GoPro(GPRO)2025-02-06 23:30Financial Data and Key Metrics Changes - In Q4 2024, revenue was 0.24 and non-GAAP net loss per share was 80 million compared to a loss of 601 million, down 15% year over year [23][24] Business Line Data and Key Metrics Changes - Subscription attached rate from cameras sold was 34%, up from 29% in Q4 2023, indicating a 16% improvement [22] - Sell-through in Q4 was approximately 770,000 camera units, resulting in a decrease of over 170,000 units in channel inventory [20] - ASP was 330 in Q4 2023, reflecting a positive trend in pricing [22] Market Data and Key Metrics Changes - Retail revenue decreased by 15% year over year, while product revenue dropped 54% year over year [23] - Sell-through for the year was 2.5 million units, down 32% year over year [24] Company Strategy and Development Direction - The company is focused on reducing operating expenses by nearly 30% from 2024 and enhancing product design efficiency [25][31] - Plans to launch new products, including the Max 2 360 camera, are aimed at restoring growth and profitability by 2026 [17][31] - The company aims to expand its total addressable market (TAM) and establish itself as a market leader through innovation [17][64] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds, competition, and currency fluctuations as challenges impacting revenue and unit sales in 2025 [16][24] - The company expects a decline in unit sales and revenue in 2025 but anticipates a return to growth in 2026 with new product launches [17][31] Other Important Information - The company has completed validation of its next-generation SOC GP3, which is expected to set new performance standards in the digital imaging industry [16] - Cash position is projected to be approximately 100 million [27][30] Q&A Session Summary Question: Subscriber guidance for 2025 - Management expects subscriber count to decline to approximately 2.4 million, down about 120,000, due to lower unit sales but improved ARPU will help offset this [36] Question: Guidance for 2025 revenue - Management refrained from providing precise revenue guidance for 2025, citing headwinds from competition and foreign exchange [39][42] Question: Reintroduction of Max 1 - The decision to reintroduce Max 1 was based on market demand and software enhancements, and it is expected to be margin accretive [48][52] Question: GP3-enabled camera release - Management could not provide specific details on the release of GP3-enabled cameras due to competitive reasons [55] Question: Long-term subscription growth - Management indicated that while hardware sales have historically driven subscription revenue, new software experiences are being developed to enhance engagement and conversion rates [59][60]