Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38618 | |
Entity Registrant Name | ARLO TECHNOLOGIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-4061754 | |
Entity Address, Address Line One | 2200 Faraday Ave., | |
Entity Address, Address Line Two | Suite #150 | |
Entity Address, City or Town | Carlsbad, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92008 | |
City Area Code | 408 | |
Local Phone Number | 890-3900 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | ARLO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 97,579,315 | |
Entity Central Index Key | 0001736946 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 62,054 | $ 56,522 |
Short-term investments | 80,809 | 79,974 |
Accounts receivable, net | 56,496 | 65,360 |
Inventories | 44,676 | 38,408 |
Prepaid expenses and other current assets | 11,896 | 10,271 |
Total current assets | 255,931 | 250,535 |
Property and equipment, net | 4,311 | 4,761 |
Operating lease right-of-use assets, net | 10,697 | 11,450 |
Goodwill | 11,038 | 11,038 |
Restricted cash | 4,183 | 4,131 |
Other non-current assets | 3,602 | 3,623 |
Total assets | 289,762 | 285,538 |
Current liabilities: | ||
Accounts payable | 69,878 | 55,201 |
Deferred revenue | 21,394 | 18,041 |
Accrued liabilities | 79,100 | 88,209 |
Total current liabilities | 170,372 | 161,451 |
Non-current operating lease liabilities | 16,133 | 17,021 |
Other non-current liabilities | 3,320 | 3,790 |
Total liabilities | 189,825 | 182,262 |
Commitments and contingencies (Note 8) | ||
Stockholders’ Equity: | ||
Preferred stock: $0.001 par value; 50,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock: $0.001 par value; 500,000,000 shares authorized; shares issued and outstanding: 97,202,042 at March 31, 2024 and 95,380,281 at December 31, 2023 | 97 | 95 |
Additional paid-in capital | 476,665 | 470,322 |
Accumulated other comprehensive income | 280 | 320 |
Accumulated deficit | (377,105) | (367,461) |
Total stockholders’ equity | 99,937 | 103,276 |
Total liabilities and stockholders’ equity | $ 289,762 | $ 285,538 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 97,202,042 | 95,380,281 |
Common stock, outstanding (in shares) | 97,202,042 | 95,380,281 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Total revenue | $ 124,200 | $ 111,004 |
Total cost of revenue | 76,820 | 75,787 |
Gross profit | 47,380 | 35,217 |
Operating expenses: | ||
Research and development | 20,793 | 17,750 |
Sales and marketing | 17,370 | 15,353 |
General and administrative | 19,348 | 15,622 |
Others | 479 | 632 |
Total operating expenses | 57,990 | 49,357 |
Loss from operations | (10,610) | (14,140) |
Interest income, net | 1,386 | 726 |
Other loss, net | (25) | (39) |
Loss before income taxes | (9,249) | (13,453) |
Provision for income taxes | 395 | 792 |
Net loss | $ (9,644) | $ (14,245) |
Net loss per share: | ||
Basic (in dollars per share) | $ (0.10) | $ (0.16) |
Diluted (in dollars per share) | $ (0.10) | $ (0.16) |
Weighted average shares used to compute net loss per share: | ||
Basic (in shares) | 96,264 | 89,653 |
Diluted (in shares) | 96,264 | 89,653 |
Comprehensive loss: | ||
Net loss | $ (9,644) | $ (14,245) |
Other comprehensive income (loss), net of tax | (40) | 128 |
Total comprehensive loss | (9,684) | (14,117) |
Products | ||
Total revenue | 67,493 | 67,060 |
Total cost of revenue | 63,224 | 64,041 |
Services | ||
Total revenue | 56,707 | 43,944 |
Total cost of revenue | $ 13,596 | $ 11,746 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common stock: | Additional paid-in capital: | Accumulated deficit: | Accumulated other comprehensive income: |
Beginning balances at Dec. 31, 2022 | $ 87,695 | $ 89 | $ 433,138 | $ (345,425) | $ (107) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 10,270 | ||||
Settlement of liability classified restricted stock units | 6,700 | 6,739 | |||
Issuance of common stock under stock-based compensation plans | 3 | 355 | |||
Restricted stock unit withholdings | (1) | (4,693) | |||
Net loss | (14,245) | (14,245) | |||
Other comprehensive income (loss), net of tax | 128 | ||||
Ending balances at Apr. 02, 2023 | 86,251 | $ 91 | 445,809 | (359,670) | 21 |
Beginning balance (in shares) at Dec. 31, 2022 | 88,887,000 | ||||
Common stock shares: | |||||
Issuance of common stock under stock-based compensation plans (in shares) | 3,165,000 | ||||
Restricted stock unit withholdings (in shares) | (1,267,000) | ||||
Ending balance (in shares) at Apr. 02, 2023 | 90,785,000 | ||||
Beginning balances at Dec. 31, 2023 | 103,276 | $ 95 | 470,322 | (367,461) | 320 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 13,224 | ||||
Settlement of liability classified restricted stock units | 6,900 | 6,903 | |||
Issuance of common stock under stock-based compensation plans | 3 | 570 | |||
Restricted stock unit withholdings | (1) | (14,354) | |||
Net loss | (9,644) | (9,644) | |||
Other comprehensive income (loss), net of tax | (40) | ||||
Ending balances at Mar. 31, 2024 | $ 99,937 | $ 97 | $ 476,665 | $ (377,105) | $ 280 |
Beginning balance (in shares) at Dec. 31, 2023 | 95,380,281 | 95,380,000 | |||
Common stock shares: | |||||
Issuance of common stock under stock-based compensation plans (in shares) | 3,221,000 | ||||
Restricted stock unit withholdings (in shares) | (1,399,000) | ||||
Ending balance (in shares) at Mar. 31, 2024 | 97,202,042 | 97,202,000 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (9,644) | $ (14,245) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock-based compensation expense | 18,550 | 14,591 |
Depreciation and amortization | 903 | 1,149 |
Allowance for credit losses and non-cash changes to reserves | (107) | 198 |
Deferred income taxes | 68 | 127 |
Other | (792) | (124) |
Changes in assets and liabilities: | ||
Accounts receivable | 8,978 | 13,216 |
Inventories | (6,275) | 6,341 |
Prepaid expenses and other assets | (1,672) | (900) |
Accounts payable | 14,561 | (6,093) |
Deferred revenue | 3,427 | 3,785 |
Accrued and other liabilities | (8,191) | (7,716) |
Net cash provided by operating activities | 19,806 | 10,329 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (356) | (923) |
Purchases of short-term investments | (40,802) | (36,755) |
Proceeds from maturities of short-term investments | 40,718 | 15,006 |
Net cash used in investing activities | (440) | (22,672) |
Cash flows from financing activities: | ||
Proceeds related to employee benefit plans | 573 | 3 |
Restricted stock unit withholdings | (14,355) | (4,694) |
Net cash used in financing activities | (13,782) | (4,691) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 5,584 | (17,034) |
Cash, cash equivalents, and restricted cash, at beginning of period | 60,653 | 88,179 |
Cash, cash equivalents, and restricted cash, at end of period | 66,237 | 71,145 |
Reconciliation of cash, cash equivalents, and restricted cash to Unaudited Condensed Consolidated Balance Sheets | ||
Cash and cash equivalents | 62,054 | 66,970 |
Restricted cash | 4,183 | 4,175 |
Total cash, cash equivalents, and restricted cash | 66,237 | 71,145 |
Supplemental cash flow information: | ||
