GoPro Announces Second Quarter Results
Revenue of
Subscription and Service Revenue was
SAN MATEO, Calif.,
"In Q2, revenue of
"Our rollout of new products starts next month with the launch of our new, significantly enhanced flagship camera, HERO13 Black, along with our new
Q2 2024 Financial Results
- Revenue was
$186 million , down 23% year-over-year. - Subscription and service revenue increased 8% year-over-year to
$26 million , primarily due to improving retention rates that resulted in 4% ARPU growth. GoPro subscriber count ended Q2 at 2.53 million, up 4% year-over-year. - Revenue from the retail channel was
$137 million , or 74% of total revenue and down 17% year-over-year. GoPro.com revenue, including subscription and service revenue, was$49 million , or 26% of total revenue and down 35% year-over-year. - GAAP net loss was
$48 million , or a$0.31 loss per share, compared to a net loss of$17 million or$0.11 loss per share, in the prior year period. - Non-GAAP net loss was
$36 million , or a$0.24 loss per share, compared to a non-GAAP net loss of$8 million , or$0.05 loss per share, in the prior year period. - GAAP and non-GAAP gross margin was 30.5% and 30.7%, respectively. This compares to GAAP and non-GAAP gross margin of 31.4% and 31.6%, respectively, in the prior year period.
- Adjusted EBITDA was negative
$33 million , compared to negative$10 million in the prior year period. - Cameras with Manufacturer's Suggested Retail Prices (MSRP) at or above
$400 represented 76% of Q2 2024 camera revenue. Q2 2024 Street ASP was$323 , a 6% decrease year-over-year. - Cash and marketable securities were flat sequentially at
$133 million .
Recent Business Highlights
- In July, GoPro announced a partnership with SoftBank Group's
SB C&S Corporation for additional distribution inJapan . - In Q2, GoPro announced a large-scale merchandising rollout and sales program at Best Buy, combining the installation of completely redesigned world-class product displays with an assisted sales program and enhancements in in-store and digital marketing.
- In June, GoPro celebrated surpassing 50 million cameras sold since the 2009 launch of the original HD HERO camera.
- In June, GoPro was recognized in several categories of
U.S. News & World Report's 2024 – 2025 'Best Companies to Work For' rankings. - Also in June, GoPro published its 2024 Sustainability Report, sharing progress toward understanding and reducing our carbon footprint, supporting our employees and the broader GoPro community, and upholding our corporate values.
- GoPro cameras made the big screen this summer, helping the filmmaking team at
Universal Pictures , Warner Bros.Pictures and Amblin Entertainment bring their vision to life in the summer blockbuster film, Twisters.
Results Summary:
|
|
Three months ended |
||||
($ in thousands, except per share amounts) |
|
2024 |
|
2023 |
|
% Change |
Revenue |
|
$ 186,224 |
|
$ 241,020 |
|
(22.7) % |
Gross margin |
|
|
|
|
|
|
GAAP |
|
30.5 % |
|
31.4 % |
|
(90) bps |
Non-GAAP |
|
30.7 % |
|
31.6 % |
|
(90) bps |
Operating loss |
|
|
|
|
|
|
GAAP |
|
$ (46,509) |
|
$ (22,494) |
|
106.8 % |
Non-GAAP |
|
$ (35,413) |
|
$ (12,092) |
|
192.9 % |
Net loss |
|
|
|
|
|
|
GAAP |
|
$ (47,821) |
|
$ (17,212) |
|
177.8 % |
Non-GAAP (1) |
|
$ (36,179) |
|
$ (7,928) |
|
356.3 % |
Diluted net loss per share |
|
|
|
|
|
|
GAAP |
|
$ (0.31) |
|
$ (0.11) |
|
181.8 % |
Non-GAAP (1) |
|
$ (0.24) |
|
$ (0.05) |
|
380.0 % |
Adjusted EBITDA |
|
$ (33,426) |
|
$ (10,290) |
|
224.8 % |
|
|
(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 |
Conference Call
GoPro management will host a conference call and live webcast for analysts and investors today at
Prior to the start of the call, the Company will post Management Commentary on the "Events & Presentations" section of its investor relations website at https://investor.gopro.com. 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 368178, 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 https://investor.gopro.com. A recording of the webcast will be available on GoPro's website, https://investor.gopro.com, from approximately two hours after the call through
About
GoPro helps the world capture and share itself in immersive and exciting ways.
