Arlo Technologies Inc (ARLO) 2024 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. At this time, all participants are in our listen-only mode. Later we will conduct the question-and-answer session. At that time, if you have a question, you will need to press the star one on your push button phone. I would like to turn the conference over to Tahmin Clarke. Please go ahead, sir.

女士們、先生們，感謝你們的支持。目前，所有參與者都處於只聽模式。稍後我們將進行問答環節。那時，如果您有問題，您需要按下按鍵電話上的星號鍵。我想將會議交給塔赫明克拉克 (Tahmin Clarke)。先生，請繼續。

Thank you, operator. Good afternoon and welcome to Arlo Technologies fourth quarter 2024 Financial results conference call. Joining us from the company are Mr. Matthew McRae, CEO. And Mr. Kurt Binder, COO and CFO.

謝謝您，接線生。下午好，歡迎參加 Arlo Technologies 2024 年第四季財務業績電話會議。與我們一起參加會議的還有該公司執行長 Matthew McRae 先生。還有營運長兼財務長 Kurt Binder 先生。

If you have not received a copy of today's earnings release, please visit Arlo's Investor relations website at investor.arlo.com. Some of the statements that we make today regarding our business operations and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties.

如果您尚未收到今天的收益報告副本，請造訪 Arlo 的投資者關係網站 investor.arlo.com。我們今天就業務運營和財務業績所做的一些聲明可能被視為前瞻性的。這些聲明是基於目前的預期和假設，受多種風險和不確定性的影響。

Actual results could differ materially. Please refer to our forms 10K and 10Q, including the risk factors. We undertake no obligation to update any forward-looking statement. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our investor relations website.

實際結果可能存在重大差異。請參閱我們的 10K 和 10Q 表格，其中包括風險因素。我們不承擔更新任何前瞻性聲明的義務。在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。今天的收益新聞稿中包含了非 GAAP 指標與 GAAP 指標的對帳表，該新聞稿已透過我們的投資者關係網站發布並向公眾開放。

Thank you, Tahmin, and thank you everyone for joining us today. Kurt and I will be reporting Q4 and full year 2024 results, then providing a look ahead and guidance for Q1 and full year 2025. But before we dive in, I would like to take a moment to reintroduce Arlo, identify the pillars of our success, and highlight the outstanding operational execution over the last five years.

謝謝你，塔赫明，也謝謝大家今天的到來。庫爾特和我將報告 2024 年第四季和全年業績，然後對 2025 年第一季和全年進行展望和指導。但在深入探討之前，我想花點時間重新介紹 Arlo，找出我們成功的支柱，並強調過去五年來出色的營運執行。

This is especially important as we find ourselves engaging with so many new faces that are coming to the story without the benefit of traveling with us on our recent journey to becoming a top consumer SaaS company. Arlo is a trusted player in the smart home security market. In fact, we invented the category more than a decade ago with the first Arlo wire-free security camera.

這一點尤其重要，因為我們發現自己要與許多新面孔打交道，這些新面孔並沒有與我們一起踏上成為頂級消費者 SaaS 公司之路。Arlo 是智慧家庭安全市場值得信賴的參與者。事實上，十多年前，我們就透過第一款 Arlo 無線安全攝影機明了這個類別。

Through relentless focus and innovation, we have outpaced our competitors to build a highly profitable subscription business powered by a scaled fast platform with an AI enabled suite of services for our direct users and strategic partners. Arlo has been monetizing AI subscriptions since 2018, and our innovation has propelled the company to the top rung of public SaaS companies on a global basis.

透過不懈的專注和創新，我們超越了競爭對手，建立了一個高利潤的訂閱業務，該業務由一個規模化的快速平台提供支持，並為我們的直接用戶和戰略合作夥伴提供一套支持人工智慧的服務。Arlo 自 2018 年以來一直致力於將 AI 訂閱貨幣化，我們的創新推動公司在全球範圍內躋身上市 SaaS 公司的前列。

Let's take a look at Arlo's key business metrics. We currently have nearly 11 million registered accounts and over 4.5 million paid subscribers on our platform. That user base is generating over $250 million in annual recurring revenue, which is growing faster than 20% year over year. Arlo's gross margin on that service revenue is above 80%, and we have an LTV to cap ratio of four, which highlights the efficiency of our sales model and the enormous return we are providing to shareholders as we continue to grow our business.

讓我們來看看Arlo的關鍵業務指標。我們平台目前有近1100萬名註冊帳戶和超過450萬名付費用戶。該用戶群每年創造超過 2.5 億美元的經常性收入，且年增長率超過 20%。Arlo 在該服務收入上的毛利率超過 80%，我們的 LTV 與資本比率為 4，這凸顯了我們銷售模式的效率以及我們在業務不斷發展的同時為股東帶來的巨大回報。

These are world class metrics for any type of subscription services business, consumer, commercial, enterprise, any business, and I believe this is substantially underappreciated or frankly missed because Arlo reached this level so quickly. The growth of our subscription business over the last five years has been virtually unparalleled. Registered accounts have more than doubled, while our paid subscriptions have grown more than tenfold in the same time frame.

對於任何類型的訂閱服務業務、消費者、商業、企業等任何業務來說，這些都是世界級的指標，我認為這被大大低估了，或者坦率地說被忽略了，因為 Arlo 如此迅速地達到了這一水平。過去五年來，我們的訂閱業務的成長幾乎是無與倫比的。註冊帳戶數量增加了一倍多，而我們的付費訂閱數量在同一時間段內增加了十倍多。

This has driven our annual recurring revenue above $0.25 billion, and as our revenue has scaled, we have gained operating leverage in the business to expand non-GAAP service gross margin to an exit velocity of more than 80% at the end of 2024. Our SaaS business model is predictable and has been sustainable over the last five years because we generate the recurring subscription revenue in a market segment that is sticky and through stellar service, Arlo enjoys world-class customer retention.

這推動我們的年經常性收入超過 2.5 億美元，隨著收入規模的擴大，我們在業務中獲得了營運槓桿，從而將非 GAAP 服務毛利率擴大到 2024 年底的 80% 以上的退出速度。我們的 SaaS 業務模式是可預測的，並且在過去五年中一直保持可持續性，因為我們在一個黏性的細分市場中創造了經常性的訂閱收入，而且透過一流的服務，Arlo 享有世界一流的客戶保留率。

Let's look at how Arlo's growth stacks up against the best SaaS companies in the world. We found 47A companies trading on the NYSE or NASDAQ with an enterprise value of at least $250 million and then looked at how long it took for them to reach $250 million in ARR. First, you will recognize the caliber of the companies listed here in each category.

讓我們看看 Arlo 的成長與世界上最好的 SaaS 公司相比如何。我們發現在紐約證券交易所或納斯達克交易的 47A 公司的企業價值至少為 2.5 億美元，然後研究它們達到 2.5 億美元的 ARR 需要多長時間。首先，您將了解此處列出的每個類別公司的水平。

Second, you will see how rare it is for a consumer SaaS company to achieve this level of ARR growth in such a short time. By achieving over $0.25 billion in ARR in six years or less, Arlo is an elite company with only Nutanix, Rubrik, and Samsara achieving a similar fee. And with a big 2025 ahead of us, we have no intention of slowing down.

其次，你會發現，對於一家消費性 SaaS 公司來說，在如此短的時間內實現這種水準的 ARR 成長是多麼罕見。Arlo 在六年或更短的時間內實現了超過 2.5 億美元的 ARR，是一家精英公司，只有 Nutanix、Rubrik 和 Samsara 能夠實現類似的費用。2025年即將到來，我們無意放慢腳步。

Apple plays in a large and growing market of home security which is now a $25 billion dollar segment in the United States alone. And while penetration of smart cameras and video doorbells has doubled over the last five years, smart home security services have only reached 7% market adoption, leaving an enormous untapped market to grow into. The broader smart home market adds another $13 billion of addressable market in the United States, and we intend to launch user experiences and services in this area starting with Arlo Secure 6.

蘋果公司涉足的家庭安全市場規模龐大且不斷成長，目前光是在美國，該市場的規模就已達到 250 億美元。儘管智慧攝影機和視覺門鈴的普及率在過去五年中翻了一番，但智慧家庭安全服務的市場採用率僅達到 7%，還有巨大的未開發市場有待發展。更廣泛的智慧家庭市場在美國增加了另外 130 億美元的潛在市場，我們打算從 Arlo Secure 6 開始在該領域推出用戶體驗和服務。

This brings the total addressable market to nearly $30 billion in the United States, with the rest of the world adding another 2times to 3 times that value and other adjacent markets such as SMB adding another potential of 3 times to 4 times. Arlo addresses this home security market today with a simple to use yet sophisticated smart security experience coupled with a compelling subscription service.

這使得美國的總潛在市場規模達到近 300 億美元，世界其他地區將增加該價值的 2 到 3 倍，而其他鄰近市場（如 SMB）的潛力將增加 3 到 4 倍。如今，Arlo 透過簡單易用但精密的智慧安全體驗以及引人注目的訂閱服務來滿足家庭安全市場的需求。

That experience manifests itself in our award-winning mobile application and starts with clear notifications for any type of event. Notifications can be easily customized by the user to filter out unwanted noise and prioritize the types of events that are important. These notifications include a preview of the event and optional actions that can be taken right from the notification screen. In the case of an emergency, Arlo can send a critical emergency alert which bypasses any do not disturb settings to ensure the user receives the urgent information they need.

這種體驗體現在我們屢獲殊榮的行動應用程式中，並從對任何類型事件的清晰通知開始。用戶可以輕鬆自訂通知，以過濾掉不需要的噪音並優先處理重要的事件類型。這些通知包括事件預覽和可直接從通知畫面採取的可選操作。在緊急情況下，Arlo 可以發送關鍵緊急警報，繞過任何請勿打擾設置，以確保用戶收到所需的緊急訊息。

Controlling your entire Arlo ecosystem is simple and can be done right from the home screen with our widgets that provide convenient access without needing to launch the app. Or the Arlo dashboard provides complete control of the system and the most frequently used devices from a single customizable screen. An event timeline shows a holistic view of everything that is happening across the home minute-by-minute with efficient video previews and intelligent AI-driven descriptions to ensure the user is informed of important events and actions happening across the system.

控制整個 Arlo 生態系統非常簡單，可以使用我們的小部件直接從主螢幕進行控制，這些小部件提供方便的訪問，而無需啟動應用程式。或者，Arlo 儀表板透過單一可自訂的螢幕提供對系統和最常用設備的完全控制系統。事件時間軸透過高效的視訊預覽和智慧的人工智慧驅動的描述全面展示了家中每分鐘發生的所有事情，確保用戶了解系統中發生的重要事件和操作。

Our user experience also has a comprehensive emergency response center which provides immediate help when needed and an ongoing update of any emergency events happening in real time. The app also includes direct dispatch buttons allowing the user to make a request for a specific type of first responder, depending on the type of emergency. Of course, the AL experience provides comprehensive access to all of the devices and cameras in the system, providing quick live streaming, video recording playback, and two-way talk to communicate with anybody in view, whether they are intruders or a package delivery person and the entire system can be automated with device and AI cross triggers in numerous ways, including automatic arming and disarming when family members arrive and leave to create an experience that adapts to your daily life routines.

我們的使用者體驗還擁有全面的緊急應變中心，可在需要時提供即時協助，並持續更新任何即時發生的緊急事件。該應用程式還包括直接調度按鈕，允許用戶根據緊急情況的類型請求特定類型的急救人員。當然，AL 體驗提供了對系統內所有設備和攝影機的全面訪問，提供快速實時串流媒體、視訊錄製回放和雙向通話，以便與視野內的任何人進行交流，無論他們是入侵者還是包裹遞送員，並且整個系統可以通過設備和 AI 交叉觸發以多種方式實現自動化，包括在家人到達和離開時自動布防和日常生活撤防，以適合您日常生活的體驗。

This is all built on the Arlo SaaS platform, which has been developed, refined, and deployed over the last 10 years. Our platform was conceived and designed to specifically address the needs of the smart home security space, from low latency event handling to real-time processing of incoming video streams and connections to first responders on a global basis. And it operates at significant scale, with over 1,700 hours of video being analyzed per minute, generating over 170 billion AI alerts per year while keeping the high levels of quality and availability required in a true security context.

這一切都建立在 Arlo SaaS 平台上，該平台在過去 10 年中得到了開發、完善和部署。我們的平台的構思和設計專門是為了滿足智慧家庭安全領域的需求，從低延遲事件處理到傳入視訊串流的即時處理以及與全球第一響應者的連接。它的運行規模非常大，每分鐘可分析超過 1,700 小時的視頻，每年生成超過 1700 億條 AI 警報，同時保持真實安全環境所需的高水平質量和可用性。

At the core of our platform is Arlo intelligence, our real-time high performance smart security AI engine built specifically for this market segment to drive our subscription services. This is an area where focus and clarity of use cases can create a higher performing AI model compared to the massive expensive general-purpose models that seem to be quickly becoming a commodity. Intelligence is the most advanced AI model available in the security market. It processes video, audio, and environmental events to create specific alerts and system triggers which allow for faster response to potential emergency events while filtering out the noise and insignificant activities.

我們平台的核心是 Arlo 智能，這是我們專門為這個細分市場打造的即時高效能智慧安全 AI 引擎，旨在推動我們的訂閱服務。與似乎很快就會成為商品的大量昂貴的通用模型相比，在這個領域，用例的專注和清晰度可以創建性能更高的人工智慧模型。智能是安全市場上最先進的AI模型。它處理視訊、音訊和環境事件以創建特定的警報和系統觸發器，從而更快地響應潛在的緊急事件，同時過濾掉噪音和無關緊要的活動。

A detection engine can detect objects such as a person, animal, vehicle, or package, and was recently updated to detect fire, allowing earlier alerts for dangerous situations. A robust recognition engine can identify a specific person to differentiate actions from known individuals or an unknown person approaching a property, and it can identify specific vehicles, enabling specific alerts or actions depending on whether that vehicle is known or unknown by the user.

偵測引擎可以偵測人、動物、車輛或包裹等物體，並且最近進行了更新，可以偵測火災，從而可以更早發出危險情況的警報。強大的識別引擎可以識別特定的人，以區分已知個人或接近財產的陌生人的行為，並且可以識別特定的車輛，根據使用者是否已知或未知該車輛啟用特定的警報或操作。

Arlo intelligence also includes our groundbreaking custom detection capability. That enables users to create private AI micro models which detect nearly any type of event dramatically expanding the power of our service. No other security AI platform has this advanced and comprehensive suite of capabilities, and this differentiation is helping us win and retain subscribers. Arlo prides itself in the performance and quality of these solutions we provide our users and partners.

Arlo 智慧還包括我們突破性的自訂偵測功能。這使得用戶能夠創建私人 AI 微模型，檢測幾乎任何類型的事件，從而大大擴展我們服務的功能。沒有其他安全 AI 平台擁有如此先進、全面的功能，這種差異化幫助我們贏得並留住用戶。Arlo 對我們為使用者和合作夥伴提供的解決方案的效能和品質感到自豪。

A great benchmark is the industry press and awards, where we are judged by experts in the field, and in 2024, Arlo continues to be recognized as a leader in driving new technology to market and enabling a world-class user experience and a great judge of that user experience is the ability to retain subscribers. Arlo experiences a churn rate of between 1.1% and 1.3%, which translates to the average customer staying with Arlo services for more than seven years.

一個很好的基準是行業媒體和獎項，我們由該領域的專家進行評判，到 2024 年，Arlo 將繼續被公認為推動新技術推向市場和實現世界一流用戶體驗的領導者，而評判用戶體驗的一個重要標準就是留住用戶的能力。Arlo 的客戶流失率在 1.1% 到 1.3% 之間，這意味著平均每位客戶使用 Arlo 的服務超過七年。

This puts us in a great position as a SaaS company and compares very favorably to other consumer subscription services. Arlo's singular focus on the smart home security market has allowed us to move quicker, innovate faster, and continue to lead the market. Every day, every person at Arlo is dedicated to driving our platform forward to benefit our users and partners. Video is at the heart of security now, with some areas of the country requiring video verification to dispatch first responders, and users are demanding experiences that show them what is happening at all times.

這使我們作為一家 SaaS 公司處於有利地位，與其他消費者訂閱服務相比非常有利。Arlo 專注於智慧家庭安全市場，這使我們能夠更快地行動、更快地創新並繼續引領市場。每天，Arlo 的每一位員工都致力於推動我們的平台向前發展，以造福我們的用戶和合作夥伴。影片現在是安全的核心，該國的一些地區要求透過視訊驗證來派遣急救人員，用戶要求獲得能夠隨時了解正在發生的情況的體驗。

This, coupled with our strict privacy pledge creates a relationship founded on trust. And our platform is the main asset of the business, the culmination of a decade of work, and at its core is Arlo intelligence, where we are at the forefront of leveraging AI to provide real tangible value to users in a scaled and performant experience. This is why we win.

這一點，加上我們嚴格的隱私承諾，建立了建立在信任基礎上的關係。我們的平台是我們業務的主要資產，是我們十年工作的成果，其核心是 Arlo 智能，我們處於利用人工智慧的前沿，透過規模化和高性能的體驗為用戶提供真正的有形價值。這就是我們獲勝的原因。

And now I will turn the presentation over to Kurt who will present our Q4, 2024 operating results.

現在，我將演講交給 Kurt，他將介紹我們 2024 年第四季的營運表現。

Thank you, Matt, and thank you everyone for joining us today. 2024 was another outstanding year for Arlo as we continue to advance our track record of operational excellence guided by our subscription-driven strategy.

謝謝你，馬特，也謝謝大家今天的到來。 2024 年對 Arlo 來說是另一個傑出的一年，我們在訂閱驅動策略的指導下繼續推進卓越營運的表現。

Before I provide additional details on our subscription services business, I wanted to highlight that the consolidated business generated total revenue of $511 million for the full year of 2024, up $19.7 million over the prior year. And within our original annual guidance range, additionally, total revenue for the fourth quarter of $122 million came in slightly ahead of consensus expectations and was driven by the strong growth of our services business. Over the past several years, Arlo has been on a transformational journey.

在我提供有關我們的訂閱服務業務的更多詳細資訊之前，我想強調一下，合併業務在 2024 年全年的總收入為 5.11 億美元，比上一年增加了 1,970 萬美元。在我們最初的年度指導範圍內，第四季度的總收入為 1.22 億美元，略高於普遍預期，這得益於我們服務業務的強勁成長。在過去的幾年裡，Arlo 經歷了一段轉型之旅。

During this time, we have been told on many occasions that to be considered a world class SaaS company, we need to achieve certain KPIs. These milestones include service revenue composition, greater than 50% of total revenue, minimum ARR of $250 million and services gross margins greater than 80%. Well, the Arlo team accepted this feedback and undertook the challenge, and we are proud to announce that we have hit all of these key milestones during the fourth quarter of 2024.

在此期間，我們多次被告知，要成為世界級的 SaaS 公司，我們需要實現某些 KPI。這些里程碑包括服務收入組成、超過總收入的 50%、最低 ARR 為 2.5 億美元以及服務毛利率超過 80%。好吧，Arlo 團隊接受了這個反饋並接受了挑戰，我們很自豪地宣布，我們在 2024 年第四季度實現了所有這些關鍵里程碑。

As Matt mentioned earlier, we increased our cumulative paid accounts to 4.6 million, and along with it, our annual recurring revenue grew by over 20% to $257 million. Our services revenue increased to $243 million in 2024, and in Q4 comprised 53% of our total revenue. Further, we have expanded our services' gross margins to 82% as we exited this year. And although we are pleased with our execution, this management team is not complacent with our success, as there is so much more to come in 2025. The Arlo subscription-based operating model with its retail and direct paid accounts boasts exceptional unit economics that are consistent with most world class size enterprises.

正如馬特之前提到的，我們的累計付費帳戶數增加到了 460 萬，與此同時，我們的年經常性收入增長了 20% 以上，達到 2.57 億美元。我們的服務收入在 2024 年增加到 2.43 億美元，在第四季度占我們總收入的 53%。此外，我們今年退出時已將服務的毛利率擴大至 82%。儘管我們對我們的執行情況感到滿意，但管理團隊不會對我們的成功感到自滿，因為 2025 年還有更多的目標。Arlo 基於訂閱的營運模式及其零售和直接付費帳戶擁有與大多數世界級規模企業一致的卓越單位經濟效益。

During 2024, we continued to expand our overall unit economics as the gross profit from our services business exceeded our non-gap operating expenses by more than $35 million. During the year we increased our ARPU from retail paid accounts to $12.60 from $11.30 in the prior year, representing a 12% growth rate. ARPU expansion was driven by the value of enhanced AI and other robust features included in our higher tiered service plans. Amazingly, these retail paid accounts generated gross margins of 92% as we exited the year, thereby catalyzing this outstanding financial performance.

2024 年，我們繼續擴大整體單位經濟效益，因為服務業務的毛利超過了非缺口營運費用 3,500 多萬美元。本年度，我們將零售付費帳戶的 ARPU 從去年的 11.30 美元提升至 12.60 美元，成長率為 12%。ARPU 的擴張是由我們更高層次的服務計劃中包含的增強型 AI 和其他強大功能的價值所推動的。令人驚訝的是，這些零售付費帳戶在年底創造了 92% 的毛利率，從而催化了這一出色的財務表現。

ARPU expansion and consistent monthly subscriber gross retention at 99% per month has driven our current LTV to an outstanding $750 per subscriber. It is important to highlight that we continue to employ a strategy of leveraging our product sales as a critical element in our customer acquisition model. Product revenue for the full year of 2024 was $268 million down by $22.1 million compared to the prior year. Product revenue for the fourth quarter was $57.4 million and in line with our expectations communicated back in Q3.

ARPU 的擴大和每月 99% 的穩定月度用戶總保留率使我們目前的 LTV 達到了每位用戶 750 美元的出色水平。值得強調的是，我們將持續採用利用產品銷售作為客戶獲取模式關鍵要素的策略。2024 年全年產品營收為 2.68 億美元，較上年下降 2,210 萬美元。第四季的產品收入為 5740 萬美元，符合我們在第三季傳達的預期。

In Q4, the promotional activities across all retail channels were aggressive given consumer sentiment as well as other environmental and macroeconomic factors. In order to meet the consumers where they were and drive growth in point of sale or POS activities, Arlo instituted a number of incremental promotional campaigns which decreased the ASPs for our devices and also attributed to a decline in our overall product gross margins.

第四季度，考慮到消費者情緒以及其他環境和宏觀經濟因素，所有零售通路的促銷活動都非常積極。為了滿足消費者的需求並推動銷售點或 POS 活動的成長，Arlo 開展了一系列增量促銷活動，這降低了我們設備的平均售價，也導致我們整體產品毛利率下降。

As a result, our cost of customer acquisition, or CAC increased from $100 in the prior year to $200 in 2024. Since the increase in CAC was driven by our intentional strategy to reduce ASPs and use our products to drive household formation, we were able to increase our unit POS in Q4 by 73% over the prior quarter and 5% over the prior year. This is a remarkable outcome considering that we launched the Essential 2 platform in 2023.

