Arlo stock rallies after company's Q1 sales come in above expectations

Shares of Arlo Technologies Inc. rallied more than 10% in the extended session Tuesday after the maker of connected home-security cameras and other devices reported a wider-than-expected adjusted first-quarter loss but sales came in above Wall Street expectations and subscriptions grew. Arlo said it lost $41 million, or 55 cents a share, in the quarter, compared with a loss of $5.3 million, or 9 cents a share, in the year-ago period. Adjusted for one-time items, Arlo lost 47 cents a share, versus an adjusted profit of 7 cents a share a year ago. Revenue fell to $57.9 million from $111 million a year ago. Analysts polled by FactSet had expected an adjusted loss of 44 cents a share on sales of $50 million. Arlo's paid subscriber growth rose 89% year-over-year in the quarter. Arlo shares ended the regular trading day 1% higher. The company split from parent Netgear Inc. in an August initial public offering.

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