Latest news with #BrianMcGee
Yahoo
5 days ago
- Business
- Yahoo
GPRO Q1 Earnings Call: Revenue Miss and Strategic Focus on Product Roadmap, Supply Chain, and Cost Controls
Action camera company GoPro (NASDAQ:GPRO) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 13.6% year on year to $134.3 million. Its non-GAAP loss of $0.12 per share was in line with analysts' consensus estimates. Is now the time to buy GPRO? Find out in our full research report (it's free). Revenue: $134.3 million (13.6% year-on-year decline) Adjusted EPS: -$0.12 vs analyst estimates of -$0.12 (in line) Adjusted Operating Income: -$18.66 million vs analyst estimates of -$18.51 million (-13.9% margin, 0.8% miss) Operating Margin: -33.7%, down from -26.6% in the same quarter last year Cameras Sold: 385,000, down 8,000 year on year Market Capitalization: $104.8 million GoPro's first quarter results reflected ongoing challenges in core camera sales and regional demand, with management attributing performance to both competitive pressures and shifting consumer behavior, particularly in Asia. CEO Nicholas Woodman highlighted the launch of new hardware and software, such as the updated 360-degree camera app and a refreshed MAX camera, as steps aimed at revitalizing GoPro's position. CFO Brian McGee noted that sell-through was strongest in the U.S. market, while Asia-Pacific experienced notable declines due to macroeconomic factors and heightened local competition. Management also pointed to a one-time sale of slower-moving inventory, which affected gross margin but helped optimize working capital. The quarter saw continued improvement in subscription retention and operating expense reductions, as GoPro pursues a leaner operating model. Looking forward, GoPro's management is focused on regaining growth through new product launches, continued supply chain diversification, and operating expense discipline. The upcoming introduction of the MAX2 360-camera and expansion into tech-enabled motorcycle helmets, through a partnership with AGV, are central to GoPro's growth strategy. Management expects ongoing cost reductions and modest price increases to offset tariffs, with CFO Brian McGee stating tariff impacts on cameras are now minimal due to diversified production. Subscription revenue is projected to benefit from new features and higher retention, but management remains cautious about macroeconomic uncertainty and competitive threats, particularly in Asia. Woodman emphasized the importance of balancing innovation with financial discipline to restore profitability and drive long-term value. Management attributed quarterly results to operational streamlining, new product introductions, and ongoing supply chain diversification, while also highlighting regional demand headwinds and competitive dynamics, especially in Asian markets. Supply chain diversification progress: GoPro shifted camera manufacturing outside China, reducing exposure to import tariffs in the U.S. This transition, along with modest global price increases, is expected to largely offset remaining tariff-related costs on both cameras and accessories. Subscription business momentum: The GoPro subscription service continued to show high retention, with aggregate rates reaching a record 70%. Management attributed subscription ARPU (average revenue per user) growth to new features and improved user engagement, positioning subscriptions as a recurring revenue stream. New product launches and roadmap: Several new products debuted in the quarter, including a refreshed MAX camera, a limited-edition HERO13 Black, and an Anamorphic Lens Mod for cinematic video capture. Further, the launch of the MAX2 360-camera and tech-enabled motorcycle helmets are planned for later in the year. Operating expense reduction: Non-GAAP operating expenses declined significantly year-over-year, as restructuring efforts, lower headcount, and reduced marketing spend took effect. Management noted that cost control is expected to drive further margin improvement through 2025. Regional demand challenges: The Asia-Pacific region, especially China, Japan, and South Korea, experienced sharp declines in sell-through due to macroeconomic pressures, increased competition, and a growing trend toward local brands. The U.S. market performed comparatively better, though total units sold declined. GoPro's outlook is shaped by upcoming product launches, disciplined expense management, and ongoing efforts to adapt to macroeconomic and competitive pressures. Product pipeline as key growth lever: Management is counting on the introduction of the MAX2 360-camera and expansion into the motorcycle helmet market to expand GoPro's addressable market. The AGV partnership is intended to help GoPro establish a presence in the premium helmet segment. Margin expansion from cost actions: Continued reductions in operating expenses and improvements in supply chain efficiency are expected to support margin recovery. Management believes these actions, alongside modest price adjustments, will help offset tariff and input cost headwinds. Uncertainty in international markets: Macroeconomic weakness and intensified competition in Asia remain risks. Management acknowledged slower demand and highlighted that brand loyalty in China has shifted toward domestic offerings, which could limit near-term growth opportunity in the region. In the next few quarters, the StockStory team will watch (1) the launch and market reception of the MAX2 360-camera and progress on the AGV motorcycle helmet collaboration, (2) whether GoPro can sustain subscription growth and higher retention as new features roll out, and (3) the company's ability to further reduce operating expenses and improve margin resilience. Continued monitoring of Asian demand trends and effectiveness of supply chain adaptations will also be critical. GoPro currently trades at a forward P/E ratio of 10.2×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
South China Morning Post
03-06-2025
- Entertainment
- South China Morning Post
When Simple Minds first played US and why, for singer Jim Kerr, the band is ‘a crusade'
When the Scottish band Simple Minds made their live debut at the Satellite City club in Glasgow on January 17, 1978, it is fair to wonder just how big the four teenagers in the band dared to dream. 'That's a good question,' says singer Jim Kerr, who along with guitarist Charlie Burchill, are the only founding members of Simple Minds to have stayed in the band for the 47 years since that first gig. 'And it's one that we've been reflecting on a lot recently, because Charlie and I have just finished off a book on the history of the band.' At the time, Kerr and Burchill were both 18 and had been friends for a decade, Kerr says. 'By the time we became teenagers, with Brian (McGee, the original drummer), we were in the same class at school. That's when you start to identify your tribe, especially walking around with vinyl albums under your sleeve you find out, oh, these are the guys I've got something in common with,' he says on a recent call from Los Angeles, where Simple Minds were rehearsing for a US tour. Play Burchill had a guitar, McGee had a drum kit, and Kerr would have done anything to be involved with music or a band.