Purchases of property and equipment included in accounts payable and accrued liabilities | $ 180 | $ 894 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Arlo Technologies, Inc. (“we” or “Arlo”) is transforming the ways in which people can protect everything that matters to them with advanced home, business, and personal security services that combine a globally scaled cloud platform, advanced monitoring and analytics capabilities, and award-winning app-controlled devices to create a personalized security ecosystem. Arlo’s deep expertise in cloud services, cutting-edge AI and computer vision analytics, wireless connectivity and intuitive user experience design delivers seamless, smart home security for Arlo users that is easy to setup and engage with every day. Our highly secure, 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 – all rooted in a commitment to safeguard privacy for our users and their personal data. We conduct business across three geographic regions—(i) the Americas; (ii) Europe, Middle-East and Africa (“EMEA”); and (iii) Asia Pacific (“APAC”)—and primarily generate revenue by selling devices through retail channels, wholesale distribution, wireless carrier channels, security solution providers, and Arlo’s direct to consumer store and paid subscription services. Our corporate headquarters is located in Carlsbad, California, with other satellite offices across North America and various other global locations. Basis of Presentation We prepare our unaudited condensed consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of Arlo and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. These unaudited condensed consolidated financial statements should be read in conjunction with the notes to the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 29, 2024. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for fair statement of the unaudited condensed consolidated financial statements for interim periods. Fiscal Periods Our fiscal year begins on January 1 of the year stated and ends on December 31 of the same year. We report the results on a fiscal quarter basis rather than on a calendar quarter basis. 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. Reclassification Certain prior periods amounts have been reclassified to conform to the current period’s presentation. None of these reclassifications had a material impact to the unaudited condensed consolidated financial statements. Use of Estimates |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Recent Accounting Pronouncements | Significant Accounting Policies and Recent Accounting Pronouncements Our significant accounting policies are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes to such policies during the three months ended March 31, 2024. Accounting Pronouncements Recently Adopted There were no accounting pronouncements adopted during the three months ended March 31, 2024. Accounting Pronouncements Not Yet Effective In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative , which modifies the disclosure or presentation requirements of a variety of Topics in the Codification. Among the various codification amendments, Topic 470 Debt is applicable to Arlo which requires the disclosure of amounts, terms and weighted-average interest rates of unused lines of credit. The effective date is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirement by that date, with early adoption prohibited. The adoption of this new standard will not have a material impact on our financial statements and related disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures , which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the impact that this guidance may have on our financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures , which requires on an annual basis to (1) disclose specific categories in the rate reconciliation, (2) provide additional information for reconciling items that meet a quantitative threshold, and (3) income taxes paid disaggregated by jurisdiction. This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact that this guidance may have on our financial statements and related disclosures. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Performance Obligations The total estimated service revenue expected to be recognized in the future related to performance obligations that are unsatisfied and partially unsatisfied was $23.5 million as of March 31, 2024 and $18.8 million as of December 31, 2023, substantially related to a performance obligation classified as less than one year. For the three months ended March 31, 2024 and April 2, 2023, $52.7 million and $41.2 million of revenue was deferred due to unsatisfied performance obligations, primarily relating to over time service revenue, and $49.2 million and $38.4 million of revenue was recognized for the satisfaction of performance obligations over time, respectively. Approximately $12.1 million and $8.4 million of this recognized revenue was included in the contract liability balance at the beginning of the periods. There were no significant changes in estimates during the period that would affect the contract balances. During the five-year period that commenced on January 1, 2020, Verisure Sàrl (“Verisure”) has an aggregate purchase commitment of $500.0 million. As of March 31, 2024, the entire purchase commitment has been fulfilled. Based on the Supply Agreement with Verisure, a purchase obligation is not deemed to exist until we receive and accept Verisure’s purchase order. As of March 31, 2024, we had a backlog of $44.5 million which represents performance obligations that will be recognized as revenue once fulfilled, which is expected to occur over the next six months. On April 25, 2024, Verisure notified us that it is exercising its right under the Supply Agreement to extend the term for another five years (through November 2029) under the same terms but without minimum purchase obligations. Disaggregation of Revenue We disaggregate our revenue into three geographic regions: the Americas, EMEA, and APAC, where we conduct our business. The following table presents revenue disaggregated by geographic region. Three Months Ended March 31, April 2, (In thousands) Americas $ 57,169 $ 56,632 EMEA 61,380 48,472 APAC 5,651 5,900 Total $ 124,200 $ 111,004 As of March 31, 2024 and December 31, 2023, one customer accounted for 69.9%, and three customers accounted for 37.1%, 15.2%, and 10.2% of the total accounts receivable, net, respectively. No other customers accounted for 10% or greater of the total accounts receivable, net. For the three months ended March 31, 2024 and April 2, 2023, one customer accounted for 49.4% and 43.7%, respectively. No other customers accounted for 10% or greater of the total revenue. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Short-Term Investments As of March 31, 2024 As of December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In thousands) U.S. Treasuries $ 80,529 $ 280 $ — $ 80,809 $ 79,654 $ 320 $ — $ 79,974 Accounts Receivable, Net As of March 31, December 31, (In thousands) Gross accounts receivable $ 56,714 $ 65,693 Allowance for credit losses (218) (333) Total $ 56,496 $ 65,360 The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected. Three Months Ended March 31, April 2, (In thousands) Balance at the beginning of the period $ 333 $ 423 Provision for (release of) expected credit losses (115) (94) Balance at the end of the period $ 218 $ 329 Property and Equipment, Net The components of property and equipment are as follows: As of March 31, December 31, (In thousands) Machinery and equipment $ 14,531 $ 14,148 Software 15,676 15,639 Computer equipment 855 1,438 Leasehold improvements 4,572 4,661 Furniture and fixtures 2,544 2,544 Total property and equipment, gross 38,178 38,430 Accumulated depreciation (33,867) (33,669) Total property and equipment, net (1) $ 4,311 $ 4,761 _________________________ (1) $0.8 million and $1.0 million property and equipment, net, was included in the sublease arrangement for the San Jose office building as of March 31, 2024 and December 31, 2023, respectively. Depreciation expense pertaining to property and equipment was $0.9 million and $1.1 million for the three months ended March 31, 2024 and April 2, 2023, respectively. Goodwill We have determined that no event occurred or circumstances changed during the three months ended March 31, 2024 that would more likely than not reduce the fair value of goodwill below the carrying amount. No goodwill impairment was recognized in the three months ended March 31, 2024 and April 2, 2023. Accrued Liabilities As of March 31, December 31, (In thousands) Sales incentives $ 22,941 $ 28,187 Sales returns 11,558 17,058 Compensation 15,240 13,278 Cloud and other costs 9,085 10,985 Other 20,276 18,701 Total $ 79,100 $ 88,209 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes assets measured at fair value on a recurring basis: As of March 31, December 31, (In thousands) Cash equivalents: money-market funds (<90 days) $ 6,314 $ 5,782 Cash equivalents: U.S. Treasuries (<90 days) 264 520 Available-for-sale securities: U.S. Treasuries (1) 80,809 79,974 Total $ 87,387 $ 86,276 _________________________ (1) Included in short-term investments on our unaudited condensed consolidated balance sheets. Our investments in cash equivalents and available-for-sale securities are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. As of March 31, 2024 and December 31, 2023, assets and liabilities measured as Level 2 fair value were not material and there were no Level 3 fair value assets or liabilities measured on a recurring basis. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In November 2022, we initiated a restructuring plan to reduce our cost structure to better align the operational needs of the business to current economic conditions while continuing to support our long-term strategy. This restructuring includes the reduction of headcount as well as the abandonment of certain lease contracts and the cancellation of contractual services arrangements with certain suppliers. As of March 31, 2024, we have substantially incurred all costs pertaining to restructuring activities, with related cash outflows extending until the fourth quarter of 2024. The restructuring liabilities are included in accrued liabilities in our unaudited condensed consolidated balance sheets. The restructuring charges are included in “Others” in the unaudited condensed consolidated statements of comprehensive loss. Restructuring activity is as follows: Total Severance Expense Office Exit Expense Other Exit Expense (In thousands) Balance as of December 31, 2021 $ — $ — $ — $ — Restructuring charges 1,805 798 928 79 Cash payments (588) (579) — (9) Non-cash and other adjustments 48 — 63 (15) Balance as of December 31, 2022 $ 1,265 $ 219 $ 991 $ 55 Restructuring charges 692 564 117 11 Cash payments (1,479) (694) (745) (40) Non-cash and other adjustments (26) — — (26) Balance as of December 31, 2023 $ 452 $ 89 $ 363 $ — Restructuring charges 484 484 — — Cash payments (640) (525) (115) — Non-cash and other adjustments — — — — Balance as of March 31, 2024 $ 296 $ 48 $ 248 $ — Total costs incurred inception to date $ 3,003 $ 1,846 $ 1,108 $ 49 |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2024 | |
Line of Credit Facility [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility On October 27, 2021, we entered into a Loan and Security Agreement (the “Credit Agreement”) with Bank of America, N.A., a national banking association, as lender (the “Lender”). The Credit Agreement provides for a three-year revolving credit facility (the “Credit Facility”) that matures on October 27, 2024. Borrowings under the Credit Facility are limited to the lesser of (x) $40.0 million, and (y) an amount equal to the borrowing base. The borrowing base will be the sum of (i) 90% of investment grade eligible receivables and (ii) 85% of non-investment grade eligible accounts, less applicable reserves established by the Lender. The Credit Agreement also includes a $5.0 million sublimit for the issuance by the Lender of letters of credit. In addition, the Credit Agreement includes an uncommitted accordion feature that allows us to request, from time to time, that the Lender increase the aggregate revolving loan commitments by up to an additional $25.0 million in the aggregate, subject to the satisfaction of certain conditions, including obtaining the Lender’s agreement to participate in each increase. The proceeds of the borrowings under the Credit Facility may be used for working capital and general corporate purposes. Based on certain terms and conditions including eligible accounts receivable as of March 31, 2024, we had unused borrowing capacity of $4.2 million. Our obligations under the Credit Agreement are secured by substantially all of our domestic working capital assets, including accounts receivable, cash and cash equivalents, inventory, and other assets to the extent related to such working capital assets. At our option, borrowings under the Credit Agreement will bear interest at a floating rate equal to: (i) the Bloomberg Short-Term Bank Yield Index rate plus the applicable rate of 2.0% to 2.5% determined based on our average daily availability for the prior fiscal quarter, or (ii) the base rate plus the applicable rate of 1.0% to 1.5% based on our average daily availability for the prior fiscal quarter. Among other fees, we are required to pay a monthly unused fee of 0.2% per annum on the amount by which the Lender’s aggregate commitment under the Credit Facility exceeds the average daily revolver usage during such month. The Credit Agreement contains events of default, representations and warranties, and affirmative and negative covenants customary for credit facilities of this type. The Credit Agreement also contains financial covenants that require us to, if the Financial Covenant Trigger Period (as defined in the Credit Agreement) is in effect, maintain a fixed charge coverage ratio, tested quarterly on a trailing twelve month basis, of at least 1.00 to 1.00 at any time. As of March 31, 2024, we were in compliance with all the covenants of the Credit Agreement. If an event of default under the Credit Agreement occurs, then the Lender may cease making advances under the Credit Agreement and declare any outstanding obligations under the Credit Agreement to be immediately due and payable. In addition, if we file a bankruptcy petition, a bankruptcy petition is filed against us and is not dismissed or stayed within thirty days or we make a general assignment for the benefit of creditors, then any outstanding obligations under the Credit Agreement will automatically and without notice or demand become immediately due and payable. No amounts had been drawn under the Credit Facility as of March 31, 2024. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases Our operating lease obligations mostly include offices, equipment, and distribution centers, with various expiration dates through June 2029. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into our determination of lease payments. The terms of certain leases provide for rental payments on a graduated scale. Gross lease expense was $1.5 million for each of the three months ended March 31, 2024 and April 2, 2023. We recorded sublease income as reduction of lease expense, in the amount of $0.5 million for each of the three months ended March 31, 2024 and April 2, 2023. Supplemental cash flow information related to operating leases is as follows: Three Months Ended March 31, April 2, (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,516 $ 1,889 Weighted average remaining lease term and weighted average discount rate related to operating leases are as follows: As of March 31, December 31, Weighted average remaining lease term 4.8 years 5.0 years Weighted average discount rate 5.74 % 5.74 % The future minimum undiscounted lease payments under operating leases and future non-cancelable rent payments from our subtenants for each of the next five years and thereafter as of March 31, 2024 are as follows: Operating Lease Payments Sublease Payments Net (In thousands) 2024 (Remaining nine months) $ 3,923 $ (1,598) $ 2,325 2025 4,488 (2,006) 2,482 2026 4,631 (2,066) 2,565 2027 4,594 (2,322) 2,272 2028 3,659 (2,392) 1,267 Thereafter 1,750 (1,228) 522 