Arlo Technologies Inc (ARLO) 2025 Q3 法說會逐字稿

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

女士們、先生們，感謝你們的耐心等待。目前，所有參與者均處於唯讀模式。稍後我們將進行問答環節。屆時，如果您有任何疑問，請按下您按鍵式電話上的相應按鈕。現在我將把會議交給泰蒙·克拉克。請繼續，先生。

Thank you, operator. Good afternoon and welcome to Arlo Technologies 3rd quarter 2025 financial results conference call. Joining us from the company are Mr. Matthew McCrae, CEO, and Mr. Kurt Binder, COO and CFO. If you have not received a copy of today's release, please visit Arlo's investor relations website at investor.arlo.com.

謝謝接線生。下午好，歡迎參加 Arlo Technologies 2025 年第三季財務業績電話會議。公司方面，執行長馬修·麥克雷先生和營運長兼財務長庫爾特·賓德先生也出席了本次活動。如果您尚未收到今天發布的新聞稿，請造訪 Arlo 的投資者關係網站 investor.arlo.com。

Before we begin the formal remarks, we advise you that today's conference call contains forward-looking statements. Forward-looking statements include statements regarding our potential future business, operating results, and financial conditions, including descriptions of our revenue, gross margins, operating margins, earnings per share, expenses, cash outlook, free cash flow, and free cash flow margin.

在正式發言之前，我們提醒各位，今天的電話會議包含前瞻性陳述。前瞻性聲明包括有關我們未來潛在業務、經營業績和財務狀況的聲明，包括對我們的收入、毛利率、營業利潤率、每股收益、支出、現金前景、自由現金流和自由現金流利潤率的描述。

ARR, Rule of 40, and other KPIs, guidance for the 4th quarter of 2025, the long range plan targets, the rate and timing of paid subscriber growth, the commercial launch and momentum of new products and services, the timing and impact of tariffs, strategic objectives and initiatives, market expansion and future growth.

ARR、40 法則和其他 KPI、2025 年第四季的指導、長期計劃目標、付費用戶成長的速度和時間、新產品和服務的商業發布和勢頭、資費的時間和影響、策略目標和舉措、市場擴張和未來成長。

Partnerships with various market leaders and strategic collaborators, continued new product and service differentiation. And the impact of general macroeconomic conditions on our business operating results, and financial conditions.

與各市場領導者和策略夥伴建立夥伴關係，持續推出差異化的新產品和服務。以及宏觀經濟情勢對我們業務經營績效及財務狀況的影響。

Actual results or trends could differ materially from those contemplated by these forward-looking statements. For more information, please refer to the risk factors discussed in all those periodic filings with the SEC, including our annual report on Form 10k and our most recent quarterly report on Form 10Q filed earlier today.

實際結果或趨勢可能與這些前瞻性陳述所設想的結果或趨勢有重大差異。有關更多信息，請參閱我們向美國證券交易委員會提交的所有定期文件中討論的風險因素，包括我們的 10-K 表格年度報告和今天早些時候提交的最新 10-Q 表格季度報告。

Any forward-looking statements that we make on this call are based on assumptions as of today, and Arlo undertakes no obligation to update these statements as a result of new information or future events. In addition, several non-GAAP financial measures will be discussed on the call. A reconciliation of the GAAP to non-GAAP measures can be found in today's press release on our investor relations website.

我們在本次電話會議中所做的任何前瞻性陳述均基於截至今日的假設，Arlo 不承擔因新資訊或未來事件而更新這些陳述的義務。此外，電話會議中也將討論幾個非GAAP財務指標。有關 GAAP 與非 GAAP 指標的調整表，請參閱我們投資者關係網站上今天發布的新聞稿。

At this time I would now like to turn the call over to Matt.

現在我想把電話交給馬特。

Thank you, Tamm, and thank you everyone for joining us today on Arlo's 3rd quarter 2025 earnings call.

謝謝 Tamm，也謝謝各位今天參加 Arlo 2025 年第三季財報電話會議。

Q3 was another record breaking quarter for Arlow across numerous performance and financial metrics. I will start by highlighting our outstanding fast business which continues to grow and propel Arlow to new heights. We added 281,000 paid accounts during the quarter, well above our target range of 190,000 to 230,000, and which drove our total paid accounts to 5.4 million. This performance was driven by net additions in our retail and direct channel coupled with stronger performance from our partner Veriser.

第三季度，Arlow在多項業績和財務指標上再次創下歷史新高。首先，我要重點介紹我們卓越的快速業務，該業務持續成長，推動 Arlow 邁向新的高度。本季我們新增了 281,000 個付費帳戶，遠超過我們 19 萬至 23 萬的目標範圍，使我們的付費帳戶總數達到 540 萬。這項業績主要得益於零售和直銷通路的淨成長，以及合作夥伴 Veriser 的強勁表​​現。

I'd like to take a moment to congratulate Verasure on their recent acquisition of ADT Mexico and their successful initial public offering last month. Their success is so well deserved, and we look forward to continuing to be a part of their growth and outstanding execution across their expanding footprint.

我想藉此機會祝賀 Verasure 最近收購了 ADT Mexico，並在上個月成功完成了首次公開發行。他們的成功實至名歸，我們期待繼續參與他們不斷擴大的商業版圖，幫助他們實現成長和卓越業績。

Arlo Secure 6, our latest AI-based security platform, is also driving our performance, with users finding substantial value in the features and capabilities.

Arlo Secure 6 是我們最新的基於人工智慧的安全平台，它也推動了我們的業績成長，用戶從中獲得了巨大的價值。

In our retail and direct channel, average revenue per user was over $15 per month, and the lifetime value of each user grew to over $870 a new record for Arlo.

在我們的零售和直銷通路中，每位用戶的平均月收入超過 15 美元，每位用戶的終身價值增長到超過 870 美元，創下 Arlo 的新紀錄。

These metrics helped propel Arlo's annual recurring revenue to $323 million up 34% year over year, and another record for the company, while service gross margin expanded 770 basis points to more than 85%.

