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(“we”, “Arlo” or the “Company”) combines an intelligent cloud infrastructure and mobile app with a variety of smart connected devices that is transforming the way people experience the connected lifestyle.
−Removed: Arlo’s deep expertise in product design, wireless connectivity, cloud infrastructure and cutting-edge AI capabilities focuses on delivering a seamless, smart home experience for Arlo users that is easy to setup and interact with every day.
+Added: Arlo’s deep expertise in product design, wireless connectivity, cloud infrastructure and cutting-edge AI capabilities focuses on delivering a seamless, smart home experience for Arlo users that is easy to setup and interact with
Our cloud-based platform provides users with visibility, insight and a powerful means to help protect and connect in real-time with the people and things that matter most, from any location with a Wi-Fi or a cellular connection.
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We plan to continue to introduce new smart connected devices to the Arlo platform both in cameras and new categories, increase the number of registered accounts on our platform, keep them highly engaged through our mobile app and generate incremental recurring revenue by offering them paid subscription services.
−Removed: On February 6, 2018, NETGEAR, Inc.
−Removed: (“NETGEAR”) announced that its board of directors had unanimously approved the pursuit of a separation of its Arlo business from NETGEAR (the “Separation”) to be effected through an initial public offering (the “IPO”) of newly issued shares of the common stock of Arlo, then a wholly owned subsidiary of NETGEAR.
−Removed: On July 6, 2018, the Company filed a registration statement (as amended, the "IPO Registration Statement") relating to the IPO of common stock of Arlo with the U.S.
−Removed: Securities and Exchange Commission (the "SEC").
−Removed: Following a series of restructuring steps prior to the completion of the IPO of Arlo common stock, the Arlo business was transferred from NETGEAR to Arlo (collectively, the " Contribution").
−Removed: On August 2, 2018, NETGEAR and Arlo announced the pricing of the IPO of 10,215,000 shares of Arlo’s common stock at a price to the public of $16.00 per share.
−Removed: On August 3, 2018, Arlo’s shares began trading on the New York Stock Exchange under the ticker symbol “ARLO.” On August 7, 2018, the Company completed its IPO of 11,747,250 shares of common stock (including 1,532,250 shares of common stock pursuant to the underwriters’ option to purchase additional shares, which was exercised in full on August 3, 2018), at $16.00 per share, before underwriting discounts and commissions and estimated offering costs.
−Removed: Cash proceeds from the IPO were $173.4 million, net of the portion of the offering cost paid by Arlo, which portion was $1.4 million.
−Removed: The total offering cost was $4.6 million, of which $3.2 million was paid by NETGEAR.
−Removed: Prior to the completion of the IPO, the Company was a wholly owned subsidiary of NETGEAR and upon the closing of the IPO (including the issuance of additional shares of common stock pursuant to the underwriters' option to purchase additional shares, which was exercised in full) on August 7, 2018, NETGEAR owned approximately 84.2% of the shares of Arlo’s outstanding common stock.
−Removed: On November 29, 2018, NETGEAR announced that its board of directors had approved a special stock dividend (the “Distribution”) to NETGEAR stockholders of the 62,500,000 shares of Arlo common stock owned by NETGEAR.
−Removed: The Distribution was made on December 31, 2018 (the "Distribution Date") to all NETGEAR stockholders of record as of the close of business on December 17, 2018 (the "Record Date").
−Removed: In the Distribution, each NETGEAR stockholder of record on the Record Date received 1.980295 shares of Arlo common stock for every share of NETGEAR common stock held on the Record Date, subject to cash in lieu of fractional shares.
−Removed: The Distribution was intended to qualify as generally tax free to NETGEAR stockholders for U.S.
−Removed: federal income tax purposes.
−Removed: In connection with the Distribution, 62,500,000 shares of Arlo common stock held by NETGEAR were distributed to its stockholders and NETGEAR is no longer considered a related party to the Company.
Our total addressable market consists of individuals and business owners who use connected devices to enhance their lives.
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We believe the small business, government and direct home monitoring channels provide growth areas for us in addition to our retail and e-commerce presence.
−Removed: In early 2020, we launched Arlo SmartCloud a Software as a Service (“SaaS”) solution to deliver scalable security cloud services for business.
+Added: In early 2020, we launched Arlo SmartCloud ("Arlo Smart") a Software as a Service (“SaaS”) solution to deliver scalable security cloud services for business.
With Arlo SmartCloud, we are extending our platform to partners to help innovate and deploy new opportunities beyond our own camera ecosystem.
+Added: In the third quarter of 2021, we introduced Arlo Secure, our new service plan with coverage for unlimited cameras and an enhanced Emergency Response solution.
+Added: Arlo Secure replaced Arlo Smart, our previous service plan.
+Added: Existing Arlo Smart customers are entitled to either retain their existing plans or upgrade to the new Arlo Secure plans of their choosing.
We believe we are well-positioned to extend our current reach to the broader connected lifestyle market both within and beyond the home as we continue to launch new products and services within our connected lifestyle platform.
Smart Connected Devices
+Added: Released in 2021
+Added: Arlo Essential Indoor Camera , released in the first quarter of 2021, features 1080p HD video with enhanced night vision that allows users to capture important details day or night, a 130-degree diagonal field-of-view, motion and audio protection and full duplex audio for two-way conversations.
