GoPro announces first-quarter 2018 results
Revenue of $202 Million with 3% Unit Growth YoY
Launched $199 Entry-Level HERO Camera
Fusion Captured 41% of the Spherical Camera Market in North America
Instagram Partnership Enables Sharing Straight from the GoPro App to Instagram Stories
GoPro is the #1 Selling Camera in North America for the 17th Straight Quarter
SAN MATEO, Calif., May 3, 2018 /PRNewswire/ — GoPro, Inc. (NASDAQ: GPRO) announced financial results for its first quarter ended March 31, 2018.
“Our first quarter was driven by strong sell-through of HERO5 Black and HERO6 Black, along with the launch of our new $199 entry-level HERO. Initial demand for HERO is promising and we expect it to improve as large retail partners like Target and Walmart begin selling the product in the second quarter,” said Nicholas Woodman, GoPro CEO and founder. “Our first quarter performance makes it clear that there is significant demand for GoPro, at the right price. We began to step up marketing programs in March which, coupled with overall expense controls, solid channel management and second half new product launches, gives us confidence for a successful 2018 for GoPro.”
Recent GoPro Highlights
- Revenue was $202 million, down 7% YoY, while unit growth was up 3% YoY. GoPro reduced GAAP operating expenses by $37 million, or 24%, year-over-year. GoPro reduced non-GAAP operating expenses by $37 million, or 28% year-over-year. In 2018, GoPro is targeting non-GAAP operating expenses below $400 million — a cumulative reduction of more than $300 million since 2016.
- In the U.S., GoPro held 86% and 95% of the action camera category by unit and dollar volume, respectively, in Q1 2018 according to NPD.
- GoPro is the #1 selling camera in the overall digital imaging category for the 17th straight quarter in North America.
- In Europe, GoPro held 44% and 72% of the action camera category by unit and dollar volume, respectively, in Q1 2018, according to GfK.
- In APAC, GoPro market share of the action camera category increased in unit and dollar volume from 45% to 52% and from 63% to 65% quarter-over-quarter, respectively, according to GfK.
- In Korea and Japan, unit sell-through grew by 46% and 22% respectively year-over-year, according to GfK.
- Fusion captured 41% of the spherical camera market on a dollar basis, according to NPD. Fusion also won gold at the 2018 Edison Awards.
- $199 entry-level HERO launched on March 29. Distribution will expand to Target, Walmart and others in Q2.
- ‘Plus’ subscription service has 147,000 active paying subscribers, up 17% since December 31st.
- Eve Saltman was appointed General Counsel and Vice President, Corporate/Business Development.
- GoPro content was viewed 148 million times on social media, up more than 8% year-over-year. GoPro’s YouTube channel increased 4% in organic viewership year-over-year with 76 million views in Q1.
- On Instagram, GoPro added 245K new followers in Q1, reaching a total of 15 million. GoPro gained more than half a million new social media followers in Q1, growing its total following to 36 million across all platforms.
- Shorty Awards. GoPro won “Best Overall Brand on Instagram” at the coveted 2018 Shorty Awards.
- Instagram Stories Integration announced on May 1 at Facebook’s F8 conference. GoPro and Instagram partnered to enable GoPro users to share their content directly from the GoPro App to Instagram Stories.
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Results Summary: |
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|
Three months ended March 31, |
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|
($ in thousands, except per share amounts) |
2018 |
2017 |
% Change |
||||||||
|
Revenue |
$ |
202,346 |
$ |
218,614 |
7.4 |
% |
|||||
|
Gross margin |
|||||||||||
|
GAAP |
22.2 |
% |
31.4 |
% |
920 bps |
||||||
|
Non-GAAP |
24.3 |
% |
32.3 |
% |
800 bps |
||||||
|
Operating loss |
|||||||||||
|
GAAP |
$ |
(74,739) |
$ |
(88,215) |
15.3 |
% |
|||||
|
Non-GAAP |
$ |
(44,520) |
$ |
(60,287) |
26.2 |
% |
|||||
|
Net loss |
|||||||||||
|
GAAP |
$ |
(76,347) |
$ |
(111,150) |
31.3 |
% |
|||||
|
Non-GAAP |
$ |
(47,364) |
$ |
(62,783) |
24.6 |
% |
|||||
|
Diluted net loss per share |
|||||||||||
|
GAAP |
$ |
(0.55) |
$ |
(0.78) |
29.5 |
% |
|||||
|
Non-GAAP |
$ |
(0.34) |
$ |
(0.44) |
22.7 |
% |
|||||
|
Adjusted EBITDA |
$ |
(34,537) |
$ |
(45,669) |
24.4 |
% |
|||||
About GoPro, Inc. (NASDAQ: GPRO)
GoPro helps the world celebrate and share itself in immersive and exciting ways.
GoPro, HERO, Karma, Quik, QuikStories and their respective logos are trademarks or registered trademarks of GoPro, Inc. in the United States and other countries.
For more information, visit www.gopro.com. GoPro users can submit their photos, raw clips and video edits to GoPro Awards for social stoke, GoPro gear and cash prizes. Learn more at www.gopro.com/awards. Connect with GoPro on Facebook, Instagram, LinkedIn, Pinterest, Twitter, YouTube, and GoPro’s blog The Inside Line.