GoPro doubles third-quarter revenue
GoPro reports third-quarter 2020 revenue was $281 million, a 109% sequential improvement from $134 million, driven by the HERO9 and a boost in GoPro subscriptions. Net income dropped to $3 million, however, from $31 million last year.
“Thanks to consistent momentum throughout the quarter and the strong launch of HERO9 Black coupled with our GoPro subscription service, in Q3 GoPro achieved GAAP and non-GAAP profitability, generated $100 million of operating cash flow, and surpassed 500,000 subscribers,” said Nicholas Woodman, founder and CEO, GoPro.
“In Q3 2020, our direct-to-consumer and subscription-centric strategy expanded margin, increased subscribers and significantly lowered our operating expenses, resulting in GAAP and non-GAAP profitability. This approach is also enabling efficient working capital management as we drove DSO’s down 25% sequentially, lowered channel inventories and reduced our own investments in inventory,” said Brian McGee, GoPro CFO and COO.
GoPro Q3 2020 Highlights
- In September, GoPro launched HERO9 Black.
- GoPro ended the quarter with 501,000 subscribers, up 35% sequentially and 65% year-over-year.
- GoPro.com achieved a record $81 million in revenue in Q3 2020, up 37% sequentially.
- Camera sell-through was more than 950,000 units in Q3 2020.
- Channel inventory reduced approximately 10% sequentially and 45% since the beginning of 2020.
- Cameras with retail prices above $300 represented 83% of Q3 2020 revenue.
- Street ASPs increased 11% year-over-year to $304.
Results Summary:
|
Three months ended September 30, |
|||||||||||
|
($ in thousands, except per share amounts) |
2020 |
2019 |
% Change |
||||||||
|
Revenue |
$ |
280,507 |
$ |
131,169 |
113.9 |
% |
|||||
|
Gross margin |
|||||||||||
|
GAAP |
35.4 |
% |
21.7 |
% |
1,370 bps |
||||||
|
Non-GAAP |
36.2 |
% |
23.4 |
% |
1,280 bps |
||||||
|
Operating income (loss) |
|||||||||||
|
GAAP |
$ |
8,854 |
$ |
(71,198) |
(112.4) |
% |
|||||
|
Non-GAAP |
$ |
33,446 |
$ |
(59,566) |
(156.1) |
% |
|||||
|
Net income (loss) |
|||||||||||
|
GAAP |
$ |
3,307 |
$ |
(74,810) |
(104.4) |
% |
|||||
|
Non-GAAP |
$ |
31,049 |
$ |
(61,265) |
(150.7) |
% |
|||||
|
Diluted net income (loss) per share |
|||||||||||
|
GAAP |
$ |
0.02 |
$ |
(0.51) |
(103.9) |
% |
|||||
|
Non-GAAP |
$ |
0.20 |
$ |
(0.42) |
(147.6) |
% |
|||||
|
Adjusted EBITDA |
$ |
39,179 |
$ |
(52,715) |
(174.3) |
% |
|||||
