ARC (Audio Return Channel) - The Audio Return Channel enables a TV, via a single HDMI cable, to send audio data “upstream” to an A/V receiver or surround audio controller, increasing user flexibility and eliminating the need for a separate S/PDIF audio connection.
ARC(Audio Return Channel) is a feature within the HDMI specification from version 1.4 and up. It enables your TV, with a single HDMI cable, to send an audio signal to your AVR or soundbar, getting rid of the need for a separate audio connection.
Caavo does not have any audio out ports, ARC or otherwise. You would connect Caavo to the TV via HDMI and then connect the TV to an AVR or sound bar via HDMI thru their respective HDMI ARC capable ports.