這些指標幫助 Arlo 的年度經常性收入達到 3.23 億美元，年增 34%，創下公司新紀錄，同時服務毛利率成長 770 個基點，超過 85%。

In addition to this impressive service performance, Arlo also executed the largest product launch in company history during the quarter, comprised of new platforms and products across our essential, pro, and ultra product tiers. These platforms not only bring a 20 to 35% reduction in bomb costs and new form factors such as Pant tilt zoom, they also contribute to a nearly 30% year over year unit sales growth in Q3.

除了這項令人印象深刻的服務表現外，Arlo 還在本季執行了該公司歷史上規模最大的產品發布，其中包括涵蓋基本版、專業版和旗艦版產品層級的新平台和產品。這些平台不僅使炸彈成本降低了 20% 到 35%，並帶來了新的外形設計，例如 Pant Tilt Zoom，而且還促成了第三季銷量同比增長近 30%。

These new products are receiving high ratings from both professional and user reviews which call out the ease of setup, high performance, and new capabilities across the lineup.

這些新產品獲得了專業人士和用戶的高度評價，並在評論中稱讚了其易於設定、高性能以及全系列產品的新功能。

The execution of this product launch and transition was nearly flawless. Arlo launched over 100 skews simultaneously across channels on time, despite several shipping and weather disruptions, all while managing the X-ramp of inventory for a smooth transition. This is extraordinarily difficult to achieve, and a huge congratulations and thank you to the Arlo cross-functional teams on this exceptional outcome.

此次產品發布和過渡的執行近乎完美。儘管遭遇了多次運輸和天氣中斷，Arlo 還是按時在各個渠道同時推出了 100 多個產品，同時還管理了庫存的 X-ramp，實現了平穩過渡。這極其難以實現，在此向 Arlo 跨職能團隊致以熱烈的祝賀和衷心的感謝，祝賀他們取得了這一卓越的成果。

There are very few companies in the world that have successfully developed world-class capabilities in both the software service segment and the hardware device segment. This quarter is a great illustration that Arlo is one of those rare companies that can not only excel in both areas, but also bring these segments together to create compelling user experiences and drive real shareholder value.

世界上很少有公司能夠在軟體服務領域和硬體設備領域都成功發展出世界級的能力。本季很好地說明了 Arlo 是一家罕見的公司，它不僅能在這兩個領域都表現出色，還能將這些領域結合起來，創造引人入勝的用戶體驗，並為股東創造真正的價值。

And that could not be more obvious based on our full Q3 results and profitability. Adjusted EBITDA was up 50% year over year and reached $17 million. GAAP earnings per share was $0.07 in the quarter, a new record for Arlow, and year-to-date we reported a massive $0.35 improvement compared to the first nine months over last year. And looking at our services business in a rule of 40 context. Arlo achieved a result of 46, which underscores the elite performance against all peers in the fast space.

從我們第三季的完整業績和獲利情況來看，這一點再明顯不過了。調整後的 EBITDA 年成長 50%，達到 1700 萬美元。 （GAAP）本季每股收益為 0.07 美元，創下 Arlow 的新紀錄；今年迄今為止，與去年同期相比，每股收益大幅增加了 0.35 美元。並以 40 法則來審視我們的服務業務。Arlo 取得了 46 分的成績，這凸顯了它在快速領域所有同類產品中的卓越表現。

Looking ahead to Q4, Arlo is exceptionally well positioned in a competitive market with our new product launch, and we expect to see 20 to 30% unit growth year over year which sets us up well for service revenue growth heading into 2026, and we continue to see great progress across our strategic accounts including Verisure driving growth via their IPO, Allstate deploying kits to home insurance customers, and ADT testing units in the field ahead of next year's market launch.

展望第四季度，Arlo憑藉新產品的推出，在競爭激烈的市場中佔據了非常有利的地位，我們預計銷量將同比增長20%至30%，這將為我們2026年服務收入的增長奠定良好的基礎。此外，我們的策略客戶也持續取得顯著進展，包括Verisure透過IPO推動成長，Allstate向家庭保險客戶部署套件，以及ADT在明年市場推出前進行現場測試。

Expect more announcements in this area over the coming quarters. Given this performance, it is clear that Arlo is making excellent progress against our long range plan targets of 10 million paid accounts, $700 million in AR, and an operating income of over 25%.

預計未來幾季將有更多相關公告發布。鑑於此業績，Arlo 顯然在實現我們長期計劃目標方面取得了優異的進展，這些目標包括 1000 萬付費帳戶、7 億美元的應收帳款以及超過 25% 的營業收入。

Now I'll turn it over to Kurt for a more detailed review of our Q3 results and our outlook ahead.

現在我將把發言權交給庫爾特，讓他更詳細地回顧一下我們第三季的業績以及未來的展望。

Thank you, Matt, and thank you everyone for joining us today. During the quarter we again delivered outstanding financial results driven by our commitment to our services first strategy. Every decision that we make as an organization is centered around delivering an innovative and value-added smart home security experience that drives annual recurring revenue.

謝謝馬特，也謝謝今天到場的各位。本季度，我們再次取得了優異的財務業績，這得益於我們始終堅持服務至上的策略。我們作為一個組織所做的每一個決定，都圍繞著提供創新且具有增值性的智慧家庭安全體驗，從而推動年度經常性收入。

And these efforts are yielding strong results. As Matt mentioned, the LTV generated by our paid accounts is at an all-time high, and ensuring that we continue to fill the acquisition funnel and drive our subscriptions and services revenue is paramount to delivering best in class SA metrics and achieving our long-term financial goals. Now on to the results for the quarter.

這些努力正在取得顯著成效。正如 Matt 所提到的，我們付費帳戶產生的 LTV 已達到歷史最高水平，確保我們繼續充實獲客管道並推動訂閱和服務收入，對於實現一流的 SA 指標和實現我們的長期財務目標至關重要。接下來公佈本季業績。

Subscriptions and services revenue was $79.9 million up 29% year over year, driven by a significant increase in APpo and a great pace of paid account ads over that same period. This strong performance is largely due to the introduction of our new AI-driven Arlo Secure 6 rate plan offerings.

