Latest news with #NicholasWoodman
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.
Yahoo
13-05-2025
- Business
- Yahoo
Q1 2025 GoPro Inc Earnings Call
Robin Stoecker; Director of Corporate Communications; GoPro Inc Nicholas Woodman; Chairman of the Board, Chief Executive Officer; GoPro Inc Brian McGee; Chief Financial Officer, Chief Operating Officer, Executive Vice President; GoPro Inc Erik Woodring; Analyst; Morgan Stanley Alicia Reese; Analyst; Wedbush Securities Inc. Operator Good afternoon. Thank you for attending the GoPro first-quarter 2025 earnings call. My name is Cameron, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. (Operator Instructions) And I would now like to pass the conference over to your host, Robin Stoecker, Director of Corporate Communications at GoPro. You may proceed. Robin Stoecker Thank you, Cam. Good afternoon, and welcome to GoPro's first-quarter 2025 earnings conference call. With me today are GoPro's CEO, Nicholas Woodman, and CFO and COO, Brian McGee. Today's agenda will include brief commentary from Nick and Brian, followed by Q&A. For detailed information about our first quarter 2025 performance as well as outlook, please read our Q1 earnings press release and management commentary we posted to the Investor Relations section of GoPro's website. Before I pass the call to Nick, I'd like to remind everybody that our remarks today may include forward-looking statements. Following this brief introduction is management commentary from GoPro CEO, Nicholas Woodman, and CFO and COO, Brian McGee. This commentary may include forward-looking statements. Forward-looking statements and all other statements that are not historical facts are not guarantees of future performance and are subject to a number of risks and uncertainties, which may cause actual results to differ materially. Additionally, any forward-looking statements made today are based on assumptions as of today. This means that results could change at any time, and we do not undertake any obligation to update these statements as a result of new information or future events. To better understand the risks and uncertainties that could cause actual results to differ from our commentary, we refer you to our most recent annual report on Form 10-K for the year ended December 31, 2024, which is on file with the Securities and Exchange Commission, and other reports that we may file from time to time with the SEC. Today, we may discuss gross margin, operating expense, net profit and loss, adjusted EBITDA, as well as basic and diluted net profit and loss per share in accordance with GAAP and on a non-GAAP basis. A reconciliation of GAAP to non-GAAP operating expenses can be found in the press release that was issued this afternoon, which is posted on the Investor Relations section of our website. Unless otherwise noted, all income statement related numbers that are discussed in the management commentary, other than revenue, are non-GAAP. Now, I'll turn the call over to GoPro's Founder and CEO, Nicholas Woodman. Nicholas Woodman Thanks, Robin, and thanks, everybody, for joining us today. As Robin mentioned, Brian and I will share brief remarks before going into Q&A. And I want to encourage everyone to read the detailed management commentary we posted on our Investor Relations website. In the first quarter, we hit our marks for revenue, launched new hardware and software products, and are on track to launch exciting new products later this year. Our focus for the balance of 2025 and into 2026 is to continue making strategic investments in product innovation to return GoPro to growth, vigorously protecting our IP, and further diversifying our supply chain, including exploring domestic production for some products. During the first quarter, we launched several new hardware and software products, including our updated 360-degree camera app experience, and we introduced a refreshed MAX camera, positioning us to recapture share in the 360 market and setting the stage for the launch of MAX2 later this year. We also released a Limited Edition Polar White colorway of HERO13 Black, bringing a fresh new look to our flagship camera. And we recently released the highly anticipated Anamorphic Lens Mod for HERO13 Black, offering creators and professional filmmakers a cost-effective solution for capturing stunning cinematic video. Our new Anamorphic Lens Mod joins our previously released Ultra Wide Lens Mod, Macro Lens Mod and auto-detectable ND Filters, which significantly enhance HERO13 Black's versatility and performance. The GoPro subscription continues to be a highlight, with strong aggregate retention numbers above 67% over the past six quarters. ARPU improved 5% year-over-year and aggregate subscription retention in Q1 set a record at 70%, up from 69% both sequentially and year-over-year. We expect subscriber and revenue growth to resume in tandem with a return to camera unit growth in 2026, and as we add new editing and content management features that help subscribers get more out of their GoPro content. Our patent portfolio protects our IP, and we are committed to taking action to protect these assets when necessary. GoPro welcomes fair competition, but we will litigate to protect our IP when we believe it is being infringed. In January 2025, the US International Trade Commission held a five-day trial regarding a complaint we filed against one of our competitors with the goal to enforce certain GoPro patents