Arlo Technologies stock plunges 7% despite Q2 beat

Arlo Technologies (NYSE:) shares dropped more than 7% after-hours despite the company reporting better-than-expected Q2 results.

for the quarter came in at $0.06, compared to the consensus estimate of $0.04. Revenue fell 3.3% year-over-year to $115.1 million, compared to the consensus estimate of $110.18M.

The company ended the quarter with an ARR of $193.6M, which represents a 66.1% year-over-year growth. It added 245,000 paid accounts during the quarter, ending cumulative paid accounts around 2.3 million, which represents a 54.9% year-over-year increase.

“The continued acceleration of our services business drove outstanding results in Q2 across all of our key metrics. Strong demand, increased subscriptions, higher ARPU, and record gross margin are fueling Arlo’s trajectory of improving performance and profitability,” said CEO Matthew McRae.