What happened

Shares of Arlo Technologies (NYSE: ARLO), a maker of smart-home security products, soared 48.1% in December, according to data from S&P Global Market Intelligence. For context, the S&P 500 returned 3.8% last month.

Arlo stock has kicked off 2021 on a strong note, as the small-cap tech stock is up 7.3%, compared to the broader market's 2% return through Thursday, Jan. 7.

Image source: Arlo Technologies.

So what

We can attribute Arlo stock's robust performance last month to two catalysts. First, on Dec. 1, shares surged 31.2% following news that the company appeared to have won an exclusive distribution deal with Apple. As my colleague Evan Niu reported at the time, "The Apple Store listing that got the market's attention is for a pair of Arlo Ultra 4K wireless security cameras, which closely resemble the Arlo Ultra 2 camera the company sells on its own website, but which has a slightly different model number."

Then on Dec. 8, shares popped 14.5% following an announcement by cloud-based communications software company Calix that it had inked a strategic distribution partnership with Arlo. Calix will offer Arlo's smart security camera "as part of EDGE Suites so communications service providers (CSP) can deliver industry-leading video monitoring and do-it-yourself (DIY) security to their subscribers," according to the press release.

Data by YCharts.

Now what

For the fourth quarter, management guided for revenue between $105 million and $115 million, representing a decline of about 14% to 6% year over year. It also expects an adjusted loss per share of $0.26 to $0.16, compared to an adjusted loss per share of $0.26 in the year-ago period.

Last quarter, Arlo sailed by Wall Street's bottom-line consensus estimate of an adjusted loss per share of $0.26 by turning in an adjusted loss per share of just $0.10. Investors are surely hoping for a repeat performance.

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Beth McKenna has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends Arlo Technologies. The Motley Fool has a disclosure policy.