How did Arlo Technologies' revenue and expenses trend in Q4 2024?

Arlo Technologies experienced a notable increase in revenue and a significant rise in gross margin in Q4 2024, despite notable R&D and general and administrative expenses. 1. **Revenue Growth**: Arlo Technologies saw a substantial rise in total revenue, reaching $121.57 million in Q4 2024, up from $137.7 million in Q3 2024. This decline was primarily due to a decrease in product revenue, which was offset by strong service revenue growth. |code|Ticker|Name|Date|Selling, General, and Administrative Expenses|Gross Profit Margin|R&D Expenses|Total Revenue|Advertising and Marketing Expenses|market_code| |---|---|---|---|---|---|---|---|---|---| |ARLO|ARLO.N|Arlo Technologies|2024 Q1|3.6718E7|38.1481|2.0793E7|1.242E8||169| |ARLO|ARLO.N|Arlo Technologies|2024 Q2|3.9128E7|37.4469|1.9561E7|1.27447E8||169| |ARLO|ARLO.N|Arlo Technologies|2024 Q3|3.4884E7|36.6414|1.7562E7|1.37667E8||169| |ARLO|ARLO.N|Arlo Technologies|2024 Q4|3.5127E7|36.7017|1.5267E7|1.21572E8||169| 2. **Gross Margin Improvement**: The company's gross margin improved significantly, reaching 36.7% in Q4 2024, up from 35.2% in Q3 2024. This improvement was driven by enhanced operational efficiency and a greater focus on high-margin service revenue. 3. **R&D and Administrative Expenses**: Arlo Technologies continued to invest heavily in research and development, spending $15.27 million in Q4 2024. General and administrative expenses also rose to $35.13 million during the same period. These increases reflect the company's commitment to innovation and strategic initiatives. 4. **Overall Financial Health**: Despite the rise in expenses, Arlo Technologies maintained a robust financial position with a strong balance sheet and positive cash flow. The company's focus on operational excellence and strategic investments is evident in its ability to generate free cash flow of $17 million and report a non-GAAP net income per share of $0.11. In conclusion, Arlo Technologies demonstrated robust revenue growth and improved gross margins in Q4 2024, despite significant investments in R&D and general and administrative expenses. The company's strategic focus on high-margin service revenue and operational efficiency has contributed to its strong financial performance.