related to our cameras and digital imaging technology. We look forward to the ITC's ruling, which is now expected in July of this year. This quarter, we continued to diversify our supply chain to position GoPro as favorably as possible amidst highly variable tariffs, and we expect to offset tariff costs with modest price increases, continued supply chain diversification outside of China, and potentially with the production of certain products in the United States. We are continuously assessing the evolving international trade situation to mitigate the impact of tariffs on our business. We are pleased to report that the OpEx reduction work we began in 2024 is largely behind us and is starting to yield improvements in our operating model. Operating expenses were down 26% to $62 million from $83 million in Q1 2024. Next, we are excited to provide an update on our tech-enabled motorcycle helmet initiative. As we shared in 2024, when we acquired Forcite Helmet Systems, GoPro plans to launch tech-enabled motorcycle helmets, which we believe will help us grow a meaningful business with a SAM of approximately $3 billion. To help us realize this opportunity, we recently kicked off a joint development partnership with AGV, a leading premium Italian motorcycle helmet brand known for legendary performance, styling and safety. This partnership between GoPro and AGV represents the exciting potential of two powerhouse brands coming together to bring meaningful innovation, improved safety and performance to the world of motorcycling, leveraging each other's design, engineering and brand strengths. We look forward to sharing updates as we move closer towards launching our first product together. Overall, GoPro's performance in Q1 and our outlook for Q2 demonstrate our progress in operating as a leaner, more efficient organization, which is beginning to positively impact our financial results. And we continue to advance our mission to deliver innovative and differentiated products to our existing markets, as well as new adjacent markets, in order to expand our TAM and drive growth in revenue and profitability. Our product roadmap is on track, and we believe that consumers will be very excited about the innovation we intend to bring to market in 2025 and 2026. Now, I'll turn the call over to Brain. Brian McGee Thanks, Nick. We exceeded our expectations in the first quarter on revenue, earnings, sell-through, operating expenses and inventory targets, all while reaching a new high in aggregate retention for subscribers. In addition, we relaunched our MAX 360-camera and delivered a new colorway for our flagship camera during the quarter, and we are on track to launch our next 360-camera this year. First quarter revenue was $134 million, which was at the high-end of our guidance of $125 million due to stronger sell-through in the quarter. Subscription and service revenue grew 4% year-over-year, primarily from 5% ARPU growth as a result of continued improving aggregate retention rates, which reached a record 70%. Q1 2025 non-GAAP operating expenses of $62 million decreased 26% year-over-year. We continue to have a strong focus on operating expense controls while retaining investments in our product roadmap. Notable first quarter performance highlights include: Revenue from our retail channel was $94 million or 70% of Q1 2025 revenue, compared to 68% of Q1 2024 revenue. Growth in our retail channel mix was primarily driven by sales to our big box from our channel, which includes subscription and service revenue, was $40 million or 30% of Q1 2025 revenue, compared to 32% of Q1 2024 revenue. Subscription and service revenue grew 4% year-over-year to $27 million, primarily from 5% ARPU growth as a result of improving aggregate retention rates, as well as improvements -- to a record 70%. Subscription attach rate from cameras sold across all channels was 49%, compared to 48% in Q1 '24. Non-GAAP operating expenses were $62 million, compared to $83 million in the prior-year period. GAAP and non-GAAP loss per share was $0.30 and $0.12, respectively. Adjusted EBITDA loss was reduced by nearly 50% year-over-year to negative $16 million. We ended the quarter with inventory of $96 million, a 27% decrease year-over-year, and reflecting the first Q1 sequential decline in inventory since 2018. Sell-through was approximately 440,000 units, compared to 530,000 units in the prior-year period. This was due to unit sell-through decreases in Asia-Pacific, which were primarily driven by consumer-related macroeconomic issues and competition across the region, most notably in China, Japan and South Korea. Channel inventory decreased sequentially by approximately 40,000 units. During the quarter, we took the opportunity to sell out of a slower moving product and convert that inventory into cash more quickly, impacting gross margin. Excluding this $5 million one-time sale, gross margin would have been 35.5%, in-line with guidance and above Q1 2024 of 34.4%. Reported gross margin was 32.3% in the first quarter of 2025. First quarter operating expenses decreased 26% year-over-year to $62 million. The decrease was primarily due to restructuring actions resulting in reduced employee-related costs, a reduction in marketing and advertising related activities, and the completion of our newest system-on-chip, GP3, as well as a strong focus on expense management while retaining our product roadmap, partially offset by legal costs to defend our