Financial Data and Key Metrics Changes - First quarter revenue was $134 million, at the high end of guidance of $125 million, driven by stronger sell-through [13] - Non-GAAP operating expenses decreased by 26% year over year to $62 million from $83 million [14][18] - GAAP and non-GAAP loss per share were $0.30 and $0.12 respectively, with adjusted EBITDA loss reduced by nearly 50% year over year to negative $16 million [16][19] - Inventory at the end of the quarter was $96 million, a 27% decrease year over year [16] Business Line Data and Key Metrics Changes - Revenue from the retail channel was $94 million, accounting for 70% of Q1 2025 revenue, up from 68% in Q1 2024 [14] - Revenue from the GoPro.com channel, including subscription and service revenue, was $40 million, representing 30% of Q1 2025 revenue, down from 32% in Q1 2024 [14] - Subscription and service revenue grew 4% year over year to $27 million, primarily due to a 5% increase in ARPU [15] Market Data and Key Metrics Changes - Sell-through was approximately 440,000 units, down from 530,000 units in the prior year period, primarily due to decreases in Asia Pacific driven by macroeconomic issues and competition [17] - In the United States, sell-through was down 10% year over year, while sell-in was up 7% year over year [28] Company Strategy and Development Direction - The company plans to continue making strategic investments in product innovation to return to growth and diversify its supply chain, including exploring domestic production [6][10] - GoPro is focused on launching new products while preserving cash to repay debt and drive growth in 2025 and 2026 [24][23] - The company aims to introduce the Max 2 360 camera in 2025 and expects to end 2025 with 2.4 million subscribers [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating model is becoming leaner and more efficient, positively impacting financial results [11] - The company expects revenue for Q2 2025 to be $145 million, down 22% year over year, with unit sell-through expected to decrease by 20% [21] - Management highlighted that the macro environment, competition, and delays in new product launches are expected to impact units and revenue in 2025 [22] Other Important Information - The company reported a strong aggregate retention rate for subscriptions at 70%, up from 69% both sequentially and year over year [8] - GoPro is actively managing its balance sheet and expects to reduce inventory sequentially by $20 million [20] Q&A Session Summary Question: Can you help us understand the sources of stronger sell-through in the quarter? - Management indicated that there was no pull-forward demand; sales were linear throughout the quarter [27] Question: What happened with the sell-through in the U.S. and Asia? - Management noted that Asia was down 54% due to macroeconomic issues and competition, particularly in China, Japan, and South Korea [30] Question: Can you elaborate on the tariff situation? - Management confirmed that the tariff impact on cameras entering the U.S. is zero due to diversified production outside of China [35] Question: What are the dynamics in Asia currently? - Management highlighted that competition and macroeconomic issues are affecting sales in Asia, with a nationalistic trend to buy local impacting performance [39]

Financial Data and Key Metrics Changes - First quarter revenue was $134 million, at the high end of guidance of $125 million, driven by stronger sell-through [12] - Non-GAAP operating expenses decreased by 26% year over year to $62 million from $83 million [13][16] - Reported gross margin was 32.3%, with an adjusted gross margin of 35.5% excluding a one-time sale [15][16] - Non-GAAP loss per share was $0.12, while GAAP loss per share was $0.30 [14] - Adjusted EBITDA loss was reduced by nearly 50% year over year to negative $16 million [14] Business Line Data and Key Metrics Changes - Revenue from the retail channel was $94 million, accounting for 70% of Q1 2025 revenue, up from 68% in Q1 2024 [13] - Revenue from GoPro's website, including subscription and service revenue, was $40 million, representing 30% of Q1 2025 revenue, down from 32% in Q1 2024 [13] - Subscription and service revenue grew 4% year over year to $27 million, with an average revenue per user (ARPU) growth of 5% [14] Market Data and Key Metrics Changes - Sell-through was approximately 440,000 units, down from 530,000 units in the prior year period, primarily due to macroeconomic issues and competition in Asia Pacific [15] - In Asia, revenue was down 54%, significantly impacted by competition and macroeconomic factors in China, Japan, and South Korea [29][38] - The U.S. sell-through was down 10% year over year, while sell-in was up 7% year over year [27] Company Strategy and Development Direction - The company aims to continue strategic investments in product innovation to return to growth and diversify its supply chain, including exploring domestic production [6][8] - GoPro plans to launch tech-enabled motorcycle helmets in partnership with AGV, targeting a significant market opportunity [10] - The company is focused on launching new products while preserving cash to repay debt and drive growth and profitability [23] Management's Comments on Operating Environment and Future Outlook - Management expects revenue and unit sales in 2025 to be lower than in 2024 due to an uncertain macro environment and competition [20] - The company anticipates a return to camera unit growth in 2026, alongside subscriber and revenue growth [8] - Management highlighted the importance of protecting intellectual property and is prepared to litigate if necessary [8] Other Important Information - The company ended Q1 2025 with $70 million in cash and marketable securities, including a $25 million draw on its asset-based loan [16] - Inventory decreased by 27% year over year to $96 million, marking the first sequential decline in inventory since 2018 [14] Q&A Session Summary Question: Sources of stronger sell-through in the quarter - Management indicated that there was no pull-forward demand; sales were linear throughout the quarter [26] Question: Sell-through dynamics in the U.S. and Asia - Management noted that Asia's decline was primarily due to macroeconomic issues and competition, particularly in China, Japan, and South Korea [29][38] Question: Tariff situation and inventory sourcing - Management confirmed that the tariff impact on cameras entering the U.S. is zero due to diversified production outside of China [34] Question: Dynamics in Asia and competition - Management highlighted that nationalistic trends and increased competition in China have impacted sales, while the U.S. market showed improvement [38] Question: Plans for stock price changes - Management expressed confidence that continued performance improvements would positively impact stock price without the need for a reverse stock split [41]