訂閱和服務收入為 7,990 萬美元，較去年同期成長 29%，這主要得益於 APpo 的大幅成長以及同期付費帳戶廣告的快速成長。這項強勁的業績主要歸功於我們推出了全新的人工智慧驅動的 Arlo Secure 6 套餐計畫。

Additionally, our intense focus on enhancing customer journeys and delivering a differentiated value proposition drove new paid accounts to select our premium rate plans and existing customers to upgrade to higher rate plans. Paid accounts continued their strong growth trajectory as we generated 281,000 paid subscribers in Q3. We exited the quarter with a base of 5.4 million paid accounts, an increase of 27% year to year.

此外，我們高度重視提升客戶體驗和提供差異化的價值主張，這促使新付費用戶選擇我們的高級費率套餐，並促使現有用戶升級到更高費率的套餐。付費帳戶持續保持強勁成長勢頭，第三季新增付費用戶 281,000 人。本季末，我們的付費帳戶總數達到 540 萬，年增 27%。

Improving our poo trends and the growth in our retail paid account base reflected our ability to guide customers to our higher value AI enhanced service levels and in turn drove our annual recurring revenue to $323 million up 34% over the same period last year. Total revenue for the third quarter came in at $139.5 million up slightly from the prior year period, with our subscriptions and services revenue comprising 57% of total revenue.

我們改善了糞便趨勢，零售付費帳戶數量也隨之增長，這反映了我們能夠引導客戶體驗更高價值的 AI 增強型服務水平，進而推動我們的年度經常性收入達到 3.23 億美元，比去年同期增長 34%。第三季總營收為 1.395 億美元，比上年同期略有成長，其中訂閱和服務收入佔總收入的 57%。

Up from 45% in the same period last year. This level of predictable and recurring service revenue is the key driver of our substantial improvement in profitability and our ability to deliver best in class SA metrics, including Aar growth.

比去年同期成長了45%。這種可預測且經常性的服務收入水準是我們獲利能力大幅提升以及實現一流的服務評估指標（包括年均收入成長）的關鍵驅動因素。

Product revenue for the period was $59.6 million down $16.2 million or 21% when compared to the prior year, and as a result of the industry-wide decline in ASPs, as well as the frequency and depth of promotional campaigns, especially in Q3, as we promoted our end of life or EOL products to make way for the selling of our broader next generation product portfolio.

本期產品營收為 5,960 萬美元，較上年同期下降 1,620 萬美元，降幅達 21%。這主要是由於整個行業平均售價下降，以及促銷活動的頻率和深度增加，尤其是在第三季度，因為我們推廣了即將停產或 EOL 產品，以便為銷售我們更廣泛的下一代產品組合騰出空間。

We continue to drive new household formation by optimally pricing our products to increase POS volume and utilize the devices as a subscriber acquisition vehicle.

我們透過優化產品定價來增加 POS 銷量，並利用這些設備作為用戶獲取工具，從而不斷推動新家庭的形成。

The refresh of our product portfolio offers a considerable reduction in bond costs, enhancing our competitiveness across various price tiers, while also helping to offset some of the tariff impact.

更新產品組合可大幅降低債券成本，增強我們在各個價格層級的競爭力，同時也有助於抵銷部分關稅影響。

And with the upcoming holiday season, we are leveraging this portfolio to help accelerate the growth trajectory of our subscriptions and services revenue. Given the outstanding subscriptions and services gross margin and expanding profitability with each new paid account. Our decision to sacrifice product gross margin for durable, highly profitable subscriptions and services revenue is an easy one.

隨著假期季節的臨近，我們將利用這個產品組合來加速訂閱和服務收入的成長。鑑於訂閱和服務毛利率出色，並且隨著每個新付費帳戶的增加，獲利能力也在不斷提高。我們決定犧牲產品毛利率，換取持久、高利潤的訂閱和服務收入，這是一個很容易做出的決定。

We view a modest decline in product gross margin as part of our cost of customer acquisition.

我們將產品毛利率的小幅下降視為客戶獲取成本的一部分。

And even after considering the incremental investment, we are still delivering a best in class LTV to CAC ratio in the range of 3 times. Our goal to drive solid POS volume and gain access to additional households in Q3 occurred as planned and we expect a similar outcome in the 4th quarter.

即使考慮到新增投資，我們仍然實現了業界最佳的 LTV 與 CAC 比率，約 3 倍。我們在第三季實現了穩定提升 POS 銷售並拓展更多家庭用戶的目標，我們預計第四季也將取得類似的成果。

We believe the strategy insulates us from certain external market factors and drives shareholder value, and we will continue to lean into this approach during this Q4 holiday selling season.

我們相信，該策略可以使我們免受某些外部市場因素的影響，並提升股東價值，我們將在第四季度假日銷售季繼續採取這種策略。

In Q3, international customers generated $58 million or 42% of our total revenue.

第三季度，國際客戶創造了 5,800 萬美元的收入，占我們總收入的 42%。

Down from $66 million or 48% in the prior year period related to the increased level of subscription and services revenue from our US retail business and the successful launch of our new products.

與去年同期相比，收入下降了 6,600 萬美元，降幅達 48%，這與我們美國零售業務的訂閱和服務收入增加以及新產品的成功上市有關。

Ver continues to be an important partner for us in Europe, and we thank them for their continued collaboration and expect them to remain a solid growth driver in the future.

Ver 一直是我們在歐洲的重要合作夥伴，我們感謝他們一直以來的合作，並期待他們在未來繼續成為我們強勁的成長動力。

From this point on, my discussion will focus on non-GAAP numbers. The reconciliation from GAAP to non-GAAP figures is detailed in our earnings release, which was distributed earlier today.

從現在開始，我的討論將集中在非GAAP財務資料。GAAP 與非 GAAP 數據的調整細節已在我們的獲利報告中列出，該報告已於今天稍早發布。

Our non-GAAP subscriptions and services gross margin was 85%, again, a new record and up 770 basis points year to year.

我們的非GAAP訂閱和服務毛利率為85%，再次創下新紀錄，比去年同期成長770個基點。

The significant growth in services gross margins is attributable to enhanced Pop coupled with a reduction in the cost to serve our customers, including lower storage and compute costs.

服務毛利率的顯著增長歸功於用戶數量的增加以及服務客戶成本的降低，包括儲存和計算成本的降低。

Product gross margins were negative, representing a modest decline when compared to the same period last year.

產品毛利率為負，與去年同期相比略有下降。

The decline in product gross margin is related to the full quarter impact of tariffs, approximating $5 million pled with industry-wide ASP declines and planned promotional spend on EOL products to optimize inventory levels ahead of our recent product launch.

產品毛利率下降與關稅對整個季度的影響有關，約為 500 萬美元，此外還包括行業平均售價下降以及為優化近期產品上市前的庫存水平而計劃對停產產品進行的促銷支出。

Even withstanding these items, we reported consolidated non-GAAP gross margin of 41%, up 540 basis points year to year.

即使剔除這些因素，我們公佈的綜合非GAAP毛利率為41%，較去年同期成長540個基點。

Our continued improvement in profitability in a period where the full impact of tariffs was experienced.

在全面感受到關稅影響的時期，我們的獲利能力持續提升。

Underscores the significant insular benefits that the shift to our services enterprise provides us. Total non-GAAP operating expenses for the third quarter were $41.1 million up 6% from $38.7 million in the same period last year.

凸顯了轉型為服務型企業帶給我們的顯著的封閉式優勢。第三季非GAAP營運總支出為4,110萬美元，比去年同期的3,870萬美元成長了6%。

The year to year increase is primarily driven by app store fees and an increase in personnel to support R&D investment as we launch our new innovative product offerings and Arlow Secure 6 this year. Our leveraged go to market approach has enabled us to maintain our operating expenses at roughly $40 million per quarter or less since 2022 while growing ARR at a 37% keger during that period, which is truly remarkable.

同比增幅主要由應用商店費用以及為支持研發投資而增加的人員推動，因為我們今年將推出新的創新產品和 Arlow Secure 6。自 2022 年以來，我們透過槓桿式市場策略，將營運費用維持在每季約 4,000 萬美元或更低，同時實現了 ARR 成長 37%，這真是令人矚目。

For the third quarter, adjusted EBITDA was $17.1 million or an adjusted EBITDA margin of 12.2%. The growth in adjusted EBITDA represents a 50% increase year over year and a powerful testament to the operating leverage created by scaling our subscriptions and services business. Further, we generated non-GAAP net income of $18.1 million for the third quarter and $53.3 million for the nine month period ended September 30th, which was up an impressive 68% when compared to the same period last year.

第三季調整後 EBITDA 為 1,710 萬美元，調整後 EBITDA 利潤率為 12.2%。調整後 EBITDA 年成長 50%，有力地證明了我們透過擴大訂閱和服務業務規模所創造的營運槓桿效應。此外，我們第三季的非GAAP淨收入為1,810萬美元，截至9月30日的九個月期間的非GAAP淨收入為5,330萬美元，與去年同期相比增長了驚人的68%。

Regarding our balance sheet and liquidity position, we ended the quarter with $165.5 million in cash equivalents, and short-term investments.

關於我們的資產負債表和流動性狀況，本季末我們擁有 1.655 億美元的現金等價物和短期投資。

This balance is up about $19 million since September of 2024, even withstanding certain strategic investments and our ongoing share repurchase program. We generated record free cash flow of $49 million during the first nine months of the year, representing a free cash flow margin of almost 13%.

自 2024 年 9 月以來，即使扣除某些策略性投資和我們正在進行的股票回購計劃，該餘額也增加了約 1,900 萬美元。今年前九個月，我們創造了創紀錄的自由現金流 4,900 萬美元，自由現金流利潤率接近 13%。

Our Q3 accounts receivable balance was $76.7 million at quarter end with DSOs at 50 days, up from 45 days in the same period last year. Our Q3 inventory balance was $44.4 million down from the $52 million level in September of last year and a testament to the amazing job that our supply chain team has done with optimizing inventory levels ahead of our portfolio refresh. Inventory returns were 6.4 times, up from 5.8 times last year as we sold in inventory for one of our largest product launches in history.

第三季末，我們的應收帳款餘額為 7,670 萬美元，DSO 為 50 天，高於去年同期的 45 天。我們第三季的庫存餘額為 4,440 萬美元，比去年 9 月的 5,200 萬美元有所下降，這證明了我們的供應鏈團隊在產品組合更新之前優化庫存水準方面做得非常出色。由於我們銷售了歷史上規模最大的產品發布會之一的庫存，庫存退貨率為 6.4 倍，高於去年的 5.8 倍。

Now turning to our Outlook. Even with the full impact of tariffs during the period, our business generated outstanding financial results driven by the resilience of our subscriptions and services business. The recent launch of our innovative product portfolio gives us dry powder to remain competitive given the solid reduction in bond cost.

現在來看看我們的展望。即使在此期間關稅產生了全面影響，但由於我們的訂閱和服務業務的韌性，我們的業務仍然取得了出色的財務業績。鑑於債券成本大幅下降，我們近期推出的創新產品組合使我們擁有充足的資金保持競爭力。

We will leverage our new products and competitive ASPs to drive strong POS volume and accelerate paid subscription growth.

我們將利用我們的新產品和具有競爭力的平均售價來推動強勁的POS銷量，並加速付費訂閱成長。

As a result, we expect our Q4 consolidated revenue outlook to be in the range of 131 to $141 million.