IP. Turning to the balance sheet, we ended the first quarter of 2025 with $70 million in cash, cash equivalents and marketable securities, which included a $25 million draw on our ABL. Excluding the $25 million draw, cash would have been down $58 million sequentially, compared to our cash usage of $89 million in the first quarter of 2024. Cash used in the first quarter of 2025 was primarily due to adjusted EBITDA of negative $16 million and working capital changes of $36 million. Sequential working capital changes were primarily due to a $63 million decrease in accounts payable and other liabilities, and a $5 million increase in prepaid expenses and other assets, partially offset by a $24 million decrease in inventory and a $9 million decrease in accounts receivable. In the second quarter of 2025, we plan to repay the $25 million ABL draw. Headcount ended at 659 full-time employees, down 30% from the prior year of 937. Turning to our outlook. For the second quarter, we expect revenue to be $145 million at the mid-point of guidance, non-GAAP loss per share of $0.07, and a nearly $30 million improvement in adjusted EBITDA year-over-year. All of these improvements are due to the actions we took in 2024 to reduce operating expenses, diversify our supply chain and drive product cost reductions. Additionally, we are focused on further operational efficiencies to drive down costs and expand our supply chain outside of China. At current tariff rates, we expect the tariff impact in 2025 will be approximately $8 million on our cameras, which is expected to be fully offset by modest product price moves of less than 5% globally. This expected $8 million impact for 2025 is further mitigated by the fact that we are still selling through inventory that entered the United States before April. And we continue to actively manage the balance sheet and expect to further reduce inventory sequentially by $20 million to approximately $75 million and increase cash net of debt by $25 million sequentially as we operate working capital more efficiently. For the second quarter of 2025, we expect to deliver revenue of $145 million, plus or minus $10 million, down 22% year-over-year. We estimate Street ASP in the second quarter to be approximately $370, up nearly 15% year-over-year. We expect unit sell-through to be down 20% on a year-over-year basis to approximately 500,000 units and channel inventory to reduce by approximately 60,000 units sequentially. We expect gross margin in the second quarter to be 35.5% at the mid-point of guidance, up nearly 500 basis points versus the prior-year quarter. We expect second quarter of 2025 operating expenses to be $60 million, plus or minus $1 million, a 36% reduction from the prior-year quarter due to lower spending on wages from lower headcount, reduced marketing and lower non-recurring engineering expenses related to the completion of GP3. We expect non-GAAP loss per share in the second quarter of $0.07 at the midpoint of guidance and expect shares outstanding to be approximately [$57 million]. Turning to the balance sheet, we expect cash net of debt to improve $25 million in the second quarter. Looking at 2025 commentary, overall, we expect units and revenue in '25 to be lower than 2024, primarily driven by an uncertain macro environment, competition and the delay of our new 360-camera, partially offset by FX due to a weaker US dollar. To provide some color on expectations for the balance of 2025, we expect to introduce MAX2 360-camera in 2025. We expect our full-year 2025 operating expenses to improve further to a range of $240 million to $250 million, down more than $100 million or 30% year-over-year. We expect to offset tariff costs with modest price increases, continued supply chain diversification outside of China and potentially produce certain products in the US.. We expect subscription ARPU growth, subscription cost improvements and to end the year with 2.4 million subscribers. We now expect to end 2025 with $75 million in cash, with no debt and a $50 million available ABL facility. This improvement from our last report is driven by continued reductions in operating expenses and improvements in FX from a weaker US dollar. The initiatives we undertook in 2024 to reduce operating expenses and improve gross margins are bearing fruit. We are focused on launching new products while preserving cash to repay our debt in 2025 and launching a significant number of new products in 2025 and 2026 to restore growth and profitability to our business. Operator, with that, we are ready to take questions. Operator (Operator Instructions) Erik Woodring, Morgan Stanley. Erik Woodring Hey, good afternoon, guys. Thank you for taking my questions. I have two. Brian, I guess maybe I'll start with you. Just can you maybe help us understand the sources of stronger sell-through in the quarter? I guess, my question is, do you have any triangulation data or can you look at any kind of linearity data or even channel feedback to help determine how much that stronger sell-through was pull-forward ahead of potential pricing increases, how much was real demand, and how much is factored -- how much of that type of behavior is factored into 2Q at all? And then, I have a quick follow-up, please. Brian McGee Sure. I don't think we saw any pull-forward demand in the quarter. It was pretty linear throughout. So our sales came later in the quarter as sell-through did well and our sales ended up coming in more back-end loaded, which is why DSO was a bit higher. So we didn't see that happen in the quarter. Erik Woodring Okay. Super helpful. And then, and I might just be reading this wrong, but I think your sell-through in the United States was down 10% year-over-year, but sell-in was up 7% year-over-year. Obviously, you reduced overall channel inventory, but can you just maybe help us understand exactly what happened kind of that gap in 1Q and then extend that conversation to Asia, just revenue down over 50% year-over-year. Just kind of help us contextualize, is that mostly competition or are there other factors there? Thanks so much. Brian McGee Yeah. In my prepared remarks, we talked about Asia being down 54% and that was mostly macro as well as competition. We saw, from a country perspective, we were down in China, Japan and South Korea, where the most impacted countries in the Asia Pacific region. The US had the best sell-through. It was down the least, as we reported. And some of the sell-in was due to -- in the quarter, we had that one-time $5 million sale of products in the quarter. So we took out some inventory to convert it to cash. And so, that would be the kind of delta there. That's expected to sell-through pretty quickly, clearly, at pretty favorable price points. Erik Woodring Okay. Super. Thank you for that color, Brain. Brian McGee We have no more inventory to do that with, and that's partly why our margins are up sequentially to 35.5%, right, so we're selling mostly from 13 and 12. Erik Woodring Okay. Thank you so much, Brian. Operator Alicia Reese, Wedbush Securities. Alicia Reese Thank you for taking my question. So I'm wondering if you could dig in a little bit on the tariff situation. Obviously, some of the quarter, we'll get the 145% tariffs from China, but obviously the rest of the quarter, hopefully, into the following quarter, we'll have 30% or thereabouts. I'm just wondering how much of your inventory headed to the US is coming from China, how much you're able to diversify in the quarter, and how much price elasticity there is on the products you have out right now. Brian McGee Yeah, good question. On the tariff front, actually the amount on cameras into the US is zero, because we've diversified all of our camera production outside of China. And what comes from the US is manufactured in Thailand, so that's about a 10% tariff rate versus about 150% tariff rate just prior to today. Accessories would have a little bit of tariff, but with the reduction in rates today, that goes to only a couple of million in a quarter. And those would be offset by small price increases. And the elasticity around that, we're not moving prices very much. We only have to move 3% or 4% globally to offset the cost of the tariff, which we will do. So we find ourselves in a pretty good position from a supply chain perspective, from a camera production into the United States and we use China for the rest -- balance of the rest of the world for capacity. And tariffs should be -- we'll continue to migrate accessories out of China into mostly Vietnam. So we've done a pretty good job insulating ourselves on the tariff front. Alicia Reese And I have a couple more questions, if I may. I was wondering if you could talk a little bit more about what's going -- what are the dynamics happening currently in Asia over the past couple of quarters. It's been pretty weak. So just wondering if you could highlight that and what the difference was in the Americas in the quarter. Brian McGee Yeah. In Asia, China has been the biggest impact, and there's been more of a, I'll call it, nationalistic trend to buy more local. We've seen that across a number of brands, not just our own. And there's definitely more competition that's happening in China and macroeconomic issues that are happening, particularly in, as I mentioned, China, but also Japan and South Korea. And the US started to shore up in a much better way in the last quarter, and our expectation is that it'll continue in Q2. So that's kind of the moving parts geographically. Alicia Reese Fair enough. And lastly, I was wondering if you had any plans to do, like, a reverse stock split or anything of that nature to change the stock price from here. Brian McGee Well, hopefully, our performance that we continue to hit our numbers and drive top-line growth with new products, margins continue to improve year-over-year, OpEx is down, and making more money and driving more cash flow would help move the stock up as well. Alicia Reese Understood. Thanks so much for the time. Brian McGee Thank you. Operator There are no additional questions waiting at this time. I would now like to pass the conference back over to the management team for any closing remarks. Nicholas Woodman Thank you, operator, and thank you everybody for joining today's call. With our leaner operating model and exciting new products, we have planned to balance 2025 and 2026. We believe we are well-positioned to match the financial strength of GoPro to that of our incredible brand. We're very much looking forward to realizing this on behalf of our customers, our employees and our investors. Thank you, everyone. This is team GoPro signing off. Operator That concludes today's call. Thank you for your participation and enjoy the rest of your day. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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
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.
