Subscription and service revenue growth a bright spot in otherwise gloomy GoPro first quarter
|
Getting your Trinity Audio player ready...
|
GoPro Inc. reported first-quarter subscription and service revenue grew 4% to $27 million but that wasn’t enough to offset the overall 14% revenue decline to $134 million. The company sold 18% fewer cameras in the quarter. The company reduced its quarterly net loss considerably.
“Our Q1 results reflect our commitment to reducing operating expenses, down 26% year-over-year, improving subscription ARPU, up 5% year-over-year, and further diversifying our supply chain, all of which position us to navigate an evolving market landscape throughout 2025,” said Brian McGee, GoPro’s CFO and COO.
“Our teams are excelling as a more efficient organization and we believe the new products we have planned for the balance of 2025 and 2026 set us up for a return to growth in revenue and profitability,” said Nicholas Woodman, GoPro’s founder and CEO.
Subscription and service revenue increased 4% year-over-year to $27 million, primarily due to 5% ARPU growth from improving retention rates. GoPro subscriber count ended Q1 at 2.47 million, down 1% year-over-year. Revenue from the retail channel was $94 million, or 70% of total revenue, and down 12% year-over-year. GoPro.com revenue, including subscription and service revenue, was $40 million, or 30% of total revenue, and down 18% year-over-year.
GAAP net loss was $47 million, or a $(0.30) loss per share, compared to a net loss of $339 million or $(2.24) loss per share, in the prior year period. The first quarter of 2024 net loss included the establishment of a valuation allowance of $295 million, or $(1.95) loss per share. Non-GAAP net loss was $19 million, or a $(0.12) loss per share, compared to non-GAAP net loss of $319 million, or $(2.11) per share, in the prior year period. The first quarter of 2024 net loss included the establishment of a valuation allowance of $295 million, or $(1.95) loss per share.
Recent Highlights
In January 2025, GoPro introduced an upgrade for its $199 entry-level HERO camera that enables much wider, more immersive video with a new 4K 4:3 aspect ratio video setting and in-app SuperView Digital Lens option. In February 2025, GoPro released an updated 360 mobile editing experience in its Quik App, featuring several new, easy-to-use features that make 360 editing MAX footage easier, and introduced a refreshed MAX 360- camera.
In March 2025, GoPro launched a Limited Edition Polar White colorway bringing a fresh new look to its flagship HERO13 Black camera.
In March 2025, GoPro released its Anamorphic Lens Mod for HERO13 Black, offering creators and filmmakers a small, affordable camera system for capturing cinematic, Hollywood-like video. Our new Anamorphic Lens Mod joins our previously released Ultra Wide Lens Mod, Macro Lens Mod and auto-detect ND Filters, which significantly enhance HERO13 Black’s versatility and performance.
Results Summary:
|
Three months ended March 31, |
|||||
|
($ in thousands, except per share amounts) |
2025 |
2024 |
% Change |
||
|
Revenue |
$ 134,308 |
$ 155,469 |
(13.6) % |
||
|
Gross margin |
|||||
|
GAAP |
32.1 % |
34.1 % |
(200) bps |
||
|
Non-GAAP |
32.3 % |
34.4 % |
(210) bps |
||
|
Operating loss |
|||||
|
GAAP |
$ (45,208) |
$ (41,413) |
9.2 % |
||
|
Non-GAAP |
$ (18,660) |
$ (29,896) |
(37.6) % |
||
|
Net loss |
|||||
|
GAAP |
$ (46,709) |
$ (339,088) |
(86.2) % |
||
|
Non-GAAP(1) |
$ (19,444) |
$ (319,357) |
(93.9) % |
||
|
Diluted net loss per share |
|||||
|
GAAP |
$ (0.30) |
$ (2.24) |
(86.6) % |
||
|
Non-GAAP(1) |
$ (0.12) |
$ (2.11) |
(94.3) % |
||
|
Adjusted EBITDA |
$ (15,707) |
$ (29,301) |
(46.4) % |
||
|
(1) |
In the second quarter of 2024, we revised the first quarter of 2024 income tax adjustment to exclude the establishment of a valuation allowance on United States federal and state deferred tax assets. |