(MarketWatch) – Shares of Arlo Technologies Inc. ARLO rallied more than 18% in the extended session Wednesday after the maker of security cameras, video doorbells, and other home security electronics reported a narrower second-quarter loss and sales rose above expectations.
Arlo said it lost $29 million, or 38 cents a share, in the quarter, compared with a loss of $34 million, or 45 cents a share in the year-ago period.
Adjusted for one-time items, Arlo lost 31 cents a share, compared with a loss of 36 cents a share a year ago. Revenue dropped 20% to $67 million, the company said. Analysts polled by FactSet had expected an adjusted loss of 41 cents a share on sales of $55 million. Arlo guided for revenue between $85 million and $95 million for the third quarter, and a GAAP net loss between 41 cents a share to 32 cents a share for the quarter.
It said that because of the pandemic it was not providing 2020 guidance. “I believe the second quarter marks an inflection point in our subscription business and expect this momentum to continue,” Chief Executive Matthew McRae said in a statement. Shares of Arlo ended the regular trading day down 4.6%.