因此，我們的客戶獲取成本（CAC）從上一年的 100 美元增加到 2024 年的 200 美元。由於 CAC 的成長是由我們降低 ASP 和使用我們的產品來推動家庭形成的策略所推動的，因此我們能夠將第四季度的單位 POS 比上一季提高 73%，比上年同期提高 5%。考慮到我們在 2023 年推出了 Essential 2 平台，這是一個了不起的成果。

Leveraging our sales channel, strong pricing power, and world class customer retention levels, we still have an industry leading LTV ratio of 4 times, and we are just beginning to tap into this vast long-term opportunity. It is important to discuss two critical growth metrics paid accounts and ARR growth. Our install base of subscribers continued its strong trajectory, coming in at 4.6 million paid accounts at the end of 2024, an increase of 63% over the prior year.

利用我們的銷售管道、強大的定價能力和世界一流的客戶保留水平，我們仍然擁有行業領先的 4 倍 LTV 比率，並且我們才剛開始挖掘這一巨大的長期機會。討論兩個關鍵成長指標付費帳戶和 ARR 成長非常重要。我們的用戶安裝基數持續保持強勁成長勢頭，截至 2024 年底付費帳戶數達到 460 萬，較前一年增長 63%。

As discussed in previous quarters, we remain committed to generating 170,000 to 190,000 new paid subscribers each quarter. In this past year, our paid accounts reflected a meaningful catch up of Verisure subscribers. However, we believe that substantially all of the Verisure catch up related to firmware upgrades are completed. We recognize that paid account growth is instrumental in driving our year-end ARR, which was $257 million at the end of 2024.

正如前幾季所討論的那樣，我們仍然致力於每個季度吸引 170,000 至 190,000 名新付費用戶。在過去的一年裡，我們的付費帳戶反映出 Verisure 用戶數量的顯著成長。不過，我們相信與韌體升級相關的 Verisure 追趕工作基本上已經完成。我們認識到付費帳戶的成長對於推動我們的年終 ARR 發揮了重要作用，截至 2024 年底，ARR 為 2.57 億美元。

The ARR growth rate of 22% is exceptional and a factor of both paid account growth as well as the expansion of ARPU due to mixed shifts in service plans. It is important to note that around 87% of the ARR is generated from our retail and direct paid accounts. Our focus on subscription-based services provides a significant uplift to our profitability and greater visibility and predictability in achieving our near-term revenue targets.

22% 的 ARR 成長率非常出色，這是付費帳戶成長和服務計畫混合轉變導致的 ARPU 擴大的一個因素。值得注意的是，約 87% 的 ARR 來自我們的零售和直接付費帳戶。我們專注於訂閱式服務，這顯著提升了我們的獲利能力，並提高了實現近期收入目標的可見度和可預測性。

Our service revenue was at record levels for Arlo at $64.1 million for the fourth quarter and $243 million for the full year of 2024. Service revenue increased by $42 million or 21% year-over-year fueled by the addition of new paid accounts and ARPU expansion. Further, service revenue as a percentage of total revenue represented 53% and 48% for Q4 and for the full year respectively. Non-GAAP service revenue gross margins were above 76% throughout the year and exited the fourth quarter at a remarkable rate of 82%.

我們的服務收入達到了 Arlo 的歷史最高水平，第四季度為 6,410 萬美元，2024 年全年為 2.43 億美元。由於新增付費帳戶和 ARPU 擴大，服務收入比去年同期增加了 4,200 萬美元，增幅為 21%。此外，服務收入佔總收入的比例在第四季和全年分別為 53% 和 48%。非公認會計準則服務收入毛利率全年均在76%以上，第四季更是高達82%。

The Q4 2024 services gross margin increased significantly from 74% in Q4 of 2023. On a consolidated basis, our non-GAAP gross profit for the fourth quarter was $45.6 million resulting in a non-GAAP gross margin of 37.5%, driven by the improvement in services profitability. Our non-GAAP gross profit for the full year of 2024 was $192.3 million up $20.6 million or 12% year-to-year. This resulted in a non-gap gross margin of 37.6%, up more than 260 basis points from 35% in 2023.

2024 年第四季的服務毛利率較 2023 年第四季的 74% 大幅上升。綜合來看，我們第四季的非公認會計準則毛利為 4,560 萬美元，非公認會計準則毛利率為 37.5%，這得益於服務獲利能力的提高。我們 2024 年全年的非 GAAP 毛利為 1.923 億美元，年增 2,060 萬美元，成長 12%。這導致非缺口毛利率達到 37.6%，較 2023 年的 35% 上升了 260 個基點以上。

The year-to-year increase in non-GAAP gross profit was primarily attributable to the growth in revenue and improvement in gross margins in our services business, coupled with an ongoing focus on cost optimizations. Our growth in non-GAAP operating income and free cash flow was exceptional this year. To appreciate the operating leverage in our business model, you need to understand our discipline approach to managing our non-gap operating expenses and working capital in 2024.

非公認會計準則毛利的年增率主要歸因於我們服務業務的收入成長和毛利率的提高，以及對成本優化的持續關注。今年，我們的非公認會計準則營業收入和自由現金流成長顯著。要了解我們商業模式中的經營槓桿，您需要了解我們在 2024 年管理非缺口經營費用和營運資本的紀律方法。

Total non-GAAP operating expenses for the fourth quarter were $36.3 million down more than $2 million both sequentially and year over year. Total non-GAAP operating expenses for the full year of 2024 were $154.4 million up about $7.7 million or 5% from the $146.7 million reported in the same period last year. Our ability to manage our operating expenses at these levels truly demonstrates the leverage in our business model. This was evident this year as services revenue grew by $42 million or 21%, while the cost to deliver that revenue only grew by 2%, representing a 97% gross margin on the incremental service revenue.

第四季非公認會計準則總營業費用為 3,630 萬美元，比上一季和去年同期均下降超過 200 萬美元。2024 年全年非 GAAP 總營業費用為 1.544 億美元，較去年同期的 1.467 億美元增加約 770 萬美元或 5%。我們在這些水準上管理營運費用的能力真正體現了我們的商業模式的槓桿作用。今年這一點表現得很明顯，服務收入增加了 4,200 萬美元，增幅為 21%，而實現該收入的成本僅增長了 2%，增量服務收入的毛利率高達 97%。

We set another record in 2024 generating $37.9 million in non-GAAP operating profit or 7.4% operating margin. For that same period, non-GAAP operating income was up a remarkable 52% over the prior year. This level of operating profit coupled with exceptional working capital management helped drive our free cash flow to $48.6 million with free cash flow margin of 9.5%. The year to year growth in free cash flow was $13.2 million or 37%.

2024 年，我們創下了另一項紀錄，非 GAAP 營業利潤為 3,790 萬美元，營業利潤率為 7.4%。同一時期，非公認會計準則營業收入較上年同期大幅增加了 52%。這一水準的營業利潤加上卓越的營運資本管理幫助我們的自由現金流達到 4,860 萬美元，自由現金流利潤率為 9.5%。自由現金流年增1,320萬美元，增幅37%。

In Q4 we posted a non-gap net income of $10.4 million or net income per dilutive share of $0.10 in line with consensus. For 2024, we recorded non-GAAP net income of $42.3 million up more than $14.4 million or 52% when compared to the same period in 2023. Our non-GAAP net income translates to net income per dilutive share of $0.40. Again, a significant improvement from a net income per dilutive share of $0.28 in 2023. You can expect us to continue to be focused on managing the operating expenses to invest in growth opportunities ahead of us.

第四季度，我們公佈的非缺口淨收入為 1,040 萬美元，或每股攤薄淨收入為 0.10 美元，符合預期。2024 年，我們的非 GAAP 淨收入為 4,230 萬美元，與 2023 年同期相比成長 1,440 萬美元以上，增幅為 52%。我們的非公認會計準則淨收入相當於每股攤薄淨收入 0.40 美元。再次，與 2023 年每股 0.28 美元的淨利潤相比，有了顯著改善。您可以期待我們繼續專注於管理營運費用，以投資我們未來的成長機會。

Regarding our balance sheet and liquidity position, we ended the quarter with $151.5 million in available cash equivalents, and short-term investments. This balance was up $15 million year to year, underscoring the improvement in profitability. Given our growing cash balance, we are extremely focused on our ability to allocate capital in a manner that generates the best return.

關於我們的資產負債表和流動性狀況，本季末我們擁有 1.515 億美元的可用現金等價物和短期投資。這一餘額比去年同期增加了 1500 萬美元，凸顯了獲利能力的提高。鑑於我們不斷增長的現金餘額，我們極其註重以產生最佳回報的方式分配資本的能力。

Our DSO levels for the quarter were 44 days in Q4 of 2024 and relatively consistent with our DSO levels in the prior quarter and same quarter last year, highlighting our enhanced collection efforts on our base of larger retail customers. We will continue to monitor our DSOs closely, but we are pleased with the overall status and collectability of outstanding receivables.

2024 年第四季度，我們的 DSO 水準為 44 天，與上一季和去年同期的 DSO 水準相對一致，突顯了我們在較大零售客戶基礎上加強的收款力度。我們將繼續密切監控我們的 DSO，但我們對未償應收帳款的整體狀況和可收回性感到滿意。

Regarding inventory, we managed our inventory levels to $40.6 million to meet the expected consumer demand in the fourth quarter. This balance was substantially reduced from our inventory balance of $52 million in Q3. Which helped improve our inventory turns in Q4 to 6.4 times, up from 5.8 times in Q3. That inventory improvement was driven by a well-executed loading of product into mass market retailers like Walmart and Amazon to support their fourth quarter promotional events.

關於庫存，我們將庫存水準管理在 4,060 萬美元，以滿足第四季度預期的消費者需求。該餘額較我們第三季的 5,200 萬美元庫存餘額大幅減少。這有助於我們將第四季的庫存週轉率從第三季的 5.8 次提高到 6.4 次。庫存改善的原因是，該公司將產品順利裝入沃爾瑪和亞馬遜等大眾市場零售商，以支援其第四季的促銷活動。

Thank you, Kurt.

謝謝你，庫爾特。

I would like to change gears now to start looking ahead at 2025 and some of the exciting components that will play a role in our future success. Innovation is at the core of what we do here at Arlo. Our history of innovation spans a decade from the launch of the original Arlo wire-free camera to the most recent updates to our complete security experience, including Arlo intelligence.

現在我想換個話題，開始展望2025年以及一些將在我們未來成功中發揮作用的令人興奮的因素。創新是 Arlo 所做工作的核心。我們的創新歷史跨越十年，從最初的 Arlo 無線攝影機的推出，到最近對包括 Arlo 智慧在內的完整安全體驗的更新。

Here's what we have planned going forward. Looking ahead to the holiday season in 2025, Arlo will refresh nearly every camera in our lineup across Ultra, pro, and Essential, and we will also be expanding into several new camera segments like Pant tilt Zoom and more powered outdoor devices. This will be the largest device launch in our company's history and sets the stage for growth, with Arlo already securing an increase in shelf share at one of our largest channel partners.

以下是我們未來的計劃。展望 2025 年的假期季，Arlo 將更新我們 Ultra、pro 和 Essential 系列中的幾乎所有攝像頭，我們還將擴展到幾個新的攝像頭領域，例如 Pant tilt Zoom 和更多有源戶外設備。這將是我們公司歷史上規模最大的設備發布，為公司的成長奠定了基礎，目前 Arlo 已經確保了我們最大的通路合作夥伴之一的貨架份額的成長。

Simultaneously, Arlo has commenced development of a next generation home and small business security ecosystem launching in 2026 and 2027. This new concept was born out of a clean sheet of paper design study, ignoring the past precedents in old technology that still dominates the states, which enables a groundbreaking new way to think about and experience security. I could not be more excited about this program, which is a beneficiary of our organic capital allocation program, and we will start sharing information with strategic partners later this year. This is true innovation, what has always made Arlo great, and it will reset the bar for the entire industry once again.