因此，我們預計第四季度合併收入預期將在 1.31 億美元至 1.41 億美元之間。

Additionally, we expect non-GAAP net income per diluted share for Q4 to be in the range of $0.13 to $0.19.

此外，我們預計第四季非GAAP每股攤薄淨收益將在0.13美元至0.19美元之間。

And now I'll open it up for questions.

現在我將開放提問環節。

(Operator Instructions)

（操作說明）

The first question comes from Adam Tyndall with Raymond James. You may proceed.

第一個問題來自 Raymond James 公司的 Adam Tyndall。您可以繼續。

Okay, thanks. Good afternoon.

好的，謝謝。午安.

I just wanted to start maybe on margins, obviously acknowledging that gross and operating margin overall is quite healthy here, but when we look at the components, you had your largest launch with a 20 to 30% bomb cost reduction that Talked about, but product gross margin is still pressured. I understand there's a number of moving parts driving that. Maybe the question would be if you could just remind us the accounting method for inventory and wondering if that bomb cost reduction is maybe not fully reflected in the Q3 results that we're seeing. And secondly, there's an inventory clear out, that you mentioned. I wonder if you could, Kurt, just, help us quantify that. Is that something that was, what did it do to impact in the quarter and does it carry into future quarters from here? Thanks.

我想先從利潤率談起，當然，首先要承認毛利率和營業利潤率總體上都相當健康，但是當我們審視各個組成部分時，你們已經實現了最大的產品發布，成本降低了 20% 到 30%（正如之前提到的），但產品毛利率仍然面臨壓力。我知道這其中涉及許多環節。或許問題應該是，您能否提醒我們庫存的會計處理方法，並想知道炸彈成本的降低是否可能尚未完全反映在我們看到的第三季業績中。其次，正如你所提到的，還有一次庫存清理。庫爾特，不知道你能不能幫我們量化這個指標？這是真的嗎？它對本季產生了什麼影響？這種影響會延續到未來的幾季嗎？謝謝。

Yeah, thanks Adam. Let me just start by saying, as we've discussed in the past, we're very, we are very much focused on our consolidated gross margins, and we were extremely pleased by the fact that if you look at the 3rd quarter consolidated gross margins relative to last year we were up about 540 basis points. If you look at that margin on a year-to-date basis, we're up about 640 basis points. So as we've mentioned before, we hold ourselves accountable to continue to grow, consolidated gross margin, and we'll continue to do that here in the, upcoming future as it relates to the, product gross margin you're referencing, Adam, we were on a non-GAAP basis at about 17.3%. What's embedded within that number is a number of things. So first and foremost, obviously we had the, first full quarter of tariffs. If you actually look at it closely and you strip out tariffs, that margin actually would decline to about a 8%, so small or I would say a pretty significant shift from the 17% and in that range of say high single-digits. Additionally, we did have a fair amount of EOL, investment that was necessary to make sure that all of the inventory in the channel was at the right levels which would enable us to load in the right amount of inventory on the next generation platform of products that we just rolled out. So there was a fair amount of upfront spending to encourage promotional activity to move that inventory through. That inventory has now been moved through and we feel really good about where we stand right now as we go into the 4th quarter. So I have to say that we're extremely pleased with the fact that if you look across all of our operating metrics, especially our profitability targets, whether it's adjusted EITA, non-GAAP operating income, gross margins, they are all moving up into the right, and we're extremely pleased with the overall performance of the team in this area.

謝謝你，亞當。首先我想說的是，正如我們過去討論過的，我們非常非常關注我們的合併毛利率，我們非常高興地看到，與去年同期相比，第三季度的合併毛利率提高了約 540 個基點。如果從年初至今的利潤率來看，我們已經上漲了約 640 個基點。正如我們之前提到的，我們有責任繼續提高合併毛利率，而且在不久的將來，我們將繼續這樣做。至於你提到的產品毛利率，亞當，我們以非GAAP準則計算約17.3%。這個數字中包含著很多資訊。首先，顯然我們迎來了關稅實施的第一個完整季度。如果你仔細觀察並剔除關稅，利潤率實際上會下降到 8% 左右，這與 17% 相比是一個很小的，或者說是一個相當大的變化，大約在個位數的高位。此外，我們還有相當多的 EOL（產品生命週期結束）投資，這是必要的，以確保渠道中的所有庫存都處於適當的水平，從而使我們能夠在我們剛剛推出的下一代產品平台上加載適量的庫存。因此，前期投入了相當多的資金來鼓勵促銷活動，以促進庫存週轉。庫存現在已經全部消化完畢，進入第四季度，我們對目前的狀況感到非常滿意。因此，我必須說，我們非常高興地看到，如果您查看我們所有的營運指標，特別是我們的獲利目標，無論是調整後的 EITA、非 GAAP 營業收入還是毛利率，它們都在朝著正確的方向發展，我們對團隊在這個領域的整體表現非常滿意。

That's helpful, yeah, and it provides obviously a platform for future growth and margin when some of these temporary items rebound as well, so it makes sense.

是的，這很有幫助，而且當其中一些暫時性因素反彈時，它顯然也為未來的成長和利潤率提供了一個平台，所以這是有道理的。

Maybe a follow-up, Matt. There's a number of growth drivers in the future as well for the business. I know you stressed some of the partnership in particular in your prepared remarks, so I want to ask a question on two of those. First is on Vera sure. You mentioned the ADT Mexico piece of this. I wonder if that's, maybe a broader opportunity for Arlo to expand more in Latin America in general. Would that, need to be sort of a separate, RFP process, for you to win, or do you have sort of visibility into that as an opportunity? How big could that be? And then secondly, on ADT itself, you mentioned. They're testing units ahead of the market launch.