Financial Performance - Revenue for Q1 2025 was $134.3 million, a decrease of 13.6% compared to $155.5 million in Q1 2024[18]. - Gross profit for Q1 2025 was $43.1 million, down from $53.0 million in Q1 2024, reflecting a gross margin decline[18]. - Operating loss for Q1 2025 was $45.2 million, compared to a loss of $41.4 million in Q1 2024[18]. - Net loss for Q1 2025 was $46.7 million, significantly improved from a net loss of $339.1 million in Q1 2024[18]. - Adjusted EBITDA for Q1 2025 was negative $15.7 million, an improvement from negative $29.3 million in Q1 2024[174]. - Total revenue for the three months ended March 31, 2025, was $134.3 million, a decrease of 13.6% compared to $155.5 million for the same period in 2024[147]. - Revenue declined by 13.6% in the three months ended March 31, 2025, compared to the same period in 2024, resulting in operating losses of $45.2 million[213]. Cash and Liquidity - Cash and cash equivalents decreased to $69.6 million as of March 31, 2025, down from $102.8 million at the end of 2024[15]. - Operating cash outflows for Q1 2025 were $57.2 million, compared to $98.4 million in Q1 2024[21]. - The Company estimates it will maintain liquidity for at least 12 months, but future cash generation is uncertain due to factors like inflation and competition[37]. - As of March 31, 2025, the company's cash balances were $27.3 million, down from $60.4 million as of December 31, 2024[64]. - The company drew $25.0 million from its 2021 Credit Agreement in February 2025, with an additional $19.8 million available to draw[32]. Assets and Liabilities - Total assets decreased to $462.5 million as of March 31, 2025, compared to $543.7 million at the end of 2024[15]. - Total liabilities were $352.5 million as of March 31, 2025, down from $392.0 million at the end of 2024[15]. - The carrying amount of goodwill as of March 31, 2025, was $133.8 million, down from $152.4 million due to an impairment of $18.6 million[79]. - The company reported accrued expenses and other current liabilities of $78.5 million as of March 31, 2025, a decrease of approximately 29% from $110.8 million as of December 31, 2024[80]. Revenue Breakdown - Subscription and service revenue was $26.9 million, or 20.0% of total revenue for Q1 2025, compared to $25.9 million, or 16.7% for Q1 2024[46]. - Revenue from the Americas region was $81.9 million, up 6.5% from $76.6 million in the prior year, while revenue from EMEA and APAC regions decreased by 22.9% and 54.1%, respectively[147]. - Retail revenue in Q1 2025 was $93.9 million, representing 69.9% of total revenue, compared to 68.4% in Q1 2024[171]. - GoPro.com revenue, including subscription and service revenue, was $40.4 million in Q1 2025, accounting for 30.1% of total revenue[171]. Operational Changes - The Company has implemented restructuring actions in 2024 to maintain liquidity and operations, including headcount reductions and managing working capital[36]. - The company reduced its global workforce by 25% as part of its restructuring plans, which included significant severance costs[152]. - The operational plan for 2025 includes reducing research and development costs and sales and marketing expenses[36]. - The restructuring charges for the first quarter of 2025 totaled $2.43 million, an increase from $2.21 million in the first quarter of 2024[151]. Market and Competition - The company continues to face pressures from inflation and fluctuating interest rates, which may impact pricing and consumer spending[167]. - Camera units shipped in Q1 2025 decreased by 2.0% year-over-year to 385 thousand, compared to 393 thousand in Q1 2024[171]. - Average selling price in Q1 2025 decreased by 11.8% year-over-year to $349[189]. Goodwill and Impairment - The company recorded a goodwill impairment of $18.6 million in Q1 2025[18]. - The Company recognized a goodwill impairment charge of $18.6 million due to a decline in market capitalization, with no impairment recorded in 2024[40]. Tax and Legal Matters - The company recorded an income tax expense of $1.7 million on a pre-tax net loss of $45.1 million for the three months ended March 31, 2025, compared to an income tax expense of $298.2 million on a pre-tax net loss of $40.9 million in 2024[124][125]. - As of March 31, 2025, the company's gross unrecognized tax benefits were $28.8 million, with $12.8 million of these benefits potentially reducing income tax expense if recognized[127]. - The company anticipates an initial ruling in July 2025 regarding its patent infringement complaint against Arashi Vision Inc.[139]. Stock and Financing - The Company has authorized a total of $140.0 million for stock repurchases, with $60.4 million remaining as of March 31, 2025[102][103]. - The company may require additional financing to execute its business strategy, which may not be available on favorable terms[37]. - The 2025 Notes mature on November 15, 2025, unless repurchased or converted into shares of Class A common stock[207].