Yahoo
12-05-2025
- Business
- Yahoo
GoPro Announces First Quarter Results
Revenue of $134 million, at High-end of Guidance Subscription and Service Revenue Up 4% Year-over-Year to $27 million SAN MATEO, Calif., May 12, 2025 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) announced financial results for its first quarter ended March 31, 2025, and posted management commentary, including forward-looking guidance, in the investor relations section of its website at "Our Q1 results reflect our commitment to reducing operating expenses, down 26% year-over-year, improving subscription ARPU, up 5% year-over-year, and further diversifying our supply chain, all of which position us to navigate an evolving market landscape throughout 2025," said Brian McGee, GoPro's CFO and COO. "Our teams are excelling as a more efficient organization and we believe the new products we have planned for the balance of 2025 and 2026 set us up for a return to growth in revenue and profitability," said Nicholas Woodman, GoPro's founder and CEO. Q1 2025 Financial Results Revenue was $134 million, down 14% year-over-year. Sell-through was approximately 440,000 camera units, down 18% year-over-year. Subscription and service revenue increased 4% year-over-year to $27 million, primarily due to 5% ARPU growth from improving retention rates. GoPro subscriber count ended Q1 at 2.47 million, down 1% year-over-year. Revenue from the retail channel was $94 million, or 70% of total revenue and down 12% year-over-year. revenue, including subscription and service revenue, was $40 million, or 30% of total revenue and down 18% year-over-year. GAAP net loss was $47 million, or a $(0.30) loss per share, compared to a net loss of $339 million or $(2.24) loss per share, in the prior year period. The first quarter of 2024 net loss included the establishment of a valuation allowance of $295 million, or $(1.95) loss per share. Non-GAAP net loss was $19 million, or a $(0.12) loss per share, compared to non-GAAP net loss of $319 million, or $(2.11) per share, in the prior year period. The first quarter of 2024 net loss included the establishment of a valuation allowance of $295 million, or $(1.95) loss per share. GAAP and non-GAAP gross margin was 32.1% and 32.3%, respectively. This compares to GAAP and non-GAAP gross margin of 34.1% and 34.4%, respectively, in the prior year period. Adjusted EBITDA was negative $16 million compared to negative $29 million in the prior year period, a 46% improvement year-over-year. Recent Business Highlights In January 2025, GoPro introduced an upgrade for its $199 entry-level HERO camera that enables much wider, more immersive video with a new 4K 4:3 aspect ratio video setting and in-app SuperView Digital Lens option. In February 2025, GoPro released an updated 360 mobile editing experience in its Quik App, featuring several new, easy-to-use features that make 360 editing MAX footage easier, and introduced a refreshed MAX 360- camera. In March 2025, GoPro launched a Limited Edition Polar White colorway bringing a fresh new look to its flagship HERO13 Black camera. In March 2025, GoPro released its Anamorphic Lens Mod for HERO13 Black, offering creators and filmmakers a small, affordable camera system for capturing cinematic, Hollywood-like video. Our new Anamorphic Lens Mod joins our previously released Ultra Wide Lens Mod, Macro Lens Mod and auto-detect ND Filters, which significantly enhance HERO13 Black's versatility and performance. Results Summary:Three months ended March 31, ($ in thousands, except per share amounts) 20252024% Change Revenue $ 134,308$ 155,469(13.6) % Gross marginGAAP 32.1 %34.1 %(200) bps Non-GAAP 32.3 %34.4 %(210) bps Operating lossGAAP $ (45,208)$ (41,413)9.2 % Non-GAAP $ (18,660)$ (29,896)(37.6) % Net lossGAAP $ (46,709)$ (339,088)(86.2) % Non-GAAP (1) $ (19,444)$ (319,357)(93.9) % Diluted net loss per shareGAAP $ (0.30)$ (2.24)(86.6) % Non-GAAP (1) $ (0.12)$ (2.11)(94.3) % Adjusted EBITDA $ (15,707)$ (29,301)(46.4) % (1) In the second quarter of 2024, we revised the first quarter of 2024 income tax adjustment to exclude the establishment of a valuation allowance on United States federal and state deferred tax assets. Conference Call GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results. Prior to the start of the call, the Company will post Management Commentary on the "Events & Presentations" section of its investor relations website at Management will make brief opening comments before taking questions. To listen to the live conference call, please call +1 833-470-1428 (US) or +1 404-975-4839 (International) and enter access code 936610, approximately 15 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at A recording of the webcast will be available on GoPro's website, from approximately two hours after the call through August 10, 2025. About GoPro, Inc. (NASDAQ: GPRO) GoPro helps the world capture and share itself in immersive and exciting ways. GoPro has been recognized as an employer of choice by both Outside Magazine and U.S. News & World Report for being among the best places to work. Open roles can be found on our careers page. For more information, visit Connect with GoPro on Facebook, Instagram, LinkedIn, TikTok, X, YouTube, and GoPro's blog, The Current. GoPro customers can submit their photos and videos to GoPro Awards for an opportunity to be featured on GoPro's social channels and receive gear and cash awards. Members of the press can access official logos and imagery on our press portal. GoPro, HERO and their respective logos are trademarks or registered trademarks of GoPro, Inc. in the United States and other countries. GoPro's Use of Social Media GoPro announces material financial information using the Company's investor relations website, SEC filings, press releases, public conference calls and webcasts. GoPro may also use social media channels to communicate about the Company, its brand and other matters; these communications could be deemed material information. Investors and others are encouraged to review posts on Facebook, Instagram, LinkedIn, TikTok, X, YouTube, and GoPro's investor relations website and blog, The Current. Note Regarding Use of Non-GAAP Financial Measures GoPro reports gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss) and diluted net income (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis. Additionally, GoPro reports non-GAAP adjusted EBITDA. Non-GAAP items exclude, where applicable, the effects of stock-based compensation, acquisition-related costs, restructuring and other related costs, gain on insurance proceeds, (gain) loss on extinguishment of debt, gain on the sale and license of intellectual property, goodwill impairment charges, and the tax impact of these items. When planning, forecasting, and analyzing gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss) and net income (loss) per share for future periods, GoPro does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for reconciling items which are inherently difficult to predict with reasonable accuracy. A reconciliation of preliminary GAAP to non-GAAP measures has been provided in this press release, and investors are encouraged to review the reconciliation. Note on Forward-looking Statements This press release may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as "anticipate," "believe," "estimate," "expect," "intend," "should," "will," "plan" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements in this press release may include but are not limited to statements regarding our expectations for profitability, improved gross margin, revenue growth, subscription growth, and reduced operating expenses; product diversification, reduced product costs, supply chain diversification and the impact of tariffs on our business. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements include the inability to achieve our revenue growth or profitability in the future, and if revenue growth or profitability is achieved, the inability to sustain it; the fact that an economic downturn or economic uncertainty in our key U.S. and international markets, inflation, and fluctuations in interest rates or currency exchange rates may adversely affect consumer discretionary spending and demand for our products; changes to trade agreements, trade policies, tariffs and import/export regulations which may negatively effect on our business and supply chain expenses; the fact that our goal to grow revenue and be profitable relies upon our ability to manage expenses and grow sales from our direct-to-consumer business, our retail partners, and distributors; our ability to acquire and retain subscribers; our reliance on third-party suppliers, some of which are sole-source suppliers, to provide services and components for our products which may be impacted due to supply shortages, long lead times or other service disruptions that may lead to increased costs due to the effects of global conflicts and geopolitical issues such as the ongoing conflicts in the Middle East, Ukraine or China-Taiwan relations; our ability to maintain the value and reputation of our brand and protect our intellectual property and proprietary rights; the risk that our sales fall below our forecasts, especially during the holiday season; the risk we fail to manage our operating expenses effectively, which may result in our financial performance suffering; the fact that our profitability depends in part on further penetrating our total addressable market, and we may not be successful in doing so; the risk we are able to reduce our operating expenses; the fact that we rely on sales of our cameras, mounts and accessories for substantially all of our revenue, and any decrease in the sales or change in sales mix of these products could harm our business; the risk that we may not successfully manage product introductions, product transitions, product pricing and marketing; our ability to achieve or maintain profitability if there are delays or issues in our product launches; the fact that a small number of retailers and distributors account for a substantial portion of our revenue and our level of business with them could be significantly reduced; our ability to attract, engage and retain qualified personnel; the impact of competition on our market share, revenue and profitability; the fact that we may experience fluctuating revenue, expenses and profitability in the future; risks related to inventory, purchase commitments and long-lived assets; the risk that we will encounter problems with our distribution system; the threat of a security breach or other disruption including cyberattacks; the concern that our intellectual property and proprietary rights may not adequately protect our products and services; the outcome of pending or future litigation and legal proceedings; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2024, which is on file with the Securities and Exchange Commission (SEC). These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. GoPro disclaims any obligation to update these forward-looking statements. GoPro, Inc. Preliminary Condensed Consolidated Statements of Operations (unaudited) Three months ended March 31, (in thousands, except per share data) 20252024 Revenue $ 134,308$ 155,469 Cost of revenue 91,159102,431 Gross profit 43,14953,038 Operating expenses:Research and development 29,55744,612 Sales and marketing 23,25835,146 General and administrative 16,94214,693 Goodwill impairment 18,600— Total operating expenses 88,35794,451 Operating loss (45,208)(41,413) Other income (expense):Interest expense (797)(674) Other income, net 9481,208 Total other income, net 151534 Loss before income taxes (45,057)(40,879) Income tax expense 1,652298,209 Net loss $ (46,709)$ (339,088) Basic and diluted net loss per share $ (0.30)$ (2.24) Shares used to compute basic and diluted net loss per share 156,438151,091 GoPro, Inc. Preliminary Condensed Consolidated Balance Sheets (unaudited)(in thousands) March 31,2025December 31,2024 AssetsCurrent assets:Cash and cash equivalents $ 69,634$ 102,811 Accounts receivable, net 76,68785,944 Inventory 96,282120,716 Prepaid expenses and other current assets 36,24629,774 Total current assets 278,849339,245 Property and equipment, net 7,7598,696 Operating lease right-of-use assets 14,61814,403 Goodwill 133,751152,351 Other long-term assets 27,53328,983 Total assets $ 462,510$ 543,678 Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable $ 54,809$ 85,936 Accrued expenses and other current liabilities 78,471110,769 Short-term operating lease liabilities 11,23910,936 Deferred revenue 54,00955,418 Short-term debt 118,36393,208 Total current liabilities 316,891356,267 Long-term taxes payable 13,27011,621 Long-term operating lease liabilities 16,61418,067 Other long-term liabilities 5,7556,034 Total liabilities 352,530391,989 Stockholders' equity:Common stock and additional paid-in capital 1,031,5271,026,527 Treasury stock, at cost (193,231)(193,231) Accumulated deficit (728,316)(681,607) Total stockholders' equity 109,980151,689 Total liabilities and stockholders' equity $ 462,510$ 543,678 GoPro, Inc. Preliminary Condensed Consolidated Statements of Cash Flows (unaudited) Three months ended March 31, (in thousands) 20252024 Operating activities:Net loss $ (46,709)$ (339,088) Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization 1,7181,325 Non-cash operating lease cost (215)1,082 Stock-based compensation 5,3708,770 Goodwill impairment 18,600— Deferred income taxes, net 103296,775 Other 106651 Net changes in operating assets and liabilities (36,159)(67,918) Net cash used in operating activities (57,186)(98,403) Investing activities:Purchases of property and equipment, net (1,305)(964) Maturities of marketable securities —24,000 Acquisition, net of cash acquired —(12,308) Net cash provided by (used in) investing activities (1,305)10,728 Financing activities:Proceeds from issuance of common stock 3741,379 Taxes paid related to net share settlement of equity awards (503)(1,977) Proceeds from borrowings 25,000— Net cash provided by (used in) financing activities 24,871(598) Effect of exchange rate changes on cash and cash equivalents 443(777) Net change in cash and cash equivalents (33,177)(89,050) Cash and cash equivalents at beginning of period 102,811222,708 Cash and cash equivalents at end of period $ 69,634$ 133,658 GoPro, of Preliminary GAAP to Non-GAAP Financial Measures To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss), diluted net income (loss) per share and adjusted EBITDA. We also provide forecasts of non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income (expense), non-GAAP tax expense (benefit), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share. We use non-GAAP financial measures to help us understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short-term and long-term operational plans. Our management uses and believes that investors benefit from referring to these non-GAAP financial measures in assessing our operating results. These non-GAAP financial measures should not be considered in isolation from, or as an alternative to, the measures prepared in accordance with GAAP, and are not based on any comprehensive set of accounting rules or principles. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating: the comparability of our on-going operating results over the periods presented; the ability to identify trends in our underlying business; and the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures. These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Some of these limitations are: adjusted EBITDA does not reflect income tax expense (benefit), which may change cash available to us; adjusted EBITDA does not reflect interest income (expense), which may reduce cash available to us; adjusted EBITDA excludes depreciation and amortization and, although these are non-cash charges, the property and equipment being depreciated and amortized often will have to be replaced in the future, and adjusted EBITDA does not reflect any cash capital expenditure requirements for such replacements; adjusted EBITDA excludes the amortization of point of purchase (POP) display assets because it is a non-cash charge, and is treated similarly to depreciation of property and equipment and amortization of acquired intangible assets; adjusted EBITDA and non-GAAP net income (loss) exclude restructuring and other related costs which primarily include severance-related costs, stock-based compensation expenses, manufacturing consolidation charges, facilities consolidation charges recorded in connection with restructuring actions, including right-of-use asset impairment charges (if applicable), and the related ongoing operating lease cost of those facilities recorded under ASC 842, Leases. These expenses do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of current operating performance or comparisons to the operating performance in other periods; adjusted EBITDA and non-GAAP net income (loss) exclude stock-based compensation expense related to equity awards granted primarily to our workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These non-cash charges are not factored into our internal evaluation of non-GAAP net income (loss) as we believe their inclusion would hinder our ability to assess core operational performance; adjusted EBITDA and non-GAAP net income (loss) excludes a gain on insurance proceeds because it is not reflective of ongoing operating results in the period, and the frequency and amount of such gains vary; adjusted EBITDA and non-GAAP net income (loss) excludes any gain or loss on the extinguishment of debt because it is not reflective of ongoing operating results in the period, and the frequency and amount of such gains and losses vary; adjusted EBITDA and non-GAAP net income (loss) excludes goodwill impairment charges as they do not reflect ongoing operating results in the period and hinders our ability to assess core operational performance; non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party transaction costs incurred for legal and other professional services. These costs are not factored into our evaluation of potential acquisitions, or of our performance after completion of the acquisitions because these costs are not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such costs vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses being acquired. Although we exclude the amortization of acquired intangible assets from our non-GAAP net income (loss), management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and can contribute to revenue generation; non-GAAP net income (loss) excludes a gain on the sale and/or license of intellectual property. This gain is not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such gains are inconsistent; non-GAAP net income (loss) includes income tax adjustments which reflect the current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments. In the second quarter of 2024, we revised the first quarter of 2024 income tax adjustment to exclude the establishment of a valuation allowance on the United States federal and state deferred tax assets; GAAP and non-GAAP net income (loss) per share includes the dilutive, tax effected cash interest expense associated with our 2025 Notes in periods of net income, as if converted at the beginning of the period; and other companies may calculate these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures. GoPro, Inc. Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures (unaudited)Reconciliations of non-GAAP financial measures are set forth below: Three months ended March 31, (in thousands, except per share data) 20252024 GAAP net loss $ (46,709)$ (339,088) Stock-based compensation:Cost of revenue 248415 Research and development 2,8204,265 Sales and marketing 8821,744 General and administrative 1,4202,346 Total stock-based compensation 5,3708,770 Acquisition-related costs:Research and development 469156 General and administrative 3681 Total acquisition-related costs 472837 Restructuring and other costs:Cost of revenue (13)— Research and development 591866 Sales and marketing 385467 General and administrative 1,143577 Total restructuring and other costs 2,1061,910 Gain on insurance recovery (424)— Goodwill impairment 18,600— Income tax adjustments (1) 1,1418,214 Non-GAAP net loss $ (19,444)$ (319,357) GAAP and non-GAAP shares for diluted net loss per share 156,438151,091 GAAP diluted net loss per share $ (0.30)$ (2.24) Non-GAAP diluted net loss per share $ (0.12)$ (2.11) (1) In the second quarter of 2024, we revised the first quarter of 2024 income tax adjustment to exclude the establishment of a valuation allowance on United States federal and state deferred tax assets. Three months ended March 31, (dollars in thousands) 20252024 GAAP gross margin as a % of revenue 32.1 %34.1 % Stock-based compensation 0.20.3 Non-GAAP gross margin as a % of revenue 32.3 %34.4 % GAAP operating expenses $ 88,357$ 94,451 Stock-based compensation (5,122)(8,355) Acquisition-related costs (472)(837) Restructuring and other costs (2,119)(1,910) Goodwill impairment (18,600)— Non-GAAP operating expenses $ 62,044$ 83,349 GAAP operating loss $ (45,208)$ (41,413) Stock-based compensation 5,3708,770 Acquisition-related costs 472837 Restructuring and other costs 2,1061,910 Goodwill impairment 18,600— Non-GAAP operating loss $ (18,660)$ (29,896)Three months ended March 31, (in thousands) 20252024 GAAP net loss $ (46,709)$ (339,088) Income tax expense 1,652298,209 Interest expense (income), net 248(1,289) Depreciation and amortization 1,7181,325 POP display amortization 1,732862 Stock-based compensation 5,3708,770 Gain on insurance recovery (424)— Goodwill impairment 18,600— Restructuring and other costs 2,1061,910 Adjusted EBITDA $ (15,707)$ (29,301) View original content to download multimedia: SOURCE GoPro, Inc. 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Yahoo
07-02-2025
- Business
- Yahoo
GoPro Inc (GPRO) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic Growth ...
