GoPro announces third-quarter 2018 results

GaryPageau

Revenue of $286 Million

HERO7 Black Achieves Strongest Month-One Unit Sell-Through in Company History

GoPro Plus Subscribers Grow 16% Sequentially

GoPro is the No. 1 Selling Camera in North America for the 19th Straight Quarter

SAN MATEO, Calif., Nov. 1, 2018 /PRNewswire/ — GoPro, Inc. (NASDAQ: GPRO) announced financial results for its third quarter ended September 30, 2018.

“GoPro completed a successful third quarter highlighted by a very strong reception and global demand for HERO7 Black,” said founder and CEO Nicholas Woodman. “We expect to achieve profitability in Q4 and for the second-half of 2018, and exit the year with low channel inventory to be well positioned for Q1 2019.”

Recent GoPro Highlights

  • Revenue for Q3 2018 was $286 million, down 13% year-over-year and up 1% sequentially.
  • GAAP gross margin for Q3 2018 was 32%, up from 29% in the prior quarter. Non-GAAP gross margin for Q3 2018 was 33%, up from 31% in the prior quarter.
  • Q3 2018 GAAP net loss of $27 million represents a 27% sequential improvement – resulting in a $0.19 loss per share and a non-GAAP net loss of $6 million, or $0.04 loss per share.
  • Cash and investments totaled $148 million at the end of Q3 2018.
  • GoPro reduced GAAP and non-GAAP operating expenses by $10 million, or 8% and 9%, year-over-year, respectively.
  • HERO7 Black achieved the strongest month-one unit sell-through in company history.

    GoPro Hero 7
  • GoPro.com generated a record breaking first month of camera unit sales after the launch of HERO7.
  • In the US, GoPro held 96% dollar share and 87% unit share of the action camera category. The top-six cameras sold by unit volume were GoPro cameras in Q3 2018 according to the NPD Group.
  • In the US, Fusion captured 47% dollar share of the spherical camera market according to the NPD Group.
  • In Europe, in the $150 and above price band, GoPro held 84% unit share, up from 78% a year ago in Q3 2018 according to GfK.
  • In Japan, GoPro market share in Q3 2018 was 58% and 71% by units and dollars, up from 51% and 61% respectively year-over-year, according to GfK.
  • In Korea, GoPro market share in Q3 2018 was 47% and 61% by units and dollars, up from 28% and 38% respectively year-over-year, according to GfK.
  • GoPro Plus subscription service reached 185,000 active paying subscribers at the end of Q3 2018, up 16% sequentially.
  • Social followers increased by 997,000 in the quarter to approximately 37.4 million driven primarily by increases on YouTube and Instagram.
  • GoPro content achieved 142 million organic video views in Q3, up 9% sequentially.
  • Social sharing of GoPro content reached a 21-month high in September.
  • Jim Lanzone was appointed to GoPro’s Board of Directors. Mr. Lanzone is Chief Digital Officer at CBS and CEO of CBS Interactive.
  • Entered into a collaboration with Adobe to make thousands of curated GoPro video clips available for license on the Adobe Stock marketplace under a revenue sharing agreement.
  • For the 19th straight quarter, GoPro is the number one selling camera by unit volume in North America.

 

Results Summary:

Three months ended September 30,

($ in thousands, except per share amounts)

2018

2017

% Change

Revenue

$

285,936

$

329,805

(13.3)

%

Gross margin

GAAP

31.8

%

39.6

%

(780)

bps

Non-GAAP

33.2

%

40.1

%

(690)

bps

Operating income (loss)

GAAP

$

(21,354)

$

8,049

(365.3)

%

Non-GAAP

$

(3,638)

$

24,042

(115.1)

%

Net income (loss)

GAAP

$

(27,089)

$

14,661

(284.8)

%

Non-GAAP

$

(6,058)

$

21,149

(128.6)

%

Diluted net income (loss) per share

GAAP

$

(0.19)

$

0.10

(290.0)

%

Non-GAAP

$

(0.04)

$

0.15

(126.7)

%

Adjusted EBITDA

$

6,205

$

35,725

(82.6)

%

About GoPro, Inc. (NASDAQ: GPRO)

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 Facebook, Instagram, LinkedIn, Pinterest, Twitter, YouTube, and GoPro’s blog The Inside Line.

The full release is here.