同時，Arlo 已開始開發下一代家庭和小型企業安全生態系統，預計將於 2026 年和 2027 年推出。這個新概念誕生於一張白紙的設計研究，忽略了過去仍然占主導地位的舊技術的先例，從而為思考和體驗安全提供了一種突破性的新方式。我對這個計劃感到非常興奮，它是我們的有機資本配置計劃的受益者，我們將在今年稍後開始與戰略合作夥伴分享資訊。這是真正的創新，也是 Arlo 一直以來的偉大之處，它將再次為整個產業樹立新的標準。

Based on the success and data we saw from our Arlo Secure 5 launch last year, we moved to simplify the subscription plans that we offer in 2025. Arlo now offers two plans, plus in both single and unlimited camera options and Premiere, which includes professional monitoring, emergency response, cellular backup, and Arlo Safe. We have doubled the cloud video storage to 60 days, and now every plan has access to our full suite of Arlo intelligence features. The new plans took effect January 1st, and all current subscribers are being migrated to these plans starting this month. Early metrics confirm what we saw with our initial launch of Arlo Secure 5.

根據去年推出的 Arlo Secure 5 所取得的成功和數據，我們決定簡化 2025 年提供的訂閱方案。Arlo 現在提供兩種計劃，另外還有單一攝影機和無限攝影機選項以及 Premiere，其中包括專業監控、緊急回應、蜂窩備份和 Arlo Safe。我們已將雲端視訊儲存期限增加一倍至 60 天，現在每個方案都可以存取我們的全套 Arlo 智慧功能。新計劃於 1 月 1 日生效，所有現有訂閱者將從本月開始遷移到這些計劃。早期指標證實了我們首次推出 Arlo Secure 5 時看到的情況。

Average revenue per user for new subscribers is now $17.54. 24% of our users are selecting annual plans, which reduces churn, and we have seen a 20% increase in the mix of users selecting our premium plan. And a quick stat we found interesting when looking at our population of active devices in the field, roughly 65% are attached to a paid plan. Arlo's Secure 5 is a resounding success, and this change in plan structure will maximize the positive impact for users and our shareholders. And here is a quick sneak peek at a subset of the new features coming in Arlo Secure 6 later this year.

目前新訂戶的每位用戶平均收入為 17.54 美元。 24% 的用戶選擇了年度套餐，這減少了用戶流失，我們發現選擇高級套餐的用戶數量增加了 20%。當我們查看現場活躍設備數量時，我們發現一個有趣的統計數據：大約 65％ 的設備都附加了付費計劃。Arlo 的 Secure 5 取得了巨大的成功，而計劃結構的這一變化將最大限度地為用戶和股東帶來積極影響。以下是今年稍後推出的 Arlo Secure 6 的部分新功能的簡要預覽。

First, you will see Arlo begin its push into the $13 billion a year DIY smart home space by adding third party device control and automation to our user experience. This is the beginning of a multi-year expansion into that market where we see security solution companies like Arlo having an advantage in owning the user engagement and relationship as the smart home and home security segments combined into one concept smart home security. A single shortcut could arm the Arlo system at night while simultaneously locking the front door, lowering the thermostat, and turning off the lights downstairs.

首先，您將看到 Arlo 透過在我們的用戶體驗中添加第三方設備控制和自動化，開始進入每年價值 130 億美元的 DIY 智慧家庭領域。這是該市場多年擴張的開始，我們看到像 Arlo 這樣的安全解決方案公司在擁有用戶參與度和關係方面的優勢，因為智慧家庭和家庭安全部分結合為一個概念智慧家庭安全。一條快捷方式可以在夜間啟動 Arlo 系統，同時鎖上前門、調低恆溫器並關閉樓下的燈。

Second, you will see Arlo intelligence expand into providing more detailed descriptions of an event for both video and audio portions of the data capture. For instance, it will be able to describe a person's clothes or what they are holding as they walk up to the front door, or it can listen and determine what sound it hears, such as a car alarm, and these descriptions will be fully searchable to find patterns in your event feed or find specific events and third, we will be rolling out a beta version of a new Arlo intelligent capability threat assessment.

其次，您將看到 Arlo 智慧擴展到為資料擷取的視訊和音訊部分提供更詳細的事件描述。例如，它可以描述一個人的衣服或他們走到前門時拿著的東西，或者它可以聆聽並確定它聽到的聲音，例如汽車警報，並且這些描述將完全可搜索，以便在你的事件提要中查找模式或查找特定事件；第三，我們將推出新的 Arlo 智能能力威脅評估的測試版。

Our platform will analyze each event and provide threat scoring on several parametric classifications to determine how to react. The threat assessment could be used to send a critical alert, trigger system deterrence actions, and prioritize emergency responders while providing much more detail as part of that escalation. Argo Secure 6 is another example of our innovation edge and we will continue our leadership and capabilities and user experience. Now I would like to shift to partnerships.

我們的平台將分析每個事件並根據幾個參數分類提供威脅評分，以確定如何應對。威脅評估可用於發送關鍵警報、觸發系統威懾行動、並確定緊急應變人員的優先級，同時在升級過程中提供更多細節。Argo Secure 6 是我們創新優勢的另一個例子，我們將繼續保持我們的領導、能力和使用者體驗。現在我想轉向合作關係。

This morning, we announced our partnership with Rapid SOS, which extends the capabilities of the Arlo platform to provide world class emergency response. Arlo users will have a faster response time to any emergency request and have the option to share important information with first responders, such as gate codes, profiles of people at the location, medical histories, or other information that could vastly improve response times and deliver better outcomes. Arlo users can select specific cameras to share with emergency agents who can then use video verification of the event which enables a faster, higher priority response from first responders.

今天早上，我們宣布與 Rapid SOS 建立合作夥伴關係，這將擴展 Arlo 平台的功能，以提供世界一流的緊急應變。Arlo 用戶將對任何緊急請求做出更快的回應，並可以選擇與第一個回應者分享重要訊息，例如門禁密碼、現場人員的個人資料、病史或其他可以大大改善回應時間並提供更好結果的資訊。Arlo 用戶可以選擇特定的攝影機與緊急救援人員共享，然後緊急救援人員可以使用視訊驗證事件，從而使急救人員能夠更快、更優先地做出回應。

Looking ahead, Rapid SOS will enable Arlo to bring these advanced emergency response services to new regions, fueling the international expansion of our premier subscription plan, and we plan to collaborate with them on additional innovation opportunities in the space over the coming years. Additionally, we launched a deep technology partnership with Origin Wireless, whose verified human presence technology utilizes existing Wi Fi devices within the home or business to intelligently predict if a moving object on the premise is a person.

展望未來，Rapid SOS 將使 Arlo 能夠將這些先進的緊急應變服務帶到新的地區，推動我們首要訂閱計畫的國際擴張，我們計劃在未來幾年與他們合作，在該領域尋找更多創新機會。此外，我們與 Origin Wireless 建立了深度技術合作夥伴關係，其驗證人類存在技術利用家庭或企業內現有的 Wi-Fi 設備來聰明地預測場所內的移動物體是否是人。

It is a groundbreaking capability driven by a sophisticated AI model that not only brings a differentiated feature to the Arlo SaaS platform but has also created a pipeline of strategic partners that want to deploy it as part of a security subscription service. Once integrated into Arlo Intelligence and our SaaS platform, it will provide simple motion detection without hardware, help reduce false alarms and drive new business opportunities for Arlo. As part of our relationship, Arlo has secured global exclusive rights to the technology itself and the ability to market and sell the technology as a service.

這是一項由複雜的 AI 模型驅動的突破性功能，它不僅為 Arlo SaaS 平台帶來了差異化功能，而且還創建了希望將其作為安全訂閱服務的一部分進行部署的戰略合作夥伴管道。一旦整合到 Arlo Intelligence 和我們的 SaaS 平台，它將提供無需硬體的簡單運動偵測，有助於減少誤報並為 Arlo 帶來新的商機。作為我們合作的一部分，Arlo 獲得了該技術本身的全球獨家權利以及以服務形式行銷和銷售該技術的能力。

And finally, we also announced this morning a deeper relationship with Samsung, which we are very excited about. As a first step, the teams are working closely together to bring a best-in-class experience to Samsung Smart Things users across Arlo cameras. This will include better performance, two-way audio, event snapshot previews, and AI powered notifications and triggers inside of the Smart Things user experience. Other aspects of our partnership will be announced later this year.

最後，我們今天早上也宣布了與三星建立更深層的合作關係，我們對此感到非常興奮。作為第一步，各個團隊正在密切合作，透過 Arlo 相機為三星智慧事物用戶帶來一流的體驗。這將包括更好的性能、雙向音訊、事件快照預覽以及智慧事物用戶體驗中的 AI 驅動的通知和觸發器。我們合作的其他細節將於今年稍後公佈。

And now I will turn the presentation over to Kurt again to provide our 2025 financial outlook.

現在我將再次把演講交給 Kurt，以提供我們 2025 年的財務展望。

Thanks, Matt. Our strong operational performance in 2024 and groundbreaking innovations that Matt just discussed positions us for success in 2025 and beyond. Our large addressable market is expanding as the value proposition that we provide can serve a broader range of customers.

謝謝，馬特。我們在 2024 年的強勁營運表現和馬特剛才討論的突破性創新為我們在 2025 年及以後取得成功奠定了基礎。由於我們提供的價值主張可以服務更廣泛的客戶，我們龐大的潛在市場也不斷擴大。

Our SaaS business model is resilient and sustainable as we focus on acquiring new households through our highly leveraged channel and strategic partnerships. Using our compelling service offerings, we expect to convert purchases from new households at high rates into paid subscriptions. As customers are integrated into the Arlo ecosystem, we will expand ARPU through upsell opportunities led by sophisticated AI capabilities or lifesaving professional monitoring solutions.

我們的 SaaS 業務模式具有彈性和永續性，因為我們專注於透過高槓桿管道和策略合作夥伴關係來獲取新家庭。利用我們引人注目的服務產品，我們期望將新家庭的購買量高轉化為付費訂閱。隨著客戶融入 Arlo 生態系統，我們將透過複雜的 AI 功能或救生專業監控解決方案帶來的追加銷售機會來擴大 ARPU。

These efforts result in higher ARR and expanding margins, bolstering our profitability and generating additional free cash flow. The flywheel effect inherent in our business model is why we have such confidence in our ability to continue to deliver outstanding operational results now and into the future. We have now described the outstanding results that our subscription strategy has yielded, and our focus remains on driving additional unit sales to deliver highly profitable subscriptions.

這些努力帶來了更高的 ARR 和更大的利潤率，增強了我們的獲利能力並產生了額外的自由現金流。我們的商業模式固有的飛輪效應使我們對我們現在和將來繼續提供出色的營運績效的能力充滿信心。我們現在已經描述了我們的訂閱策略所取得的突出成果，我們的重點仍然是推動額外的單位銷售以提供高利潤的訂閱。

Even with our aggressive stance on growth, we don't expect our customer acquisition costs to materially impact our consolidated margins or profitability goals. With that said, we expect the first quarter consolidated revenue for 2025 to be in the range of $114 million to $124 million. We expect our first quarter GAAP net loss per share to be between a loss of $0.06 and $0.00. And our non-GAAP net income per share to be between $0.09 and $0.15 per share.

即使我們採取積極的成長立場，我們也不認為客戶獲取成本會對我們的綜合利潤率或獲利目標產生重大影響。話雖如此，我們預計 2025 年第一季綜合營收將在 1.14 億美元至 1.24 億美元之間。我們預計第一季每股 GAAP 淨虧損在 0.06 美元至 0.00 美元之間。我們的非公認會計準則每股淨利潤在 0.09 美元至 0.15 美元之間。

We expect product margins in the period to rebound from the promotional driven activity that was experienced in the fourth quarter of 2024. For the full year of 2025, we expect consolidated revenue to be in the range of $510 million to $540 million with service revenue comprising greater than 50% of total revenue. Based on the increase in paid accounts and improvement in ARR, we expect to generate service revenue at or above $300 million in 2025, growing at over 20% year-over-year.

我們預計，該期間的產品利潤率將從 2024 年第四季的促銷活動推動中反彈。我們預計 2025 年全年綜合收入將在 5.1 億美元至 5.4 億美元之間，其中服務收入將佔總收入的 50% 以上。基於付費帳戶的增加和ARR的提高，我們預計2025年服務收入將達到或超過3億美元，年成長超過20%。

Our approach to subscriptions will continue to drive our margin expansion as we expect non-GAAP service gross margin to be greater than 80% throughout the year. Our cost management discipline will be an important factor in our expanding profitability as we expect our non-GAAP net income per dilute share to be between $0.56 and $0.66 per share. Representing year to year growth of more than 50% at the midpoint of the guidance range. We expect our consolidated gross margins will again be up several 100 basis points. Emphasizing the operating leverage in the model, even withstanding investment and customer acquisition through product pricing.

我們的訂閱方式將繼續推動利潤率的擴大，因為我們預計全年非 GAAP 服務毛利率將超過 80%。我們的成本管理紀律將成為我們提高獲利能力的重要因素，因為我們預計非公認會計準則每股攤薄淨利潤將在 0.56 美元至 0.66 美元之間。代表指導範圍中點的年成長率超過 50%。我們預計綜合毛利率將再次上升數百個基點。強調模型中的經營槓桿，甚至透過產品定價來承受投資和客戶獲取。

Again, all metrics proving that Arlo is a world class SaaS business. Our strong balance sheet and profitability establishes a solid foundation for the company's robust capital allocation program. On previous calls we have discussed the three dimensions of our capital allocation program which include organic and inorganic investments as well as return of capital to shareholders. We prioritize organic investments because the addressable market of the smart security space is large, relatively untapped, and poised to expand over time.

再一次，所有指標都證明 Arlo 是一家世界級的 SaaS 企業。我們強勁的資產負債表和獲利能力為公司強勁的資本配置計劃奠定了堅實的基礎。在先前的電話會議中，我們討論了資本配置計畫的三個方面，包括有機和無機投資以及向股東的資本回報。我們優先考慮有機投資，因為智慧安全領域的潛在市場很大、相對尚未開發，並且有望隨著時間的推移而擴大。

The investments that we have made so far have paid dividends yielding positive outcomes and enhancing our customer experience and achieving innovation milestones such as the introduction of Arlo Secure 5. With respect to inorganic investments, we continue to review potential candidates for external investment that either strengthen our position in the smart security space or enhance our technology platform to expand into adjacent markets.

我們迄今為止所做的投資已經獲得了回報，產生了積極的成果，提升了我們的客戶體驗，並實現了創新里程碑，例如推出 Arlo Secure 5。對於無機投資，我們將繼續審查潛在的外部投資候選者，以加強我們在智慧安全領域的地位或增強我們的技術平台以擴展到鄰近市場。

We have remained cautious around inorganic investments and will only execute a transaction that accelerates our path to achieving our long-range goals. Finally, we have embarked on a share repurchase program that enables us to return capital to our shareholders. During the period, we executed repurchasing shares at an average price of $11.67 with proceeds totaling $4.4 million. We will continue to be opportunistic at repurchasing our shares, which we believe are still undervalued given our growth and profitability profile.

我們對無機投資一直保持謹慎，並且只會執行能夠加速我們實現長期目標的交易。最後，我們啟動了一項股票回購計劃，以便我們能夠向股東返還資本。在此期間，我們以平均 11.67 美元的價格回購股票，收益總額為 440 萬美元。我們將繼續抓住機會回購我們的股票，我們認為，考慮到我們的成長和獲利狀況，我們的股票仍然被低估。

Thank you, Kurt.

謝謝你，庫爾特。

As you can tell from our guidance, 2025 is going to be a massive year at Arlo. We are executing extremely well and continuing to perform at the highest level across all SAS peers. In fact, if you take the SAS companies we highlighted earlier and down select further to only those companies that are achieving a near rule of 40 status, it becomes a much smaller cohort, and this set of companies are currently being valued based on a revenue multiple of 7.6 times.

從我們的指導中可以看出，2025 年將是 Arlo 的重要一年。我們的執行情況非常出色，並繼續在所有 SAS 同行中保持最高水準。事實上，如果你把我們之前重點介紹的 SAS 公司進一步篩選為那些達到近 40 法則的公司，那麼這個群體就會小得多，而這組公司目前的估值是基於 7.6 倍的收入倍數。

We then decided to take a look at a smaller group and only look at companies that are achieving revenue growth above 20%. That reduces the peer group to five companies GitLab, LAVIO, Life360, Monday.com, and Semrush, and these companies are valued at a revenue multiple of nearly 10 times. How does Arlo compare? Our 2025 guidance puts us squarely in the rule of 40 club, and our ARR growth rate puts us in that top gear set of only five companies. Yet we trade at less than 4 times multiple against our service revenue, which supports my earlier comment that we feel our true value has not yet been recognized by the market.

然後，我們決定專注於一個較小的群體，只專注於收入成長超過 20% 的公司。這樣，同業就只剩下五家公司了：GitLab、LAVIO、Life360、Monday.com 和 Semrush，這些公司的估值是營收倍數的近 10 倍。Arlo 相比如何？我們的 2025 年指引使我們完全符合 40 俱樂部規則，而我們的 ARR 成長率使我們躋身僅有的五家公司的頂級行列。然而，我們的本益比不到我們服務收入的 4 倍，這支持了我先前的評論，即我們認為我們的真正價值尚未得到市場認可。

You can see why we have been buying back stock. For those that have been on the journey with us, you will remember we set out some ambitious targets to achieve by 2027 in our original long-range plan. Those targets were 5 million paid accounts, $300 million in ARR, and more than 10% operating margin. It is clear that we will likely achieve all three of these metrics before the end of this year, 2025.

您可以看到我們為什麼一直在回購股票。對於那些與我們一起踏上旅程的人來說，你們會記得我們在最初的長期計劃中製定了一些在 2027 年實現的雄心勃勃的目標。這些目標是 500 萬個付費帳戶、3 億美元的 ARR 和超過 10% 的營業利潤率。很明顯，我們很可能在 2025 年底之前實現所有這三個指標。

So, it was the correct decision to reset those targets last year and to put out audacious goals that doubled or more than doubled those original targets to achieve over the next five years. And while 10 million paid accounts, $700 million in ARR, and over 25% operating margin remain our current long-range target, it is clear Arlo is likely to substantially beat these targets given our current growth rate and the incremental opportunities that lie in front of us. Refocusing to the year ahead, Arlo is set up for an absolutely incredible 2025. Past investments in technology innovation, partner development and operational excellence will come to fruition and begin reading through the business as we endeavor to maximize shareholder value creation.

因此，去年重新設定這些目標並提出在未來五年內將原定目標翻倍甚至兩倍以上的大膽目標是正確的決定。雖然 1000 萬個付費帳戶、7 億美元的 ARR 和超過 25% 的營業利潤率仍然是我們目前的長期目標，但考慮到我們目前的成長率和擺在我們面前的增量機會，很明顯 Arlo 很可能會大幅超越這些目標。展望未來一年，Arlo 已做好準備迎接絕對令人難以置信的 2025 年。在我們努力實現股東價值最大化的過程中，過去在技術創新、合作夥伴發展和卓越營運方面的投資將結出碩果，並開始貫穿業務。

Some of the highlights Arlo will continue to lead on platform technologies and specifically in category AI innovation. The impact of last year's Arlo Secure 5 launch is clear, and we have given you a small sneak peek at Arlo Secure 6, which pushes Arlo intelligence much further in providing real world tangible value to our users. Our device refresh cycle for holiday 2025 is the largest in company history, touching nearly every camera we produce and pushing us into several growing segments of the smart security camera market.

一些亮點是 Arlo 將繼續在平台技術，特別是在 AI 創新領域保持領先。去年推出的 Arlo Secure 5 的影響是顯而易見的，我們現在讓您先睹為快 Arlo Secure 6，它將 Arlo 智慧推向更高水平，為我們的用戶提供現實世界的有形價值。我們針對 2025 年假期的設備更新周期是公司歷史上最大的，涉及我們生產的幾乎所有相機，並將我們推向智慧安全相機市場的幾個不斷增長的細分市場。

These innovations and product launches have positioned us to secure additional shelf share in some of the largest retailers in the world with additional opportunities available. Today we announce several new strategic partners that will expand our capabilities, provide additional growth opportunities, and continue to diversify our revenue base and routes to incremental Arlo households. The partnerships with Rapid SOS and Origin AI immediately compound our technological differentiation in the market. Expect more to come throughout the year.

這些創新和產品的發布使我們能夠在世界上一些最大的零售商中獲得額外的貨架份額，並獲得更多的機會。今天，我們宣布了幾位新的策略合作夥伴，他們將擴大我們的能力，提供額外的成長機會，並繼續使我們的收入基礎和途徑多樣化，以增加 Arlo 家庭。與 Rapid SOS 和 Origin AI 的合作立即增強了我們在市場上的技術差異化。預計全年還會有更多新消息。

The result is an annual operating plan targeting $300 million or more of service revenue which represents nearly 25% year over year growth. And our full year guidance means you are looking at a rule of 40 company coupled with the ARR growth rate. This puts Arlo in an extremely small and elite list of publicly traded companies and shows the power of our subscription service offering. This outstanding outlook for Arlo is the culmination of years of strategy, transformation, and hard work across the team, and it shows the power of a company with clarity of vision and focused execution towards well-defined goals. Thank you to everyone at Arlo.

最終的結果是，年度營運計畫的目標是實現 3 億美元或更多的服務收入，比去年同期成長了近 25%。我們的全年指導意味著您正在關注 40 家公司的規則與 ARR 成長率相結合。這使得 Arlo 躋身極少數精英上市公司名單，並彰顯了我們訂閱服務產品的實力。Arlo 的出色前景是整個團隊多年策略、轉型和辛勤工作的結晶，它展現了一家具有清晰願景和專注於實現明確目標的執行力的公司的力量。感謝 Arlo 的所有人。

And now I will open the call up for questions.

現在我將開始回答大家的提問。

(Operator Instructions)

（操作員指令）

First question is from the line of Adam Tindle with Raymond James. Your line is now open.

第一個問題來自雷蒙德詹姆斯 (Raymond James) 的亞當廷德爾 (Adam Tindle)。您的線路現已開通。

Okay, thanks. Good afternoon, and congrats in 2024. I appreciate the additional details on the call. As I look at your outlook for 2025, particularly on the services revenue side, I wanted to ask about that, Kurt, at or above $300 million or 20% plus year-over-year growth is obviously a very strong outlook. And if I compare that to 2024, where you just finished, it's about a similar level of growth despite higher scale.

好的，謝謝。下午好，祝2024年一切順利。我很感激在通話中提供的更多詳細資訊。當我回顧您對 2025 年的展望，特別是在服務收入方面時，我想問一下，庫爾特，達到或超過 3 億美元或 20% 以上的同比增長顯然是一個非常強勁的前景。如果我將其與剛完成的 2024 年進行比較，儘管規模更大，但成長水準大致相同。

In Q4, I think you were closer to mid-teens, so it's a little bit of an acceleration from what we just saw in the past 90 days, and that's what I wanted to ask about. What are sort of the buckets that underpin that $300 million dollar services target for 2025? Imagine there's some, price lift in there that Matt talked about. If you could just, kind of decompose some of that to give us a little bit more confidence in that outlook. Thanks.

在第四季度，我認為您的成長率接近十幾歲，所以與我們在過去 90 天看到的情況相比，這有點加速，這就是我想問的。2025 年 3 億美元的服務目標背後有哪些目標？想像一下馬特所說的價格上漲。如果您可以分解其中的一些內容，我們將對這種觀點更有信心。謝謝。

Yeah, Adam, thanks so much for the question.

是的，亞當，非常感謝你提出這個問題。

Certainly a great outlook for 2025 of the 300 million plus in services revenue. So it's a factor of several aspects. One, obviously we've been talking a lot about RPO expansion. So we do see the pricing increasing this past year we highlighted the fact that we started the year at $11.30 grew at 12% to $12.60 exiting the year. So we expect that to continue, especially on the back of Arlo Secure 5. Volume in our subscriber base is increasing. We think that's going to continue throughout the year.

到 2025 年，服務收入將超過 3 億，前景無疑十分光明。所以這是一個多方面的因素。首先，顯然我們已經討論了很多關於 RPO 擴展的問題。因此，我們確實看到價格在過去一年中有所上漲，我們強調了一個事實，即年初的價格為 11.30 美元，到年底增長了 12％ 至 12.60 美元。因此，我們預計這種情況將會持續下去，特別是在 Arlo Secure 5 的基礎上。我們的用戶群數量正在增加。我們認為這種狀況將持續全年。

We're doing a number of things to ensure that we incentivize our sell through or point of sale activity to ensure we can form some additional households and drive subscriber growth. That will be a big factor in it. And then of course. The other thing that's going to, we believe provide an accelerant there is also a number of these strategic partnerships which Matt touched on in great detail. There's a lot of runway there, a ton of opportunity, and finally makeshift will also work in our favor. So it's a combination of factors, and we just feel like the results from 2024 and what we've been able to accomplish there bode well for us delivering on a big 2025.

我們正在採取一系列措施，以確保激勵我們的銷售或銷售點活動，以確保我們能夠形成一些額外的家庭並推動用戶成長。這將是一個重要因素。然後當然了。我們認為，另一件能夠促進這一進程的事情是，存在許多戰略合作夥伴關係，馬特對此進行了詳細的闡述。那裡有很多跑道，大量的機會，而且最終的臨時措施也將對我們有利。所以這是多種因素的綜合作用，我們只是覺得 2024 年的成果以及我們在那裡所取得的成就，預示著我們將在 2025 年實現偉大的目標。

Got it. And maybe for Matt just to clarify on that because I think I caught in the comments that you have a transition in your subscribers to the new services platform or who is going to bump up to I think $17.54 you said in that the clarification would be, is that for all of the existing subs or is there a way to kind of, give us a sense of like what percent of subscribers are going to be making this transition.

知道了。也許 Matt 可以澄清一下這一點，因為我認為我在評論中看到，您的訂閱者正在向新的服務平台過渡，或者誰的費用會升至 17.54 美元，您說過，澄清的意思是，這是否針對所有現有訂閱者，或者有沒有辦法讓我們了解有多少百分比的訂閱者將進行這種過渡。

And secondly, how are you thinking about potentially mitigating any churn from that transition? Obviously in consumer stuff, you guys have a very strong churn metrics, but we're always worried about that when we go through transition. So, what percent of subs and how do you manage churn?

其次，您考慮如何潛在地減輕這種轉變所帶來的客戶流失？顯然，在消費者業務方面，你們擁有非常強大的客戶流失指標，但我們在經歷轉型時總是擔心這一點。那麼，訂閱者的百分比是多少呢？您如何管理用戶流失？

Yeah, great question. So, it started from our Arlo Secure launch in Q3 going into Q4 last year, and we, as we always do, we're very data driven. So, we watched exactly what the consumer behavior was, what plans they were selecting after we launched Arlo Secure 5, what features they were going after, and we onboarded all of that and started to look at our annual operating plan. For 2025 with that knowledge in place and so what you've actually seen us do is actually just remove a plan and actually make it simpler because what we saw, and you'll remember this from last quarter's call, we saw a lot of users stepping up and actually wanting to pay for the full AI and kind of moved away from our basic plan on a mix shift.

是的，很好的問題。因此，它從我們去年第三季到第四季的 Arlo Secure 的推出開始，而且我們一如既往地非常注重數據驅動。因此，我們仔細觀察了消費者的行為、我們推出 Arlo Secure 5 後他們選擇了哪些計劃、他們追求哪些功能，然後將所有這些納入其中並開始研究我們的年度營運計劃。對於 2025 年，有了這些知識，您實際上看到我們所做的實際上只是刪除一個計劃並使其變得更簡單，因為我們看到，您會記得上個季度的電話會議中，我們看到很多用戶站出來並真正想要為完整的 AI 付費，並且在混合轉變中放棄了我們的基本計劃。

So, what we did is we got rid of the basic plan, and we actually put the full AI. A suite of services on the single cam plan and now on basically an unlimited cam plan and actually just reduced our plans by one. So that's simplification, but also seeing people mix up and then you know just building the plans around the consumer behavior we're witnessing in Q4 is the change that we made. Now the change was made on people who were signing up for new plans on January 1st. And then over the course of this month, February, we've been migrating all of our existing users on older plans to these new plans, basically mapping them to the most equivalent plan through the course of February.

所以，我們所做的是擺脫基本計劃，並真正投入完整的人工智慧。單一攝影機計劃中的一套服務現在基本上是無限攝影機計劃，實際上只是將我們的計劃減少了一個。這就是簡化，但也看到人們混淆，然後你知道，只是圍繞我們在第四季度觀察到的消費者行為制定計劃，這就是我們所做的改變。現在，對於 1 月 1 日簽署新計畫的人們，這項規定已經改變。然後在這個月，也就是二月份，我們會把所有使用舊計劃的現有用戶遷移到這些新計劃，基本上是在二月份將他們映射到最等效的計劃上。

So that should be done by probably by this weekend, and that really just depends on. What day they had their actual renewal date was going to be like we did our transition two years ago on this. So by the end of February, everybody will be all of our paid subscribers will be on the new plans and again those were developed based on the data we were seeing in our Secure 5. As far as churn, yes, we are very focused on churn and customer retention. Anytime you do a transition, you'll see a little bit of a jump and turn, and then you see it moderate down very quickly.

所以這應該在本週末完成，但這實際上取決於。他們實際續約的日期將像我們兩年前進行的過渡一樣。因此，到二月底，我們所有的付費用戶都將使用新的計劃，而這些計劃也是根據我們在 Secure 5 中看到的數據制定的。就客戶流失而言，是的，我們非常關注客戶流失和客戶保留。每當你進行過渡時，你都會看到一點點跳躍和轉彎，然後你會看到它很快就緩和下來。

I will say there's a couple of things working for us. One is we use the data in our Secure 5 to make these choices for how to position the plans this year. Two, we've actually seen some opportunities to increase conversion as well, like in-app payments and some things that we're actually running as well. So there will be some puts and takes. Our expectation is while there might be a slight increase in churn temporarily, that will land back in that range of 1.1% to 1.3% like we've done over the last 5 years or 6 years of deploying the service.

我想說，有幾件事對我們有利。一是我們利用 Secure 5 中的數據來選擇如何定位今年的計畫。二，我們實際上也看到了一些提高轉換的機會，例如應用程式內支付以及我們實際正在運行的一些項目。因此，將會存在一些得失。我們的預計是，雖然客戶流失率可能會暫時略有增加，但最終將回到 1.1% 到 1.3% 的範圍內，就像我們在過去 5 年或 6 年部署該服務時的情況一樣。

Got it. All right, and maybe just one last one. I've got a lot more, but I know we'll discuss more in our conference next week, but on the product side, Matt, you talked about the largest device launch in company history coming up. I also noticed that your channel inventory in US retail is. Very healthy levels. I think the lowest in 2021. So a big launch ahead of a very clean channel. I wonder, the question would be if you could compare this launch versus prior launches.

知道了。好的，也許只剩下最後一個了。我還有很多話要說，但我知道我們會在下週的會議上討論更多，但在產品方面，馬特，你談到了公司歷史上即將推出的最大設備。我還注意到你們在美國零售的通路庫存是。非常健康的水平。我認為2021年是最低的。因此，在一個非常乾淨的管道之前進行一次大規模的發布。我想知道，問題是您是否可以將這次發布與先前的發布進行比較。

What you've maybe learned from prior launches and what you might do differently since this is such a notable one. And for Kurt, just a little bit confused. I wonder if there's some timing or something here because I was backing into the product revenue growth expectations for 2025 and they're down double digits. So why would that be the case in a year where we've got a big latch?

您可能從以前的發布會中學到了什麼，由於這次發布會如此引人注目，您可能會採取哪些不同的做法。對庫爾特來說，只是有點困惑。我想知道這裡是否存在一些時機或其他什麼，因為我支持 2025 年產品收入成長預期，而且它們下降了兩位數。那麼，為什麼在我們擁有大型門閂的年份會出現這種情況呢？

Thank you.

謝謝。

Yeah, so from a launch and product perspective, like I said in the prepared remarks, this will touch basically every camera we ship. So think of the entire essential lineup, which is our volume mover, as the Pro series, which is our kind of mid-tier product that a lot of people step up to, and then Ultra, which hasn't been updated in at least 2.5 years. So every single lineup will be updated. So that gives us an ability to kind of reset pricing, reset the steps through the different price segmentation, but also what you're going to see in key areas we're actually going to grow the assortment meaning the number of SKUs for instance, inside of essential and that's it's doing a couple things.

是的，從發布和產品的角度來看，就像我在準備好的演講中所說的那樣，這基本上會影響我們運送的每台相機。因此，我們可以將整個基本產品線（我們的銷售推動者）視為 Pro 系列，這是我們的中端產品，很多人都會選擇這款系列，然後是 Ultra，它至少有 2.5 年沒有更新了。因此每個陣容都會更新。因此，這使我們能夠重新設定價格，透過不同的價格細分重新設定步驟，但同時您還將看到，在關鍵領域，我們實際上將增加商品種類，例如，必需品內部的 SKU 數量，這就是它正在做的幾件事。

One, it's tapping into some of the smaller segments that are actually experiencing fast growth. So that's really important as we see consumers start to buy slightly different cameras year over year. But it's also driving new use models and new user experiences through that time period as well. So, what we're seeing, like I mentioned in the prepared remarks, is not only is there excitement about this large launch, but you're also seeing us being able to capture additional shelf share in some of our existing retailers because these are, very popular type of products.

一方面，它正在進入一些實際上正在快速成長的較小市場。所以這真的很重要，因為我們看到消費者每年開始購買略有不同的相機。但它也在這段時間內推動新的使用模式和新的使用者體驗。因此，正如我在準備好的發言中提到的那樣，我們看到的不僅是人們對這次大規模產品的發布感到興奮，而且您還看到我們能夠在一些現有零售商中獲得額外的貨架份額，因為這些都是非常受歡迎的產品。

I'm trying to do it without giving you exactly what we're going to be shipping. But you can see the expansion is not just replacing existing products, it's actually creating incremental share. And so, most of that launch will be towards the end of the year. So just talking a little bit in front of Kurt a lot of the growth and the unit growth in the new products that will land will be kind of moving into that Q4. So, the first, three quarters will be on the existing product.

我嘗試在不告訴您我們將要運送的具體物品的情況下完成此操作。但你可以看到，擴張不僅僅是取代現有的產品，它實際上還在創造增量份額。因此，大部分產品的發布將在年底前進行。所以，我剛才在 Kurt 面前簡單講了一下，很多新產品的成長和單位成長將會進入第四季。因此，前三季將專注於現有產品。

Yeah.

是的。

In response to your question, Adam on the product revenue, this will be a pretty broad assortment and as Matt just mentioned, we are going to be targeting some price segments that historically Arlo has not played in. We saw this in. For a bit where the price segmentation around $50 and blow was very active and a big part of the overall market share that was out there, and we want to make sure that we are able to do that in 2025 on a very consistent basis across our entire portfolio so.

在回答你關於產品收入的問題時，Adam，這將是一個相當廣泛的品種，正如Matt剛才提到的，我們將瞄準一些Arlo歷史上沒有涉及的價格區間。我們看到了這一點。在一段時間內，50 美元左右的價格細分非常活躍，佔據了整體市場份額的很大一部分，我們希望確保能夠在 2025 年在整個投資組合中以非常一致的方式做到這一點。

Looking at our overall revenue assumptions, you can expect a continuation of declines in ASPs and also aggressive promotional activity throughout the year, in particular in the second half of 2025. But the great thing is that we've been working closely with our supply chain and ultimately, we've incorporated in. Somewhere between probably 25% to 35% bomb cost down which will help us play in that price range and ultimately be profitable. So, we're really excited about this this launch, and we think that it will really dovetail well into our ability to generate greater household formation and ultimately more subscribers to fuel our services business.

從我們的整體收入假設來看，可以預期 ASP 將繼續下降，並且全年，尤其是 2025 年下半年，促銷活動將更加活躍。但最棒的事情是，我們一直與我們的供應鏈密切合作，並最終融入其中。炸彈成本大概會下降 25% 到 35%，這將幫助我們在這個價格範圍內運作並最終實現盈利。因此，我們對這次發布感到非常興奮，我們認為它將真正與我們創造更多家庭的能力相契合，並最終吸引更多的用戶來推動我們的服務業務。

Makes sense.

有道理。

Thank you.

謝謝。

Thank you for your question.

感謝您的提問。

Next question is from the line of Jacob Stephan with Lake Street Capital. Your line is now open.

下一個問題來自 Lake Street Capital 的 Jacob Stephan。您的線路現已開通。

I appreciate you taking the questions and congrats on the results and strong outlook here. I just want to touch on kind of, customer acquisition cost essentially doubling year over year, but you know LTV has actually grown so the 401, is this kind of a comfortable level, how can we expect this to trend as we look through 2025.

感謝您回答這些問題，並對所取得的成果和強勁的前景表示祝賀。我只想談一下，客戶獲取成本基本上逐年翻倍，但你知道 LTV 實際上已經成長，所以 401 是一個舒適的水平，我們如何預期在 2025 年會出現這樣的趨勢。

Yeah, so in talking with analysts and everybody, obviously anything over 3 to 1 we think is world class. But if you look at enterprise stats or other consumer service customers or companies, you'll see that 3 to 1 is kind of where you want to be to be a world class. So, we're still well above that. In fact, as we've talked in the past, we've had investors come and say, look, 7 to 1 is too high. You're underinvesting in the customer acquisition and potential growth of the company.

是的，因此在與分析師和所有人交談時，我們顯然認為超過 3 比 1 的任何比例都是世界級的。但如果你看看企業統計數據或其他消費者服務客戶或公司，你會發現 3 比 1 是你想要達到的世界級水準。因此，我們仍然遠高於這個水平。事實上，正如我們過去談到的那樣，曾經有投資者告訴我們，看， 7 比 1 太高了。您對公司客戶獲取和潛在成長的投資不足。

So I would say we're targeting somewhere between call it 3.5 and maybe 4.5 or 5 over time. I think 4 is really comfortable right now, but. Will fluctuate up and down, especially if you look at it quarter to quarter, because we will dig in deeper like you saw in Q4, and then you'll see, that rebound back in Q1. Ultimately what we're doing is we're optimizing the business to capture the shelf share which then captures the household formation that is driving our subscription business just like Kurt just mentioned.

因此我想說我們的目標是隨著時間的推移達到 3.5 到 4.5 或 5 之間。我認為 4 現在真的很舒服，但是。會出現上下波動，特別是如果你逐季度來看的話，因為我們會深入挖掘，就像你在第四季度看到的那樣，然後你會看到，第一季度會出現反彈。最終，我們正在做的是優化業務以獲取貨架份額，然後獲取推動我們訂閱業務的家庭形成，就像庫爾特剛才提到的那樣。

So we'll keep an eye on that and move it up and down. I think when we were 7 to 1, I actually agree that we were underinvesting in the business a bit. I think where we are now is probably an appropriate level and again it'll kind of move up and down as we're maximizing that household formation and generating future service revenue.

因此，我們會密切注意這一點，並對其進行上下移動。我想，當我們的比例為 7 比 1 時，我實際上同意我們對業務的投資有些不足。我認為我們現在所處的水平可能是一個合適的水平，隨著我們最大限度地擴大家庭組建並創造未來的服務收入，這個水平將再次上下波動。

Yeah, got it. Okay, that makes sense. And maybe just, the rebound in product margin that was referenced in the outlook, from the negative 12% in Q4 here, what kind of rebound are we talking about either in terms of a percentage or a dollar amount?

嗯，明白了。好的，這很有道理。也許只是展望中提到的產品利潤率的反彈，從第四季度的負 12% 來看，我們談論的反彈是什麼樣的百分比或美元金額？

Yeah.

是的。

So I'm not in a position to quantify it because obviously we're going to be very opportunistic to meet the consumer where they are for the quarter, but what I'll say is that, Q4 was a very aggressive promotional quarter. There was a new number of factors going on and we felt it appropriate to go after and garnish that demand.

所以我無法量化它，因為很明顯我們將非常抓住機會在本季度滿足消費者的需求，但我要說的是，第四季度是一個非常積極的促銷季度。出現了許多新的因素，我們認為有必要追求並滿足這項需求。

Obviously that was a good decision considering we exited. Q4 with 80+% gross margins on the services and so that service business continues to perform very well as we look at Q1. I mean, I would expect it to rebound and I think that it'll be neutral probably at best. We may be positive in the positive range, but we'll play that by year as the quarter unfolds.

顯然，考慮到我們的退出，這是一個很好的決定。第四季服務的毛利率超過 80%，因此，與第一季相比，服務業務繼續表現良好。我的意思是，我預計它會反彈，而且我認為它最多會保持中性。我們可能在積極的範圍內保持積極態度，但隨著本季度的展開，我們將逐年發揮作用。

Okay, and just one last one for me here, new subs at $17 [poo], that's a nice step up. Is that inclusive of the, central ad platform that you guys have been testing, or does that not include the, any, contribution from that?

好的，這裡對我來說只剩下最後一個了，新的潛艇售價為 17 美元 [poo]，這是一個不錯的進步。這是否包括你們一直在測試的中央廣告平台，還是不包括任何來自該平台的貢獻？

No, it does not include anything from the ad-platform. That's still in test. I think you could expect us to update investors a bit more of that on the next call. So what you're seeing there is really just the impact of the new structure of the price plans that we made a change in January. So that's the first data reading through after we made the change in January that we talked about earlier. So, it's only subscription revenue on the plans that we've talked about is not including any other things like the ad platform.

不，它不包含任何來自廣告平台的內容。這仍在測試中。我想您可以期待我們在下次電話會議上向投資者提供更多這方面的資訊。所以，您所看到的實際上只是我們在一月份改變的價格計劃新結構的影響。這是我們之前談到的一月份做出改變之後的第一次數據讀數。所以，我們所討論的計劃中的訂閱收入並不包括廣告平台之類的任何其他內容。

Thank you for your question. Your next question comes from a line of Hamed Khorsand with BWS Financial can last that open.

感謝您的提問。您的下一個問題來自 BWS Financial 的 Hamed Khorsand，他能否持續保持這種開放狀態。

Hi, could you talk about just the competitive environment here? I mean, you were talking about you have to do a lot more promotions.

您好，可以談談這裡的競爭環境嗎？我的意思是，你剛剛說過你必須做更多的促銷。

Did you, think you took market share here or are you maintaining it? It sounds like you're being very aggressive here with.

您是否認為您已佔領了這裡的市場份額或您能維持它嗎？聽起來你在這裡表現得很有攻擊性。

Yeah, I'd say that the competitive landscape hasn't changed a lot. It's the same players. I would say the pricing and promotion in Q4 was slightly deeper than we had probably anticipated at the beginning of the year. If you remember, we gave investors a heads up, I think last quarter and kind of kind of mentioned that we're going to go a step deeper and try and drive some household formation, which we did.

是的，我想說競爭格局並沒有太大變化。都是同樣的球員。我想說第四季的定價和促銷比我們年初預期的要稍微高一些。如果你還記得的話，我們在上個季度就已經向投資者發出過警告，並且提到我們將更進一步嘗試推動一些家庭的形成，我們也確實這樣做了。

From a share perspective Q3 we were a little bit lower in share that got recovered in Q4, and I'll tell you during the holiday week we gained significant share. So when we had our pricing at the lowest and we were testing some of the price points with some of our key retailers, we actually gained share during the quarter. So, what we're seeing is there is some price elasticity when we hit certain price points, we can see the growth in the household formation.

從份額角度來看，第三季度我們的份額略低，但在第四季度有所恢復，而且我會告訴你，在假期期間，我們的份額獲得了顯著增長。因此，當我們將價格定在最低水平，並與一些主要零售商測試一些價格點時，我們實際上在本季度獲得了市場份額。因此，我們看到的是，當達到某些價格點時，就會出現一定的價格彈性，我們可以看到家庭形成的成長。

Q4 obviously is a unique quarter in that it's very promotional and that's why we see the rebound coming back into Q1. But if I step back and just answer your question at the high level, we're not seeing a lot of change in the competitive dynamics. It was just Q4 was maybe one click deeper on the promotional scale, and we saw that happening in summer and already communicated that to investors, so it played out exactly as we thought.

第四季顯然是一個獨特的季度，因為它的促銷力度很大，這就是我們看到第一季反彈的原因。但如果我退一步並從高層次回答你的問題，我們並沒有看到競爭態勢有太大變化。只是第四季度的促銷規模可能更進一步，我們在夏天就看到了這種情況，並且已經將這一情況告知了投資者，所以事情的發展正如我們想像的那樣。

Okay, and then any change as far as the timing as to when these customers who bought the units would actually convert to a paid subscription.

好的，那麼這些購買這些設備的客戶實際轉換為付費訂閱的時間有什麼變化嗎？

No, it'll be very similar to what we saw last year. Historically, if you go back three years or four years, we had a 90-day free trial, and that would delay almost all of those customers into Q1.

不，它與我們去年看到的非常相似。從歷史上看，如果回顧三年或四年前，我們有一個 90 天的免費試用期，這將幾乎所有客戶推遲到第一季。

When we moved to a 30-day trial, which was about, I think on most of our products, about 18 months to 24 months ago, then it's mixed. You'll see a little bit in in December and then a little bit more in Q1 because it's a shorter free trial. So, it'll be a similar dynamic to what you saw last year.

當我們轉向 30 天的試用期時，我想對於我們的大多數產品來說，大約 18 個月到 24 個月前，情況就好壞參半了。您會在 12 月看到一些變化，然後在第一季會看到更多變化，因為免費試用期較短。因此，它將與您去年看到的動態類似。

Okay, great, thank you.

好的，太好了，謝謝。

You're welcome.

不客氣。

Thank you for your question. Your next question comes from the line of Scott Searle with Roth Capital.

感謝您的提問。您的下一個問題來自 Roth Capital 的 Scott Searle。

Hey, good afternoon. Thanks for taking the questions. Great job on the Outlook, guys. Very exciting to look at 2025. Hey, I apologize to follow up on the pricing question but just wanted to get clarification. The price increases will have gone into effect for those who are on monthly subscriptions, but annual subscriptions will kind of be a rolling basis as they come up for renewals. That the way to think about it.

嘿，下午好。感謝您回答這些問題。大家的 Outlook 做得很好。展望 2025 年，令人興奮不已。嘿，我很抱歉跟進價格問題，但我只是想得到澄清。價格上漲將對按月訂閱的用戶生效，但年度訂閱在續訂時將以滾動方式進行。這就是思考的方式。

And then just to clarify, the impact of the price increase itself, is there a blank you've given a target number, but I'm kind of wondering what the average AP number will be in terms of increase for this year. Quick back of the napkin math when I look at the subscription range or net additions that you're talking about on a quarterly basis, it's mid-teens kind of growth. So to get to 25%, I'm assuming it's about 10% price increase overall. Is that the way to think about it?

