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GoPro announces fourth quarter and full year 2018 results

Fourth Quarter Revenue of $377 Million, Up 13% Year-over-Year

GAAP Profitable in the Fourth Quarter of 2018

Camera Unit Sell-Through Up 9% in 2018 and Up 20% in the Fourth Quarter Year-over-Year

SAN MATEO, Calif.Feb. 6, 2019 /PRNewswire/ — GoPro, Inc. (NASDAQ: GPRO) announced financial results for its fourth quarter and full year ended December 31, 2018.

“Thanks to a strong product line-up and efficient execution, GoPro grew both camera unit sell-through and market share in 2018, resulting in GAAP profitability in the fourth quarter and second half of the year,” said founder and CEO Nicholas Woodman. “With this momentum and a continued focus on expense management, we’re planning for growth and profitability in 2019.”

Recent GoPro Highlights

  • Revenue for Q4 2018 was $377 million, up 13% year-over-year.
  • GAAP gross margin for Q4 2018 was 38%, up from 32% in the prior quarter. Non-GAAP gross margin for Q4 2018 was 38%, up from 33% in the prior quarter.
  • Q4 2018 GAAP net income was $32 million, or $0.22 per share. Non-GAAP net income was $42 million, or $0.30per share. On a year-over-year basis, GAAP net income increased by $88 million.
  • GoPro reduced Q4 2018 GAAP and non-GAAP operating expenses by $29 million and $22 million, a year-over-year reduction of 21% and 18%, respectively.
  • Cash and investments totaled $198 million at the end of Q4 2018.
  • Revenue for the full year 2018 was approximately $1.15 billion, down 3% year-over-year. Excluding our aerial business, revenue would have increased 3% year-over-year.
  • GoPro.com represented more than 10% of revenue in Q4 2018, growing more than 50% year-over-year.
  • In the US, GoPro captured 97% dollar share and 87% unit share of the action camera category in Q4 2018. The top-five cameras sold by unit volume were GoPro cameras, and GoPro’s three HERO7 cameras were the top-three selling action cameras according to the NPD Group.
  • In the US, Fusion captured 38% dollar share of the spherical camera market in Q4 2018 according to the NPD Group.
  • In Europe, in the $199 and above price band, GoPro held 91% unit share and 90% dollar share in Q4 2018, up from 83% and 84%, respectively, year-over-year. Four out of the top-five cameras sold by unit volume were GoPro cameras according to GfK.
  • In Japan, GoPro captured 57% unit share in Q4 2018, up from 50% in Q4 2017, according to GfK.
  • In China, GoPro grew unit sell-through by 2% year-over-year in Q4 2018, according to GfK.
  • In Korea, GoPro market share in Q4 2018 was 36% and 53% by units and dollars, up from 28% and 44% in Q4 2017, respectively, according to GfK.
  • In Thailand, in Q4 2018 GoPro sell-through increased by 169% in units and 154% in dollars, year-over-year, according to GfK. Market share was 88% and 91% by units and dollars, respectively, year-over-year.
  • Social followers increased by over three million in 2018 to approximately 38 million, driven primarily by increases on Instagram and YouTube. GoPro gained one million social followers in Q4 2018.
  • GoPro’s Million Dollar Challenge Campaign generated an all-time high of 25,000 customer content submissions,and the resulting highlight reel has been viewed more than 25 million times with more than 3 million engagements across all social platforms.
  • GoPro Plus subscription service reached 199,000 active paying subscribers as of today, up 8% since September 30, 2018 and up more than 50% year-over-year.

Results Summary:

($ in thousands, except per share amounts)

Three months ended December 31,

Year ended December 31,

2018

2017

% Change

2018

2017

% Change

Revenue

$

377,378

$

334,796

12.7%

$

1,148,337

$

1,179,741

(2.7)%

Gross margin

GAAP

37.7%

23.8%

1390 bps

31.5%

32.6%

(110) bps

Non-GAAP

38.4%

24.8%

1360 bps

32.8%

33.3%

(50) bps

Operating income (loss)

GAAP

$

32,967

$

(58,311)

(156.5)%

$

(93,962)

$

(163,460)

(42.5)%

Non-GAAP

$

46,001

$

(37,427)

(222.9)%

$

(18,876)

$

(82,922)

(77.2)%

Net income (loss)

GAAP

$

31,671

$

(55,848)

(156.7)%

$

(109,034)

$

(182,873)

(40.4)%

Non-GAAP

$

42,356

$

(41,319)

(202.5)%

$

(31,909)

$

(95,867)

(66.7)%

Diluted net income (loss) per share

GAAP

$

0.22

$

(0.41)

(153.7)%

$

(0.78)

$

(1.32)

(40.9)%

Non-GAAP

$

0.30

$

(0.30)

(200.0)%

$

(0.23)

$

(0.69)

(66.7)%

Adjusted EBITDA

$

58,807

$

(26,544)

(321.5)%

$

21,778

$

(31,368)

(169.4)%

About GoPro, Inc.

GoPro helps the world capture and share itself in immersive and exciting ways.

GoPro, HERO 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 FacebookInstagramLinkedInPinterestTwitterYouTube, and GoPro’s blog The Inside Line.

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