Arlo Technologies (NYSE: ARLO) stock lost over 12.13% on 26th October 2018 (Source: Google Finance) but recovered over 4.15% today (as of 29th October, 2018; as of 10:54 AM GMT-4; Source: Google finance). The firm reported a GAAP net loss per diluted share of $0.19 while non-GAAP net loss per diluted share was $0.05. Total non-GAAP operating expenses came in at $34.1 million, which is up 61.9% year-over-year and up 12.9% sequentially.
On the other hand, the company recorded revenue of $131.2 million, an increase of 25.1% year over year. The non-GAAP gross profit for the third quarter was $30.4 million which resulted in a non-GAAP gross margin of 23.1%. This compares to $28.9 million in the year ago comparable period and $29 million in the prior quarter.
The company’s services revenue for the quarter was $9.8 million, which is up 25.9% yearly. During the third quarter, company shipped a total of 1.2 million cameras and 1.4 million devices. It added approximately 300,000 registered users to the Arlo platform in Q3. As of the end of the third quarter, it had about 2.5 million registered users which is 88% more than a year ago. The paid subscriber count for Q3 was approximately 125,000 which is up a 105% year-over-year.
The non-GAAP R&D expense for the third quarter was 11.6% of revenues unchanged from 11.6% of revenue in the prior quarter. R&D is critical to the product and service differentiation and the company continue to invest heavily in R&D for Arlo as it executes its hardware and services roadmaps and continue to expand revenue. The non-GAAP tax expense for the third quarter of 2018 is $223,000 and for the third quarter of 2018 the company posted a non-GAAP earnings per share loss of $0.05.
Arlo ended the quarter with a $187.8 million in cash and cash equivalents and short-term investments. It received approximately $173.4 million in net proceeds from the IPO after deducting IPO-related fees paid by it, a portion of the IPO-related fees was paid by NETGEAR and approximately $70 million from NETGEAR during Q3.