Matthew Blake, CEO of Arlo Technologies , Inc. (NYSE:ARLO), a company currently valued at $1.28 billion and showing strong momentum with a 13.51% gain last week, has sold a significant portion of the company's common stock, according to a recent SEC filing. According to InvestingPro analysis, the company maintains a GOOD financial health score despite volatile stock movements. On December 2, Blake sold 316,644 shares at an average price of $11.54 per share, totaling approximately $3.65 million. This transaction was conducted to satisfy estimated tax withholding obligations upon the settlement of Performance Stock Units, as noted in the filing. Following this sale, Blake retains ownership of 3,160,988 shares in Arlo Technologies. Based on InvestingPro's Fair Value analysis, the stock appears overvalued at its current price of $12.77. Discover more insights and 8 additional ProTips for ARLO, along with a comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Arlo Technologies reported a 6% year-over-year revenue increase in its Third Quarter 2024 Earnings Call, reaching $137.7 million. The company's services sector experienced strong growth with a 70% increase in paid subscribers and record service revenue of $62 million. In addition, Arlo Technologies announced a $50 million share buyback program and plans to launch Arlo Secure 6.0 in the second half of 2025.
The company's non-GAAP gross profit was near $50 million, with earnings per share at $0.11. The number of paid subscribers grew by 255,000, reaching a total of 4.2 million. A significant portion of the total revenue, 48%, was driven by international partnerships, particularly with Verisure.
However, Arlo Technologies noted a decline in the U.S. market for two consecutive quarters and anticipates potential destocking situations in North American retail. Despite these challenges, the company remains optimistic, expecting to exceed the full-year services revenue guidance of $240 million.
Arlo Technologies is also expanding its partnership with Allstate (NYSE:ALL) and developing Arlo Secure 6.0. These recent developments indicate the company's continued focus on growth and expansion.
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