Arlo Technologies (ARLO)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -34,892 | -24,211 | -55,074 | -49,426 | -104,908 |
| Revenue | US$ in thousands | 510,886 | 491,176 | 490,414 | 435,137 | 357,154 |
| Operating profit margin | -6.83% | -4.93% | -11.23% | -11.36% | -29.37% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-34,892K ÷ $510,886K
= -6.83%
The operating profit margin of Arlo Technologies has shown a declining trend over the past five years. Starting at a negative 29.37% on December 31, 2020, the margin improved slightly to -11.36% by the end of 2021. However, the company's operating profit margin continued to decrease in the following years, reaching -11.23% in 2022, -4.93% in 2023, and -6.83% by the end of 2024.
This downward trend in operating profit margin indicates that Arlo Technologies has been facing challenges in generating profits from its core operations relative to its revenue. It is essential for the company to closely monitor and improve its operational efficiency to reverse this negative trend and enhance profitability in the future.
Peer comparison
Dec 31, 2024