GoPro(GPRO)2019-02-15 21:04Subscription Growth - GoPro Plus subscription service has grown to over 200,000 paying subscribers as of February 12, 2019, up from 185,000 as of December 31, 2018[17]. Operating Expenses - Operating expenses were reduced by 286.9 million in 2017 compared to 2016, due to company-wide restructuring efforts[11]. - The company plans to maintain a similar expense level in 2019 as in 2018 while investing in demand generation and future roadmap[11]. Marketing and Brand Awareness - GoPro's marketing investment increased in 2018 to drive consistent brand awareness and capitalize on new product launches[14]. - GoPro's marketing strategy includes engaging consumers through compelling content and relationships with key influencers[29]. Product Features - GoPro's cameras, including HERO7 models, support 4K video at 60 frames per second and 5.2K video at 30 frames per second for Fusion[15]. Revenue Sources - Direct sales accounted for 48% of revenue in 2018, while distributors accounted for 52%[23]. Production and Supply Chain - The company plans to relocate most U.S.-bound camera production from China to Mexico in 2019 to address tariff-related concerns[22]. Software and Services - GoPro aims to enhance its software and services offerings, including automated editing solutions and improved content transfer capabilities[13]. - GoPro's ecosystem includes cloud-connected cameras and services that facilitate content capture, editing, and sharing[12]. Global Presence and Marketing - The company focuses on expanding its global presence through regional marketing partnerships and localized products[14]. - As of December 31, 2018, GoPro had approximately 29,000 point of purchase (POP) displays in retail outlets worldwide[28]. Social Media and Engagement - In 2018, GoPro gained 3.3 million new followers on social media, bringing the total to 38.4 million followers[31]. - GoPro's latest HERO7 launch video ranked in the top 10 Google ad leaderboard in September 2018[31]. Intellectual Property - As of December 31, 2018, GoPro held approximately 510 issued patents and 436 pending patent applications in the United States[34]. Workforce - GoPro had 891 employees as of December 31, 2018, with no employees covered by collective bargaining agreements[35]. Financial Instruments and Risks - The company has not entered into any material foreign currency exchange contracts, and believes foreign currency exposure is currently immaterial[195]. - GoPro's cash equivalents and marketable securities primarily consist of money market funds, commercial paper, U.S. treasury securities, and corporate debt securities[195]. - The fair value of GoPro's Senior Convertible Notes is subject to interest rate risk and market risk, influenced by the company's stock price[195]. Competitive Landscape - The competitive landscape includes established camera manufacturers like Canon and Nikon, as well as large electronics companies like Samsung and Sony[32].