GoPro(US:GPRO)2023-05-08 16:00Revenue and Profitability - Revenue for Q1 2023 decreased to $174.72 million, down from $216.705 million in Q1 2022[15] - Net loss for Q1 2023 was $29.869 million, compared to a net income of $5.685 million in Q1 2022[15] - Gross profit declined to $52.502 million, down from $90.476 million in Q1 2022[15] - Net income (loss) per share was $(0.19) for Q1 2023 compared to $0.04 for Q1 2022[56] - Revenue for Q1 2023 was $174.7 million, with Americas contributing $89.5 million, EMEA $46.0 million, and APAC $39.2 million[73] - The company's revenue was negatively impacted by approximately $7.4 million in Q1 2023 due to the strengthening of the U.S. dollar[133] Expenses and Costs - Research and development expenses increased to $38.185 million, up from $31.598 million in Q1 2022[15] - Total operating expenses rose to $92.316 million, compared to $82.314 million in Q1 2022[15] - GoPro recorded a $23.5 million price protection charge in Q1 2023 due to a strategic pricing decision to reduce camera MSRP effective May 2023[25] - Total stock-based compensation expense increased from $9.836 million in Q1 2022 to $10.314 million in Q1 2023[54] - Net lease cost increased from $2.119 million in Q1 2022 to $2.635 million in Q1 2023[63] - Cash paid for operating leases was $3.791 million in Q1 2023 compared to $3.777 million in Q1 2022[64] - Restructuring charges for Q1 2023 totaled $21,000, a significant decrease from $304,000 in Q1 2022[76] - The company recorded restructuring charges of $8.1 million in Q4 2022, primarily for camera production line closure costs[77] Cash and Cash Equivalents - Cash and cash equivalents decreased to $157.826 million from $223.735 million at the end of Q4 2022[11] - The company's cash equivalents decreased to $87.9 million as of March 31, 2023 from $138.4 million as of December 31, 2022[28] - Marketable securities totaled $136.8 million as of March 31, 2023, down from $143.6 million as of December 31, 2022[28] - The company's cash equivalents and marketable securities are primarily composed of money market funds, U.S. treasury securities, and corporate debt securities[133] Inventory - Inventory increased to $154.804 million, up from $127.131 million at the end of Q4 2022[11] - Total inventory increased to $154.8 million as of March 31, 2023 from $127.1 million as of December 31, 2022[31] - Finished goods inventory rose to $125.3 million as of March 31, 2023 compared to $88.7 million as of December 31, 2022[31] Assets and Liabilities - Total assets decreased to $1.022566 billion from $1.076925 billion at the end of Q4 2022[11] - Total liabilities decreased to $437.416 million from $465.366 million at the end of Q4 2022[12] - Stockholders' equity decreased to $585.150 million from $611.559 million at the end of Q4 2022[13] - The fair value of GoPro's 2025 Convertible Senior Notes increased to $137.4 million as of March 31, 2023 from $130.1 million as of December 31, 2022[29] - Property and equipment, net decreased to $12.2 million as of March 31, 2023 from $13.3 million as of December 31, 2022[32] - Long-term deferred tax assets increased to $288,867 thousand as of March 31, 2023, up from $279,045 thousand as of December 31, 2022[33] - Other long-term assets totaled $307,101 thousand as of March 31, 2023, compared to $289,293 thousand as of December 31, 2022[33] - Accrued sales incentives rose to $46,518 thousand as of March 31, 2023, up from $41,662 thousand as of December 31, 2022[35] - Warranty liability decreased to $7,245 thousand as of March 31, 2023, down from $8,012 thousand as of March 31, 2022[36] - Long-lived assets outside the United States were $3.2 million as of March 31, 2023, down from $4.0 million at the end of 2022[73] Deferred Revenue - GoPro's short-term and long-term deferred revenue balances totaled $59.4 million and $60.4 million as of March 31, 2023 and December 31, 2022, respectively[25] - The company recognized $16.5 million and $16.6 million of revenue from deferred revenue balances during the three months ended March 31, 2023 and 2022, respectively[25] Credit and Debt - The company has a $50.0 million revolving credit facility under the 2021 Credit Agreement, with no borrowings made to date[37] - The company issued $143.8 million aggregate principal amount of 1.25% Convertible Senior Notes due 2025[39] - The company recorded interest expense of $0.4 million for contractual coupon interest on the 2025 Notes for the three months ended March 31, 2023[40] - The company repaid $125.0 million of principal and $2.2 million of accrued interest on the 2022 Notes on April 15, 2022[41] Stock Repurchase and Equity - The company's board of directors authorized the repurchase of up to $100 million of its Class A common stock, with $95.4 million remaining as of March 31, 2023[42] - The company repurchased 890 thousand shares at an average price of $5.62 per share during the three months ended March 31, 2023[43] - Outstanding stock options decreased from 3,089 thousand shares at December 31, 2022 to 3,032 thousand shares at March 31, 2023, with a weighted-average exercise price of $9.25[47] - Non-vested RSUs increased from 8,727 thousand shares at December 31, 2022 to 11,972 thousand shares at March 31, 2023, with a weighted-average grant date fair value of $6.72[49] - Non-vested PSUs increased from 686 thousand shares at December 31, 2022 to 1,707 thousand shares at March 31, 2023, with a weighted-average grant date fair value of $6.46[51] Taxes - Income tax benefit was $8.3 million for Q1 2023 compared to $0.1 million for Q1 2022[60] - Gross unrecognized tax benefits increased from $23.4 million at December 31, 2022 to $24.4 million at March 31, 2023[60] Leases - Weighted-average remaining lease term for operating leases decreased from 3.81 years at December 31, 2022 to 3.61 years at March 31, 2023[65] - Total lease payments as of March 31, 2023, amount to $45.4 million, with a present value of lease liabilities at $40.3 million[67] - The company's total undiscounted future expected obligations under multi-year agreements is $222.5 million[67] Accounts Receivable - Customer A represented 26% of the company's net accounts receivable balance as of March 31, 2023, down from 30% at the end of 2022[70] - Accounts receivable sold in Q1 2023 totaled $16.7 million, a decrease from $23.9 million in Q1 2022[71]