GoPro Beats - Revenue Surges 34%
August 4, 2017
GoPro reported financial results for
its second quarter ended June 30, 2017. The firm had a loss of 9
cents per share, but investors only sought a 25 cents per share burn.
Revenue came in at $296.5 million with $269.1 million expected.
"GoPro is building momentum," said Founder and CEO Nicholas Woodman.
"Strong demand combined with our cost management and margin initiatives
contributed to GoPro's EBITDA positive performance in the second
quarter. HERO6 and Fusion, our 5.2K spherical camera, are on course to
launch later this year and we continue to track toward our goal of
full-year, non-GAAP profitability in 2017."
Recent GoPro Highlights:
GoPro was honored with the prestigious
Red Dot design award, taking
Best-of-the-Best in Product Design
for both Karma and HERO5 Black.
GoPro's drone, Karma, was the #2
selling drone brand in the U.S. in the
second quarter, according to the
NPD Group's Retail Tracking Service.
QuikStories launched on July 27.
app feature automatically pulls footage from
a HERO5 camera and creates ready-to-share
videos on your phone. QuikStories are
polished, shareable videos featuring
customizable music, filters, and effects.
"We believe QuikStories is a game changer -
it represents our biggest leap forward in
ease-of-use since the invention of the
GoPro, itself," said Founder and CEO
Second Quarter revenue was $297
million, up 34% year-over-year and
36% quarter-over-quarter. Adjusted EBITDA
was $5.1 million.
Sharp focus on inventory and channel
management resulted in a 39% reduction in
inventory quarter-over-quarter; forward
weeks of supply in the channel is down 25%.
Both position us well for upcoming product
Global sell-thru of cameras increased 18%
sequentially. Additionally, camera sell-thru
above $300 was up 13%
year-over-year, including 7% in EMEA and
194% in Japan. According to GfK,
camera unit sales in Japan are up 164% and dollar sales are up 147%
year-over-year in the second quarter.
HERO5 Black was the best-selling digital
image camera in the U.S. in the second
quarter, according to The NPD Group's
Retail Tracking Service.
More than 50% of GoPro's revenue was generated in markets outside
of the U.S. in the second quarter.
Demand for GoPro was high on Amazon Prime Day (July 11).
A HERO Session bundle sold more than
ten-times the weekly run-rate; HERO5 Black
was offered with no discount and moved the
equivalent of a full week of normal
sell-thru in just one day.
The Quik mobile video editing app was
installed 5.6 million times in the second
quarter, a year-over-year increase of 84%.
Second quarter monthly active users were up
112% year-over-year. China represents Quik's
second largest user base globally. Capture
App (now the GoPro App) total monthly shares
in the second quarter were up over 30%
GoPro gained 1.6 million new social
media followers in the second quarter.
Instagram followers were up 39%
year-over-year to 13.7 million in the second
quarter, with a 94% increase in
international followers. Facebook
video views of GoPro content reached 58.3
million in the first half of 2017, up almost
YouTube videos of GoPro content in the first half of 2017 have seen
a 65% increase in median organic viewership
per video year-over-year.
GoPro is providing the following guidance:
Revenue of $300 million
GAAP and non-GAAP gross margin to be 37%
GAAP operating expenses of between
$131 million and $133 million
Non-GAAP operating expenses of between
$115 million and $117 million
GAAP EPS to be $(0.24)
Non-GAAP EPS to be $(0.06)
GAAP operating expenses below
Non-GAAP operating expenses below