或許可以做個後續報道，馬特。未來，該業務還有許多成長動力。我知道您在準備好的演講稿中特別強調了合作關係，所以我想就其中兩個方面提問。首先是維拉。你提到了ADT墨西哥分公司的情況。我想知道這是否為 Arlo 在拉丁美洲整體上進一步擴張提供了一個更廣泛的機會。是否需要透過單獨的 RFP 流程才能中標，還是說您已經將此視為一個機會？那會有多大？其次，關於您提到的 ADT 本身。他們正在市場發布前對產品進行測試。

Just wonder, understand, they're probably going to be a little bit limited on what you can say here, but any framework that you can get as you get closer to this in setting up investor expectations on the magnitude of that partnership. Thanks.

只是好奇，要知道，他們可能會對你在這裡能說的話有所限制，但隨著你越來越接近目標，任何能幫助你設定投資者對這項合作規模的預期框架都非常重要。謝謝。

Yeah, great question, and you know when you talk about growth drivers, Adam, you're 100% right when we're focused on a couple of areas. One is, as Kurt was just mentioning, the growth in our normal channels like retail channels and that's going really well, we mentioned on the call that units were up year over year by nearly 30% from a POS perspective and we expect somewhere between 20% and 30% growth there. One of the other areas is exactly what you're talking about, what we call strategic accounts or or our more B2B plays. There's a couple, and you mentioned some of them. So the ADT Mexico acquisition by Verisae, I believe, actually closed yesterday, in European time, and we've been actually working with them, as you probably could guess, behind the scenes for months, if not actually quarters, preparing and actually certifying all of our products, for Mexico. So there's no incremental business to win, as we are, at this time the exclusive provider of some of the back end service for them. We do a lot of camera development for them both on. Our low product for those certain regions but also some custom products that we've developed for them. So our expectation is that ADT Mexico acquisition by Vera sure is kind of the first area they are focused on with potentially a more, bigger expansion across Latin America. So it is a new region, I think for the partnership to expand into over time and drive, a lot of growth for both companies. So we're excited, really excited about that. Then you look at, EDT. I can't say a lot about EDT beyond what I said on the call, except that, from an Arlo execution perspective, in conjunction, with that partner that we hit all the timelines we needed to hit, and there's actually product in the field, and from a user experience perspective it's stellar, so we're really excited about talking more about that in the future and we'll, leave that to the date that that actually goes live. And then you know I mentioned on the call that this is an area that we're excited about and you should expect some more information over time. There are, several other partnerships that we're in discussion with, and I expect, between now and probably the end of Q1, or maybe going slightly into Q2, we'll have a couple of more sizable name brand accounts, in the partnership space that we'll be talking about, that could have a material impact on us going forward. So if you, if I pull back and.

是的，問得好。亞當，說到成長動力，當我們專注於幾個領域時，你的說法完全正確。一是如庫爾特剛才所提到的，我們正常的通路，像是零售通路，正在成長，而且進展非常順利。我們在電話會議上提到，從銷售點的角度來看，銷量年增了近 30%，我們預計這方面的成長將在 20% 到 30% 之間。另一個領域正是你所說的，我們稱之為策略客戶或我們的 B2B 業務。有幾個，你也提到過其中一些。因此，我相信 Verisae 對 ADT Mexico 的收購實際上在昨天（歐洲時間）完成了，正如您可能已經猜到的那樣，我們實際上已經與他們合作了幾個月，甚至幾個季度，為墨西哥市場準備和認證我們所有的產品。因此，我們沒有新增業務可以爭取，因為我們目前是他們某些後端服務的獨家供應商。我們為他們倆做了很多相機開發工作。我們為這些特定地區提供低價產品，也為他們開發了一些客製化產品。因此，我們預計 Vera 收購 ADT Mexico 肯定是他們關注的第一個領域，未來可能會在拉丁美洲進行更大範圍的擴張。所以，我認為這對雙方的合作來說是一個全新的領域，隨著時間的推移，這將為兩家公司帶來巨大的成長。所以我們對此感到非常興奮。然後你看，EDT。除了我在電話會議上說的之外，關於 EDT 我不能透露太多，但從 Arlo 的執行角度來看，我們與合作夥伴一起按時完成了所有需要完成的任務，產品已經上線，從用戶體驗的角度來看，它非常出色，所以我們非常期待未來能更多地談論它，我們會等到它正式上線的那一天再做詳細介紹。然後，正如我在電話會議上提到的，我們對此領域感到非常興奮，隨著時間的推移，你們應該會得到更多資訊。我們目前仍在與其他幾家公司洽談合作事宜，我預計從現在到第一季末，或者可能稍微延續到第二季​​度，我們將與幾家規模更大的知名品牌達成合作，這些合作可能會對我們未來的發展產生重大影響。所以如果你，如果我退縮，然後。

Talk about how we get to our long range targets that we talked about on the call, the 10 million subscribers, the inR700 million and the increasing that operating income over 25%.

談談我們如何實現我們在電話會議上談到的長期目標，即 1000 萬用戶、7 億蘭特以及將營業收入提高 25% 以上。

Kurt and I on previous calls have said we think about 60% of that that incremental growth over the over where we are today, is going to come from strategic accounts and I would tell you based on recent. Activities and some of the things we can talk about and some of the things that are coming soon, I absolutely believe that is the case that we will see, 60% of that incremental growth come from strategic and that is saying a lot because we think the traditional channels, retail and direct are growing really nicely and we think there is a lot of growth there. So hopefully that gives you a little bit more colour on those specific accounts and where we think this part of our business is headed over the next couple of quarters.

Kurt 和我之前在電話中說過，我們認為，在我們目前的水平基礎上，大約 60% 的增量增長將來自戰略客戶，而且根據最近的情況，我可以告訴你這一點。我們可以討論一些活動和一些即將推出的活動，我絕對相信我們會看到，60% 的增量成長來自策略，這意義重大，因為我們認為傳統通路、零售和直銷成長得非常好，我們認為這些通路還有很大的成長空間。希望這能讓您對這些具體帳戶以及我們認為未來幾季該業務的發展方向有更清晰的了解。

Very helpful. Looking forward to hearing more.

很有幫助。期待聽到更多消息。

Thanks, Adam.

