GoPro, Inc. (GPRO) stock has tumbled 65% in the past year against the S&P 500 composite and the sub-industry’s growth of 24.4% and 12.9%, respectively. The decline can be attributed to sluggish sales in both its retail stores and GoPro.com online channel. Loss estimates for 2024 have widened to $2.44 per share from a loss of $1.05 over the past 60 days.One-Year Stock PerformanceImage Source: Zacks Investment ResearchCut-Throat Competition, Macro Woes Hurt GPRO’s ProspectsSan Mateo, CA-based GoPro manufactur ...

Core Insights - GoPro has partnered with Teton Gravity Research (TGR) for the production of its 29th annual ski and snowboard film titled "Beyond the Fantasy," which is currently being screened in theaters worldwide [1][3][4] - The film showcases the capabilities of GoPro's HERO12 Black camera, emphasizing its wide field-of-view and superior video stabilization to capture high-quality action footage [1][3] - TGR's film features prominent GoPro athletes, including Sammy Carlson, Nick McNutt, Kai Jones, and Parkin Costain, who push the limits of skiing and snowboarding [3][4] Company Overview - GoPro is recognized for its innovative approach to capturing immersive experiences and has been acknowledged as a top employer by Outside Magazine and U.S. News & World Report [5] - The company continues to engage with its audience through various social media platforms and encourages user-generated content via GoPro Awards [6] Teton Gravity Research Overview - TGR is a leading brand in outdoor action and adventure filmmaking, known for its storytelling and has produced over 50 award-winning films [7] - The brand has a strong presence among millennials and is involved in various environmental initiatives, showcasing its commitment to sustainability [7]

GoPro, Inc (GPRO) reported non-GAAP breakeven earnings per share for the third quarter of 2024 in contrast to the Zacks Consensus Estimate of a loss of 4 cents per share. The company reported earnings per share of 6 cents in the year-ago quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.GPRO generated revenues of $259 million, down 12% year over year due to lower camera unit sales. The metric was within the company’s guidance of $255 million (+/- $5 million). The top line bea ...

For the quarter ended September 2024, GoPro (GPRO) reported revenue of $258.9 million, down 12% over the same period last year. EPS came in at $0.00, compared to $0.04 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $254.92 million, representing a surprise of +1.56%. The company delivered an EPS surprise of +100.00%, with the consensus EPS estimate being -$0.04.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Financial Data and Key Metrics Changes - GoPro reported Q3 2024 revenue of $259 million, exceeding guidance, with subscription and service revenue growing 11% year-over-year to $27.5 million, driven by a 9% increase in ARPU and a 2% growth in overall subscribers [8][20] - Non-GAAP EPS was breakeven, and EBITDA improved by $39 million sequentially to $5 million [9][21] - Gross margin for the second half of 2024 is expected to be 36%, reflecting an 1850 basis point improvement year-over-year [21][23] Business Line Data and Key Metrics Changes - Subscription and service revenue grew 11% year-over-year to $27.5 million, with a 4% year-over-year increase in aggregate retention rate to 67% and a 2% growth in subscribers to 2.56 million [20] - The subscription attach rate from cameras sold across all channels remained at 45%, consistent with prior year rates [20] Market Data and Key Metrics Changes - The consumer digital imaging market is growing, particularly in action cameras and 360-degree cameras, driven by consumer interest in alternative forms of capture beyond smartphones [14] - GoPro's global retail expansion strategy has added approximately 6,300 new retail doors, bringing the total to over 25,000, with over 1,200 doors added in Q3 alone [18] Company Strategy and Development Direction - GoPro is targeting a significant reduction in operating expenses to approximately $250 million in 2025, down from $360 million in 2024, aiming for a leaner and more focused operational model [15][23] - The company launched two new products in September 2024, including the HERO 13 Black and an entry-level HERO camera, designed to enhance profit margins [17] - GoPro is committed to defending its intellectual property through litigation against competitors infringing on its patents [10][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges due to global macroeconomic headwinds affecting consumer discretionary spending and competition, but expressed optimism about future growth opportunities [9][36] - The company expects to launch new products in 2025, including the delayed MAX 2 360-degree camera, which is anticipated to drive revenue growth [22][31] Other Important Information - GoPro's cash position is expected to be approximately $125 million at the end of the year, with a focus on preserving cash to repay debt and position for profitability in 2025 [22][24] Q&A Session Summary Question: What is the ideal outcome of the U.S. ITC investigation? - The ideal outcome is for the ITC to recognize the infringement and validate GoPro's patents, preventing the infringing company from selling those products in the U.S. market [26] Question: What is the timeline for the investigation to conclude? - The expected conclusion of the investigation is in 2025 [27] Question: What are the most impactful headwinds for the 2025 outlook? - The most significant headwind is macroeconomic factors, followed by the need to launch the new 360-degree camera and competition [28] Question: Where is the most share erosion occurring? - The biggest share erosion is in the 360-degree camera category, with some impact on the HERO action camera category due to the delay in launching the new MAX 2 camera [30]

GoPro (GPRO) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this action video camera maker would post a loss of $0.25 per share when it actually produced a loss of $0.24, delivering a surprise of 4%.Over the last four quarters, the company has sur ...