Total future lease payments $ 23,045 $ (11,612) $ 11,433 Less: imputed interest (2,909) Present value of future minimum lease payments $ 20,136 Accrued liabilities $ 4,003 Non-current operating lease liabilities 16,133 Total lease liabilities $ 20,136 Letters of Credit In connection with the lease agreement for our office space located in San Jose, California, we executed a letter of credit with the landlord as the beneficiary. As of March 31, 2024, we had $3.6 million of unused letters of credit outstanding, of which $3.1 million pertains to the lease arrangement in San Jose, California. Purchase Obligations We have entered into various inventory-related purchase agreements with suppliers. Generally, under these agreements, 50% of orders are cancelable by giving notice 46 to 60 days prior to the expected shipment date and 25% of orders are cancelable by giving notice 31 to 45 days prior to the expected shipment date. Orders are non-cancelable within 30 days prior to the expected shipment date. As of March 31, 2024, we had $40.0 million in non-cancelable purchase commitments with suppliers which is expected to be paid over the next twelve months. As of March 31, 2024, an additional $29.4 million of purchase orders beyond contractual termination periods have been issued to supply chain partners in anticipation of demand requirements. Consequently, we may incur expenses for the materials and components, such as chipsets already purchased by the supplier to fulfill our orders if the purchase order is cancelled. Expenses incurred have historically not been material relative to the original order value. Warranty Obligations Changes in warranty obligations, which are included in accrued liabilities in the unaudited condensed consolidated balance sheets, are as follows: Three Months Ended March 31, April 2, (In thousands) Balance at the beginning of the period $ 1,193 $ 1,174 Provision for warranty obligations 143 15 Settlements (71) (70) Balance at the end of the period $ 1,265 $ 1,119 Litigation and Other Legal Matters We are involved in disputes, litigation, and other legal actions. In all cases, at each reporting period, we evaluate whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. In such cases, we accrue for the amount or, if a range, we accrue the low end of the range, only if there is not a better estimate than any other amount within the range, as a component of legal expense within general and administrative expenses. We monitor developments in these legal matters that could affect the estimate we had previously accrued. In relation to such matters, we currently believe that there are no existing claims or proceedings that are likely to have a material adverse effect on our financial position within the next 12 months, or the outcome of these matters is currently not determinable. There are many uncertainties associated with any litigation, and these actions or other third-party claims against us may cause us to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require us to make royalty payments, which could have an adverse effect in future periods. If any of those events were to occur, our business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from our estimates, which could result in the need to adjust the liability and record additional expenses. Indemnifications In the ordinary course of business, we may provide indemnification of varying scope and terms to customers, distributors, resellers, vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising from breach of such agreements or from intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with members of our board of directors and certain of our executive officers that require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments we could be required to make under these indemnification agreements is, in many cases, unlimited. As of March 31, 2024 and December 31, 2023, we have not incurred any material costs as a result of such indemnifications and we are not currently aware of any indemnification claims. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2024 | |
Employee Benefit and Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We grant options and restricted stock units (“RSUs”) under the 2018 Equity Incentive Plan (the “2018 Plan”), under which awards may be granted to all employees. We also grant performance-based and market-based restricted stock units (“PSUs”) to our executive officers periodically. Award vesting periods for the 2018 Plan are generally three On January 19, 2024, we registered an aggregate of up to 4,759,901 shares of common stock on a Registration Statement on Form S-8, including 3,807,921 shares issuable pursuant to the 2018 Plan that were automatically added to the shares authorized for issuance under the 2018 Plan and 951,980 shares issuable pursuant to the Employee Stock Purchase Plan (“ESPP”) that were automatically added to the shares authorized for issuance on January 1, 2024, both pursuant to an “evergreen” provision contained in the respective plans. The following table sets forth the available shares for grants as of March 31, 2024: Number of Shares (In thousands) Shares available for grants as of December 31, 2023 3,516 Additional authorized shares 3,808 Granted (5,257) Forfeited / cancelled 327 Shares traded for taxes 1,399 Shares available for grants as of March 31, 2024 3,793 Employee Stock Purchase Plan We sponsor the ESPP to eligible employees. As of March 31, 2024, 2.8 million shares were available for issuance under the ESPP. Option Activity We granted no options during the three months ended March 31, 2024. Stock option activity during the three months ended March 31, 2024 was as follows: Number of Shares Weighted Average Exercise Price Per Share (In thousands) (In dollars) Outstanding as of December 31, 2023 1,096 $ 12.48 Granted — $ — Exercised (68) $ 8.35 Forfeited / cancelled — $ — Expired — $ — Outstanding as of March 31, 2024 1,028 $ 12.76 Vested and exercisable as of March 31, 2024 1,028 $ 12.76 RSU Activity RSU activity, excluding PSU activity, during the three months ended March 31, 2024 was as follows: Number of Shares Weighted Average Grant Date Fair Value Per Share (In thousands) (In dollars) Outstanding as of December 31, 2023 9,043 $ 6.15 Granted 2,332 $ 9.79 Vested (2,411) $ 7.63 Forfeited (301) $ 6.49 Outstanding as of March 31, 2024 8,663 $ 6.71 PSU Activity Our executive officers and other senior employees have been granted performance-based awards with vesting occurring at the end of a three PSU activity during the three months ended March 31, 2024 was as follows: Number of Shares Weighted Average Grant Date Fair Value Per Share (In thousands) (In dollars) Outstanding as of December 31, 2023 3,851 $ 5.72 Granted 2,924 $ 9.12 Vested (742) $ 4.59 Forfeited (25) $ 4.33 Outstanding as of March 31, 2024 6,008 $ 7.52 Stock-Based Compensation Expense The following table sets forth the stock-based compensation expense included in our unaudited condensed consolidated statements of comprehensive loss: Three Months Ended March 31, April 2, (In thousands) Cost of revenue $ 1,371 $ 860 Research and development 4,904 3,911 Sales and marketing 2,240 1,722 General and administrative 10,035 8,098 Total $ 18,550 $ 14,591 As of March 31, 2024, all outstanding options were fully vested; therefore, there was no unrecognized compensation cost related to stock options. Approximately $83.3 million of unrecognized compensation cost related to unvested RSUs and PSUs is expected to be recognized over a weighted-average period of 1.5 years as of March 31, 2024. During the three months ended March 31, 2024 and April 2, 2023, we settled executive and employee bonuses by granting and issuing restricted stock units (non-cash financing activities) that vested immediately amounting to $6.9 million and $6.7 million, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for the three months ended March 31, 2024 was $0.4 million or an effective tax rate of (4.3)%. The provision for income taxes for the three months ended April 2, 2023 was $0.8 million or an effective tax rate of (5.9)%. During the three months ended March 31, 2024 and April 2, 2023, we sustained U.S. book losses. Consistent with the prior year periods, we maintained a valuation allowance against our U.S. federal and state deferred tax assets and did not record a tax benefit on these deferred tax assets since it is more likely than not that these deferred tax assets will not be realized. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Three Months Ended March 31, April 2, (In thousands, except per share data) Numerator: Net loss $ (9,644) $ (14,245) Denominator: Weighted average common shares - basic and diluted 96,264 89,653 Basic and diluted net loss per share $ (0.10) $ (0.16) Anti-dilutive employee stock-based awards, excluded 805 7,859 |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Segment Information We operate as one operating and reportable segment. Our Chief Executive Officer (“CEO”) is identified as the Chief Operating Decision Maker (“CODM”), who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Geographic Information for Revenue Revenue consists of gross product shipments and service revenue, less allowances for estimated sales returns, price protection, end-user customer rebates, net changes in deferred revenue, and other channel sales incentives deemed to be a reduction of revenue per the authoritative guidance. Sales and usage-based taxes are excluded from revenue. For reporting purposes, revenue by geographic area is generally based upon the bill-to location of the customer. The following table presents revenue by geographic area. For comparative purposes, amounts in prior period have been recast. Three Months Ended March 31, April 2, (In thousands) United States $ 54,375 $ 55,843 Spain 40,406 38,571 Sweden 13,261 5,021 Other countries 16,158 11,569 Total $ 124,200 $ 111,004 Geographic Information for Long-Lived Assets Long-lived assets include property and equipment, net and operating lease right-of-use assets, net. Our long-lived assets are based on the physical location of the assets. The following table presents long-lived assets by geographic area. As of March 31, December 31, (In thousands) United States $ 12,237 $ 13,372 Other countries 2,771 2,839 Total $ 15,008 $ 16,211 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (9,644) | $ (14,245) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Amy Rothstein [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the quarter ended March 31, 2024, our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated the contracts, instructions or written plans for the purchase or sale of Arlo's securities set forth in the table below: Type of Trading Arrangement Name and Position Action Action Date Rule 10b5-1 (1) Non-Rule 10b5-1 (2) Total Shares to be Sold Expiration Date Amy Rothstein, Director Adoption March 14, 2024 (3) X 40,000 March 12, 2025 _________________________ (1) Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. (2) “Non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K under the Exchange Act. (3) Adopted for personal tax planning purposes. |
Name | Amy Rothstein |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 14, 2024 |
Arrangement Duration | 363 days |
Aggregate Available | 40,000 |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We prepare our unaudited condensed consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of Arlo and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Fiscal Periods | Fiscal Periods Our fiscal year begins on January 1 of the year stated and ends on December 31 of the same year. We report the results on a fiscal quarter basis rather than on a calendar quarter basis. 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. |
Reclassification | Reclassification Certain prior periods amounts have been reclassified to conform to the current period’s presentation. None of these reclassifications had a material impact to the unaudited condensed consolidated financial statements. |
Use of Estimates | Use of Estimates |
Recent Accounting Pronouncements | Accounting Pronouncements Recently Adopted There were no accounting pronouncements adopted during the three months ended March 31, 2024. Accounting Pronouncements Not Yet Effective In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative , which modifies the disclosure or presentation requirements of a variety of Topics in the Codification. Among the various codification amendments, Topic 470 Debt is applicable to Arlo which requires the disclosure of amounts, terms and weighted-average interest rates of unused lines of credit. The effective date is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirement by that date, with early adoption prohibited. The adoption of this new standard will not have a material impact on our financial statements and related disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures , which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the impact that this guidance may have on our financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures , which requires on an annual basis to (1) disclose specific categories in the rate reconciliation, (2) provide additional information for reconciling items that meet a quantitative threshold, and (3) income taxes paid disaggregated by jurisdiction. This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact that this guidance may have on our financial statements and related disclosures. |
Fair Value Measurements | Our investments in cash equivalents and available-for-sale securities are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | We disaggregate our revenue into three geographic regions: the Americas, EMEA, and APAC, where we conduct our business. The following table presents revenue disaggregated by geographic region. Three Months Ended March 31, April 2, (In thousands) Americas $ 57,169 $ 56,632 EMEA 61,380 48,472 APAC 5,651 5,900 Total $ 124,200 $ 111,004 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Available-for-Sale Short-Term Investments | Short-Term Investments As of March 31, 2024 As of December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In thousands) U.S. Treasuries $ 80,529 $ 280 $ — $ 80,809 $ 79,654 $ 320 $ — $ 79,974 |
Schedule of Accounts Receivable, Net | Accounts Receivable, Net As of March 31, December 31, (In thousands) Gross accounts receivable $ 56,714 $ 65,693 Allowance for credit losses (218) (333) Total $ 56,496 $ 65,360 |
Schedule of Allowance for Credit Losses, Accounts Receivable | The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected. Three Months Ended March 31, April 2, (In thousands) Balance at the beginning of the period $ 333 $ 423 Provision for (release of) expected credit losses (115) (94) Balance at the end of the period $ 218 $ 329 |
Schedule of Property and Equipment, Net | The components of property and equipment are as follows: As of March 31, December 31, (In thousands) Machinery and equipment $ 14,531 $ 14,148 Software 15,676 15,639 Computer equipment 855 1,438 Leasehold improvements 4,572 4,661 Furniture and fixtures 2,544 2,544 Total property and equipment, gross 38,178 38,430 Accumulated depreciation (33,867) (33,669) Total property and equipment, net (1) $ 4,311 $ 4,761 _________________________ (1) $0.8 million and $1.0 million property and equipment, net, was included in the sublease arrangement for the San Jose office building as of March 31, 2024 and December 31, 2023, respectively. |
