GoPro's Loss Narrower Than Expected in Q4, Revenues Down Y/Y

Core Insights - GoPro, Inc (GPRO) reported a narrower non-GAAP loss per share of 9 cents for Q4 2024, compared to a loss of 11 cents expected by analysts, and a profit of 3 cents in the same quarter last year [1][3] - The company's revenue for Q4 2024 was $201 million, a 32$801 million, down 20% from 2023, primarily due to the delayed launch of the new MAX2 360-camera [3][4] Financial Performance - GPRO sold 581,000 camera units in Q4 2024, down from 895,000 units in the prior year [2] - Non-GAAP gross margin improved to 35.1% from 34.4% year-over-year, while non-GAAP operating loss was $16 million compared to an operating income of$2 million in the previous year [11] - Subscription and service revenues increased by 10% year-over-year to $107 million in 2024, with a total of 2.52 million subscribers at the end of Q4 2024 [3][7] Market Outlook - Management anticipates a decline in units and revenue growth for 2025 due to macroeconomic challenges, competition, and the delayed launch of the new 360-degree camera [4] - For Q1 2025, GPRO expects revenues of approximately$125 million and a non-GAAP adjusted loss of 13 cents per share [14] - Operating expenses are projected to decrease significantly in 2025, with a forecast of $250 million to$260 million, down $100 million from 2024 [15] Stock Performance - Following the earnings announcement, GPRO's shares fell by 15.7% in pre-market trading, with a 58.2% decline over the past year compared to a 17.2% increase in the Audio-Video Production industry [5]