GoPro (GPRO -12.76%) stock is sinking in Thursday's trading. The company's share price was down 11% as of 1:15 p.m. ET, according to data from S&P Global Market Intelligence.GoPro published fourth-quarter results after the market closed yesterday, reporting disappointing sales and earnings performance. The action camera specialist posted non-GAAP (adjusted) earnings per share of $0.02 on sales of $295.42 million. Meanwhile, the average analyst estimate had called for the business to post earnings of $0.03 p ...

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Product Launch and Features - GoPro's HERO12 Black camera launched in September 2023, features 5.3K video at 60 FPS, 27-megapixel photo resolution, and improved HyperSmooth 6.0 stabilization[17] - The HERO11 Black camera features 5.3K video at 60 FPS and cloud connectivity for automatic uploads, enhancing user experience[22] - The HERO12 Black includes advanced features such as 10-bit color video, 27-megapixel photo resolution, and improved battery performance with the Enduro Battery[96] Subscription and Revenue Growth - GoPro had 2.5 million subscribers as of December 31, 2023, representing a 12% year-over-year growth[22] - The Premium+ subscription launched in February 2024, offering 500 GB of cloud storage and enhanced editing features[19] - Subscription and service revenue grew by 18.4% year-over-year to $97.5 million, with 2.5 million GoPro subscribers as of December 31, 2023, an 11.5% increase year-over-year[105] Revenue and Sales Performance - GoPro.com revenue accounted for 30% of net revenue in 2023, down from 38% in 2022, while retail sales accounted for 70% in 2023, up from 62% in 2022[27] - Annual revenue decreased from $1.09 billion in 2022 to $1.01 billion in 2023, with a net loss of $53.2 million in 2023 compared to a net income of $28.8 million in 2022[42] - Total revenue for 2023 was $1.005 billion, an 8.1% decrease from 2022, primarily due to a reduction in MSRP across the camera lineup and a shift to lower price tiers[114] Market Strategy and Competition - GoPro's strategy focuses on expanding its total addressable market through new camera types, accessories, and subscription offerings[20] - The company competes with major brands like Canon, Nikon, Samsung, and Sony, emphasizing its durable and versatile product design[33] - GoPro's marketing strategy includes leveraging user-generated content, which has reached over 26 billion views on TikTok tagged with GoPro[32] Financial Challenges and Losses - The company experienced a decline in camera sales and attach rates, which could adversely affect subscriber growth and overall profitability[43] - The company incurred an operating loss in 2023, with an accumulated deficit of $249.3 million as of December 31, 2023, emphasizing the need for effective expense management[53] - Net loss for the full year 2023 was $53.2 million, compared to net income of $28.8 million in 2022, and Q4 2023 net loss was $2.4 million compared to net income of $3.1 million in Q4 2022[105] Research and Development - Research and development expenses were $165.7 million in 2023, up from $139.9 million in 2022 and $141.5 million in 2021, with expectations for continued substantial expenses in 2024[44] - GoPro's investments in new camera features and software offerings are expected to drive revenue growth and expand its total addressable market[97] Operational and Supply Chain Risks - The company relies on third-party suppliers for components, with risks of supply shortages and long lead times affecting production capabilities[45] - The company expects to continue facing challenges related to supply chain disruptions, including equipment breakdowns and labor shortages, which could adversely affect sales and financial performance[46] - Economic downturns and inflationary pressures may adversely affect consumer spending and demand for the company's products, impacting financial performance[43] Stock and Financing - The company has a stock repurchase program authorized for up to $140 million, with $70,382 remaining available for repurchase as of December 31, 2023[92] - The company has $93.8 million in aggregate principal amount of convertible senior notes due in 2025 after repurchasing $50.0 million of the notes for $46.3 million in cash[75] - The company’s credit facility imposes restrictions that may limit its ability to operate and pursue business opportunities, including acquisitions[76] Environmental, Social, and Governance (ESG) Initiatives - The company published its 2023 Sustainability Snapshot, highlighting ongoing efforts to reduce carbon footprint and improve corporate social responsibility (CSR) initiatives[58] - There is increasing scrutiny regarding the company's Environmental, Social, and Governance (ESG) practices, which could lead to additional costs and reputational risks[58] Inventory and Cash Management - Inventory balances decreased from $127.1 million in 2022 to $106.3 million in 2023, reflecting a decrease of $20.8 million[149] - Cash and cash equivalents as of December 31, 2023, were $222,708,000, a slight decrease from $223,735,000 in 2022[129] - The company expects operating expenses and inventory purchases to be a significant use of cash balances moving forward[137]

GoPro, Inc. (GPRO) reported fourth-quarter 2023 non-GAAP earnings of 2 cents per share, which missed the Zacks Consensus Estimate by 33.3%. The company reported earnings of 12 cents in the year-ago quarter.GoPro generated revenues of $295.4 million, down 8% year over year. The top line also missed the consensus mark by 9.7%.GPRO added that consumers were looking for discounts irrespective of already low prices in the holiday season. This led to lower-than-expected sell-through of its HERO10 Black product (p ...

