How did ARLO's Q4 earnings surprise investors?

Arlo Technologies (ARLO) delivered an earnings surprise of 10% in its Fiscal Q4, beating the Zacks Consensus Estimate of $0.10 per share with earnings of $0.11 per share, adjusted for non-recurring items. This positive performance reflects the company's strong service revenue growth and gross margin improvements, indicating a robust business segment. However, product revenue showed a decline, which may warrant close monitoring by investors. Overall, the earnings surprise underscores Arlo's solid financial performance, despite softer product revenue, suggesting a nuanced outlook with positive service segment momentum.