product development and M&A, as well as maintaining a strong balance sheet.  **[1743759_2137551_4]** **[1743759_2137551_5]** 
- Internally, AI deployment has led to increased efficiency, with an AI tech support platform improving customer satisfaction by **10%** since its launch about a year and a half ago.  **[1743759_2137551_4]**  Externally, AI is being integrated into products like the **ORIGIN PC AI workstation** and **Elgato teleprompter** to enhance user experience.  **[1743759_2137551_4]**

Corsair Gaming (CRSR)