Financial Data and Key Metrics Changes - In Q4 2023, revenue was $295 million, below the guidance of $325 million, primarily due to lower-than-expected demand trends in North America [11] - Non-GAAP earnings per share for Q4 was $0.02, with gross margin outperforming guidance by 140 basis points [11][12] - The company expects gross margin to improve from 32% in 2023 to a range of 35.5% plus/minus 50 basis points in 2024 [12] Business Line Data and Key Metrics Changes - Retail channel unit sell-through grew by 25% from May 2023 to the end of the year, while GoPro.com revenue, excluding subscription and services, decreased to 14% of total revenue from 33% in the prior year [6][7] - Entry-level camera sell-through represented 28% of the product mix in Q4, up from zero in the prior year [8] Market Data and Key Metrics Changes - The company added over 3,200 new retail doors since May 2023, exceeding its target for the year [10] - The subscriber base closed 2023 with over 2.5 million subscribers, representing a 12% year-over-year growth [16] Company Strategy and Development Direction - The company initiated a multi-year Total Addressable Market (TAM) expanding strategy aimed at long-term revenue, subscriber, and profit growth [6] - Plans to launch four new camera SKUs in 2024, with a focus on expanding product offerings and entering the motorcycle helmet market through the acquisition of Forcite Helmet Systems [13][14] Management Comments on Operating Environment and Future Outlook - Management noted that the strategic shift in pricing and marketing has created a groundswell of opportunity at retail [7] - The company is optimistic about the potential for subscriber growth and the impact of new product launches on overall revenue [16][18] Other Important Information - The company plans to refresh point-of-purchase merchandisers and enhance in-store brand presence to support retail growth [10] - The Quik desktop app for macOS and a new Premium+ subscription tier were launched to enhance subscriber offerings [17] Q&A Session Summary Question: Clarification on 2024 revenue guidance - Management indicated that they are currently only guiding for Q1 and that sell-through is performing well, with expectations of 550,000 units [20][21] Question: Incremental TAM from Forcite acquisition - Management acknowledged some cannibalization but emphasized the potential for expanded TAM through integrated technology in helmets [24][26] Question: Long-term growth for subscriber base - Management noted improvements in Average Revenue Per User (ARPU) and indicated that subscriber growth is tied to unit growth over time [30][31] Question: Gross margin outlook for 2024 - Management confirmed that key components for margin improvement remain the same, including new product costs and tariff savings [35][36]

Q4 2023 Preliminary Earnings Results Summary February 7, 2024 Copyright © 2024. GoPro, Inc. All rights reserved. SAFE HARBOR STATEMENT This presentation may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “should,” “will”, “plan” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward ...

The Quik desktop app is available at no additional charge to GoPro subscribers. It syncs with the Quik mobile app, making it easy to start a project on one device and then finish it on another. Powerful yet convenient editing tools, such as a beat sync feature that automatically matches your edit points to the rhythm of your soundtrack, make advanced content creation easy. Quik's auto highlight editing feature ensures beginners can achieve pro-like results without any prior editing experience. GoPro subscri ...

GoPro Partners with the Biggest Snow Event of the Year to Bring Immersive Course Previews + Unique Perspectives from Aspen to Viewers Worldwide SAN MATEO, Calif., Jan. 25, 2024 /PRNewswire/ -- Today, GoPro (NASDAQ: GPRO) announced a partnership with X Games Aspen 2024 to be the official action camera of the elite winter ski and snowboard competition. More than 100 of the biggest names in action sports will compete in front of live crowds in Aspen, Colorado, with an additional 2.4 million viewers tuning in ...

While making investments, identifying solid opportunities can feel like looking for a needle in a haystack. While daunting, with enough time and patience it is possible. This article aims to point you towards three stocks that stand out as potential goldmines. They are all currently priced under $10 and the stocks are forecast to quadruple by 2028. These stocks under $10 each capitalize on a different sector from consumer electronics, to finance and automobile manufacturing. Let’s explore the strategic triu ...

The World's Top Freeride Skiers and Snowboarders to Wear GoPro Cameras in Competition to Deliver Thrilling Live POV and Action ContentSAN MATEO, Calif., Jan. 22, 2024 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) today announced its continued partnership for the 2024 season with the Freeride World Tour by Peak Performance, the ultimate ski and snowboard freeriding competition. Known for showcasing some of the world's most thrilling freeride content, the 2023 Freeride World Tour generated more than 300M video v ...