Arlo Technologies Inc. (NYSE: ARLO) entered the market with a bang on Friday. The 10.215 million shares were priced at $16 apiece, below its expected price range of $18 to $20. However, the stock actually entered the market at $18.50 and has only gone up from there.
The underwriters for the offering are Merrill Lynch, Deutsche Bank, Guggenheim, Raymond James, Cowen and Imperial Capital.
This company enables users to monitor their environments and engage in real-time with their families and businesses from any location with a Wi-Fi or a cellular network internet connection through their cloud-based platform.
To date, Arlo has launched several categories of award-winning smart connected devices, including wire-free smart Wi-Fi and LTE-enabled cameras, advanced baby monitors and smart security lights. In addition, Arlo’s broad compatibility allows the platform to seamlessly integrate with third-party products and protocols.
Since the launch of its first product in December 2014, the company has shipped over 7.5 million smart connected devices, and, as of April 1, 2018, the smart platform had over 1.9 million registered users across more than 100 countries around the world. Arlo plans to continue to introduce new smart connected devices to its platform in new categories, increase the number of registered users on the platform, keep them highly engaged through the mobile app and generate incremental recurring revenue by offering them paid subscription services.
In the filing, Arlo described its finances briefly as follows:
In 2016, Arlo grew revenue by 108% over the prior year to $184.6 million, and in 2017, Arlo further grew revenue by 101% over the prior year to $370.7 million.
The company intends to use the net proceeds from this offering for general corporate purposes.
Shares of Arlo were last seen up about 18% at $20.03, with a range of $18.30 to $20.62 on the day thus far. About 5 million shares had moved as of 11:15 a.m. Eastern.