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: