Connected. Smart. Security....(1) 5.28M Paid Accounts (cumulative) (2) 549K Employees 355 US...

Connected. Smart. Security.

Copyright 2021, Arlo Technologies Inc. All Rights Reserved.

May 2021

Copyright 2021, Arlo Technologies Inc. All rights reserved. 2

This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,”

“estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not

forward-looking. The forward-looking statements represent the expectations or beliefs of Arlo Technologies, Inc. (the “Company” or “Arlo”) concerning future events based on information available at the

time such statements were made and include statements regarding: the future financial flexibility and ability to pursue long-term strategies; the Company’s future operating performance and financial

condition; expectations regarding the timing, distribution, sales momentum and market acceptance of recent and anticipated new product introductions that position the Company for growth; future

market growth; and expectations regarding seasonal changes in the Company’s business performance. These statements are based on management's current expectations and are subject to certain

risks and uncertainties, including the following: future demand for the Company's products may be lower than anticipated; consumers may choose not to adopt the Company's new product offerings or

adopt competing products; product performance may be adversely affected by real world operating conditions; the Company may be unsuccessful or experience delays in manufacturing and distributing

its new and existing products; telecommunications service providers may choose to slow their deployment of the Company's products or utilize competing products; the Company may be unable to

collect receivables as they become due; the Company may fail to manage costs, including the cost of developing new products and manufacturing and distribution of its existing offerings; the Company

may incur additional costs and charges associated with the transactions contemplated by the Verisure partnership; the Company may not receive the minimum commitment amounts from Verisure; the

COVID-19 pandemic could have an adverse impact on the Company's business, operations and the markets and communities in which the Company and its partners and customers operate; the

Company may fail to successfully continue to effect operating expense savings; changes in the level of Arlo's cash resources and the Company's planned usage of such resources; changes in the

Company's stock price and developments in the business that could increase the Company's cash needs; fluctuations in foreign exchange rates; the actions and financial health of the Company's

customers; the anticipated financial capacity under Arlo’s revolving credit line may not be available when expected, or at all; and the Company may not be able to carry out its restructuring plan. Further,

certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed

or forecast in such forward-looking statements. Further information on potential risk factors that could affect the Company and its business are detailed in the Company's Annual Report on Form 10-K for

the fiscal year ended December 31, 2020 and other periodic filings with the Securities and Exchange Commission. Given these circumstances, you should not place undue reliance on these forward-

looking statements. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or

to reflect the occurrence of unanticipated events.

All product and company names herein are or may be trademarks of their respective owners.

SAFE HARBOR DISCLOSURE

Devices Shipped (cumulative)

5.28MRegistered Accounts (cumulative)(1)

549KPaid Accounts (cumulative)(2)

355Employees

CAUS Headquarters

IPO August 2018, NYSE ARLO

Note: Devices shipped, registered accounts and paid accounts are measured cumulatively as of March 28, 2021.

(1) We define our registered accounts at the end of a particular period as the number of unique registered accounts on the Arlo platform as of the end of such particular period, and includes accounts owned by Verisure S.a.r.l.. The number of registered accounts does not necessarily reflect the number of end-users on the Arlo platform, as one registered account may be used by multiple people.

(2) Paid accounts worldwide measured as any account where a subscription to a paid service is being collected (either by the Company or by the Company’s customers or channel partners), plus paid service plans of a duration of more than 3 months bundled with products (such bundles being counted as a paid account after 90 days have elapsed from the date of registration). Paid accounts includes accounts transferred to

Verisure S.a.r.l..

ARLO AT-A-GLANCE

19.8M

MISSION STATEMENT

We build trusted, lifelong

customer relationships by

creating innovative, smart

security solutions that deliver

an exceptional user

experience.

VISION STATEMENT

To bring peace of mind by

connecting and protecting

what people care about the

most.


Superior Quality

▪ DIY wire-free design with best-in-class video / audio

performance

▪ Intuitive and powerful app experience

▪ Cross-compatible with Alexa, Google Home, Apple Home

Kit and more

Category Leadership in AI

• High precision, low latency AI-enabled computer vision

and audio analytics

• Personalized, relevant notifications that matter

• Actionable alerts enable users to react and get help faster

Commitment to Privacy

• We protect our community with the highest levels of

privacy and security.

• We don’t monetize personal data. Videos and data belong

solely to our users.

• We support privacy and cybersecurity best practices and

standards.

1

2

3

*During Arlo Smart Trial or as a subscriber to Arlo Smart Services

SMARTER SECURITY. TRUSTED BY MILLIONS.

The Arlo difference


COMPREHENSIVE PRODUCT PORTFOLIO

Ultra Cameras

The highest performance smart

camera platform with 4K video

recording, 180° field of view,

dual-band WIFI, dual noise

cancelling microphones,

integrated spotlight, color night

vision and an advanced modular

design.

Pro Cameras

A platform that balances

performance and price with

advanced features such as 2K

video recording, 160° field of

view, 2-way audio, integrated

spotlight, color night vision, and

an advanced modular design.

Essential Cameras

The entry level platform proving

1080p video recording, 130°

field of view, and 2-way audio in

a sealed design with several

options including base, spotlight

and the XL version with up to 12

months of battery life.

Video Doorbells

Innovative video doorbells

featuring a 1:1 aspect ratio and

VoIP calling for superior

performance. Available in wired

and battery-operated versions

and compatible with existing

wiring, chimes.

Video Floodlight

The world’s first battery

operated floodlight with up to

3,000 lumens brightness, 2K

video recording, 160° field of

view, high quality 2-way audio,

integrated siren, and included

security mount.


SUPERIOR USER EXPERIENCE

Enhanced 911Smart emergency call routing

Person DetectionAI detection for persons

Package DetectionAI protection of deliveries

Rich NotificationsActionable event snapshots

Vehicle DetectionAI detection for vehicles

Animal DetectionAI protection of animals

Cloud Storage30 days of protected videos

Activity ZonesSmart motion boundaries

Alarm DetectionAI detection of Smoke/CO alarms

ARLO SMART FEATURES

The Arlo user experience is a multi-platform solution that

empowers users to protect what they care about most. It is

simple, intuitive and yet provides powerful features such as AI

based computer vision, intelligent emergency call routing, and

extensive features to customize the experience to fit the

user’s needs.

Arlo is also broadly compatible with various ecosystems to

provide maximum flexibility with access to videos and events.


ACCELERATING PAID ACCOUNT GROWTH

Net in quarter Paid Account additions, In Thousands

Legacy Business Model,

no Arlo Smart ServiceLegacy Business Model,

with Arlo Smart Service

New Business Model,


New Business Model, with Arlo Smart Service

+72%

YOY

+141%

YOY

+316%

YOY

Free 7-day cloud storage

of triggered events with

device purchase.

30-day trial of Arlo Smart.

~5% conversion rate to

Arlo Smart subscription

after trial expires.

90 days of Arlo Smart service

included with device

purchase. Live view only after

90 days



after initial service expires.*

Legacy Business Model w/

Arlo Smart Service

New Business Model

w/ Arlo Smart Service

*Conversion rate observed since Q1 2020 for New Business Model products

1013

17

1310

23

19 18

25 24

19

25

43

58

79

114

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

+356%

YOY


ACCELERATING TOTAL PAID ACCOUNTS

Total Net Paid Accounts In Thousands

Legacy Business Model,

no Arlo Smart ServiceLegacy Business Model,


New Business Model,


Legacy Business Model w/

Arlo Smart Service

New Business Model

w/ Arlo Smart Service

*Conversion rate observed since Q1 2020 for New Business Model products

Free 7-day cloud storage

of triggered events with

device purchase.

30-day trial of Arlo Smart.



after trial expires.

90 days of Arlo Smart service

included with device

purchase. Live view only after

90 days



after initial service expires.*

4861

7892

102

125

144

162

187

211

230

255

298

356

435

549

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

115% YoY Growth


EXTENSIVE AWARDS & RECOGNITION

Arlo's Pro 3 Floodlight Camera

is by far the best floodlight

camera I've tested… There's a

reason we've already given

the Arlo Pro 3 and the Arlo Video

Doorbell Editors' Choice Awards.

The Pro 3 Floodlight Camera

continues Arlo's trend of

innovating… I'm giving it a CNET

Editor’s Choice Award.

- Megan Wollerton

The Arlo Pro 3 is my new

favorite outdoor home security

camera. The Arlo Pro 3 has crisp

live streaming, fast alerts and a

wide range of advanced features

that set it apart from other outdoor

security cameras. The Pro works

with Alexa and Google Assistant…

The 2K streaming is stellar.

- Megan Wollerton

Arlo Video Doorbell is the best

video doorbell you can buy. It

works with every smart home

ecosystem you might have, and

its features rival that of every

competitor. Plus, the unique

aspect ratio lets you see more of

your porch, which is the most

important factor.

- Nicholas Sutrich

The Arlo Pro 3 is like the Iron

Man of smart security, offering

powerful technical capabilities in a

slick package that makes it largely

easy to unleash that power…

Image quality is superb… Some

really useful smart features …

Arlo Pro 3 is a worthy T3 Awards

2020 winner for Best Smart

Security.

- Matthew Bolton


ROBUST SERVICE PLATFORM

850+ hours of video uploading per

minute* more than YouTube

190+ million videos uploaded per day* more than Instagram

2+ billion API calls per day

* Tubefliter 2019 and omnicoreagency.com, 2019

22+ million smart notifications per day

15+ petabytes of cloud-based storage

SmartCloud Snapshot

SmartCloud powering users in 100+ countries

Arlo’s SmartCloud™ platform is a high-precision, low-latency tuned neural network and

scaled compute environment architected to provide unparalleled performance and

reliability. It uses the latest in modern practices in including self-scaling, self-healing

microservices, advanced fault tolerance, real-time analytics, embedded security and

24x7 monitoring to deliver competitive advantages for Arlo services and best-in-class

capabilities for our partners.


EXTENSIVE & EXPANDING PATHS TO MARKET

Paths to Market

North America

Channel

North America

Partnerships

Europe

Omni-Channel

APAC

Channel

Direct

To Consumer

and more….

arlo.com

Strategic partnership

across all channels

including retail, e-

commerce, regional

partnerships, and

Verisure’s direct

security channels.

and more….and more….


NEW BUSINESS MODEL – DRIVE TO PROFITABILITY

In $’Millions

Services

Product

Revenue Non-GAAP Gross Profit* Non-GAAP Operating Expense* Non-GAAP Operating Loss*

+144% YoY

+456% YoY -7.8% YoY

Driving Toward Cash flow

Break-evenExpense Discipline

New Business Model Transition

+ Paid Service Growth Drives

Gross Profit Expansion

New Business Model Drives

Paid Service Growth

*The most directly comparable GAAP financial measures are presented in the GAAP to non-GAAP reconciliation in the Appendix

+18% YoY

+55% YoY

-88.7% YoY

$50.7

$59.8

$14.7

$22.8

Q1'20 Q1'21

$65.4

$82.6 +26% YoY

$13.5

$5.4

$13.2

Q1'20 Q1'21

$4.8

$26.7

-$0.6

$32.2

$29.7

Q1'20 Q1'21

$27.4

$3.1

Q1'20 Q1'21


EXPANDING GROSS MARGIN

Service Gross Margin Total Non-GAAP Gross Margin**

Paid Account Growth +

Cost Optimization =

Service Gross Margin Expansion

New Business Model Transition +

Service Gross Margin Expansion =

Overall Gross Margin Expansion

* = On a sell-in basis

**The most directly comparable GAAP financial measures are presented in the GAAP to non-GAAP reconciliation in the Appendix

36.8%

41.5%

48.8%

58.9% 57.9%

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

7.4%

9.6%

20.6%

22.4%

32.3%

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21

Transition to New Business

Model in Process*Transition to New Business Model

Complete*


ACCELERATING TOWARDS PROFITABILITY

**The most directly comparable GAAP financial measures are presented in the GAAP to non-GAAP reconciliation in the Appendix

-$120.1

-$109.1

-$100.6-$98.1

-$81.9

-$67.3

-$43.0

-$27.4

-$3.1

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q1 21

Trailing 12 Month Non-GAAP Operating Loss Quarterly Non-GAAP Operating Loss

In $’Millions


FOCUSED CASH MANAGEMENT

In $’ Millions

Cash, Cash Equivalents, Short-Term Investments ($0 Debt)