Schedule of Accrued Liabilities | Accrued Liabilities As of March 31, December 31, (In thousands) Sales incentives $ 22,941 $ 28,187 Sales returns 11,558 17,058 Compensation 15,240 13,278 Cloud and other costs 9,085 10,985 Other 20,276 18,701 Total $ 79,100 $ 88,209 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | The following table summarizes assets measured at fair value on a recurring basis: As of March 31, December 31, (In thousands) Cash equivalents: money-market funds (<90 days) $ 6,314 $ 5,782 Cash equivalents: U.S. Treasuries (<90 days) 264 520 Available-for-sale securities: U.S. Treasuries (1) 80,809 79,974 Total $ 87,387 $ 86,276 _________________________ (1) Included in short-term investments on our unaudited condensed consolidated balance sheets. |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Accrued Restructuring and Other Charges Activity | The restructuring liabilities are included in accrued liabilities in our unaudited condensed consolidated balance sheets. The restructuring charges are included in “Others” in the unaudited condensed consolidated statements of comprehensive loss. Restructuring activity is as follows: Total Severance Expense Office Exit Expense Other Exit Expense (In thousands) Balance as of December 31, 2021 $ — $ — $ — $ — Restructuring charges 1,805 798 928 79 Cash payments (588) (579) — (9) Non-cash and other adjustments 48 — 63 (15) Balance as of December 31, 2022 $ 1,265 $ 219 $ 991 $ 55 Restructuring charges 692 564 117 11 Cash payments (1,479) (694) (745) (40) Non-cash and other adjustments (26) — — (26) Balance as of December 31, 2023 $ 452 $ 89 $ 363 $ — Restructuring charges 484 484 — — Cash payments (640) (525) (115) — Non-cash and other adjustments — — — — Balance as of March 31, 2024 $ 296 $ 48 $ 248 $ — Total costs incurred inception to date $ 3,003 $ 1,846 $ 1,108 $ 49 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Supplemental Cash Flow and Balance Sheets Information | Supplemental cash flow information related to operating leases is as follows: Three Months Ended March 31, April 2, (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,516 $ 1,889 Weighted average remaining lease term and weighted average discount rate related to operating leases are as follows: As of March 31, December 31, Weighted average remaining lease term 4.8 years 5.0 years Weighted average discount rate 5.74 % 5.74 % |
Schedule of Operating Lease Maturity | The future minimum undiscounted lease payments under operating leases and future non-cancelable rent payments from our subtenants for each of the next five years and thereafter as of March 31, 2024 are as follows: Operating Lease Payments Sublease Payments Net (In thousands) 2024 (Remaining nine months) $ 3,923 $ (1,598) $ 2,325 2025 4,488 (2,006) 2,482 2026 4,631 (2,066) 2,565 2027 4,594 (2,322) 2,272 2028 3,659 (2,392) 1,267 Thereafter 1,750 (1,228) 522 Total future lease payments $ 23,045 $ (11,612) $ 11,433 Less: imputed interest (2,909) Present value of future minimum lease payments $ 20,136 Accrued liabilities $ 4,003 Non-current operating lease liabilities 16,133 Total lease liabilities $ 20,136 |
Schedule of Changes in Warranty Obligation | Changes in warranty obligations, which are included in accrued liabilities in the unaudited condensed consolidated balance sheets, are as follows: Three Months Ended March 31, April 2, (In thousands) Balance at the beginning of the period $ 1,193 $ 1,174 Provision for warranty obligations 143 15 Settlements (71) (70) Balance at the end of the period $ 1,265 $ 1,119 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Employee Benefit and Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Shares Available for Grant | The following table sets forth the available shares for grants as of March 31, 2024: Number of Shares (In thousands) Shares available for grants as of December 31, 2023 3,516 Additional authorized shares 3,808 Granted (5,257) Forfeited / cancelled 327 Shares traded for taxes 1,399 Shares available for grants as of March 31, 2024 3,793 |
Schedule of Stock Option Activity | Stock option activity during the three months ended March 31, 2024 was as follows: Number of Shares Weighted Average Exercise Price Per Share (In thousands) (In dollars) Outstanding as of December 31, 2023 1,096 $ 12.48 Granted — $ — Exercised (68) $ 8.35 Forfeited / cancelled — $ — Expired — $ — Outstanding as of March 31, 2024 1,028 $ 12.76 Vested and exercisable as of March 31, 2024 1,028 $ 12.76 |
Schedule of RSU Activity | RSU activity, excluding PSU activity, during the three months ended March 31, 2024 was as follows: Number of Shares Weighted Average Grant Date Fair Value Per Share (In thousands) (In dollars) Outstanding as of December 31, 2023 9,043 $ 6.15 Granted 2,332 $ 9.79 Vested (2,411) $ 7.63 Forfeited (301) $ 6.49 Outstanding as of March 31, 2024 8,663 $ 6.71 |
Schedule of PSU Activity | PSU activity during the three months ended March 31, 2024 was as follows: Number of Shares Weighted Average Grant Date Fair Value Per Share (In thousands) (In dollars) Outstanding as of December 31, 2023 3,851 $ 5.72 Granted 2,924 $ 9.12 Vested (742) $ 4.59 Forfeited (25) $ 4.33 Outstanding as of March 31, 2024 6,008 $ 7.52 |
Schedule of Stock-Based Compensation Expense | The following table sets forth the stock-based compensation expense included in our unaudited condensed consolidated statements of comprehensive loss: Three Months Ended March 31, April 2, (In thousands) Cost of revenue $ 1,371 $ 860 Research and development 4,904 3,911 Sales and marketing 2,240 1,722 General and administrative 10,035 8,098 Total $ 18,550 $ 14,591 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Net Loss Per Share | Three Months Ended March 31, April 2, (In thousands, except per share data) Numerator: Net loss $ (9,644) $ (14,245) Denominator: Weighted average common shares - basic and diluted 96,264 89,653 Basic and diluted net loss per share $ (0.10) $ (0.16) Anti-dilutive employee stock-based awards, excluded 805 7,859 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Net Revenue by Geography | The following table presents revenue by geographic area. For comparative purposes, amounts in prior period have been recast. Three Months Ended March 31, April 2, (In thousands) United States $ 54,375 $ 55,843 Spain 40,406 38,571 Sweden 13,261 5,021 Other countries 16,158 11,569 Total $ 124,200 $ 111,004 |
Schedule of Long-Lived Asset by Geographic Areas | The following table presents long-lived assets by geographic area. As of March 31, December 31, (In thousands) United States $ 12,237 $ 13,372 Other countries 2,771 2,839 Total $ 15,008 $ 16,211 |
Description of Business and B_2
Description of Business and Basis of Presentation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 region | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographic regions in which the company conducts business | 3 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Apr. 25, 2024 | Jan. 01, 2020 USD ($) | Mar. 31, 2024 USD ($) region | Apr. 02, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | |||||
Revenue deferred due to unsatisfied performance obligations | $ 52.7 | $ 41.2 | |||
Revenue recognized | 49.2 | 38.4 | |||
Revenue recognized for satisfaction of performance obligations in contract liability balance at start of period | $ 12.1 | $ 8.4 | |||
Number of geographic regions in which the company conducts business | region | 3 | ||||
Customer One | Accounts Receivable | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage (percent) | 69.90% | 37.10% | |||
Customer One | Revenue Benchmark | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage (percent) | 49.40% | 43.70% | |||
Customer Two | Accounts Receivable | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage (percent) | 15.20% | ||||
Customer Three | Accounts Receivable | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk, percentage (percent) | 10.20% | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, remaining performance obligation, amount | $ 18.8 | ||||