謝謝你，亞當。

Thank you. As a quick reminder, if you'd like to ask a question, please press star one on your telephone keypad. The following comes from Jacob Stefan with Lake Street Capital Markets. You may proceed.

謝謝。再次提醒，如果您有任何疑問，請按下電話鍵盤上的星號鍵 1。以下內容來自 Lake Street Capital Markets 的 Jacob Stefan。您可以繼續。

Yeah, hey guys, nice quarter. Just wanted to ask, you guys made some comments last call, gross shipments in Q3 will be higher than you had originally expected, and you also kind of mentioned 20 to 30% unit growth as we look at the second half of the year here in Q4 specifically, but, maybe you could help us kind of think through. We saw higher negative margin in the product segment, but a product revenue is actually higher than we kind of had anticipated, and I understand that tariffs are part of the impact there, but, maybe help us kind of contrast that with, where you expect it because it seems like you guys are a little bit above plan in Q3 and maybe I'm wondering if there's any kind of pull forward into Q3 versus, what's going to be in Q4.

是啊，嘿，夥計們，這季度不錯。我想問一下，你們上次會議上發表了一些評論，說第三季度的總出貨量會高於你們最初的預期，而且你們還提到，展望下半年，特別是第四季度，銷量會有 20% 到 30% 的增長，但是，也許你們可以幫我們理清一下思路。我們看到產品部門的負利潤率有所上升，但產品收入實際上比我們預期的要高，我知道關稅是造成這一現象的部分原因，但能否請您幫我們對比一下，看看這和你們的預期相比如何，因為你們第三季度的業績似乎略高於計劃，我想知道第三季度的業績是否比第四季度有所提前。

Yeah, I, there's no poll in. I mean it was a very strong quarter, and to kind of break that down a little bit, the gross shift number is obviously, strong because of the X ramp and the loading of all of our new product. We always have a little conservativeness built in when we do the forecast for the quarter because there's a lot of things you can just run into from a supply chain logistics perspective and And I kind of mentioned on the call we had a, there was a container ship that caught fire in Korea. There was, containers dropping in the ocean in Long Beach, and none of ours, by the way. There were two typhoons. I mean, so there's always some things going on. And again, the team here executed exceptionally well around all of that and we landed all the all the product where we needed to on time and so I would say is that little bit of that little bit of buffer we leave in for supply chain, issues maybe during the quarter, we didn't need and so you saw a pretty strong quarter on gross ship, the 20 to 30% or the inside the quarter, the 29% growth on a year over year units, that's actually our, forecast and results on POS.

是的，目前還沒有民調結果。我的意思是，這是一個非常強勁的季度，具體來說，總班次數量之所以強勁，顯然是因為 X 坡道和我們所有新產品的裝載。我們在進行季度預測時總是會保持一定的保守性，因為從供應鏈物流的角度來看，有很多事情可能會發生。我在電話會議上也提到過，韓國有一艘貨櫃船著火了。長灘海域確實有貨櫃落入海中，順便說一句，那不是我們的。當時出現了兩次颱風。我的意思是，總是會有一些事情發生。再次強調，我們團隊在所有這些方面都執行得非常出色，我們按時將所有產品交付到了需要的地方。因此，我想說，我們為供應鏈預留的那一點點緩衝，以應對本季可能出現的問題，實際上並沒有用到。所以，你們可以看到本季毛出貨量非常強勁，年增 20% 到 30%，或本季內年增 29%，這實際上是我們對銷售點的預測和實際結果。

So how many units actually sold through the channel and we like to, talk about the growth that we're seeing there, the 29% in Q3 and the 20 to 30% we're anticipating in Q4 because as shipments out really then become household formation which then becomes service revenue, which is what's obviously driving, the outstanding performance in the company and the expansion of profitability over time. So that's, the gross ship number Q3 is always strong because of seasonality. I think it was exceptionally strong because of the execution of the team and the loading of so many new products, but the 29% in Q3 and the 20 to 30%, that's actually commentary on POS which actually leads to future service revenue.

那麼，究竟有多少單位產品是透過通路銷售的呢？我們想談談我們看到的成長情況，第三季成長了 29%，我們預計第四季將成長 20% 到 30%，因為隨著出貨量真正轉化為家庭用戶，進而轉化為服務收入，這顯然是推動公司業績出色和獲利能力隨時間推移而擴大的因素。所以，第三季船舶總數量總是很強勁，這是季節性因素造成的。我認為業績異常強勁是因為團隊的執行力和眾多新產品的推出，但第三季 29% 和 20% 到 30% 的成長，實際上是對 POS 系統的一種反映，而 POS 系統實際上會帶來未來的服務收入。

Yeah, understood, I know you guys run a tight ship on the, logistics team, but, maybe kind of help me think through some of the more important partners then as we enter the kind of the back half of the year here, obviously you guys have bigger shelf share at Best Buy, you're kind of growing into a longer-term partner, a bigger partnership with Walmart, help me think through some of these strategic kind of retail partners.

是的，我明白了。我知道你們物流團隊管理非常嚴格，但是，隨著我們進入下半年，你們能否幫我思考一些更重要的合作夥伴？顯然，你們在百思買的貨架份額更大，你們正在發展成為沃爾瑪的長期合作夥伴，更緊密的合作關係。請幫我思考這些具有策略意義的零售合作夥伴。

Yeah, absolutely. I mean, I think, just commenting on Q4 in general, we know it's going to be a very competitive quarter. We're seeing great demand in the channel, so, that's a good sign as we roll forward on Q4, but we knew it was going to be a competitive quarter and you can see us preparing the entire company. To actually be really successful inside of a competitive environment, so the product launch, with 20 to 35% COGS declines is an example of that. A lot of the promotional activity we've got lined up with our biggest partners, some of those are obviously Amazon, which is a big part of the market. We're actually gaining some share there, week by week, and so we're happy about that. You mentioned Walmart. I mean, Walmart is part of our thesis around this product segment going more mass market and we're seeing a wider population actually enter the space as the awareness over the product category, and people feeling less safe in general, is starting to drive, and we've been proven right over the last couple holiday seasons, so we're expecting, a strong holiday season with Walmart as well, and that's the channel as we've launched in our new product line, we've gone from 4 or 5 skews to closer to 9 SKUs at Walmart, so almost a doubling of shelf share there, and that's partially what's driving. Some of the unit velocity, year over year from a quarter basis, and why we feel like we are going to be exceptionally positioned with this product line going throughout 2026. So from a partnership perspective or where we think some of the growth is coming, it is across the board. I think we'll see strength in our strategic accounts and then a lot of our big retail partners were set up I think very well for what will be a competitive quarter, but something we completely anticipated with our product launch and our promotional activity and for us as it's really about driving that household formation to see that service revenue grow through the end of the year and actually, tip over into a strong service quarter in Q1.

