Arlo Technologies (ARLO)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 187,504 | 167,563 | 136,035 | 108,035 | 55,389 |
| Revenue | US$ in thousands | 510,886 | 491,176 | 490,414 | 435,137 | 357,154 |
| Gross profit margin | 36.70% | 34.11% | 27.74% | 24.83% | 15.51% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $187,504K ÷ $510,886K
= 36.70%
Based on the data provided, Arlo Technologies has shown a positive trend in its gross profit margin over the years, reflecting an improvement in its efficiency in generating profit from its sales.
In 2020, the gross profit margin was 15.51%, indicating that for every dollar of revenue, the company retained $0.1551 as gross profit. This margin increased to 24.83% in 2021, 27.74% in 2022, 34.11% in 2023, and further rose to 36.70% by the end of 2024.
The upward trajectory of the gross profit margin suggests that Arlo Technologies has been able to manage its cost of goods sold effectively relative to its revenue, resulting in a higher percentage of revenue retained as gross profit. This improvement may be attributed to factors such as cost control measures, pricing strategies, operational efficiencies, or changes in product mix.
Overall, the consistent increase in the gross profit margin indicates positive financial health and profitability for Arlo Technologies, highlighting its ability to generate more profit from its core business operations over the years.
Peer comparison
Dec 31, 2024