Remaining performance obligations, expected timing of satisfaction | 1 year | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, remaining performance obligation, amount | $ 23.5 | ||||
Remaining performance obligations, expected timing of satisfaction | 1 year | ||||
Verisure S.a.r.l | Products | |||||
Disaggregation of Revenue [Line Items] | |||||
Purchase obligation term | 5 years | ||||
Unrecorded unconditional purchase obligation | $ 500 | $ 44.5 | |||
Verisure S.a.r.l | Products | Subsequent Event | |||||
Disaggregation of Revenue [Line Items] | |||||
Unrecorded unconditional purchase obligation extension term | 5 years | ||||
Verisure S.a.r.l | Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||||
Disaggregation of Revenue [Line Items] | |||||
Remaining performance obligations, expected timing of satisfaction | 6 months |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 124,200 | $ 111,004 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 57,169 | 56,632 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 61,380 | 48,472 |
APAC | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 5,651 | $ 5,900 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Available-for-Sale Short-Term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-For-Sale [Line Items] | ||
Estimated Fair Value | $ 80,809 | $ 79,974 |
U.S. Treasuries | ||
Debt Securities, Available-For-Sale [Line Items] | ||
Amortized Cost | 80,529 | 79,654 |
Unrealized Gains | 280 | 320 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 80,809 | $ 79,974 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Apr. 02, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||||
Gross accounts receivable | $ 56,714 | $ 65,693 | ||
Allowance for credit losses | (218) | (333) | $ (329) | $ (423) |
Total | $ 56,496 | $ 65,360 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Allowance For Credit Losses, Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at the beginning of the period | $ 333 | $ 423 |
Provision for (release of) expected credit losses | (115) | (94) |
Balance at the end of the period | $ 218 | $ 329 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 38,178 | $ 38,430 |
Accumulated depreciation | (33,867) | (33,669) |
Total property and equipment, net | 4,311 | 4,761 |
Property, plant, and equipment, lessor asset under operating lease, net | 800 | 1,000 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 14,531 | 14,148 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 15,676 | 15,639 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 855 | 1,438 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 4,572 | 4,661 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 2,544 | $ 2,544 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Balance Sheet Related Disclosures [Abstract] | ||
Depreciation expense | $ 0.9 | $ 1.1 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill Impairment Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Balance Sheet Related Disclosures [Abstract] | ||
Goodwill impairment | $ 0 | $ 0 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Sales incentives | $ 22,941 | $ 28,187 |
Sales returns | 11,558 | 17,058 |
Compensation | 15,240 | 13,278 |
Cloud and other costs | 9,085 | 10,985 |
Other | 20,276 | 18,701 |
Total accrued liabilities | $ 79,100 | $ 88,209 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Valuation of Company's Financial Instruments by Various Levels (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available-for-sale securities: U.S. treasuries | $ 80,809 | $ 79,974 |
Total | 87,387 | 86,276 |
Money Market Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash equivalents | 6,314 | 5,782 |
U.S. Treasuries | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash equivalents | $ 264 | $ 520 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Fair Value, Measurements, Recurring - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets measured at fair value | $ 87,387,000 | $ 86,276,000 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Liabilities measured at fair value | 0 | 0 |
Assets measured at fair value | $ 0 | $ 0 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 452 | $ 1,265 | $ 0 |
Restructuring charges | 484 | 692 | 1,805 |
Cash payments | (640) | (1,479) | (588) |
Non-cash and other adjustments | 0 | (26) | 48 |
Restructuring reserve, ending balance | 296 | 452 | 1,265 |
Total costs incurred inception to date | 3,003 | ||
Severance Expense | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 89 | 219 | 0 |
Restructuring charges | 484 | 564 | 798 |
Cash payments | (525) | (694) | (579) |
Non-cash and other adjustments | 0 | 0 | 0 |
Restructuring reserve, ending balance | 48 | 89 | 219 |
Total costs incurred inception to date | 1,846 | ||
Office Exit Expense | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 363 | 991 | 0 |
Restructuring charges | 0 | 117 | 928 |
Cash payments | (115) | (745) | 0 |
Non-cash and other adjustments | 0 | 0 | 63 |
Restructuring reserve, ending balance | 248 | 363 | 991 |
Total costs incurred inception to date | 1,108 | ||
Other Exit Expense | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 0 | 55 | 0 |
Restructuring charges | 0 | 11 | 79 |
Cash payments | 0 | (40) | (9) |
Non-cash and other adjustments | 0 | (26) | (15) |
Restructuring reserve, ending balance | 0 | $ 0 | $ 55 |
Total costs incurred inception to date | $ 49 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Loan and Security Agreement - Bank of America NA - Line of Credit - USD ($) | Oct. 27, 2021 | Mar. 31, 2024 |
Minimum | Bloomberg Short-Term Bank Yield Index | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (in percent) | 2% | |
Minimum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (in percent) | 1% | |
Maximum | Bloomberg Short-Term Bank Yield Index | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (in percent) | 2.50% | |
Maximum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (in percent) | 1.50% | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Debt term (in years) | 3 years | |
Maximum borrowing capacity | $ 40,000,000 | |
Investment grade percent (in percent) | 90% | |
Non investment grade percent (in percent) | 85% | |
Accordion feature, increase limit | $ 25,000,000 | |
Line of credit remaining borrowing capacity | $ 4,200,000 | |
Unused capacity, commitment fee percentage (in percent) | 0.20% | |
Covenant, fixed charge coverage ratio twelve month basis minimum | 100% | |
Bankruptcy petition dismissal or stay period | 30 days | |
Outstanding borrowing under the credit facility | $ 0 | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 5,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Loss Contingencies [Line Items] | ||
Operating lease, expense | $ 1.5 | $ 1.5 |
Sublease income | $ 0.5 | $ 0.5 |
Number of days for non-cancellation of purchase obligations prior to expected shipment date | 30 days | |
Non-cancelable purchase commitments with suppliers | $ 40 | |
Purchase commitment, remaining expected term | 12 months | |
Long-term purchase commitment, amount | $ 29.4 | |
46 to 60 Days | ||
Loss Contingencies [Line Items] | ||
Percentage of cancelable orders (in percent) | 50% | |
46 to 60 Days | Minimum | ||
Loss Contingencies [Line Items] | ||
Required notice period prior to expected shipment date | 46 days | |
46 to 60 Days | Maximum | ||
Loss Contingencies [Line Items] | ||
Required notice period prior to expected shipment date | 60 days | |
31 to 45 Days | ||
Loss Contingencies [Line Items] | ||
Percentage of cancelable orders (in percent) | 25% | |
31 to 45 Days | Minimum | ||
Loss Contingencies [Line Items] | ||
Required notice period prior to expected shipment date | 31 days | |