Revenue: $201 million for Q4 2024, in line with guidance. GAAP Net Loss Per Share: $0.24 for Q4 2024. Non-GAAP Net Loss Per Share: $0.09 for Q4 2024, exceeded guidance. Subscription and Service Revenue Growth: 9% year over year for Q4 2024. Aggregate Retention Rate: Reached a record 59% in Q4 2024. Camera Units Sold: Approximately 775,000 units in Q4 2024. Subscribers: Grew 1% year over year to 2.52 million in Q4 2024. Subscription Attach Rate: 34% in Q4 2024, up from 29% in Q4 2023. Average Selling Price (ASP): $346 in Q4 2024, compared to $330 in Q4 2023. Retail Revenue: $601 million for 2024, 75% of total revenue, down 15% year over year. Product Revenue: $94 million for 2024, 12% of total revenue, down 54% year over year. Operating Loss: $80 million for 2024, compared to $34 million in 2023. Sell-through Units: 2.5 million units for 2024, down 13% year over year. Gross Margin Improvement Expectation: More than 100 basis points in 2025 over 2024. Operating Expenses Reduction: Expected to be nearly 30% lower in 2025 compared to 2024. Cash Position: Expected to be approximately $80 million at the end of Q1 2025. Warning! GuruFocus has detected 4 Warning Signs with GPRO. Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GoPro Inc (NASDAQ:GPRO) reported Q4 results that were largely in line or slightly better than guidance. The company has successfully diversified its manufacturing and sourcing, mitigating the impact of US tariffs. Subscription and service revenue grew 9% year over year, with an 8% increase in ARPU. GoPro Inc (NASDAQ:GPRO) introduced new products, including the HERO13 Black and a tiny 4K camera, expanding its product portfolio. The company is focused on operational efficiencies, expecting to improve gross margin by more than 100 basis points in 2025. GoPro Inc (NASDAQ:GPRO) expects units and revenue to be lower in 2025 compared to 2024 due to macroeconomic headwinds and competition. The company reported a GAAP net loss per share of $0.24 for Q4 2024. Retail revenue was down 15% year over year, and product revenue decreased by 54%. Operating loss for the year was $80 million, compared to a $34 million loss in 2023. The delay of the new MAX 2 360 camera has impacted the company's revenue and unit sales projections. Q: Can you explain the expected decline in subscribers for 2025 despite strong renewal rates? A: Brian McGee, CFO and COO, explained that while units are expected to be down, the aggregate retention rate is improving, which results in better ARPU. This helps counterbalance the reduction in units, leading to an expected $105 million in revenue and approximately 2.4 million subscribers, down about 120,000 from the previous year. Q: Can you provide more concrete guidance on 2025 revenue expectations? A: Brian McGee stated that they will guide quarter to quarter due to various headwinds like consumer competition and FX impacts. While they expect revenue to be down, they are focusing on maintaining a good margin and cost reductions. They are not providing a precise top-line number for 2025 at this time. Q: Why reintroduce the MAX 1 camera, and will it be margin accretive? A: Nicholas Woodman, CEO, explained that the MAX 1 was reintroduced due to a delay in the MAX 2 launch and identified market demand. The refreshed product, along with enhanced software, will serve as an entry-level 360 product. Brian McGee added that it is margin accretive, contributing positively to their financial model. Q: Will the GP3-enabled camera be released this year? A: Nicholas Woodman stated that due to competitive reasons, they cannot disclose specific details about upcoming product releases, including the GP3-enabled camera. Q: What are the long-term growth prospects for GoPro's subscription service? A: Nicholas Woodman mentioned that while historically tied to hardware, they are exploring new software experiences to boost engagement and conversion rates. Brian McGee added that improving retention rates and ARPU are key drivers, and they expect subscription growth to resume in 2026 with new product launches. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
06-02-2025
- Business
- Yahoo
GoPro Announces Fourth Quarter and 2024 Results
2024 Revenue of $801 million Fourth Quarter Revenue of $201 million 2024 Subscription and Service Revenue of $107 million, Up 10% Year-over-Year SAN MATEO, Calif., Feb. 6, 2025 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) announced financial results for its fourth quarter and full year ended December 31, 2024, and posted management commentary, including forward-looking guidance, in the investor relations section of its website at "In 2024 we undertook several initiatives to put us back on a path to return to growth and profitability in 2026. This includes our plan to reduce operating expenses for 2025 by nearly 30% and refining our roadmap to pursue improved product diversification and how efficiently we design our products," said Nicholas Woodman, GoPro's founder and CEO. "Our continued focus to streamline our business has yielded reduced product costs and improved operational efficiencies as well as continued diversification of our supply chain outside of China, all of which has contributed to improving gross margin," said Brian McGee, GoPro's CFO and COO. Q4 2024 Financial Results Revenue was $201 million, down 32% year-over-year. Sell-through was approximately 775,000 camera units, down 16% year-over-year. Subscription and service revenue increased 9% year-over-year to $27 million, primarily due to 8% ARPU growth from improving retention rates. GoPro subscriber count ended Q4 at 2.52 million, up 1% year-over-year. Revenue from the retail channel was $150 million, or 74% of total revenue and down 34% year-over-year. revenue, including subscription and service revenue, was $51 million, or 26% of total revenue and down 24% year-over-year. GAAP net loss was $37 million, or a $(0.24) loss per share, compared to a net loss of $2 million or $(0.02) loss per share, in the prior year period. Non-GAAP net loss was $14 million, or a $(0.09) loss per share, compared to non-GAAP net income of $4 million, or $0.03 per share, in the prior year period. GAAP and non-GAAP gross margin was 34.7% and 35.1%, respectively. This compares to GAAP and non-GAAP gross margin of 34.2% and 34.4%, respectively, in the prior year period. Compared to guidance, gross margin was impacted by 80bps due to a stronger US dollar in the quarter. Adjusted EBITDA was negative $14 million compared to positive $3 million in the prior year period. Cameras with Manufacturer's Suggested Retail Prices (MSRP) at or above $400 represented 84% of Q4 2024 camera revenue. Q4 2024 Street ASP was $346, a 5% increase year-over-year. Cash and marketable securities were $103 million at the end of the fourth quarter. 2024 Financial Results Revenue was $801 million, down 20% year-over-year. Subscription and service revenue increased 10% year-over-year to $107 million. GAAP net loss was $432 million, or a $(2.82) loss per share, compared to a net loss of $53 million or $(0.35) loss per share, in the prior year period. Non-GAAP net loss was $370 million, or a $(2.42) loss per share, compared to non-GAAP net loss of $20 million, or $(0.13) loss per share, in the prior year period. GAAP and non-GAAP net loss per share for 2024 were impacted by the establishment of a $295 million valuation allowance on our U.S. deferred tax assets that was recorded in the first quarter of 2024. GAAP and non-GAAP gross margin was 33.8% and 34.1%, respectively. This compares to GAAP and non-GAAP gross margin of 32.2% and 32.4%, respectively, in the prior year period. 