+Added: The Arlo Essential Indoor Camera’s unique automated privacy shield is a reassuring feature designed to ease privacy concerns around having a security camera indoors.
+Added: When the privacy shield is in the disarm mode, recording, motion and audio detection is disabled and won’t be enabled until the shield is opened by the user via the Arlo app.
+Added: Users can also signal the privacy shield to open automatically and begin recording by starting a live stream or changing the camera to arm mode.
+Added: This gives users the power to decide when their camera is monitoring a room and recording video/audio, and when it is not.
+Added: Arlo Essential Indoor Camera also has built-in siren and works compatibly with Amazon Alexa, Google Assistant and IFTTT for easy interaction, automation and control.
+Added: Arlo Go 2 LTE/Wi-Fi Security Camera , released in the fourth quarter of 2021, delivers smarter security for remote or hard-to-access locations and enables LTE and Wi-Fi connectivity for monitoring vacation homes, construction sites, commercial properties, trails and more.
+Added: Arlo Go 2 LTE/Wi-Fi Security Camera works with 4G cellular data plan to provide continuous connectivity and uninterrupted security and provides users with 100% wire-free setup, weather-resistant design, a swappable, rechargeable battery and the ability to connect to Wi-Fi when in range.
+Added: Users can view and record 1080p full HD video day and night, as well as capture important details with color night vision thanks to an integrated spotlight.
+Added: The two-way, full-duplex audio ensures clear communication with visitors, while a built-in siren can be triggered remotely or automatically to ward off intruders.
+Added: Arlo Go 2 is also equipped with GPS positioning to track the camera’s whereabouts, allowing users to locate multiple devices across an expansive area, or in the event of theft.
+Added: Released in Prior Years
Arlo Q and Arlo Q Plus , released in the fourth quarter of 2015, bring Arlo’s performance and design to an indoor wired solution that allows users to easily monitor their surroundings with 1080p HD video quality.
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Parents can also easily move Arlo Baby, powered by its rechargeable batteries or by an electrical outlet, to different rooms.
−Removed: Arlo Chime, released in the third quarter of 2018 and designed to plug into any standard wall outlet and pairs with the Arlo Audio Doorbell to play a variety of ringtones or act as a siren, and even contains a silent mode for those times when users don’t want to be bothered.
+Added: Arlo Chime, released in the third quarter of 2018 and designed to plug into any standard wall outlet and pairs with the Arlo Video Doorbell to play a variety of ringtones or act as a siren, and even contains a silent mode for those times when users don’t want to be bothered.
The Arlo Chime runs on two standard AA batteries which can last up to an entire year based on normal usage and features a weather-resistant exterior finish.
For added ease and versatility, users also have the option to connect with their existing door chimes without needing to install any additional hardware or wiring.
−Removed: Arlo Ultra, released in the first quarter of 2019 and designed with advanced 4K high dynamic range ("HDR") video quality with color night vision, wire-free setup, a 180-degree diagonal field-of-view, an integrated spotlight and crystal-clear two-way audio with advanced noise cancellations, Ultra delivers ultimate peace of mind for anyone looking to monitor their home or business.
−Removed: Users will experience enhanced detail and clarity and are able to zoom in on video clips to
−Removed: uncover details such as license plate and clothing.
−Removed: Ultra delivers one of the widest viewing angles in the wire-free security camera industry.
−Removed: Ultra is paired with a new Arlo SmartHub that functions as the nucleus of the smart home and engineered with Arlo RF TM , a proprietary two-way audio frequency technology.
−Removed: Arlo Ultra also includes one year of free Arlo Smart so the users can experience the benefits we deliver.
−Removed: Arlo Pro 3, released in the third quarter of 2019 and designed to provide home and small business owners with a high-performance, simple, wire-free security solution, Pro 3 features 2K resolution with HDR, an integrated spotlight with color night vision and a super-wide 160-degree field of view.
−Removed: Engineered to work indoors or outdoors, Pro 3 offers advanced image quality for DIY security that anyone can easily install in minutes and monitor from anywhere using the Arlo app.
−Removed: Pro 3 also includes a new Arlo SmartHub that securely manages network traffic to the camera in addition to enhancing power and WiFi performance for better range and battery life.
−Removed: Arlo Pro 3 includes a three-month trial period of Arlo Smart.
+Added: Arlo Ultra, released in the first quarter of 2019 and designed with advanced 4K high dynamic range ("HDR") video quality with color night vision, wire-free setup, a 180-degree diagonal field-of-view, an integrated spotlight and crystal-clear two-way audio with advanced noise cancellations, Arlo Ultra delivers ultimate peace of mind for anyone looking to monitor their home or business.
+Added: Users will experience enhanced detail and clarity and are able to zoom in on video clips to uncover details such as license plate and clothing.
+Added: Arlo Ultra delivers one of the widest viewing angles in the wire-free security camera industry.
+Added: Ultra is paired with a new Arlo SmartHub that functions as the nucleus of the smart home and engineered with Arlo RF, a proprietary two-way audio frequency technology.