31 to 45 Days | Maximum | ||
Loss Contingencies [Line Items] | ||
Required notice period prior to expected shipment date | 45 days | |
Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Unused letters of credit outstanding | $ 3.6 | |
Letter of Credit | Build-to-Suit Lease | ||
Loss Contingencies [Line Items] | ||
Unused letters of credit outstanding | $ 3.1 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 1,516 | $ 1,889 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Weighted Averages Related to Operating Leases (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted average remaining lease term | 4 years 9 months 18 days | 5 years |
Weighted average discount rate | 5.74% | 5.74% |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Operating Lease Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Lease Payments | ||
2024 (Remaining nine months) | $ 3,923 | |
2025 | 4,488 | |
2026 | 4,631 | |
2027 | 4,594 | |
2028 | 3,659 | |
Thereafter | 1,750 | |
Total future lease payments | 23,045 | |
Less: imputed interest | (2,909) | |
Present value of future minimum lease payments | 20,136 | |
Accrued liabilities | 4,003 | |
Non-current operating lease liabilities | 16,133 | $ 17,021 |
Sublease Payments | ||
2024 (Remaining nine months) | (1,598) | |
2025 | (2,006) | |
2026 | (2,066) | |
2027 | (2,322) | |
2028 | (2,392) | |
Thereafter | (1,228) | |
Total future lease payments | (11,612) | |
Net | ||
2024 (Remaining nine months) | 2,325 | |
2025 | 2,482 | |
2026 | 2,565 | |
2027 | 2,272 | |
2028 | 1,267 | |
Thereafter | 522 | |
Total future lease payments | $ 11,433 |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of Changes in Warranty Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at the beginning of the period | $ 1,193 | $ 1,174 |
Provision for warranty obligations | 143 | 15 |
Settlements | (71) | (70) |
Balance at the end of the period | $ 1,265 | $ 1,119 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Apr. 02, 2023 | Jan. 19, 2024 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Settlement of liability classified restricted stock units | $ 6,900,000 | $ 6,700,000 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, options | 0 | |||
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reserved (in shares) | 4,759,901 | |||
RSUs and PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, RSUs and PSUs | $ 83,300,000 | |||
Weighted-average period of recognition of stock based compensation | 1 year 6 months | |||
2018 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Available for future grants (in shares) | 3,800,000 | |||
Number of shares reserved (in shares) | 3,807,921 | |||
Reserved stock for issuance, common stock (in shares) | 3,793,000 | 3,516,000 | ||
2018 Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Award expiration period | 10 years | |||
Purchase price of common stock, percent of market price (no less than) | 100% | |||
2018 Plan | Stock Options | Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 12 months | |||
2018 Plan | Stock Options | Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reserved (in shares) | 951,980 | |||
ESPP | Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reserved stock for issuance, common stock (in shares) | 2,800,000 | |||
Minimum | PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Minimum | 2018 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Maximum | PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Maximum | 2018 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Available Shares for Future Grants (Details) - 2018 Plan shares in Thousands | 3 Months Ended |
Mar. 31, 2024 shares | |
Number of Shares | |
Beginning balance (in shares) | 3,516 |
Additional authorized shares (in shares) | 3,808 |
Granted (in shares) | (5,257) |
Forfeited/cancelled (in shares) | 327 |
Shares traded for taxes (in shares) | 1,399 |
Ending balance (in shares) | 3,793 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Stock Option Activity (Details) - Stock Options shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,096 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (68) |
Forfeited / cancelled (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Ending balance (in shares) | shares | 1,028 |
Number of shares, exercisable options (in shares) | shares | 1,028 |
Weighted Average Exercise Price Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 12.48 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 8.35 |
Forfeited / cancelled (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | 12.76 |
Weighted average exercise price, exercisable options (in dollars per share) | $ / shares | $ 12.76 |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of RSU and PSU Activity (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
RSUs | |
Number of Shares | |
Beginning balance (in shares) | shares | 9,043 |
Granted (in shares) | shares | 2,332 |
Vested (in shares) | shares | (2,411) |
Forfeited (in shares) | shares | (301) |
Ending balance (in shares) | shares | 8,663 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 6.15 |
Granted (in dollars per share) | $ / shares | 9.79 |
Vested (in dollars per share) | $ / shares | 7.63 |
Forfeited (in dollars per share) | $ / shares | 6.49 |
Ending balance (in dollars per share) | $ / shares | $ 6.71 |
PSUs | |
Number of Shares | |
Beginning balance (in shares) | shares | 3,851 |
Granted (in shares) | shares | 2,924 |
Vested (in shares) | shares | (742) |
Forfeited (in shares) | shares | (25) |
Ending balance (in shares) | shares | 6,008 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 5.72 |
Granted (in dollars per share) | $ / shares | 9.12 |
Vested (in dollars per share) | $ / shares | 4.59 |
Forfeited (in dollars per share) | $ / shares | 4.33 |
Ending balance (in dollars per share) | $ / shares | $ 7.52 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Total Stock-Based Compensation Expense Resulting from Stock Options, Restricted Stock Awards, and the Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | $ 18,550 | $ 14,591 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 1,371 | 860 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 4,904 | 3,911 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 2,240 | 1,722 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | $ 10,035 | $ 8,098 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 395 | $ 792 |
Effective tax rate | (4.30%) | (5.90%) |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Numerator: | ||
Net loss | $ (9,644) | $ (14,245) |
Denominator: | ||
Weighted average common shares - basic (in shares) | 96,264 | 89,653 |
Weighted average common shares - dilutive (in shares) | 96,264 | 89,653 |
Basic net loss per share (in dollars per share) | $ (0.10) | $ (0.16) |
Diluted net loss per share (in dollars per share) | $ (0.10) | $ (0.16) |
Anti-dilutive employee stock-based awards, excluded (in shares) | 805 | 7,859 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Net Revenue by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 02, 2023 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 124,200 | $ 111,004 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 54,375 | 55,843 |
Spain | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 40,406 | 38,571 |
Sweden | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 13,261 | 5,021 |
Other countries | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 16,158 | $ 11,569 |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule of Long-Lived Asset by Geographic Areas (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Long-Lived Assets [Line Items] | ||
Total | $ 15,008 | $ 16,211 |
United States | ||
Long-Lived Assets [Line Items] | ||
Total | 12,237 | 13,372 |
Other countries | ||
Long-Lived Assets [Line Items] | ||
Total | $ 2,771 | $ 2,839 |