是的，絕對的。我的意思是，就第四季整體而言，我們都知道這將是一個競爭非常激烈的季度。我們看到通路需求旺盛，這對我們推進第四季來說是個好兆頭，但我們知道這將是一個競爭激烈的季度，你可以看到我們整個公司都在為此做準備。要在競爭激烈的環境中取得真正的成功，例如產品發佈時，銷售成本下降 20% 到 35% 就是一個例子。我們已經和最大的合作夥伴安排了許多促銷活動，其中一些顯然是亞馬遜，它佔據了很大的市場份額。實際上，我們每週都在擴大市場份額，對此我們感到高興。你提到了沃爾瑪。我的意思是，沃爾瑪是我們圍繞這個產品細分市場向大眾市場轉型這一理念的一部分，我們看到隨著人們對該產品類別的認知度提高，以及人們普遍感到不安全，越來越多的人開始進入這個領域。過去幾個假期季節已經證明了我們的判斷是正確的，所以我們預計沃爾瑪的假期季節銷售也會很強勁。沃爾瑪是我們推出新產品線的主要管道，我們在沃爾瑪的SKU數量已經從4到5個增加到接近9個，貨架份額幾乎翻了一番，這也是部分原因。從季度角度來看，部分單位銷售量較去年同期有所成長，因此我們認為，到 2026 年，憑藉該產品線，我們將處於非常有利的地位。因此，從合作關係的角度來看，或說從我們認為成長點所在的地方來看，成長是全方位的。我認為我們的策略客戶將會表現強勁，而且我們的許多大型零售合作夥伴也已經為即將到來的競爭激烈的季度做好了充分準備，但我們透過產品發布和促銷活動完全預料到了這一點。對我們來說，關鍵在於推動家庭用戶數量的成長，從而推動服務收入在年底前實現成長，並最終在第一季迎來強勁的服務收入成長。

Got it and maybe just kind of continuing on the service revenue, growth question and comments, when we look at paid sub ads of $281,000 maybe you could kind of help us piece out the timing of those subs in the quarter, obviously keeping in mind your $310 million dollar, service revenue guidance for the full year.

明白了。關於服務收入、成長問題和評論，我們想繼續討論一下。付費訂閱廣告收入為 281,000 美元，您能否幫我們分析這些訂閱在本季度的具體時間表？當然，我們也要考慮到您對全年服務收入 3.1 億美元的預期。

Yeah, I think it was pretty much through the quarter. There are some that kind of came a little bit later as, we promoted the older product through the channel that Kurt was talking about some of the EOL product towards the end of the quarter as the new product came in. So it might be a little bit more backloaded than you would expect over maybe a traditional just very linear trajectory through the quarter. But at 281,000 was really driven by two things. One, Varnisher performed very well and I think that was part and parcel of their IPO and, going to market there and just really leaning into sales and executing extraordinarily well in Europe. But we're seeing strength in our retail and direct channel. Well, which is great. So you see a more balanced revenue line when Kurt was talking about the split between Europe and the United States, you are seeing some strength across our traditional channels. Another indicator of that is what I was saying before around seeing nearly 30% unit growth in the quarter. Now if you remember when we guided the year on service revenue, we guided close to $300 million in service revenue and on our last call, already seeing what was happening in Q3, we took that up closer to 310. And so that's the confidence we're seeing. We are already seeing some of that sell through happen in Q3 on the on the previous call and why we're willing to kind of bring up that guidance to demonstrate how strong not only the the lift and the growth in the market of unit sales going through to the end user, but that it is resulting in in higher than originally expected service, revenue which obviously leads to greater profitability.

是的，我想差不多整個季度都是這樣。有些產品推出得比較晚，因為我們透過 Kurt 提到的管道推廣舊產品，而有些停產產品則在季度末隨著新產品的推出而停產。因此，它的成長可能會比你預期的要更加集中在後半段，而不是像傳統的線性成長軌跡那樣貫穿整個季度。但 281,000 的成績實際上是由兩件事推動的。第一，Varnisher 的表現非常出色，我認為這是他們 IPO 的一部分，他們進入市場後，真正專注於銷售，並在歐洲取得了非凡的業績。但我們看到零售和直銷通路表現強勁。那太好了。所以，當庫爾特談到歐洲和美國之間的收入差距時，你會看到收入線更加平衡，我們在傳統管道方面也展現出一些優勢。另一個佐證是我之前提到的，本季銷量成長了近 30%。如果你還記得我們先前對全年服務收入的預測，我們當時預測服務收入接近 3 億美元，而在上次電話會議上，我們已經看到了第三季的情況，所以我們將預測值上調到了接近 3.1 億美元。這就是我們看到的信心。在上一次電話會議上，我們已經看到第三季度的一些銷售情況有所改善，這也是我們願意提高業績指引的原因，旨在表明不僅終端用戶銷量增長強勁，而且服務收入也高於預期，這顯然帶來了更高的盈利能力。

Got it, very helpful comments, I appreciate it.

明白了，這些建議很有幫助，非常感謝。

Great work.

幹得好。

Thank you.

謝謝。

Thank you.

謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線了。