+Added: Arlo Pro 3, released in the third quarter of 2019 and designed to provide home and small business owners with a high-performance, simple, wire-free security solution, Arlo Pro 3 features 2K resolution with HDR, an integrated spotlight with color night vision and a super-wide 160-degree field of view.
+Added: Engineered to work indoors or outdoors, Arlo Pro 3 offers advanced image quality for DIY security that anyone can easily install in minutes and monitor from anywhere using the Arlo app.
+Added: Arlo Pro 3 also includes a new Arlo SmartHub that securely manages network traffic to the camera in addition to enhancing power and Wi-Fi performance for better range and battery life.
Arlo Video Doorbell, released in the fourth quarter of 2019 and designed to capture what traditional video doorbells can’t, the new smart entry solution boasts an industry-leading vertical field-of-view, allowing users to get a bigger, more precise picture of their front porch.
−Removed: The Video Doorbell captures footage in a square aspect ratio to allow users to fully view packages on the ground, or visitors from head to toe.
+Added: The Arlo Video Doorbell captures footage in a square aspect ratio to allow users to fully view packages on the ground, or visitors from head to toe.
It also offers features such as HD resolution image quality along with clear, two-way audio for users to simultaneously see and speak to visitors.
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The Arlo Video Doorbell connects to an existing mechanical or digital chime for simple installation and continuous power.
−Removed: Arlo Video Doorbell includes a three-month trial period of Arlo Smart.
−Removed: Arlo Floodlight Camera, released in the first quarter of 2020 and is the first wire-free variant on the market.
+Added: Arlo Floodlight Camera, released in the first quarter of 2020 and is the first wire-free floodlight camera on the market.
The floodlight camera brings powerful LEDs, an integrated 2K HDR camera, 160-degree field of view, two-way audio, custom lighting configurations and a built-in siren to any home or small business.
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The floodlight camera also offers three different light patterns – constant, flashing, and pulsating – which users can control manually on-demand or via automation rules.
−Removed: Arlo Floodlight Camera includes a three-month trial period of Arlo Smart.
Arlo Essential Spotlight, released in the second quarter of 2020 and designed with an industry-leading, 180-degree viewing angle with a square, 1:1 aspect ratio that ensures users can see packages on the ground or visitors from head-to-toe on their mobile devices.
Arlo Essential Spotlight features HD video resolution combined with direct-to-mobile video calls, clear, two-way audio, an integrated spotlight with color night vision, built in siren and personalized alerts that allow users to quickly reply to guests or take action.
−Removed: Able to connect directly to WiFi, the latest solution can be powered by its rechargeable battery or be hardwired for continuous charging.
−Removed: Arlo Essential Spotlight includes a three-month trial period of Arlo Smart.
+Added: Able to connect directly to Wi-Fi, the latest solution can be powered by its rechargeable battery or be hardwired for continuous charging.
Arlo Ultra 2, released in the second quarter of 2020 and designed to deliver an enhanced user experience with improved range, building on advanced features such as 4K video with HDR, an ultra-wide, 180-degree field of view, auto zoom and tracking on moving object with clarity and detail, color night vision allowing you to see video in color rather than traditional black and white, built-in siren that automatically triggered by motion or audio, or manually triggered via the Arlo App and more.
Arlo Ultra 2 works with Amazon Alexa, Google Assistant, Apple Homekit, and IFTTT for easy interaction, automation and control.
−Removed: Arlo Ultra 2 includes a three-month trial period of Arlo Smart.
Arlo Essential XL Spotlight , released in the third quarter of 2020 and which features an integrated, wire-free, extended-life battery that works for up to one year on one charge, an integrated spotlight with color night vision, HD video, two-way audio, motion detection alerts and a built-in siren.
−Removed: A direct to a WiFi connection enables the Arlo Essential XL Spotlight camera to function as a stand-alone home security solution without the need for a separate Arlo SmartHub or Base Station.
−Removed: Arlo Essential XL Spotlight includes a three-month trial period of Arlo Smart.
+Added: A direct to a Wi-Fi connection enables the Arlo Essential XL Spotlight camera to function as a stand-alone home security solution without the need for a separate Arlo SmartHub or Base Station.
Arlo Essential Wire-Free Video Doorbell, released in the third quarter of 2020, features an easy-to-install, wire-free, battery-powered design.
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HD video resolution combined with direct-to-mobile video calls, clear, two-way audio and personalized alerts, allow users to quickly reply to guests or take action.
−Removed: Able to connect directly to WiFi, the latest solution can be powered by its rechargeable battery or be hardwired for continuous charging.
−Removed: Arlo Essential Wire-Free Video Doorbell includes a three-month trial period of Arlo Smart.
+Added: Able to connect directly to Wi-Fi, the latest solution can be powered by its rechargeable battery or be hardwired for continuous charging.
Arlo Pro 4 Wire-Free Spotlight, released in the fourth quarter of 2020 and designed with weather resistance, wide 160-degree field of view, 2K video resolution with HDR, and six-month battery life.
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The updated Pro 4 has the ability to connect directly to home Wi-Fi networks without the need for a dedicated Arlo SmartHub or Base Station, which allows the camera to work as a standalone system for easier installation and setup.