GoPro has been recognized as an employer of choice by both
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's Use of Social Media
GoPro announces material financial information using the Company's investor relations website,
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
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, revenue growth and subscription growth; expanded product roadmap, product pricing strategy, expanded retail presence, distribution and overall consumer demand for our products. 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
|
|||||||
|
|||||||
|
Three months ended |
|
Six months ended |
||||
(in thousands, except per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenue |
$ 186,224 |
|
$ 241,020 |
|
$ 341,693 |
|
$ 415,740 |
Cost of revenue |
129,514 |
|
165,248 |
|
231,945 |
|
287,466 |
Gross profit |
56,710 |
|
75,772 |
|
109,748 |
|
128,274 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
46,932 |
|
41,903 |
|
91,544 |
|
80,088 |
Sales and marketing |
41,353 |
|
39,906 |
|
76,499 |
|
77,961 |
General and administrative |
14,934 |
|
16,457 |
|
29,627 |
|
32,533 |
Total operating expenses |
103,219 |
|
98,266 |
|
197,670 |
|
190,582 |
Operating loss |
(46,509) |
|
(22,494) |
|
(87,922) |
|
(62,308) |
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
(790) |
|
(1,139) |
|
(1,464) |
|
(2,292) |
Other income, net |
811 |
|
2,423 |
|
2,019 |
|
5,268 |
Total other income, net |
21 |
|
1,284 |
|
555 |
|
2,976 |
Loss before income taxes |
(46,488) |
|
(21,210) |
|
(87,367) |
|
(59,332) |
Income tax expense (benefit) |
1,333 |
|
(3,998) |
|
299,542 |
|
(12,251) |
Net loss |
$ (47,821) |
|
$ (17,212) |
|
$ (386,909) |
|
$ (47,081) |
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
$ (0.31) |
|
$ (0.11) |
|
$ (2.55) |
|
$ (0.30) |
|
|
|
|
|
|
|
|
Shares used to compute basic and diluted |
152,502 |
|
154,562 |
|
151,796 |
|
154,980 |
|
|||
|
|||
(in thousands) |
|
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 133,036 |
|
$ 222,708 |
Marketable securities |
— |
|
23,867 |
Accounts receivable, net |
86,337 |
|
91,452 |
Inventory |
97,331 |
|
106,266 |
Prepaid expenses and other current assets |
34,723 |
|
38,298 |
Total current assets |
351,427 |
|
482,591 |
Property and equipment, net |
9,011 |
|
8,686 |
Operating lease right-of-use assets |
17,064 |
|
18,729 |
|
152,351 |
|
146,459 |
Other long-term assets |
26,901 |
|
311,486 |
Total assets |
$ 556,754 |
|
$ 967,951 |
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ 65,901 |
|
$ 102,612 |
Accrued expenses and other current liabilities |
108,215 |
|
110,049 |
Short-term operating lease liabilities |
10,434 |
|
10,520 |
Deferred revenue |
53,914 |
|
55,913 |
Total current liabilities |
238,464 |
|
279,094 |
Long-term taxes payable |
13,112 |
|
11,199 |
Long-term debt |
92,898 |
|
92,615 |
Long-term operating lease liabilities |
24,332 |
|
25,527 |
Other long-term liabilities |
3,269 |
|
3,670 |
Total liabilities |
372,075 |
|
412,105 |
|
|
|
|
Stockholders' equity: |
|
|
|
Common stock and additional paid-in capital |
