GoPro revenue drops 20% in 2024
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After reporting a full-year revenue drop of 20% ,GoPro, Inc. announced a plan to return to growth and profitability.
“In 2024 we undertook several initiatives to put us back on a path to return to growth and profitability in 2026,” said Nicholas Woodman, GoPro’s founder and CEO. “This includes our plan to reduce operating expenses for 2025 by nearly 30% and refining our roadmap to pursue improved product diversification and how efficiently we design our products.”
“Our continued focus to streamline our business has yielded reduced product costs and improved operational efficiencies as well as continued diversification of our supply chain outside of China, all of which has contributed to improving gross margin,” said Brian McGee, GoPro’s CFO and COO.
In the fourth quarter, GoPro reported revenue of $201 million, down 32% year-over-year. The unit sell-through was approximately 775,000 camera units, down 16% year-over-year, but subscription and service revenue increased 9% year-over-year to $27 million, primarily due to 8% ARPU growth from improving retention rates. GoPro subscriber count ended Q4 at 2.52 million, up 1% year-over-year. GAAP net loss was $37 million, or a $(0.24) loss per share, compared to a net loss of $2 million or $(0.02) loss per share, in the prior year period.
Revenue from the retail channel was $150 million, or 74% of total revenue and down 34% year-over-year. GoPro.com revenue, including subscription and service revenue, was $51 million, or 26% of total revenue and down 24% year-over-year.
For the full year, revenue was $801 million, down 20% year-over-year. Subscription and service revenue increased 10% year-over-year to $107 million. GAAP net loss was $432 million, or a $(2.82) loss per share, compared to a net loss of $53 million or $(0.35) loss per share, in the prior year period.
Results Summary:
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Three months ended December 31, |
Year ended December 31, |
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($ in thousands, except per share amounts) |
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
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Revenue |
$ 200,882 |
$ 295,420 |
(32.0) % |
$ 801,473 |
$ 1,005,459 |
(20.3) % |
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Gross margin |
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GAAP |
34.7 % |
34.2 % |
50 bps |
33.8 % |
32.2 % |
160 bps |
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Non-GAAP |
35.1 % |
34.4 % |
70 bps |
34.1 % |
32.4 % |
170 bps |
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Operating income (loss) |
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GAAP |
$ (39,100) |
$ (9,368) |
317.4 % |
$ (135,033) |
$ (75,463) |
78.9 % |
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Non-GAAP |
$ (15,968) |
$ 2,033 |
(885.4) % |
$ (80,327) |
$ (34,075) |
135.7 % |
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Net income (loss) |
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GAAP |
$ (37,191) |
$ (2,418) |
1,438.1 % |
$ (432,311) |
$ (53,183) |
712.9 % |
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Non-GAAP(1) |
$ (14,418) |
$ 4,158 |
(446.8) % |
$ (370,417) |
$ (20,259) |
1,728.4 % |
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Diluted net income (loss) per share |
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GAAP |
$ (0.24) |
$ (0.02) |
1,100.0 % |
$ (2.82) |
$ (0.35) |
705.7 % |
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Non-GAAP(1) |
$ (0.09) |
$ 0.03 |
(400.0) % |
$ (2.42) |
$ (0.13) |
1,761.5 % |
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Adjusted EBITDA |
$ (14,359) |
$ 3,267 |
(539.5) % |
$ (71,639) |
$ (27,317) |
162.3 % |
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(1) |
In the first quarter of 2024, we revised the income tax adjustment to reflect current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments to better align with SEC guidance. For comparative purposes, we have revised our prior period income tax adjustments to reflect current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments. Additionally, in the second quarter of 2024, we revised the income tax adjustment for the first quarter of 2024 to exclude the establishment of a valuation allowance on United States federal and state deferred tax assets. |