2024 Adjusted EBITDA was negative $72 million. This compares to negative $27 million in the prior year period. Results Summary: Three months ended December 31,Year ended December 31, ($ in thousands, except per share amounts)20242023% Change20242023% Change Revenue$ 200,882$ 295,420(32.0) %$ 801,473$ 1,005,459(20.3) % Gross margin GAAP34.7 %34.2 %50 bps33.8 %32.2 %160 bps Non-GAAP35.1 %34.4 %70 bps34.1 %32.4 %170 bps Operating income (loss) GAAP$ (39,100)$ (9,368)317.4 %$ (135,033)$ (75,463)78.9 % Non-GAAP$ (15,968)$ 2,033(885.4) %$ (80,327)$ (34,075)135.7 % Net income (loss) GAAP$ (37,191)$ (2,418)1,438.1 %$ (432,311)$ (53,183)712.9 % Non-GAAP (1)$ (14,418)$ 4,158(446.8) %$ (370,417)$ (20,259)1,728.4 % Diluted net income (loss) per share GAAP$ (0.24)$ (0.02)1,100.0 %$ (2.82)$ (0.35)705.7 % Non-GAAP (1)$ (0.09)$ 0.03(400.0) %$ (2.42)$ (0.13)1,761.5 % Adjusted EBITDA $ (14,359)$ 3,267(539.5) %$ (71,639)$ (27,317)162.3 % (1) In the first quarter of 2024, we revised the income tax adjustment to reflect current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments to better align with SEC guidance. For comparative purposes, we have revised our prior period income tax adjustments to reflect current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments. Additionally, in the second quarter of 2024, we revised the income tax adjustment for the first quarter of 2024 to exclude the establishment of a valuation allowance on United States federal and state deferred tax assets. Conference Call GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results. Prior to the start of the call, the Company will post Management Commentary on the "Events & Presentations" section of its investor relations website at Management will make brief opening comments before taking questions. To listen to the live conference call, please call +1 833-470-1428 (US) or +1 404-975-4839 (International) and enter access code 687084, approximately 15 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at A recording of the webcast will be available on GoPro's website, from approximately two hours after the call through May 7, 2025. About GoPro, Inc. (NASDAQ: GPRO) GoPro helps the world capture and share itself in immersive and exciting ways. GoPro has been recognized as an employer of choice by both Outside Magazine and U.S. News & World Report for being among the best places to work. Open roles can be found on our careers page. For more information, visit Connect with GoPro on Facebook, Instagram, LinkedIn, TikTok, X, YouTube, and GoPro's blog, The Current. GoPro customers can submit their photos and videos to GoPro Awards for an opportunity to be featured on GoPro's social channels and receive gear and cash awards. Members of the press can access official logos and imagery on our press portal. GoPro, HERO and their respective logos are trademarks or registered trademarks of GoPro, Inc. in the United States and other countries. GoPro's Use of Social Media GoPro announces material financial information using the Company's investor relations website, SEC filings, press releases, public conference calls and webcasts. GoPro may also use social media channels to communicate about the Company, its brand and other matters; these communications could be deemed material information. Investors and others are encouraged to review posts on Facebook, Instagram, LinkedIn, TikTok, X, YouTube, and GoPro's investor relations website and blog, The Current. Note Regarding Use of Non-GAAP Financial Measures GoPro reports gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss) and diluted net income (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis. Additionally, GoPro reports non-GAAP adjusted EBITDA. Non-GAAP items exclude, where applicable, the effects of stock-based compensation, acquisition-related costs, restructuring and other related costs, gain on insurance proceeds, (gain) loss on extinguishment of debt, gain on the sale and license of intellectual property, and the tax impact of these items. When planning, forecasting, and analyzing gross margin, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss) and net income (loss) per share for future periods, GoPro does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for reconciling items which are inherently difficult to predict with reasonable accuracy. A reconciliation of preliminary GAAP to non-GAAP measures has been provided in this press release, and investors are encouraged to review the reconciliation. GoPro also reports gross margin percentage on a constant currency basis to show performance unaffected by fluctuations in currency exchange rates. GoPro calculates constant currency amount by translating current period amounts at the prior period's average exchange rate and compare that to current period performance. Note on Forward-looking Statements This press release may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as "anticipate," "believe," "estimate," "expect," "intend," "should," "will," "plan" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements in this press release may include but are not limited to statements regarding our expectations for profitability, improved gross margin, revenue growth, subscription growth, and reduced operating expenses; product diversification, reduced product costs and improved supply chain efficiencies. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements include the inability to achieve our revenue growth or profitability in the future, and if revenue growth or profitability is achieved, the inability to sustain it; the fact that an economic downturn or economic uncertainty in our key U.S. and international markets, inflation, and fluctuations in interest rates or currency exchange rates may adversely affect consumer discretionary spending and demand for our products; changes to trade agreements, trade policies, tariffs and import/export regulations which may negatively effect on our business and supply chain expenses; the fact that our goal to grow revenue and be profitable relies upon our ability to manage expenses and grow sales from our direct-to-consumer business, our retail partners, and distributors; our ability to acquire and retain subscribers; our reliance on third-party suppliers, some of which are sole-source suppliers, to provide services and components for our products which may be impacted due to supply shortages, long lead times or other service disruptions that may lead to increased costs due to the effects of global conflicts and geopolitical issues such as the ongoing conflicts in the Middle East, Ukraine or China-Taiwan relations; our ability to maintain the value and reputation of our brand and protect our intellectual property and proprietary rights; the risk that our sales fall below our forecasts, especially during the holiday season; the risk we fail to manage our operating expenses effectively, which may result in our financial performance suffering; the fact that our profitability depends in part on further penetrating our total addressable market, and we may not be successful in doing so; the risk we are able to reduce our operating expenses; the fact that we rely on sales of our cameras, mounts and accessories for substantially all of our