−Removed: Arlo Pro 4 Wire-Free Spotlight camera includes a three-month trial period of Arlo Smart.
Arlo Accessories
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With the Arlo Charging Station, users can charge up to two Arlo Pro, Arlo Pro 2 or Arlo Go batteries with fast-charging technology so there is always a battery ready to go.
−Removed: For those looking to eliminate battery swaps entirely, the mountable and weather-resistant Arlo Solar Panel connects to Arlo Pro or Arlo Go cameras to keep batteries charged with just a few hours of direct sunlight.
+Added: For those looking to eliminate battery swaps entirely, the mountable and weather-resistant Arlo Solar Panel connects to various Arlo cameras to keep batteries charged with just a few hours of direct sunlight.
Arlo Mounts feature innovative designs that allow users to mount their cameras outdoors or indoors, on ceilings or countertops.
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Popular with outdoor enthusiasts, Arlo Camouflage and Ghillie skins are ultraviolet and water-resistant and made of durable silicone material for easy slip-on, slip-off convenience.
−Removed: Arlo Baby accessory characters add some playfulness to the nursery with fun disguises that turn Arlo Baby cameras into puppies, kittens or bunnies.
The Arlo app, available for iOS and Android devices, is designed to provide our users with an easy-to-use, flexible, mobile-first experience that connects our users to the people and things that matter most to them.
Our proprietary AI-based capabilities generate relevant and actionable real-time notifications, which enable users to live stream video or contact emergency services through the app notifications when Arlo devices detect motion or sound.
−Removed: The Arlo app also
−Removed: enables users to view their library of video clips and share them via text, email or social networks, and varies depending on the types of service plans that the user has.
+Added: The Arlo app also enables users to view their library of video clips and share them via text, email or social networks, and varies depending on the types of service plans that the user has.
The app has four main screens:
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• The Settings screen provides access to additional device or account level information and features, including customization of Arlo Smart notifications and detection capabilities.
−Removed: Launched in 2018, Arlo Smart is a paid subscription service that adds powerful AI capabilities to our cameras that enhance the user experience.
−Removed: Arlo Smart incorporates and replaces our legacy paid subscription services.
−Removed: Through real-time computer vision algorithms, Arlo Smart provides users a more personalized experience, deeper insights into detected activity and streamlined access to take responsive actions in urgent situations, such as contacting local emergency services.
−Removed: A three-month free trial period of Arlo Smart is provided with various Arlo camera and doorbell products.
+Added: In the third quarter of 2021, we introduced Arlo Secure, our new service plan with coverage for unlimited cameras and an enhanced Emergency Response solution.
+Added: Arlo Secure replaced Arlo Smart, our previous service plan.
+Added: Existing Arlo Smart customers are entitled to either retain their existing plans or upgrade to the new Arlo Secure plan of their choosing.
+Added: The premium services boast support for unlimited household security devices, along with advanced AI object detection, and smarter, more interactive notifications.
+Added: Additionally, the new 24/7, one-touch Emergency Response is available with the Secure Plus plan, enabling Arlo users to directly dispatch first responders during an emergency for quicker action.
+Added: A three-month free trial period of Arlo Secure is provided with various Arlo camera and doorbell products.
+Added: The features of the Arlo Secure subscriptions include:
+Added: • Emergency Response (Arlo Secure Plus) – With one touch, dispatch fire, police, or medical responders to the camera’s location.
+Added: If directed by the user, Arlo’s Emergency Response team can also provide critical location information to responders en route to better prepare them, such as gate codes, medical conditions of family members, and pet details.
+Added: • 2K (Arlo Secure) and 4K (Arlo Secure Plus) Cloud-based Video Recording – View 30 days of recordings securely stored on Arlo’s SmartCloud platform, for ultimate peace of mind and protection even if the device is damaged or stolen in a break-in, storm or other physical incident.
+Added: • Unlimited Cameras – Users can enjoy Arlo Secure service for all cameras in their home with one all-encompassing plan.
+Added: Add new Arlo cameras for no additional charge.
+Added: • Advanced Object Detectio n – Arlo processes and filters 50 million events each day through advanced object detection backed by visual artificial intelligence, allowing for better recognition of people, packages, vehicles, and animals to add key context to notifications and reduce unwanted alerts.
+Added: • Smart Interactive Notifications – Users can take quicker action by responding to rich notifications or viewing an animated preview of a notification video through the lock screen on their smartphone.
+Added: • Smoke and CO Alarm Detection – Get notified when the camera hears a smoke or CO alarm triggered.
+Added: • Cloud-based Activity Zones – Users can reduce unwanted notifications by highlighting specific areas on their property where they want motion to be detected.
+Added: • Call a Friend – Customers can instantly call a friend through the Arlo App from their notification screen with one tap.
+Added: • 24/7 Priority Support – Subscribers get priority technical support through the in-app Help Center with omni-channel access to phone, chat, Community or self-help articles.
Our paid services subscriber base has grown from over 230,000 paid accounts as of December 31, 2019 to about 1,067,000 as of December 31, 2021.
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Arlo SmartCloud is a fully managed robust global platform of capabilities built for security, scalability, and reliability that can be deployed as part of advanced subscription services for hardware companies, automotive companies, service providers, insurance companies, home builders, smart communities, smart cities, traditional security companies, and other related verticals.
