GoPro announces $119 million in sales, as expected.

GoPro, Inc. announced first-quarter revenues were $119 million, in line with its preliminary reports, but down from the $243 million for the same period last year. The net loss in the quarter was $64 million.

“We’ve taken decisive action to transition into a more efficient and profitable direct-to-consumer business,” says Nicholas Woodman, GoPro founder and CEO. “This benefits GoPro with a substantially reduced operating expense model, improved gross margin and a significantly lower threshold to profitability.”

The company cited the following as highlights:

• GoPro.com represented a record percentage of revenue in Q1 2020 at 17%, up from 11% in Q1 2019.
• Cameras with retail prices above $300 represented nearly 90% of Q1 2020 revenue, continuing a trend of consumers moving to our high-end cameras.
• GoPro’s Plus subscription service ended Q1 2020 with 355,000 paid subscribers, up 14% sequentially, and up 69% year-over-year.
• Social followers increased by more than 1.3 million across all channels in Q1 2020 to more than 44 million, driven primarily by increases on Instagram, TiKTok and YouTube.
• Organic viewership of GoPro content grew more than 40% both sequentially and year-over-year to a record quarterly high of 243 million organic, non-paid views in Q1 2020.
• On April 15, GoPro announced Aimée Lapic, former Pandora and Banana Republic chief marketing officer, as its Chief Digital Officer to lead direct-to-consumer growth initiatives.

“While our business slowed due to COVID-19, consumers have continued to purchase GoPro cameras at substantial levels during the pandemic, and since early April we’ve seen sell-through trend in a positive direction,” said Brian McGee, GoPro CFO and COO. “Operationally we are performing well during a difficult period and we are extremely proud of our team’s dedication. We expect our shift to a more consumer-direct model allows us to succeed both during the pandemic and in the long-term.”