$180

$138

$154

$257

$207 $205$194

$206

$177

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21


FOCUSED CASH MANAGEMENTINVESTMENT HIGHLIGHTS

• AWARD-WINNING & COMPREHENSIVE SMART

SECURITY PRODUCT PORTFOLIO

• NEW BUSINESS MODEL DRIVING SIGNIFICANT

PAID ACCOUNT & RECURRING REVENUE GROWTH

• TECHNOLOGY FOUNDED ON INDUSTRY-LEADING

AI, TRUSTED BY MILLIONS

• EXTENSIVE AND EXPANDING ROUTES TO MARKET

• ARLO SMARTCLOUD™ PLATFORM DRIVING NEW

B2B GROWTH OPPORTUNITIES

• EXPANDING PRODUCT & SERVICE GROSS

MARGIN DRIVING PATH TO PROFITABILITY

Appendix – GAAP to non-GAAP Reconciliations


Reconciliations of GAAP Measures to Non-GAAP Measures

Gross Profit, In Thousands, except percentage data

Three Months Ended

March 29,

2020

June 28,

2020

September 27,

2020

December 31,

2020

March 28,

2021

GAAP gross profit:

Products $ (1,465) $ (1,583) $ 12,164 $ 11,847 $ 12,604

Services 5,418 7,072 9,245 12,691 13,203

Total GAAP gross profit 3,953 5,489 21,409 24,538 25,807

GAAP gross margin:

Products (2.9)% (3.2)% 13.3 % 12.7 % 21.1 %

Services 36.8 % 41.5 % 48.8 % 58.9 % 57.9 %

Total GAAP gross margin 6.0 % 8.2 % 19.4 % 21.4 % 31.3 %

Stock-based compensation expense 503 562 942 955 874

Amortization of intangibles 356 357 356 237 —

Restructuring and other charges 23 — — — —

Non-GAAP gross profit:

Products (583) (664) 13,462 13,039 13,478

Services 5,418 7,072 9,245 12,691 13,203

Total Non-GAAP gross profit $ 4,835 $ 6,408 $ 22,707 $ 25,730 $ 26,681

Non-GAAP gross margin:

Products (1.2)% (1.3)% 14.7 % 14.0 % 22.6 %

Services 36.8 % 41.5 % 48.8 % 58.9 % 57.9 %

Total Non-GAAP gross margin 7.4 % 9.6 % 20.6 % 22.4 % 32.3 %



OPEX, In Thousands

Three Months Ended

March 29,

2020

March 28,

2021

GAAP total operating expenses $ 44,852 $ 37,279

Separation expense (79) (54)

Strategic initiative and transaction expenses (545) —

Stock-based compensation expense (12,270) (7,466)

Restructuring and other charges (21) —

Litigation reserves, net (7) (10)

Gain on sale of business 292 —

Non-GAAP total operating expenses $ 32,222 $ 29,749



Operating Income (Loss), In Thousands, except percentage data

Three Months Ended

December 31,

2018

March 31,

2019

June 30,

2019

September 29,

2019

December 31,

2019

March 29,

2020

June 28,

2020

September 27,

2020

December 31,

2020

March 28,

2021

GAAP operating income (loss) $ (39,613) $ (41,879) $ (34,086) $ (31,054) $ 21,798 $ (40,899) $ (30,335) $ (17,961) $ (15,669) $ (11,472)

GAAP operating margin (32.4)% (72.4)% (40.8)% (29.3)% 17.8 % (62.5)% (45.5)% (16.3)% (13.6)% (13.9)%

Separation expense 3,603 906 717 136 154 79 82 77 10 54

Strategic initiative and transaction expenses — — — 502 1,868 545 206 17 2 —

Stock-based compensation expense 3,495 4,653 5,389 5,219 7,633 12,773 4,564 9,001 8,909 8,340

Amortization of intangibles 382 381 382 381 373 356 357 356 237 —

Restructuring and other charges — — — — 631 44 — — — —

Litigation reserves, net — — 140 1,287 7 249 — — 10

Activist shareholder response costs — — 237 — — — — — — —

Gain on sale of business — — — — (54,881) (292) — — — —

Non-GAAP operating loss $ (32,133) $ (35,939) $ (27,361) $ (24,676) $ (21,137) $ (27,387) $ (24,877) $ (8,510) $ (6,511) $ (3,068)

Non-GAAP operating margin (26.3)% (62.1)% (32.7)% (23.3)% (17.3)% (41.8)% (37.3)% (7.7)% (5.7)% (3.7)%

Trailing 12 months Non-GAAP Operating Loss $ (120,109) $ (109,113) $ (100,561) $ (98,077) $ (81,911) $ (67,285) $ (42,966)

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