−Removed: Our services also include certain development services provided to Verisure S.à.r.l.
−Removed: under a Non-recurring Engineering arrangement as part of the disposal of our commercial operations in Europe in the fourth quarter of 2019.
+Added: Our services also include certain development services provided to Verisure under a Non-recurring Engineering arrangement as part of the disposal of our commercial operations in Europe in the fourth quarter of 2019.
Refer to the " Agreements with Verisure " section below for details.
Sales Channels
−Removed: We sell our products through multiple sales channels worldwide, including traditional and online retailers, wholesale distributors, broadcast channels, wireless carriers and security solution providers.
+Added: We sell our products through multiple sales channels worldwide, including traditional and online retailers, wholesale distributors, broadcast channels, wireless carriers, security solution providers as well as directly to consumers through our own online store.
We sell to traditional and online retailers, either directly or through wholesale distributors.
We work directly with our retail channels on market development activities, such as co-advertising, including digital and traditional media, online promotions and video demonstrations, instant rebate programs, event sponsorship and sales associate training.
−Removed: Our largest retailers include Costco, Best Buy, and Amazon and their affiliates.
−Removed: For the year ended December 31, 2020, we derived 20.6%, 14.6% and 12.2% of our revenue from Costco, Best Buy and Amazon and their respective affiliates, respectively.
−Removed: In the third quarter of 2019, we launched our online direct to consumer store to sell our products directly to our customers.
+Added: Our largest retailer is Best Buy and its affiliates.
+Added: For the year ended December 31, 2021, we derived 13.0% of our revenue from Best Buy and its affiliates, which is the only retailer that accounted for 10% or greater of our revenue in 2021.
Wholesale Distributors .
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Security Solution Providers.
−Removed: We sell our products and services to security solution providers, including Verisure S.à.r.l, from which we derived 17.3% of our revenue, and Securitas Security Services USA, Inc.
−Removed: Agreements with Verisure S.à.r.l.
−Removed: On November 4, 2019, we concurrently entered into an Asset Purchase Agreement (the “Purchase Agreement”) and Supply Agreement (the “Supply Agreement” and together with the Purchase Agreement, the “Verisure Agreements”) with Verisure S.à.r.l.
−Removed: ("Verisure").
+Added: We sell our products and services to security solution providers, including Verisure, from which we derived 30.8% of our revenue, and Securitas Security Services USA, Inc.
+Added: In the third quarter of 2019, we launched our online direct to consumer store to sell our products directly to our customers.
+Added: We also sell most of our services, such as Arlo Smart and Arlo Secure, directly to consumers.
+Added: Agreements with Verisure
+Added: On November 4, 2019, we concurrently entered into an Asset Purchase Agreement (the “Purchase Agreement”) and Supply Agreement (the “Supply Agreement” and together with the Purchase Agreement, the “Verisure Agreements”) with Verisure.
Verisure is a leading European provider of professionally monitored security systems with 24/7 response services to both residential and small business customers.
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The strategic partnership will combine our innovative connected cameras and cloud services platform with Verisure’s professionally monitored security solutions to provide a new level of smart security for European customers.
−Removed: The transactions contemplated by the Verisure Agreements closed on December 30, 2019.
The Purchase Agreement provided that, upon the terms and subject to the conditions set forth in the Purchase Agreement, we transferred, sold and assigned to Verisure certain assets (the "Assets") related to our commercial operations in Europe (the "Business") to Verisure for $50.0 million in cash plus additional cash for certain inventory.
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Further, we agreed not to engage in any business that competes with the Business for a period of three years.
−Removed: The Supply Agreement provides that, upon the terms and subject to the conditions set forth in the Supply Agreement, Verisure will become the exclusive distributor of our products in Europe for all channels, and will non-exclusively distribute our products through its direct channels globally in connection with Verisure’s security business.
+Added: Pursuant to the terms and subject to the conditions set forth in the Supply Agreement, Verisure is the exclusive distributor of our products in Europe for all channels, and will non-exclusively distribute our products through its direct channels globally in connection with Verisure’s security business.
During the five-year period commencing January 1, 2020, Verisure has an aggregate purchase commitment of $500.0 million.
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The Supply Agreement also provides for certain development services to Verisure under the Non-recurring Engineering ("NRE") arrangement, including development of certain custom products specified by Verisure, in exchange for an aggregate of $10.0 million, payable in installments upon meeting certain development milestones.
−Removed: In the second fiscal quarter of 2020, an additional $3.5 million was added to the contract price as a result of a modification to Verisure's specification for the Outdoor Custom Camera.
+Added: In the second fiscal quarter of 2020, an additional $3.5 million was added to the contract price as a result of a modification to Verisure's specification for an Outdoor Custom Camera being developed.
As part of the Purchase Agreement, we also entered into a Transition Services Agreement with Verisure ("Verisure TSA") to assist Verisure with the transition of the Company’s European commercial operations.
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Our research and development team has taken this same approach to all of our subsequent product releases, constantly innovating to stay ahead of the competition.
−Removed: As of December 31, 2020, our research and development staff consisted of 137 employees, located in our offices worldwide, and was comprised of front-end and back-end software engineers, RF engineers, electrical engineers, mechanical engineers, system test engineers, computer vision scientists and data analysis engineers, UX and industrial design engineers and mobile app developers.
+Added: As of December 31, 2021, our research and development staff consisted of 131 employees, located in our offices worldwide, and was comprised of front-end and back-end software engineers, radio frequency engineers, electrical engineers, mechanical engineers, system test engineers, computer vision scientists and data analysis engineers, UX and industrial design engineers and mobile app developers.
We intend to continue to invest in research and development to expand our platform and capabilities in the future.
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While all of our products are primarily designed in North America, we currently outsource manufacturing to Foxconn Cloud Network Technology Singapore Pte.
−Removed: Ltd., Pegatron Corporation, and Sky Light Industrial Ltd.
−Removed: , which are all headquartered in Asia.
+Added: Ltd., Pegatron Corporation, and Wistron NeWeb Corporation, which are all headquartered in Asia.
Although we do not have any long-term purchase contracts, we have executed master product supply agreements with these manufacturers, which typically provide indemnification for intellectual property infringement, epidemic failure clauses, agreed-upon price concessions, division of each party’s intellectual property and product quality requirements.
−Removed: Since we outsource our manufacturing, we have the flexibility and ability to adapt to market
−Removed: changes, product supply and component pricing while keeping our costs low.
+Added: As we expand our product portfolio, we continue to explore new potential manufacturing
+Added: partners that may provide us with competitive advantages on technology and cost.
+Added: Since we outsource our manufacturing, we have the flexibility and ability to adapt to market changes, product supply and component pricing while keeping our costs low.
In addition to their responsibility for the manufacturing of our products, our manufacturers typically purchase all necessary parts and materials to produce finished goods.
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Our marketing programs are focused on building global brand awareness, increasing product adoption and driving sales.
−Removed: Our marketing efforts target individuals interested in a connected lifestyle and we believe our marketing programs allow us to attract and engage with customers efficiently and at scale.
+Added: Our marketing efforts target individuals interested in a connected lifestyle.
We also increase brand awareness by augmenting word-of-mouth recommendations from Arlo customers and key influencers, interact digitally with current and prospective customers and maintain and develop our strong channel partnerships and strong shelf presence.
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Our cloud platform runs in data centers in the United States and a data center in Ireland to serve our European Union users.
−Removed: We also utilize data centers in Singapore, Australia and China.
+Added: We also utilize data centers in Singapore and Australia.
We have designed our cloud environments to be highly resilient with built-in redundancy and provide failover to other data centers in our network.
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Under the fiscal quarter basis, each of the first three fiscal quarters ends on the Sunday closest to the calendar quarter end, with the fourth quarter ending on December 31.
−Removed: Historically, we have generated higher revenue in the third and fourth quarters of each year compared to the first and second quarters due to seasonal demand from consumer markets, primarily relating to the beginning of the school year and the holiday season.
+Added: Historically, we have generated higher product revenue in the third and fourth quarters of each year compared to the first and second quarters due to seasonal demand from consumer markets, primarily relating to the beginning of the school year and the holiday season.
For example, for the years ended December 31, 2021, 2020 and 2019, our third and fourth quarters collectively represented 58.4%, 63.0% and 61.8%, respectively, of our revenue for such years.
−Removed: Therefore, timely and effective product and service introductions are critical to our results of operations.
+Added: Therefore, timely and effective product introductions are critical to our results of operations.
Our backlog consists of products for which customer purchase orders have been received and that are scheduled or in the process of being scheduled for shipment.
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Some of our technology relies upon third-party licensed intellectual property.
−Removed: We currently hold 72 U.S.
−Removed: issued patents, 32 pending U.S.
−Removed: patent applications, seven international patents, including patents issued by China and and the EU, 13 pending patent applications outside of the United States.
+Added: We currently hold 95 issued United States patents, 45 pending United States patent applications, 23 international patents, including patents issued by China and the EU, 22 pending patent applications outside of the United States.
All the patents and patent applications generally relate to certain aspects of our hardware devices, accessories, software and services.
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We also pursue the registration of our domain names and trademarks and service marks in the United States and in certain locations outside the United States.
−Removed: We currently have six registered trademarks and three pending trademark applications in the United States, as well as 38 registered trademarks and 10 pending trademark applications outside of the United States.
−Removed: We currently hold trademark registrations for “ARLO” in nine countries, including the United States, Australia, Canada, China, and Japan, as well as the World Intellectual Property Organization.
+Added: We currently have seven registered trademarks and three pending trademark applications in the United States, as well as 49 registered trademarks and 22 pending trademark applications outside of the United States.
+Added: We currently hold trademark registrations for “ARLO” in ten countries:
+Added: the United States, Australia, Brazil, Canada, Chile, China, Japan, Mexico, Peru, and Trinidad and Tobago, as well as the World Intellectual Property Organization .
For more information, see “ Risk Factors-Risks Related to Our Business-If we are unable to secure and protect our intellectual property rights, our ability to compete could be harmed .”
