The camera is compatible with the all-new, interchangeable HB-Series Lenses with Auto Detection. These lenses make it easy to expand the range of creative shots you can capture with HERO13 Black: Combining HERO13 Black in Polar White with a GoPro Premium ($24.99 first year for new subscribers and $49.99/year thereafter) or Premium+ ($99.99/year) Subscription adds the ability to auto-upload your footage to the cloud, receive automatic highlight videos via the GoPro Quik App, save up to 30% on accessory purch ...

Revenue Performance - GoPro's revenue in 2024 was impacted by macroeconomic conditions, competition, and a delay in hardware product releases, deviating from the historical trend of high revenue in Q4[34]. - In 2024, the company incurred an operating loss of $135.0 million, with annual revenue decreasing from $1.09 billion in 2023 to $801.5 million in 2024[71]. - GoPro.com revenue represented 25% of net revenue in 2024, down from 30% in 2023, while retail accounted for 75% in 2024, up from 70% in 2023[42]. - Revenue from international operations comprised 64%, 61%, and 59% of total revenue in 2024, 2023, and 2022 respectively, indicating a significant reliance on global markets[116]. - GoPro's revenue from the U.S. accounted for 36.3% of annual revenue in 2024, down from 38.6% in 2023, indicating a shift in revenue sources[221]. Product Development and Innovation - The HERO13 Black camera, launched in September 2024, features 5.3K video at 60 FPS, 27-megapixel photo resolution, and improved thermal performance[27]. - The Premium+ subscription launched in February 2024, offering 500 GB of cloud storage and advanced editing features[36]. - The company plans to introduce the Anamorphic Lens Mod for the HERO13 Black in Q1 2025, expanding its product offerings[28]. - The HERO camera, launched in 2024, is the smallest and lightest version, capable of shooting 4K video at 30 FPS[30]. - GoPro's ecosystem includes various compatible accessories for its HERO and MAX cameras, enhancing user experience and content creation[218]. Subscription Services - GoPro's subscription services include unlimited cloud storage and damaged camera replacement, enhancing customer retention and engagement[30]. - Subscriber growth slowed to 1% from 12% year-over-year, indicating potential challenges in attracting and retaining subscribers[80]. - The company launched the Premium+ subscription in February 2024, offering 500 GB of cloud storage for non-GoPro content, alongside the existing Premium subscription[219]. - The Quik subscription offers editing tools for users to enhance photos and videos captured on any device, further integrating GoPro's services[220]. Market and Sales Strategy - GoPro operates in over 80 countries, leveraging both retail and direct-to-consumer sales channels[42]. - The company emphasizes a user experience-driven approach to product development, engaging with customers for feedback[37]. - The company anticipates challenges in expanding subscription and service offerings, which may limit total addressable market and revenue growth[94]. - The introduction of new products may shorten the life cycle of existing products, impacting inventory management and demand[90]. Financial and Operational Challenges - The company experienced a significant impact on margins in 2023 due to price protection charges and increased sales of low-margin entry-level cameras[72]. - The company faces substantial risks related to inventory management, which could lead to material charges affecting operating results[106]. - The ability to accurately forecast demand is critical, as miscalculations could result in higher costs or inability to meet customer demand[108]. - The company relies on third-party suppliers for components, which poses risks related to supply chain disruptions and lead times[102]. Manufacturing and Supply Chain - GoPro's manufacturing is primarily outsourced to contract manufacturers in China, Thailand, and Vietnam, allowing for greater scale and flexibility[40]. - The company relies on contract manufacturers located in China and Thailand, exposing it to risks associated with global trade policies and tariffs[111]. - The company has proactively moved U.S.-bound camera production outside of China to mitigate tariff risks, indicating a strategic shift in manufacturing[112]. Legal and Compliance Risks - The company has initiated legal proceedings against Arashi Vision Inc. for patent infringement related to its cameras and digital imaging technology[135]. - The company is subject to various laws and regulations regarding privacy, data protection, and information security, which could adversely affect its business[142]. - Non-compliance with the EU GDPR could result in fines of up to 4% of the company's worldwide annual revenue[146]. - The company may be adversely affected by violations of the United States Foreign Corrupt Practices Act and similar anti-bribery laws, which could lead to substantial fines[150]. Cybersecurity and Data Protection - Cybersecurity threats pose significant risks, with potential disruptions to operations and financial reporting, impacting revenue and reputation[113]. - The Chief Information Security Officer oversees the cybersecurity program, which includes regular updates to the Audit Committee[193]. - The company has implemented industry-standard security measures to protect against unauthorized access to confidential information[192]. - The company has not experienced any material cybersecurity incidents that have affected its business strategy or financial condition[199]. Stock and Financial Management - The company's stock price fluctuated from a high of $6.46 in Q1 2023 to a low of $1.09 in Q4 2024, affecting employee retention strategies[78]. - The Class A common stock closed below the $1.00 minimum bid price requirement on February 7, 2025, risking delisting from The Nasdaq Global Select Market[160]. - The company has not declared or paid any cash dividends on its capital stock and does not intend to do so in the foreseeable future[205]. - The existence of convertible senior notes may dilute the ownership interest of existing stockholders upon conversion[176]. Research and Development - Research and development expenses were $185.9 million in 2024, up from $165.7 million in 2023, with expectations of continued substantial expenses in 2025[89]. - The company holds approximately 1,465 issued patents and 366 pending patent applications in the United States as of December 31, 2024[59]. - The company regularly files patent applications to protect innovations but may fail to apply for patents on important products in a timely manner[130].

Core Insights - GoPro has announced the addition of five young athletes to its elite team through the Grom Quest talent search program, which is based on video submissions [1][4] - The Grom Quest Challenge received over 4,000 submissions from athletes aged 17 and younger, showcasing the program's global reach and popularity [2][4] - Selected athletes will be featured on GoPro's social channels, receive equipment, and have opportunities to learn from established professional athletes [3][4] Summary by Category Grom Quest Program - The Grom Quest Challenge is an ongoing contest open to athletes worldwide aged 17 and younger, allowing them to submit performance clips via the GoPro Quik App or GoPro.com [4] - The program aims to elevate and support the next generation of athletes, as stated by GoPro's Vice President of Global Marketing and Communications [4] Selected Athletes - The five young athletes selected include: - Truly Adams, 14, USA, an elite kart racer with multiple wins [8] - Weston Lukens, 10, USA, a mountain biker with over 24 wins and notable achievements [8] - Carter Durlacher, 16, Canada, recognized for his top performances in skiing [8] - Iyla Edwards, 15, USA, a snowmobile racer with significant wins and accolades [8] - Max Cristea, 13, USA, a decorated kart racer with numerous podium placements [8] Company Overview - GoPro is recognized for helping individuals capture and share immersive experiences and has been acknowledged as a top employer [5]

Company Overview - GoPro, Inc. is the official camera partner for the 2025 Freeride World Tour, marking the 12th consecutive year of collaboration [3] - The company is recognized for its innovative camera technology, particularly the HERO13 Black, which features enhanced capabilities for capturing immersive content [4][2] Industry Insights - The Freeride World Tour is a premier competition in the skiing and snowboarding industry, showcasing top athletes and generating significant viewer engagement, with over 60 million video views already recorded for the 2025 season [1] - The tour runs from January 17 to March 30, 2025, featuring six events across North America and Europe, with live broadcasts on social media and other platforms [3] Product Features - The HERO13 Black camera, when paired with GoPro's HB-Series Ultra Wide Lens Mod, offers a field of view (FOV) of 177°, which is 36% wider and 48% taller than the standard lens [2][4] - The camera also provides advanced video stabilization and stunning 4K60 video resolution, enhancing the viewing experience for fans [4]

Group 1 - GoPro MAX is positioned as the leading 360 camera for creative athletes, adventurers, and content creators, emphasizing ease of use for capturing high-quality shots [1] - The Quik App introduces new AI-powered features for 360 editing, including Object Tracking and simplified editing tools, enhancing user experience [1] - GoPro plans to continuously launch new app features throughout the year to improve the 360 experience [1] Group 2 - The GoPro Reframe plugin for Adobe Premiere Pro and After Effects allows desktop editors to manipulate 360 and 2D media with various adjustments [2] - The GoPro MAX camera is priced at $349.99 and is available for purchase on GoPro's website and local retailers [2] Group 3 - GoPro is recognized as a top employer by Outside Magazine and U.S. News & World Report, highlighting its positive workplace environment [3] Group 4 - The Quik App features include AI-Powered Object Tracking, keyframing, dynamic camera effects, automatic transitions, single clip edits, and a new frame grab tool for enhanced editing capabilities [6]

Core Insights - GoPro has entered a distribution partnership with Kimpex Powersports in Canada, allowing Kimpex to sell GoPro products through a network of over 2,300 dealers [1][3] - The partnership aims to enhance customer access to GoPro's full range of cameras and accessories, including the latest innovations [1][3] - Kimpex will provide select dealers with new product displays and training to support customer engagement with GoPro products [3][4] Company Overview - GoPro is recognized for its award-winning HyperSmooth video stabilization and durable, waterproof design, making it a leading choice for powersports enthusiasts [2] - The partnership with Kimpex is expected to expand GoPro's brand presence and product availability across Canada [4] Industry Context - The powersports market is integral to GoPro's identity, and the collaboration with Kimpex is seen as a strategic move to strengthen its position in this sector [4]

Core Viewpoint - GoPro's international operations are critical for understanding its financial resilience and growth potential, especially in the context of a globally interconnected economy [2][3]. Group 1: Financial Performance - For the quarter ending December 2024, GoPro's total revenue was $200.88 million, reflecting a year-over-year decline of 32% [4]. - Revenue from Europe, the Middle East, and Africa (EMEA) accounted for 28.92% of total revenue, amounting to $58.1 million, which was a surprise decline of 12% compared to expectations of $66.02 million [5]. - The Asia and Pacific region generated $38.5 million, representing 19.17% of total revenue, also falling short by 9.05% against the projected $42.33 million [6]. Group 2: Revenue Projections - Analysts project GoPro's revenues for the ongoing fiscal quarter to be $124.65 million, a decline of 19.8% from the previous year, with EMEA and Asia-Pacific expected to contribute $46.61 million (37.4%) and $28.36 million (22.8%) respectively [7]. - For the entire year, total revenue is forecasted at $749.86 million, a reduction of 6.4% from the previous year, with EMEA contributing 34.9% ($261.37 million) and Asia-Pacific contributing 22.2% ($166.74 million) [8]. Group 3: Market Dynamics - GoPro's reliance on international markets presents both opportunities and risks, making it essential to monitor international revenue trends for forecasting the company's prospects [9]. - The increasing international interdependencies and geopolitical conflicts are significant factors that analysts consider when adjusting earnings forecasts for companies with a global presence [10].

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% decline year-over-year, attributed to lower camera unit sales, but it was within the guidance range [2][3] - For the full year 2024, GPRO's revenue was $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]

Core Viewpoint - GoPro reported a quarterly loss of $0.09 per share, which was better than the Zacks Consensus Estimate of a loss of $0.11, indicating an earnings surprise of 18.18% [1] Financial Performance - GoPro's revenues for the quarter ended December 2024 were $200.88 million, surpassing the Zacks Consensus Estimate by 0.87%, but down from $295.42 million year-over-year [2] - The company has exceeded consensus EPS estimates for the last four quarters [2] Stock Performance and Outlook - GoPro shares have not appreciated since the beginning of the year, contrasting with the S&P 500's gain of 3.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $137.57 million, and for the current fiscal year, it is $0.07 on revenues of $760.68 million [7] Industry Context - The Audio Video Production industry, to which GoPro belongs, is currently in the top 21% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Financial Data and Key Metrics Changes - In Q4 2024, revenue was $201 million, in line with guidance, while GAAP net loss per share was $0.24 and non-GAAP net loss per share was $0.09, exceeding guidance [19][20] - Subscription and service revenue grew 9% year over year, primarily due to an 8% increase in ARPU, with aggregate subscription retention reaching a record 69% [20][22] - Operating loss was $80 million compared to a loss of $34 million in 2023, with retail revenue accounting for 75% of total revenue at $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 $346 compared to $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 $80 million at the end of Q1 2025, with plans to manage inventory below $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]