Financial Performance - GoPro reported Q3 2024 revenue of $258.9 million, a decrease of 12% from $294.3 million in Q3 2023[11]. - Gross profit for Q3 2024 was $91.8 million, compared to $94.2 million in Q3 2023, reflecting a gross margin of approximately 35.4%[11]. - Operating loss for the nine months ended September 30, 2024, was $95.9 million, significantly higher than the loss of $66.1 million for the same period in 2023[11]. - Total revenue for the three months ended September 30, 2024, was $258.9 million, a decrease of 12% compared to $294.3 million for the same period in 2023[61]. - Revenue for the nine months ended September 30, 2024, decreased to $600.6 million from $710.0 million in the same period for 2023[131]. - The company reported a net loss of $395.1 million for the nine months ended September 30, 2024, with cash used in operating activities amounting to $100.0 million[105]. - For the three months ended September 30, 2024, the company recorded a net loss of $8.2 million, compared to a net loss of $3.7 million in the same period of 2023[47]. - Adjusted EBITDA for Q3 2024 was $5.4 million, down from $7.2 million in Q3 2023[80]. Cash and Assets - Total current assets decreased to $454.6 million as of September 30, 2024, down from $482.6 million at the end of 2023[7]. - Cash and cash equivalents dropped to $130.2 million from $222.7 million at the end of 2023, indicating a cash reduction of 41.5%[7]. - GoPro's total stockholders' equity decreased to $183.9 million as of September 30, 2024, down from $555.8 million at the end of 2023[9]. - As of September 30, 2024, GoPro reported a cash balance of $130.2 million and an accumulated deficit of $644.4 million[17]. - Cash equivalents as of September 30, 2024, were $60.3 million, down from $152.8 million as of December 31, 2023[24]. - Total liabilities increased to $477.7 million as of September 30, 2024, compared to $412.1 million at the end of 2023, marking a rise of 15.9%[8]. Research and Development - Research and development expenses for Q3 2024 were $44.3 million, an increase of 6.4% from $41.7 million in Q3 2023[11]. - Total research and development expense for the first nine months of 2024 increased by $14.1 million, or 11.6%, compared to the same period in 2023[88]. Inventory and Sales - Total inventory as of September 30, 2024, was $155.3 million, an increase from $106.3 million as of December 31, 2023[26]. - Camera units shipped in Q3 2024 totaled 881 thousand, compared to 923 thousand in Q3 2023, reflecting a 5% decline[75]. - Average selling price decreased by 7.8% year-over-year to $294, influenced by a 38.2% increase in entry-level camera sales[79]. Subscription and Services - Subscription and service revenue for Q3 2024 was $27.5 million, representing 10.6% of total revenue, while for the nine months ended September 30, 2024, it was $79.7 million, or 13.3% of total revenue[18]. - The company launched its Premium+ subscription in February 2024, which includes 500 GB of cloud storage and access to advanced video stabilization software[18]. - Subscription attach rate was 45% in Q3 2024, with an aggregate retention rate for annual subscribers at 67%, up from 65% in the same period last year[80]. Cost Management and Restructuring - The company initiated a cost reduction effort in October 2024, aiming to reduce headcount by approximately 26% compared to Q2 2024[17]. - The restructuring plan approved in August 2024 aims to reduce the global workforce by approximately 26%, with expected severance-related charges of up to $9 million[63]. - The company expects to incur up to $8 million in project cancellation costs related to the restructuring plan approved in October 2024[91]. Market and Economic Conditions - The company continues to face pressures from inflation and fluctuating interest rates, which may impact product pricing and consumer spending[71]. - The company experienced a negative impact of approximately $50 million on revenue, gross margin, and net income due to foreign currency fluctuations over the last 12 months ending September 30, 2024[120]. - Economic downturns and inflation may adversely affect consumer spending and demand for products, impacting financial results[134]. Legal and Regulatory Risks - The company has initiated legal proceedings against Arashi Vision Inc. for patent infringement related to its cameras and digital imaging technology[150]. - The company is subject to evolving privacy and data protection regulations, with potential fines of up to 4% of worldwide annual revenue for non-compliance with GDPR[153]. - The company faces potential claims related to consumer injuries while using its products, which could adversely affect its brand and financial condition[144]. Corporate Governance - As of September 30, 2024, Class B common stockholders hold approximately 67.1% of the voting power, with CEO Mr. Woodman controlling about 64.2% of the voting power[162]. - The company has a remaining share repurchase authorization of $60.4 million as of September 30, 2024, under its stock repurchase program[168]. - The dual class structure may discourage potential investors from acquiring Class A common stock due to limited voting power compared to Class B[162].

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|----------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q3 2024 Preliminary Earnings | | | | | | | | | | | Results Summary November 7, 2024 | | | SAFE HARBOR STATEMENT This presentation may contain projections or other forward-looking statements within the meaning Section 27A of the Private S ...

 Revenue of $259 million GoPro Subscribers Grew 2% Year-over-Year to 2.56 million Subscription and Service Revenue was $27.5 million, Up 11% Year-over-Year Announced Updated Restructuring Plan to Substantially Reduce Operating ExpensesSAN MATEO, Calif., Nov. 7, 2024 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) announced financial results for its third quarter ended September 30, 2024, and posted management commentary, including forward-looking guidance, in the investor relations section of its website at http ...

SAN MATEO, Calif., Oct. 17, 2024 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) today announced that it will release its financial results for the third quarter ended September 30, 2024, after the market closes on Thursday, November 7, 2024. GoPro management will host a conference call and live webcast following the release at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the Company's financial results. A webcast link and management commentary will be posted on the "Events & Presentations" section ...