GoPro reports 8% revenue decline for 4Q, full year

GaryPageau
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GoPro, Inc. announced financial results for its fourth quarter and full year ended Dec. 31, 2023. In both periods, the company showed an 8% decline in revenues, despite a double-digit percentage increase in subscriber revenue.

For the fourth quarter of 2023, GoPro’s revenue was $295 million, down 8% year-over-year, but subscription and service revenue increased 13% year-over-year to $25 million.
GoPro subscriber count ended Q4 at 2.5 million, up 12% year-over-year. The company lost $2 million in the quarter.

For the full year, revenue was $1.0 billion, down 8% year-over-year, but subscription and service revenue increased 18% year-over-year to $97 million. The GAAP net loss was $53 million, or a $0.35 loss per share, down from net income of $29 million, or $0.18 per share, in the prior year period.

“Our growth strategy led to significant retail channel sell-through increases in the fourth quarter and second half of 2023,” said Nicholas Woodman, GoPro’s founder and CEO. “We’re looking forward to launching several new products throughout the year, opening more retail doors at a steady rate and activating a larger number of marketing initiatives to drive awareness and demand.”

“During 2023, our capital allocation policy resulted in the repurchase of $50 million in aggregate principal amount of the 2025 Convertible Notes in exchange for $46 million, and we repurchased $40 million in stock, which resulted in a reduction of 15 million shares or 9% of fully diluted shares,” said Brian McGee, GoPro’s CFO and COO.

 

Results Summary:

Three months ended December 31,

Year ended December 31,

($ in thousands, except per share amounts)

2023

2022

% Change

2023

2022

% Change

Revenue

$  295,420

$  321,021

(8.0) %

$  1,005,459

$  1,093,541

(8.1) %

Gross margin

GAAP

34.2 %

32.5 %

170 bps

32.2 %

37.2 %

(500) bps

Non-GAAP

34.4 %

35.1 %

(70) bps

32.4 %

38.1 %

(570) bps

Operating income (loss)

GAAP

$     (9,368)

$      1,707

(648.8) %

$     (75,463)

$      38,955

(293.7) %

Non-GAAP

$      2,033

$    19,077

(89.3) %

$     (34,075)

$      85,547

(139.8) %

Net income (loss)

GAAP

$     (2,418)

$      3,073

(178.7) %

$     (53,183)

$      28,847

(284.4) %

Non-GAAP

$      2,424

$    21,090

(88.5) %

$     (31,135)

$      80,923

(138.5) %

Diluted net income (loss) per share

GAAP

$       (0.02)

$        0.02

(200.0) %

$         (0.35)

$          0.18

(294.4) %

Non-GAAP

$        0.02

$        0.12

(83.3) %

$         (0.20)

$          0.47

(142.6) %

Adjusted EBITDA

$      3,267

$    22,014

(85.2) %

$     (27,317)

$      94,754

(128.8) %