Arlo stock falls after 3% drop in quarterly revenue

Arlo Technologies Inc.’s stock
ARLO,
+0.89%
dropped more than 3% in the extended session Thursday after the maker of security cameras, video doorbells, and other home-security electronics reported a narrower quarterly loss and revenue that fell but was above Wall Street expectations. Arlo said it lost $7.4 million, or 8 cents a share, in the second quarter, compared with a loss of $11.6 million, or 13 cents a share, in the year-ago period. Adjusted for one-time items, Arlo earned 6 cents a share. Revenue fell 3.3% to $115.1 million, from $119 million a year ago, Arlo said. FactSet consensus called for EPS of 4 cents a share on sales of $110 million. Arlo called for revenue of $122 million to $132 million for the three months ending Oct. 1. FactSet consensus has third-quarter revenue at $127 million. “The continued acceleration of our services business drove outstanding results in [the second quarter] across all of our key metrics,” Chief Executive Matthew McRae said in a statement. “Strong demand, increased subscriptions, higher [average revenue per unit], and record gross margin are fueling Arlo’s trajectory of improving performance and profitability.”