Revenue Performance - Q1 2025 revenue was $134 million, down 14% year-over-year from $155 million[7]. - Subscription and service revenue increased 4% year-over-year to $27 million, with a subscriber count of 2.47 million, down 1% year-over-year[7]. - GoPro's retail channel revenue was $94 million, accounting for 70% of total revenue, down 12% year-over-year[7]. Profitability and Loss - GAAP net loss was $47 million, or $(0.30) loss per share, compared to a net loss of $339 million, or $(2.24) loss per share, in the prior year period[7]. - Non-GAAP net loss was $19 million, or $(0.12) loss per share, compared to a non-GAAP net loss of $319 million, or $(2.11) per share, in the prior year period[7]. - Net loss for the three months ended March 31, 2025, was $46,709,000, significantly improved from a net loss of $339,088,000 in the same period of 2024[20]. - Non-GAAP net loss for the same period was $19,444,000, compared to $319,357,000 in 2024, indicating a substantial reduction in losses[24]. Margins and Expenses - GAAP gross margin was 32.1%, down from 34.1% year-over-year, while non-GAAP gross margin was 32.3%, down from 34.4%[8]. - Non-GAAP operating expenses were $62,044,000 in Q1 2025, down from $83,349,000 in Q1 2024, reflecting a reduction of approximately 25%[25]. - Operating expenses decreased by 26% year-over-year, with R&D expenses at $29.6 million, down from $44.6 million[3]. - Adjusted EBITDA improved to negative $16 million, a 46% improvement year-over-year from negative $29 million[7]. - Adjusted EBITDA for Q1 2025 was $(15,707,000), an improvement from $(29,301,000) in Q1 2024[25]. Assets and Liabilities - Total assets decreased from $543,678,000 in December 2024 to $462,510,000 in March 2025, a decline of approximately 15%[19]. - Total current liabilities decreased from $356,267,000 in December 2024 to $316,891,000 in March 2025, a reduction of approximately 11%[19]. - Stockholders' equity decreased from $151,689,000 in December 2024 to $109,980,000 in March 2025, a decline of about 28%[19]. - Cash and cash equivalents at the end of the period were $69,634,000, down from $102,811,000 at the beginning of the period, a decrease of about 32%[20]. Product Development - GoPro launched a Limited Edition Polar White HERO13 Black camera and an Anamorphic Lens Mod in March 2025[9]. - The company expects new products planned for 2025 and 2026 to drive a return to revenue and profitability growth[4]. Goodwill and Impairment - Goodwill impairment of $18,600,000 was recorded in Q1 2025, with no such impairment in Q1 2024[24].

Revenue of $134 million, at High-end of GuidanceSubscription and Service Revenue Up 4% Year-over-Year to $27 million SAN MATEO, Calif., May 12, 2025 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) announced financial results for its first quarter ended March 31, 2025, and posted management commentary, including forward-looking guidance, in the investor relations section of its website at https://investor.gopro.com."Our Q1 results reflect our commitment to reducing operating expenses, down 26% year-over-year, imp ...

Core Viewpoint - GoPro is expected to report a quarterly loss of $0.13 per share, a 38.1% increase in losses year-over-year, with revenues projected at $124.98 million, reflecting a 19.6% decrease compared to the same period last year [1] Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has been revised downward by 3.1% over the past 30 days, indicating a reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3] Group 2: Revenue and Key Metrics - Analysts estimate 'Revenue- GoPro.com' at $38.92 million, a decrease of 20.8% from the prior-year quarter [5] - 'Revenue- Retail' is projected to be $85.86 million, down 19.2% from the previous year [5] - The estimated 'Units shipped - Camera' is 342.4 thousand, compared to 393 thousand in the same quarter last year [5] - The estimated 'Average Selling Price' is $365.02, down from $395 in the same quarter of the previous year [6] Group 3: Stock Performance - GoPro shares have increased by 21% over the past month, outperforming the Zacks S&P 500 composite, which rose by 11.3% [6] - With a Zacks Rank of 3 (Hold), GoPro is expected to closely follow overall market performance in the near term [6]

Core Viewpoint - The market anticipates GoPro (GPRO) to report a year-over-year increase in earnings despite lower revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. GoPro Earnings Expectations - GoPro is expected to report a quarterly loss of $0.13 per share, reflecting a year-over-year change of +38.1% [3]. - Revenues are projected to be $124.98 million, down 19.6% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 3.13% lower in the last 30 days, indicating a bearish sentiment among analysts regarding GoPro's earnings prospects [4][10]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4% [10][11]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [8]. - GoPro currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, GoPro was expected to post a loss of $0.11 per share but actually reported a loss of $0.09, resulting in a surprise of +18.18% [12]. - Over the past four quarters, GoPro has beaten consensus EPS estimates four times [13]. Industry Comparison - In the Zacks Audio Video Production industry, Sonos (SONO) is expected to post a loss of $0.18 per share, indicating a year-over-year change of +47.1% [17]. - Sonos's revenue is expected to be $255.92 million, up 1.3% from the previous year [17]. - The consensus EPS estimate for Sonos has been revised 220.8% lower in the last 30 days, but a higher Most Accurate Estimate has resulted in an Earnings ESP of 25.71%, suggesting a likely earnings beat [18].

Core Viewpoint - GoPro, Inc. is set to release its financial results for Q1 2025 on May 12, 2025, after market close, followed by a conference call to discuss the results [1] Group 1 - The financial results will cover the period ending March 31, 2025 [1] - A conference call and live webcast will take place at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day [1] - A webcast link and management commentary will be available on the Company's Investor Relations website prior to the call [1] Group 2 - Participants can join the live conference call by dialing +1 833-470-1428 (US) or +1 404-975-4839 (International) with access code 936610 [2] - A replay of the call will be accessible on the investor page approximately two hours after the call until August 10, 2025 [2] Group 3 - GoPro is recognized as an employer of choice by Outside Magazine and U.S. News & World Report [3] - The company encourages customers to submit photos and videos for the GoPro Awards, which offers opportunities for features on social channels and rewards [4]

Core Viewpoint - GoPro, Inc. has appointed Mick Lopez to its Board of Directors, effective immediately, and has nominated two additional candidates, Mike Dennison and Emily Culp, for election at the upcoming annual stockholder meeting on June 3, 2025 [1][4]. Group 1: Appointment of Mick Lopez - Mick Lopez is recognized as an experienced CFO and board partner, bringing strategic and financial governance expertise to GoPro [2][3]. - His previous leadership roles include positions at Vista Outdoors, L3 Harris, IBM, and Cisco Systems, and he recently served as CFO at Ribbon Communications [3]. Group 2: Nomination of Additional Candidates - Mike Dennison, CEO of Fox Factory Holding Corp., oversees approximately $1.4 billion in business operations across 29 global locations and holds board positions at multiple companies [5]. - Emily Culp, Chief Brand and Strategy Officer at BodyHealth, scaled revenues from the single teens to over $100 million and has prior experience as CEO of Cover FX Skincare Inc. [6].

Core Insights - GoPro has launched the Anamorphic Lens Mod for the HERO13 Black, aimed at filmmakers and content creators seeking professional cinematic visuals at a lower cost [1][2] - The lens accessory offers a 21:9 aspect ratio and ultra-wide field of view, enhancing the camera's capabilities while being portable and durable [2][3] Product Offerings - The Anamorphic Lens Mod is priced at $129.99 and is available for individual purchase alongside other accessories like the Ultra Wide Lens Mod ($99.99), Macro Lens Mod ($129.99), and ND Filter 4-Pack ($69.99) [2][4] - GoPro is also offering a complete HB-Series Lens Collection in a protective case for $349.99, with a bundle including the HERO13 Black and all lens mods set to be available for $699.99 in Q2 2025 [5] Technological Features - The Anamorphic Lens Mod is compatible with the HERO13 Black's Auto Detect feature, allowing automatic camera setting adjustments and in-camera "de-squeezing" for easier post-production [3] - The lens is designed to withstand harsh conditions, being waterproof and rugged for adventure filmmaking [3] Retail and Distribution Strategy - GoPro is expanding its retail presence, having added 1,200 new retail doors in Q3 2024, with plans to add another 3,000-6,000 by the end of 2025 [7] - A distribution collaboration with SoftBank Group's SB C&S Corporation in Japan will enhance GoPro's market reach [8] Subscription Revenue Growth - GoPro's subscription service, which includes benefits like unlimited cloud storage and camera replacement, generated $27.2 million in Q4, reflecting a 9% year-over-year increase [10] - Improved retention rates contributed to an 8% increase in average revenue per user [10]