1,014,115 |
|
998,373 |
|
(193,231) |
|
(193,231) |
Accumulated deficit |
(636,205) |
|
(249,296) |
Total stockholders' equity |
184,679 |
|
555,846 |
Total liabilities and stockholders' equity |
$ 556,754 |
|
$ 967,951 |
|
|||||||
|
|||||||
|
Three months ended |
|
Six months ended |
||||
(in thousands) |
2024 |
|
2023 |
|
2024 |
|
2023 |
Operating activities: |
|
|
|
|
|
|
|
Net loss |
$ (47,821) |
|
$ (17,212) |
|
$ (386,909) |
|
$ (47,081) |
Adjustments to reconcile net loss to net cash |
|
|
|
|
|
|
|
Depreciation and amortization |
1,559 |
|
1,748 |
|
2,884 |
|
3,557 |
Non-cash operating lease cost |
(2,693) |
|
645 |
|
(1,611) |
|
2,128 |
Stock-based compensation |
7,791 |
|
11,117 |
|
16,561 |
|
21,431 |
Deferred income taxes |
(65) |
|
(6,152) |
|
296,710 |
|
(16,073) |
Impairment of right-of-use assets |
3,276 |
|
— |
|
3,276 |
|
— |
Other |
453 |
|
(667) |
|
1,104 |
|
(1,993) |
Net changes in operating assets and |
38,105 |
|
2,669 |
|
(29,813) |
|
(36,923) |
Net cash provided by (used in) operating |
605 |
|
(7,852) |
|
(97,798) |
|
(74,954) |
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
Purchases of property and equipment, net |
(716) |
|
(478) |
|
(1,680) |
|
(961) |
Purchases of marketable securities |
— |
|
— |
|
— |
|
(25,782) |
Maturities of marketable securities |
— |
|
56,204 |
|
24,000 |
|
90,204 |
Acquisition, net of cash acquired |
— |
|
— |
|
(12,308) |
|
— |
Net cash provided by (used in) investing |
(716) |
|
55,726 |
|
10,012 |
|
63,461 |
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
Proceeds from issuance of common stock |
1 |
|
— |
|
1,380 |
|
2,324 |
Taxes paid related to net share settlement of |
(203) |
|
(583) |
|
(2,180) |
|
(4,834) |
Repurchase of outstanding common stock |
— |
|
(15,000) |
|
— |
|
(20,000) |
Net cash used in financing activities |
(202) |
|
(15,583) |
|
(800) |
|
(22,510) |
Effect of exchange rate changes on cash |
(309) |
|
(204) |
|
(1,086) |
|
181 |
Net change in cash and cash equivalents |
(622) |
|
32,087 |
|
(89,672) |
|
(33,822) |
Cash and cash equivalents at beginning of |
133,658 |
|
157,826 |
|
222,708 |
|
223,735 |
Cash and cash equivalents at end of period |
$ 133,036 |
|
$ 189,913 |
|
$ 133,036 |
|
$ 189,913 |
Reconciliation 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 these 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 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) 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 onthe 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.
|
|||||||
|
|||||||
Reconciliations of non-GAAP financial measures are set forth below: |
|||||||
|
|||||||
|
Three months ended |
|
Six months ended |
||||
(in thousands, except per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
GAAP net loss |
$ (47,821) |
|
$ (17,212) |
|
$ (386,909) |
|
$ (47,081) |
Stock-based compensation: |
|
|
|
|
|
|
|
Cost of revenue |
339 |
|
530 |
|
754 |
|
996 |
Research and development |
4,016 |
|
4,922 |
|
8,281 |
|
9,668 |
Sales and marketing |
1,545 |
|
2,359 |
|
3,289 |
|
4,537 |
General and administrative |
1,891 |
|
