GoPro reports $241 million second-quarter revenue, subscriptions up

GoPro, Inc. announced financial results for its second quarter ended June 30, 2023. For the quarter, revenue was $241 million, which was 10% above guidance and but down 4% year-over-year. GoPro subscriber count ended the quarter at approximately 2.44 million, up 27% year-over-year.

Revenue from the retail channel was $165 million, up 6% year-over-year. GoPro.com revenue, including subscription and service revenue, was $76 million, or 31% of total revenue and down 21% year-over-year.

Subscription and service revenue increased 21% year-over-year to $24 million.

GAAP net loss was $17 million, or negative $0.11 per share, down from net income of $3 million or $0.02 per share in the prior year period. Non-GAAP net loss was $11 million, or negative $0.07 per share, down from non-GAAP net income of $13 million, or $0.08 per share, in the prior year period.

“In Q2, GoPro saw an immediate retail sales and GoPro subscription lift as a result of our mid-quarter go-to-market strategy shift that included a return to pre-pandemic pricing and a greater emphasis on retail sales,” said Nicholas Woodman, GoPro’s founder and CEO. “We exceeded our Q2 expectations for unit sales, revenue and subscriber growth, all positive indicators that our strategy shift is working.”

“In the second quarter, we repurchased $15 million of stock and improved working capital as we reduced inventory,” said Brian McGee, GoPro’s CFO and COO.

GAAP net loss was $17 million, or negative $0.11 per share, down from net income of $3 million or $0.02 per share in the prior year period. Non-GAAP net loss was $11 million, or negative $0.07 per share, down from non-GAAP net income of $13 million, or $0.08 per share, in the prior year period.

GAAP and non-GAAP gross margin was 31.4% and 31.6%, respectively, which reflects $11 million of price protection charges related to our new pricing strategy, as well as the strength of our lower margin entry-level cameras. This compares to GAAP and non-GAAP gross margin of 38.3% and 38.5%, respectively, in the prior year period.

Adjusted EBITDA was negative $10 million. This compares to positive $17 million in the prior year period. The difference primarily reflects $11 million of price protection charges related to our new pricing strategy, as well as the strength of our lower margin entry-level cameras.

Cameras with retail prices at or above $400 represented 75% of Q2 2023 camera revenue. Entry level products increased dramatically, accounting for 25% of camera revenue without cannibalizing premium cameras.

Q2 2023 Street ASP was $342, a 13% decrease year-over-year.

Days’ sales outstanding was 31 days, down compared to the prior year period of 32 days.

     Recent Business Highlights

In Q2 2023, GoPro bought back $15 million in stock, and we plan to continue executing on our stock repurchase plan in 2023.

In Q2 2023, GoPro initiated a go-to-market strategy that includes restoring pricing of GoPro cameras to lower, pre-pandemic levels.

In July 2023, GoPro published its 2023 Sustainability Snapshot, which outlines our commitment to understanding and reducing our carbon footprint, supporting employees and the GoPro community, and maintaining our corporate values. The 2023 Sustainability Snapshot is a follow-up to GoPro’s inaugural Sustainability Reportpublished in November 2022.

Earlier this year, GoPro was awarded Mental Health Program of the Year by Transform.us, recognizing the company with the most holistic, progressive and positive approach to supporting employee mental health.

Earlier this year, GoPro surpassed 2,000 patents worldwide, and was included for the 5th consecutive year on the Intellectual Property Owners Association’s “Top 300 Organizations Granted U.S. Patents in 2022” report.

Results Summary: