GoPro third-quarter revenue drops 12% to $259 million

GaryPageau
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GoPro, Inc. announced financial results for its third quarter ended Sept.30, 2024. The company had third-quarter revenue of $259 million, down 12% over last year, but subscription and services revenue – spurred by a 2% increase to 2.56 million GoPro subscribers – grew 11% to $27.5 million.

“In Q3, revenue of $259 million exceeded the midpoint of our guidance, and our subscriber base grew 2% to 2.56 million,” said Brian McGee, GoPro’s CFO and COO. “Subscription and service revenue grew 11% year-over-year as ARPU grew 9% primarily related to long-term subscribers continuing to renew as well as growth in our Premium+ subscription.”

“While 2024 has been a challenging year for GoPro, the consumer digital imaging market is growing, and we believe our product roadmap will enable us to grow with it. And we believe our reduced operating expenses in 2025 to approximately $250 million will position us to pursue this growth opportunity as a profitable company,” said Nicholas Woodman, GoPro’s founder and CEO.

Q3 2024 Financial Results

  • Revenue was $259 million, down 12% year-over-year.
  • Subscription and service revenue increased 11% year-over-year to $27.5 million, primarily due to improving retention rates as well as growth of our Premium+ subscribers that resulted in 9% ARPU growth. GoPro subscriber count ended Q3 at 2.56 million, up 2% year-over-year.
  • Revenue from the retail channel was $208 million, or 80% of total revenue and down 10% year-over-year. GoPro.com revenue, including subscription and service revenue, was $51 million, or 20% of total revenue and down 19% year-over-year.
  • GAAP net loss was $8 million, or a $(0.05) loss per share, compared to a net loss of $4 million or $(0.02) loss per share, in the prior year period.
  • Non-GAAP net loss was $0.5 million, or breakeven on a per share basis, compared to non-GAAP net income of $9 million, or $0.06 per share, in the prior year period.
  • GAAP and non-GAAP gross margin was 35.5% and 35.6%, respectively. This compares to GAAP and non-GAAP gross margin of 32.0% and 32.2%, respectively, in the prior year period.
  • Adjusted EBITDA was $5 million, a $39 million sequential improvement, and compared to $7 million in the prior year period.
  • Cameras with Manufacturer’s Suggested Retail Prices (MSRP) at or above $400 represented 74% of Q3 2024 camera revenue. Q3 2024 Street ASP was $294, an 8% decrease year-over-year.
  • Cash and marketable securities were down slightly sequentially at $130 million.

Results Summary:

Three months ended September 30,

($ in thousands, except per share amounts)

2024

2023

% Change

Revenue

$         258,898

$         294,299

(12.0) %

Gross margin

GAAP

35.5 %

32.0 %

350 bps

Non-GAAP

35.6 %

32.2 %

340 bps

Operating income (loss)

GAAP

$           (8,011)

$           (3,787)

111.5 %

Non-GAAP

$                950

$             5,745

(83.5) %

Net income (loss)

GAAP

$           (8,211)

$           (3,684)

122.9 %

Non-GAAP (1)

$               (463)

$             8,996

(105.1) %

Diluted net income (loss) per share

GAAP

$             (0.05)

$             (0.02)

150.0 %

Non-GAAP (1)

$               (0.00)

$               0.06

(100.0) %

Adjusted EBITDA

$             5,447

$             7,232

(24.7) %

(1)       

In the first quarter of 2024, GoPro 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, GoPro 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.

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