3,306 |
|
4,237 |
|
6,230 |
Total stock-based compensation |
7,791 |
|
11,117 |
|
16,561 |
|
21,431 |
|
|
|
|
|
|
|
|
Acquisition-related costs: |
|
|
|
|
|
|
|
Research and development |
469 |
|
— |
|
625 |
|
— |
General and administrative |
100 |
|
— |
|
781 |
|
— |
Total acquisition-related costs |
569 |
|
— |
|
1,406 |
|
— |
|
|
|
|
|
|
|
|
Restructuring and other costs: |
|
|
|
|
|
|
|
Cost of revenue |
137 |
|
(211) |
|
137 |
|
(225) |
Research and development |
1,396 |
|
(280) |
|
2,262 |
|
(415) |
Sales and marketing |
831 |
|
(149) |
|
1,298 |
|
(224) |
General and administrative |
372 |
|
(75) |
|
949 |
|
(112) |
Total restructuring and other costs |
2,736 |
|
(715) |
|
4,646 |
|
(976) |
|
|
|
|
|
|
|
|
Income tax adjustments (1) |
546 |
|
(1,118) |
|
8,760 |
|
(6,787) |
Non-GAAP net loss |
$ (36,179) |
|
$ (7,928) |
|
$ (355,536) |
|
$ (33,413) |
|
|
|
|
|
|
|
|
GAAP and non-GAAP shares for diluted |
152,502 |
|
154,562 |
|
151,796 |
|
154,980 |
|
|
|
|
|
|
|
|
GAAP diluted net loss per share |
$ (0.31) |
|
$ (0.11) |
|
$ (2.55) |
|
$ (0.30) |
Non-GAAP diluted net loss per share |
$ (0.24) |
|
$ (0.05) |
|
$ (2.34) |
|
$ (0.22) |
|
|
(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 |
|
Three months ended |
|
Six months ended |
||||
(dollars in thousands) |
2024 |
|
2023 |
|
2024 |
|
2023 |
GAAP gross margin as a % of revenue |
30.5 % |
|
31.4 % |
|
32.1 % |
|
30.9 % |
Stock-based compensation |
0.2 |
|
0.3 |
|
0.2 |
|
0.2 |
Restructuring and other costs |
— |
|
(0.1) |
|
0.1 |
|
(0.1) |
Non-GAAP gross margin as a % of |
30.7 % |
|
31.6 % |
|
32.4 % |
|
31.0 % |
|
|
|
|
|
|
|
|
GAAP operating expenses |
$ 103,219 |
|
$ 98,266 |
|
$ 197,670 |
|
$ 190,582 |
Stock-based compensation |
(7,452) |
|
(10,587) |
|
(15,807) |
|
(20,435) |
Acquisition-related costs |
(569) |
|
— |
|
(1,406) |
|
— |
Restructuring and other costs |
(2,599) |
|
504 |
|
(4,509) |
|
751 |
Non-GAAP operating expenses |
$ 92,599 |
|
$ 88,183 |
|
$ 175,948 |
|
$ 170,898 |
|
|
|
|
|
|
|
|
GAAP operating loss |
$ (46,509) |
|
$ (22,494) |
|
$ (87,922) |
|
$ (62,308) |
Stock-based compensation |
7,791 |
|
11,117 |
|
16,561 |
|
21,431 |
Acquisition-related costs |
569 |
|
— |
|
1,406 |
|
— |
Restructuring and other costs |
2,736 |
|
(715) |
|
4,646 |
|
(976) |
Non-GAAP operating loss |
$ (35,413) |
|
$ (12,092) |
|
$ (65,309) |
|
$ (41,853) |
|
|||||||
|
Three months ended |
|
Six months ended |
||||
(in thousands) |
2024 |
|
2023 |
|
2024 |
|
2023 |
GAAP net loss |
$ (47,821) |
|
$ (17,212) |
|
$ (386,909) |
|
$ (47,081) |
Income tax expense (benefit) |
1,333 |
|
(3,998) |
|
299,542 |
|
(12,251) |
Interest income, net |
(226) |
|
(1,635) |
|
(1,515) |
|
(3,318) |
Depreciation and amortization |
1,559 |
|
1,748 |
|
2,884 |
|
3,557 |
POP display amortization |
1,202 |
|
405 |
|
2,064 |
|
822 |
Stock-based compensation |
7,791 |
|
11,117 |
|
16,561 |
|
21,431 |
Restructuring and other costs |
2,736 |
|
(715) |
|
4,646 |
|
(976) |
Adjusted EBITDA |
$ (33,426) |
|
$ (10,290) |
|
$ (62,727) |
|
$ (37,816) |
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