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Since we operate on a global basis, this is also a complex process that requires continual monitoring of regulations and an ongoing compliance process to ensure that we and our suppliers are in compliance with all existing regulations.
−Removed: Our Culture and Our Employees
−Removed: Our culture, mission and core values are a critical part of our success.
−Removed: Our culture is built on a foundation that encourages creativity through entrepreneurship, diversity, empowerment, ethics and open dialogue to continually innovate and improve our technology, solutions, brand and partnerships.
−Removed: We continue to recruit and hire exceptionally talented, diverse and ethical employees and are proud of Arlo culture we have been able to build.
+Added: Culture and Human Capital Resources
+Added: Our culture, mission and values are a critical part of our success.
+Added: In fact, core to our vision of bringing peace of mind by connecting and protecting what people care about the most is creating the right environment for our people.
+Added: We strive to ensure that our employees are continually connected to our vision and mission through appropriate communication, throughout our talent proposition and as we serve our customers.
+Added: Our culture focuses on connecting our people in an inclusive and flexible workforce, connecting our employees with the right development opportunities, and linking our group success with individual performance.
+Added: It is founded on an employee value proposition that puts people and teams at the center of our business.
+Added: Through radical collaboration, trust, and conscious leadership, our diverse teams continue to create innovative solutions for our customers.
+Added: We protect our culture through leadership excellence and developing the right leadership behaviors that are both conscious and strategic in their impact on our performance.
+Added: We value creativity, agility, hard work, transparency, and integrity, as we focus on continually innovating and improving our technology, solutions, brand, and partnerships.
+Added: Human capital measures and objectives used to manage our business focus on employee safety and wellness, talent acquisition and retention, employee engagement, development and training, diversity and inclusion, and compensation and pay equity.
+Added: We strive to attract and retain exceptionally talented, diverse, and ethical employees, and we are proud of the culture we have built.
+Added: Our talented employees, located throughout the United States, Canada, Asia, Australia, and Europe communicate, connect and work together to deliver a world-class end-to-end connected lifestyle solution.
We believe that we maintain a good working relationship with our employees, and we have not experienced any labor disputes.
−Removed: As of December 31, 2020, we had 359 full-time employees.
+Added: As of December 31, 2021, we had a total of 353 full-time employees, of which approximately 69% were based in the United States, and approximately 31% were based in other global regions.
+Added: Diversity and Inclusion
+Added: Arlo is proud to be an equal opportunity workplace and an affirmative action employer.
+Added: We always strive to treat all employees and job applicants based on merit, qualifications, personality, and talent, and to draw from a diverse candidate pool as we recruit new talent across all levels.
+Added: We deeply connect people from all backgrounds and beliefs and strive for a truly inclusive and collaborative working environment.
+Added: We have taken action alongside a group of more than 1,200 businesses in a collective commitment to make progress towards advancing diversity and inclusion in our workplace, communities, and country.
+Added: We value diversity and integrate it into our business by striving to ensure that our company is representative of the customers we serve and that inclusion is at the core of our workplace culture.
+Added: In 2020, our Chief Executive Officer signed the CEO Action for Diversity & Inclusion pledge, the largest CEO-driven business commitment to advance diversity and inclusion within the workplace
+Added: to underscore our commitment.
+Added: By making the pledge, we go beyond accepting diversity and committed to the following actions:
+Added: • Continue to cultivate our workplace to support open dialogue on complex, and sometimes difficult conversations about diversity and inclusion.
+Added: • Make unconscious bias education available to everyone.
+Added: • Share best known—and unsuccessful—actions.
+Added: • Create and share strategic inclusion and diversity plans with our board of directors as a way to prioritize diversity and inclusion and to drive accountability in our organization.
+Added: For the second year running, we are partnering with the GEM Consortium ("GEM").
+Added: GEM connects highly qualified students from underrepresented groups to STEM graduate programs with much-needed financial support that is often the deciding factor in pursuing graduate education.
+Added: We have welcomed a number of GEM interns at Arlo.
+Added: We host a number of events and days of observance with guest and internal speakers at Arlo.
+Added: Each Spring, for example, we hold a "Week of Understanding" with speakers on key diversity and inclusion topics.
+Added: These events provide a platform for dialogue and an opportunity for every employee to learn, discuss, and appreciate differences between colleagues as we grow to drive greater inclusion at Arlo and truly reflect the customers we serve.
+Added: COVID-19 and Employee Safety
+Added: During the COVID-19 pandemic, our primary focus has been on the safety and well-being of our employees and their families.
+Added: Our global pandemic efforts include implementing early and continuous updates to our health and safety policies and processes, migrating all but a limited number of our global workforce to work remotely while local and state governments have imposed shelter-in-place orders in the United States and around the world.
+Added: We are focused on providing our team with the resources that they need to meet the needs of our customers and deliver new innovations to the markets we serve, despite challenges introduced by the COVID-19 pandemic.
+Added: As the pandemic continues, the health and well-being of our workforce remains our top priority while we ensure productivity while working from home.
Company Information
−Removed: We were incorporated in Delaware in January 2018 in connection with the Separation.
−Removed: We have dual corporate headquarters and our principal executive offices are located at 3030 Orchard Parkway, San Jose, California 95134, and our telephone number is (408) 890-3900.
−Removed: Our secondary executive offices are located at 2200 Faraday Ave., Suite #150, Carlsbad, CA 92008.
−Removed: Our website is www.arlo.com.
+Added: We were incorporated in Delaware in January 2018 in connection with the separation of our business (the “Separation”) from NETGEAR, Inc.
+Added: Our principal executive offices are located at 2200 Faraday Ave., Suite #150, Carlsbad, California 92008, and our telephone number is (408) 890-3900.
+Added: Our website is http://www.arlo.com.
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) are available free of charge on our website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities Exchange Commission (the “SEC”).
−Removed: The contents of our websites are not incorporated into this Annual Report.
+Added: The contents of our website are not incorporated into this Annual Report.
Further, our references to the URLs for these websites are intended to be inactive textual reference only.
Available Information
−Removed: Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), are filed with the SEC.
+Added: Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Exchange Act are filed with the SEC.
We are subject to the informational requirements of the Exchange Act and file or furnish reports, proxy statements, and other information with the SEC.
−Removed: You may read and copy our reports, proxy statements and other information filed by us at the SEC’s Public Reference Room located at 100 F Street, N.E., Washington, D.C.
−Removed: Please call the SEC at 1-800-SEC-0330 for further information about the Public Reference Room.
Our filings are also available to the public over the Internet at the SEC’s website at http://www.sec.gov.
3 unchanged sentences
Information contained on these websites is not a part of this Annual Report on Form 10-K.
−Removed: Information about our Executive Officers
−Removed: The following table sets forth the names, ages and positions of our executive officers as of February 19, 2021.
−Removed: Name Age Position(s)
−Removed: Matthew McRae 47 Chief Executive Officer and Director
−Removed: Gordon Mattingly 50 Chief Financial Officer
−Removed: Brian Busse 52 General Counsel and Corporate Secretary
−Removed: Matthew McRae .
−Removed: Matthew McRae has served as our Chief Executive Officer since February 2018 and as a member of our Board since August 2018.
−Removed: McRae served as NETGEAR’s Senior Vice President of Strategy from October 2017 until August 2018.
−Removed: McRae previously served as the Chief Technology Officer of Vizio Inc.
−Removed: from 2010 to March 2017, and prior to that served as its Vice President and General Manager, Advanced Products Group, from 2008 to 2010.
−Removed: From 2007 to 2008, Mr.
−Removed: McRae was Vice President of Marketing and Business Development of Fabrik (now part of HGST, Inc.), a provider of data storage and next generation web services, and prior to that, from 2001 to 2007, was the Senior Director, Worldwide Business Development at Cisco Systems Inc., a leader in networking services.
−Removed: McRae has served on the board of directors of Dedicated Hosting Services, Inc.
−Removed: (d/b/a Streaming Media Hosting), a private content delivery network company, since 2014, and he has been on the board of directors of the UC Irvine Institute for Innovation since 2015.
−Removed: He previously served on the board of directors of the Leatherby Center for Entrepreneurship and Business Ethics at the Business School of Chapman University from 2012 to 2015.
−Removed: Gordon Mattingly .
−Removed: Gordon Mattingly has served as our Chief Financial Officer since June 15, 2020.
−Removed: Mattingly served as our Senior Vice President, Finance from July 2018 to June 2020.
−Removed: From 2003 through June 2018, Mr.
−Removed: Mattingly held various financial roles with NETGEAR and its affiliates, most recently serving as Vice President, Financial Planning & Analysis from August 2011 through June 2018.
−Removed: Before joining NETGEAR, Inc., Mr.
−Removed: Mattingly held various European finance positions within U.S.
−Removed: technology companies such as RealNetworks, Inc., International Business Machines Corporation and Tivoli Systems Inc.
−Removed: Mattingly began his career in finance with the London audit firm of Mazars Group, where he specialized in audits at Lloyd’s of London and qualified as a member of the Institute of Chartered Accountants in England and Wales.
−Removed: Mattingly also qualified in 2013 as a member of the Chartered Institute of Taxation.
−Removed: Mattingly received a BSc in Economics and Accountancy from the University of Southampton.
−Removed: Brian Busse has served as our General Counsel since July 2018.
−Removed: Previously, Mr.
−Removed: Busse was NETGEAR’s Vice President Intellectual Property & Litigation where he was responsible for overseeing NETGEAR’s worldwide litigation, intellectual property, privacy and licensing matters.
−Removed: Before joining NETGEAR in September 2009, Mr.
−Removed: Busse served as Counsel in the Intellectual Property Litigation Department of O’Melveny & Myers LLP in Menlo Park, California beginning in December 2008 where he represented public and private technology companies in a wide range of intellectual property litigation matters, including all aspects of patent litigation, including trial, discovery, law and motion, and claim construction.
−Removed: Busse began practicing law with the New York firm of Skadden, Arps, Slate, Meagher & Flom LLP, advising clients on various areas of litigation.
−Removed: Busse holds a J.D.
−Removed: from The University of Texas at Austin School of Law, an M.S.
−Removed: in Physics from Oregon State University, and a B.S.
−Removed: in Physics from Virginia Tech.
−Removed: Busse is admitted to practice law in California and New York.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.