然後只是為了澄清一下，價格上漲本身的影響，你是否給出了一個目標數字，但我想知道今年的平均 AP 數字會有多少增長。當我查看您談論的季度訂閱範圍或淨增量時，請快速回顧一下餐巾紙上的數學公式，它是一種十幾歲的中等增長。因此，要達到 25%，我假設整體價格上漲約 10%。是這樣思考嗎？

Yeah, I think that's in general, yes, I mean we honestly won't know until the migration is totally done. But let me back up and you touched on a correct point. The migration that we're doing through February is for the monthlies. You're 100% right there. Annuals would click over when those annuals come up. So, you're right, some of our annual, which is still a vast minority of our plans, especially the historic plans, but those would actually transfer through the year on whatever month and day that their renewal. So just to be very clear, so on January 1, the plan.

是的，我認為一般來說，是的，我的意思是我們在遷移完全完成之前不會知道。但是讓我回顧一下，你提到了一個正確的觀點。我們在二月進行的遷移是為了月度的需要。您完全正確。當那些年刊出現時，它就會點擊過去。所以，您說得對，我們的一些年度計劃，尤其是歷史計劃，仍然只占我們計劃的一小部分，但這些計劃實際上會在續訂的月份和日期轉移到全年。所以，為了明確起見，1 月 1 日就有了這個計畫。

New pricing and structures hit for all new subscribers coming into the Arlo system and signing up. In February we migrated all of our monthly customers. Some of those annual customers also obviously moved over in February if that's when their planned renewal is happening, and then other annual customers will turn over throughout the year. So that is the correct way to think about it. We ended the year on.

所有加入 Arlo 系統並註冊的新用戶都將享受新的定價和結構。二月份，我們遷移了所有月度客戶。如果計畫的續約時間是 2 月份，那麼部分年度客戶顯然也會在 2 月份轉移，其他年度客戶則會在全年轉移。這是正確的思考方式。我們於 年結束了這一年。

Yeah, we ended, so we ended the year on Arlo around $11 and change. I think it was $11.50 or going to $12. We're seeing on the new subscribers over $17 so that's a great indicator. And so what you're going to see is probably a blend through the year. It'll land somewhere in the middle and again I would wait to give you a number until we get more of the migrations of the plans and which plans they actually end up in afterwards. But you will see an Arlo expansion over this year, which will obviously lead into some of the growth that we're talking about on both ARR and service revenue.

是的，我們結束了，所以我們在 Arlo 上度過了一年，花費大約 11 美元左右。我認為價格是 11.50 美元或將漲到 12 美元。我們看到新訂戶的金額超過 17 美元，所以這是一個很好的指標。因此，您將看到的可能是全年的混合情況。它會落在中間的某個地方，我會再次等待給你一個數字，直到我們獲得更多的計劃遷移以及它們最終實際上出現在哪些計劃中。但你會看到 Arlo 在今年有所擴張，這顯然會帶來我們所謂的 ARR 和服務收入的成長。

Gotcha. Very helpful. And Matt, you mentioned shelf space at one of your key retail partners. Is that due to promotional activity or is that due more to a realization from your retail partner that certain vendors are actually stealing revenue from them?

明白了。非常有幫助。馬特，您提到了您的一個主要零售合作夥伴的貨架空間。這是由於促銷活動造成的，還是因為您的零售合作夥伴意識到某些供應商實際上正在竊取他們的收入？

They buy one and then the follow on comes through online sales or otherwise. I'm just kind of curious how that evolution is going within your retail customer base.

他們購買一件商品，然後透過網路銷售或其他方式進行後續購買。我只是有點好奇你們的零售客戶群的演變情況如何。

Yeah, that's a great question. So, in this case it's less about the latter part of your comment. It's more about, I think the success that they're seeing of Arlo on the shelf but also drawing customers into the store because this is a physical store company we're talking about, but also the expanded assortment in our product launch that's coming in the September, October time frame for holidays. So, they looked at our assortment and actually made an early commitment.

是的，這是一個很好的問題。因此，在這種情況下，與您評論的後半部分關係不大。更重要的是，我認為他們看到 Arlo 在貨架上取得了成功，同時也吸引了顧客進店，因為我們談論的是一家實體店公司，而且我們將在 9 月和 10 月的假期期間擴大產品種類。因此，他們查看了我們的產品系列並做出了早期承諾。

A commitment much earlier than they normally do when they do their shelf selection for the second half of the year. We positioned all of the product. They liked the expansion. They liked what they saw, and they actually decided to nearly double our shelf slots in their stores because of the expanded portfolio and how we performed with them over the last year or two.

他們在為下半年的貨架選擇做出承諾時，比平常早得多。我們對全部產品進行了定位。他們喜歡這種擴張。他們非常喜歡我們產品，而且由於產品組合的擴大以及過去一兩年我們與他們合作的良好表現，他們實際上決定將商店中的貨架位置增加近一倍。

Gotcha. And if I could then on the longer-term horizon, a couple of things. I'm not sure if I heard any commentary specifically about insurance on the call. I'm wondering if you could elaborate on that strategic partnership.

明白了。如果可以的話，從長期來看，我有幾件事想說。我不確定我是否在電話中聽到有關保險的具體評論。我想知道您是否可以詳細說明這一戰略夥伴關係。

And then it sounds like the premium model is starting to ramp up a little bit. I think it's in beta right now. It sounds like that there might be more to come in the not-too-distant future. Any thoughts on both of those for us?

然後聽起來高階車型開始有點流行了。我認為它現在處於測試階段。聽起來在不久的將來可能會有更多事情發生。我們對這兩者有什麼看法嗎？

Yeah, I will make some general comments and then also touch on some of the specifics you talked about. I will tell you that the amount of activity and interest in just strategic accounts in general, and I know I said this on the last call, you could see some of our platform agreements and partnerships come through, and we announced those over the last week and one of them this morning. You see the announcement with Samsung, and that's going to lead to additional things later in the year with Samsung. The origin announcement, meaning the ability to detect motion in a home without additional hardware and using AI to actually characterize what that is, has generated a tremendous amount of interest.

是的，我會做一些一般性的評論，然後談談你談到的一些具體問題。我會告訴您總體而言戰略帳戶的活動量和興趣，我知道我在上次電話會議上說過，您可以看到我們的一些平台協議和合作夥伴關係已經實現，我們在上周宣布了這些協議和合作夥伴關係，其中之一就是今天早上宣布的。你可以看到三星發布的公告，這將導致三星在今年稍後推出更多舉措。該技術的起源公告意味著無需額外硬體即可檢測家中的運動，並使用人工智慧來實際描述運動情況，這引起了人們的極大興趣。

So the amount of inbound interest in using the Arlo platform for additional services is at an all-time high. We are meeting with multiple insurance providers now. So that it's accelerating again. It's a slow go to market, they don't move as fast as many technology companies in the way they assess and actually roll things out, but I would say in general from an insurance vertical it's gone from really engaging with one to talking to and starting to engage with 2 or 3. So I hope by, within the next six months we'll be able to talk more specifically.

因此，對於使用 Arlo 平台提供附加服務的興趣達到了前所未有的高度。我們現在正在與多家保險公司會面。所以它再次加速。它進入市場的速度很慢，在評估和實際推出產品的方式上，它們不像許多科技公司那樣行動迅速，但我想說，從保險垂直行業來看，它總體上已經從真正與一家公司接觸，發展到與兩三家公司交談並開始接觸。因此我希望在接下來的六個月內我們能夠進行更具體地討論。

About some additional opportunities that are in front of us, but the activity is an all-time high, and I think again some of that is from Arlo Secure 5 and the success you're seeing there, some of the technology and platform expansion announcements we have done, including origin and now Rapid SOS, and some of the product portfolio that we have not. We already shared with them what we're doing this year, but soon, like I mentioned in the prepared remarks.

關於我們面前的一些額外機會，但活動達到了歷史最高水平，我認為其中一些來自 Arlo Secure 5 和您在那裡看到的成功，我們已經完成的一些技術和平台擴展公告，包括 origin 和現在的 Rapid SOS，以及一些我們還沒有的產品組合。我們已經與他們分享了我們今年正在做的事情，但很快就會分享，就像我在準備好的演講中提到的那樣。

We're going to start sharing our next generation platform, and I would expect that to drive some additional interest as well. So Kurt and I think, mentioned about a year ago that we thought looking over the long range plan, more of our incremental growth may come from strategic accounts over the more traditional retailers. We're still seeing that and in fact, I think we are going to be proven right over the next, let's call it 12 months.

我們將開始分享我們的下一代平台，我希望這也能引起一些額外的興趣。因此，庫爾特和我認為，大約在一年前我們就提到過，從長期計劃來看，我們的增量增長可能更多地來自於戰略帳戶，而不是更傳統的零售商。我們仍然看到這種情況，事實上，我認為在接下來的 12 個月裡，我們將得到證明。

Very helpful. And lastly, if I could, maybe from a I guess a very high conceptual level, I start to look at the new product portfolio coming in and the expansion of Arlo into more of a platform to incorporate other technologies whether it's sensing presence, some of the other opportunities.

非常有幫助。最後，如果可以的話，也許從一個非常高的概念層面，我開始研究即將推出的新產品組合，並將 Arlo 擴展為一個更大的平台，以整合其他技術，無論是感知存在還是其他一些機會。

I think within the home that you're talking about with AI and otherwise. As we look into '26 and beyond, is it safe to assume that we're going to continue to see ARPU's picking up, or we start moving back in the other direction just because of pricing pressure within the marketplace? Thanks.

我認為您所談論的是家庭內部的人工智慧和其他事物。當我們展望26年及以後時，我們可以安全地假設我們將繼續看到 ARPU 上升，還是我們會因為市場內的價格壓力而開始朝另一個方向發展？謝謝。

Yeah, great question. What I, what I'll tell you at this early stage is that yes, I think the expectation should be that our crews continue to grow over time. Some of that will come maybe from additional, over the long-range plan cycle. Some of that may come from additional plan optimizations and additional functionality we can roll out to our existing customers.

是的，很好的問題。在這個早期階段，我要告訴你們的是，是的，我認為我們應該預期我們的團隊規模會隨著時間的推移而不斷壯大。其中有些可能來自長期計劃週期內的額外支出。其中一些可能來自我們可以向現有客戶推出的額外計劃優化和附加功能。

But I will tell you the next generation platform and some of the things we're seeing going into '26 and '27 is you should expect us to start moving into some adjacent markets. What I would tell you is there is a higher confidence than ever in our company, in our execution as a team, in the operational excellence, the leverage we've got on our business that we feel the foundation of this company is now very strong.

但我會告訴你下一代平台以及我們在26年和27年看到的一些事情，你應該期待我們開始進入一些相鄰的市場。我想告訴你們的是，我們對我們的公司、對我們團隊的執行力、對我們卓越的運營以及我們對業務的影響力比以往任何時候都更有信心，我們覺得這家公司的基礎現在非常牢固。

And so we're more comfortable than ever to start exploring some of these adjacent markets and new opportunities, and I think you'll see us maybe talk about some of those this year and execute some of those going into the back half of next year, but to your time horizon on the question, kind of talking '26 going into '27, yes, I think you should assume that Arlo will be in some adjacent markets by then and that you could likely see our expansion via those markets and new opportunities.

因此，我們比以往任何時候都更願意開始探索一些相鄰的市場和新機遇，我想你會看到我們今年可能會談論其中的一些，並在明年下半年執行其中的一些，但對於你關於這個問題的時間範圍，比如說26年到27年，是的，我認為你應該假設 Arlo 到那時會進入一些相鄰的市場，你很可能會看到我們將通過這些市場和那時

Thank you for your question.

感謝您的提問。

This concludes today's conference call. You may not disconnect your lines.

今天的電話會議到此結束。您不能斷開您的線路。