revenue, and any decrease in the sales or change in sales mix of these products could harm our business; the risk that we may not successfully manage product introductions, product transitions, product pricing and marketing; our ability to achieve or maintain profitability if there are delays or issues in our product launches; the fact that a small number of retailers and distributors account for a substantial portion of our revenue and our level of business with them could be significantly reduced; our ability to attract, engage and retain qualified personnel; any changes to trade agreements, trade policies, tariffs, and import/export regulations; the impact of competition on our market share, revenue and profitability; the fact that we may experience fluctuating revenue, expenses and profitability in the future; risks related to inventory, purchase commitments and long-lived assets; the risk that we will encounter problems with our distribution system; the threat of a security breach or other disruption including cyberattacks; the concern that our intellectual property and proprietary rights may not adequately protect our products and services; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2023, which is on file with the Securities and Exchange Commission (SEC). These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. GoPro disclaims any obligation to update these forward-looking statements. GoPro, Inc. Preliminary Condensed Consolidated Statements of Operations (unaudited) Three months ended December 31,Year ended December 31, (in thousands, except per share data) 2024202320242023 Revenue $ 200,882$ 295,420$ 801,473$ 1,005,459 Cost of revenue 131,181194,325530,178681,886 Gross profit 69,701101,095271,295323,573 Operating expenses:Research and development 50,02543,892185,897165,688 Sales and marketing 43,45050,363160,635169,578 General and administrative 15,32616,20859,79663,770 Total operating expenses 108,801110,463406,328399,036 Operating loss (39,100)(9,368)(135,033)(75,463) Other income (expense):Interest expense (1,057)(1,236)(3,329)(4,699) Other income, net 5635,1985,27312,429 Total other income (expense), net (494)3,9621,9447,730 Loss before income taxes (39,594)(5,406)(133,089)(67,733) Income tax expense (benefit) (2,403)(2,988)299,222(14,550) Net loss $ (37,191)$ (2,418)$ (432,311)$ (53,183) Basic and diluted net loss per share $ (0.24)$ (0.02)$ (2.82)$ (0.35) Shares used to compute basic and diluted net loss per share 155,091151,078153,113153,348 GoPro, Inc. Preliminary Condensed Consolidated Balance Sheets (unaudited)(in thousands) December 31,2024December 31,2023 AssetsCurrent assets:Cash and cash equivalents $ 102,811$ 222,708 Marketable securities —23,867 Accounts receivable, net 85,94491,452 Inventory 120,716106,266 Prepaid expenses and other current assets 29,77438,298 Total current assets 339,245482,591 Property and equipment, net 8,6968,686 Operating lease right-of-use assets 14,40318,729 Goodwill 152,351146,459 Other long-term assets 28,983311,486 Total assets $ 543,678$ 967,951 Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable $ 85,936$ 102,612 Accrued expenses and other current liabilities 110,769110,049 Short-term operating lease liabilities 10,93610,520 Deferred revenue 55,41855,913 Short-term debt 93,208— Total current liabilities 356,267279,094 Long-term taxes payable 11,62111,199 Long-term debt —92,615 Long-term operating lease liabilities 18,06725,527 Other long-term liabilities 6,0343,670 Total liabilities 391,989412,105 Stockholders' equity:Common stock and additional paid-in capital 1,026,527998,373 Treasury stock, at cost (193,231)(193,231) Accumulated deficit (681,607)(249,296) Total stockholders' equity 151,689555,846 Total liabilities and stockholders' equity $ 543,678$ 967,951 GoPro, Inc. Preliminary Condensed Consolidated Statements of Cash Flows (unaudited) Three months ended December 31,Year ended December 31, (in thousands) 2024202320242023 Operating activities:Net loss $ (37,191)$ (2,418)$ (432,311)$ (53,183) Adjustments to reconcile net loss to net cash provided by (used in) operating activities:Depreciation and amortization 1,7801,1596,4916,160 Non-cash operating lease cost 1,3359571,0503,090 Stock-based compensation 5,19910,03129,13241,479 Deferred income taxes, net 1273296,771(17,891) Impairment of right-of-use assets ——3,276— Gain on extinguishment of debt —(3,092)—(3,092) Other 1,088(632)461(2,600) Net changes in operating assets and liabilities 2,67837,651(30,011)(6,826) Net cash provided by (used in) operating activities (25,099)43,729(125,141)(32,863) Investing activities:Purchases of property and equipment, net (416)(535)(4,039)(1,520) Purchases of marketable securities ———(25,782) Maturities of marketable securities —15,00024,000149,204 Acquisition, net of cash acquired ——(12,308)— Net cash provided by (used in) investing activities (416)14,4657,653121,902 Financing activities:Proceeds from issuance of common stock ——2,1503,876 Taxes paid related to net share settlement of equity awards (232)(862)(3,079)(8,008) Repurchase of outstanding common stock —(10,000)—(40,000) Payment to partially repurchase 2025 convertible senior notes —(46,250)—(46,250) Net cash used in financing activities (232)(57,112)(929)(90,382) Effect of exchange rate changes on cash and cash equivalents (1,637)642(1,480)316 Net change in cash and cash equivalents (27,384)1,724(119,897)(1,027) Cash and cash equivalents at beginning of period 130,195220,984222,708223,735 Cash and cash equivalents at end of period $ 102,811$ 222,708$ 102,811$ 222,708 GoPro, of Preliminary GAAP to Non-GAAP Financial Measures To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss), diluted net income (loss) per share and adjusted EBITDA. Additionally, we present gross profit percentage on a constant currency basis to show performance unaffected by fluctuations in currency exchange rates. We calculate constant currency amounts by translating current period amounts at the prior period's average exchange rate and compare that to current period performance. We also provide forecasts of non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income (expense), non-GAAP tax expense (benefit), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share. We use non-GAAP financial measures to help us understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short-term and long-term operational plans. Our management uses and believes that investors benefit from referring to these non-GAAP financial measures in assessing our operating results. These non-GAAP financial measures should not be considered in isolation from, or as an alternative to, the measures prepared in accordance with GAAP, and are not based on any comprehensive set of accounting rules or principles. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating: the comparability of our on-going operating results over the periods presented; the ability to identify trends in our underlying business; and the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures. These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Some of these limitations are: adjusted EBITDA does not reflect income tax expense (benefit), which may change cash available to us; adjusted EBITDA does not reflect interest income (expense), which may reduce cash available to us; adjusted EBITDA excludes depreciation and amortization and, although these are non-cash charges, the property and equipment being depreciated and amortized often will have to be replaced in the future, and adjusted EBITDA does not reflect any cash capital expenditure requirements for such replacements; adjusted EBITDA excludes the amortization of point of purchase (POP) display assets because it is a non-cash charge, and is treated similarly to depreciation of property and equipment and amortization of acquired intangible assets; adjusted EBITDA and non-GAAP net income (loss) exclude restructuring and other related costs which primarily include severance-related costs, stock-based compensation expenses, manufacturing consolidation charges, facilities consolidation charges recorded in connection with restructuring actions, including right-of-use asset impairment charges (if applicable), and the related ongoing operating lease cost of those facilities recorded under ASC 842, Leases. These expenses do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of current operating performance or comparisons to the operating performance in other periods; adjusted EBITDA and non-GAAP net income (loss) exclude stock-based compensation expense related to equity awards granted primarily to our workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These non-cash charges are not factored into our internal evaluation of non-GAAP net income (loss) as we believe their inclusion would hinder our ability to assess core operational performance; adjusted EBITDA and non-GAAP net income (loss) excludes a gain on insurance proceeds because it is not reflective of ongoing operating results in the period, and the frequency and amount of such gains vary; adjusted EBITDA and non-GAAP net income (loss) excludes any gain or loss on the extinguishment of debt because it is not reflective of ongoing operating results in the period, and the frequency and amount of such gains and losses vary; non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party transaction costs incurred for legal and other professional services. These costs are not factored into our evaluation of potential acquisitions, or of our performance after completion of the acquisitions because these costs are not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such costs vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses being acquired. Although we exclude the amortization of acquired intangible assets from our non-GAAP net income (loss), management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and can contribute to revenue generation; non-GAAP net income (loss) excludes a gain on the sale and/or license of intellectual property. This gain is not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such gains are inconsistent; non-GAAP net income (loss) includes income tax adjustments. In the first quarter of 2024, we revised our income tax adjustments to reflect the current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments to better align with SEC guidance. For comparative purposes, we have revised the prior year income tax adjustments to reflect current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments. Additionally, in the second quarter of 2024, we revised the first quarter of 2024 income tax adjustment to exclude the establishment of a valuation allowance on the United States federal and state deferred tax assets; GAAP and non-GAAP net income (loss) per share includes the dilutive, tax effected cash interest expense associated with our 2025 Notes in periods of net income, as if converted at the beginning of the period; and other companies may calculate these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures. GoPro, Inc. Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures (unaudited)Reconciliations of non-GAAP financial measures are set forth below: Three months ended December 31,Year ended December 31, (in thousands, except per share data) 2024202320242023 GAAP net loss $ (37,191)$ (2,418)$ (432,311)$ (53,183) Stock-based compensation:Cost of revenue 2404591,3431,955 Research and development 2,4614,68114,41119,062 Sales and marketing 9122,0745,8048,736 General and administrative 1,5862,8177,57411,726 Total stock-based compensation 5,19910,03129,13241,479 Acquisition-related costs:Research and development 469—1,563— General and administrative (7)822789822 Total acquisition-related costs 4628222,352822 Restructuring and other costs:Cost of revenue 56275699(173) Research and development 13,01348815,954(189) Sales and marketing 3,352264,964(330) General and administrative 544(41)1,605(221) Total restructuring and other costs 17,47154823,222(913) Gain on insurance recovery (1,130)—(1,130)— Gain on extinguishment of debt —(3,092)—(3,092) Gain on sale and/or license of intellectual property ——(999)— Income tax adjustments (1) 771(1,733)9,317(5,372) Non-GAAP net income (loss) $ (14,418)$ 4,158$ (370,417)$ (20,259) Non-GAAP net income (loss) - basic $ (14,418)$ 4,158$ (370,417)$ (20,259) Add: Interest on convertible notes, tax effected —499—— Non-GAAP net income (loss) - diluted $ (14,418)$ 4,657$ (370,417)$ (20,259) GAAP shares for diluted net loss per share 155,091151,078153,113153,348 Add: Effect of non-GAAP dilutive securities —13,541—— Non-GAAP shares for diluted net income (loss) per share 155,091164,619153,113153,348 GAAP diluted net loss per share $ (0.24)$ (0.02)$ (2.82)$ (0.35) Non-GAAP diluted net income (loss) per share $ (0.09)$ 0.03$ (2.42)$ (0.13) (1) In the first quarter of 2024, we revised the income tax adjustment to reflect current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments to better align with SEC guidance. For comparative purposes, we have revised our prior period income tax adjustments to reflect current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments. Additionally, in the second quarter of 2024, we revised the first quarter of 2024 income tax adjustment to exclude the establishment of a valuation allowance on United States federal and state deferred tax assets. Three months ended December 31,Year ended December 31, (dollars in thousands) 2024202320242023 GAAP gross margin as a % of revenue 34.7 %34.2 %33.8 %32.2 % Stock-based compensation 0.10.20.20.2 Restructuring and other costs 0.3—0.1— Non-GAAP gross margin as a % of revenue 35.1 %34.4 %34.1 %32.4 % GAAP operating expenses $ 108,801$ 110,463$ 406,328$ 399,036 Stock-based compensation (4,959)(9,572)(27,789)(39,524) Acquisition-related costs (462)(822)(2,352)(822) Restructuring and other costs (16,909)(473)(22,523)740 Non-GAAP operating expenses $ 86,471$ 99,596$ 353,664$ 359,430 GAAP operating loss $ (39,100)$ (9,368)$ (135,033)$ (75,463) Stock-based compensation 5,19910,03129,13241,479 Acquisition-related costs 4628222,352822 Restructuring and other costs 17,47154823,222(913) Non-GAAP operating income (loss) $ (15,968)$ 2,033$ (80,327)$ (34,075) Three months ended December 31,Year ended December 31, (in thousands) 2024202320242023 GAAP net loss $ (37,191)$ (2,418)$ (432,311)$ (53,183) Income tax expense (benefit) (2,403)(2,988)299,222(14,550) Interest expense (income), net 279(707)(1,388)(5,233) Depreciation and amortization 1,7811,1596,4916,160 POP display amortization 1,6357345,1232,015 Stock-based compensation 5,19910,03129,13241,479 Gain on insurance recovery (1,130)—(1,130)— Gain on extinguishment of debt —(3,092)—(3,092) Restructuring and other costs 17,47154823,222(913) Adjusted EBITDA $ (14,359)$ 3,267$ (71,639)$ (27,317) View original content to download multimedia: SOURCE GoPro, Inc.
