ARLO TECHNOLOGIES, INC. Management's Discussion and Analysis of Financial Condition and Resultsof Operations (form 10-Q)

ARLO

Forward-looking Statements

Business and Executive Overview

For the three months ended April 3, 2022 and March 28, 2021, we generated revenue of $124.8 million and $82.6 million, respectively, representing a year-over-year increase of 51.1%. Loss from operations were $8.7 million and $11.5 million for the three months ended April 3, 2022 and March 28, 2021, respectively.

Key Business Metrics

COVID-19 Update

Results of Operations

Cost of Revenue

Gross Profit

The following table presents gross profit for the periods indicated:

31.3 %

Operating Expenses

Research and Development

Research and development expense consists primarily of personnel-related expense, safety, security, regulatory services and testing, other research and development consulting fees, and corporate IT and facilities overhead. We

% $ 14,791

Sales and Marketing

$ 11,207

12.4 % $ 11,227

Separation Expense

Separation expense consists primarily of costs of legal and professional services for IPO-related litigation associated with our separation from NETGEAR.

The following table presents separation expense for the periods indicated:

Interest Income and Other Income (Expense), Net

**Percentage change not meaningful.

Liquidity and Capital Resources

Cash Flow

The following table presents our cash flows for the periods presented:

(30,168)

Net cash provided by (used in) investing activities (44,938)

14,197

Net cash provided by (used in) financing activities (5,272)

Investing activities

Financing activities

Contractual Obligations

Critical Accounting Policies and Estimates

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