Arlo Technologies, Inc. (NYSE: ARLO) shares popped Thursday. The company, a leading smart home security brand, announced its AI-powered subscription service has surpassed five million paid subscribers.
“Through relentless focus and innovation,” read this morning’s news release, “coupled with outstanding operational execution, Arlo has built a highly profitable subscription service and achieved world-class metrics as a services-first business.”
Arlo's paid subscribers have grown more than ten-fold over the last five years, and its user base is generating over $275 million in Annual Recurring Revenue (ARR), an accomplishment that few companies have achieved in less than six years.
Through an outstanding user experience and stellar service, Arlo enjoys superior customer retention with the average customer staying with Arlo services for more than seven years. Its monthly churn rate is among the best compared to consumer subscription peers.
"Arlo has achieved world-class metrics for any type of subscription service business, furthering our position as the market leader in smart security," said CEO Matthew McRae.
"Arlo's unparalleled subscription growth and impressive customer retention rate is a testament to the power of our service business and the advanced AI capabilities helping us win and retain subscribers. It is extremely rare for a consumer SaaS company to achieve the level of ARR growth Arlo has in this short of time, and we have no intention of slowing down."
ARLO shares gathered 69 cents, or 6.6%, to $11.09.
