GoPro(US:GPRO)2023-08-02 16:00Financial Performance - GoPro reported revenue of $241.02 million for the three months ended June 30, 2023, a decrease of 3.3% compared to $250.69 million in the same period of 2022[14]. - The company's net loss for the second quarter of 2023 was $17.21 million, compared to a net income of $2.52 million in the same quarter of 2022[14]. - The company experienced a gross profit of $75.77 million for the second quarter of 2023, down from $96.00 million in the same quarter of 2022, reflecting a gross margin decline[14]. - Operating expenses increased to $98.27 million in Q2 2023, compared to $91.35 million in Q2 2022, driven by higher research and development costs[14]. - For the three months ended June 30, 2023, the net loss was $17.2 million, compared to a net income of $2.5 million for the same period in 2022[55]. - The basic net income (loss) per share for the three months ended June 30, 2023 was $(0.11), a decrease from $0.02 in 2022[55]. - Revenue from the Americas for the three months ended June 30, 2023, was $121.6 million, down from $126.4 million in 2022, a decline of 3.5%[72]. - Revenue from Europe, Middle East, and Africa (EMEA) for the three months ended June 30, 2023, was $66.5 million, down 7.2% from $71.7 million in 2022[72]. - Revenue from the United States, part of the Americas region, was $106.5 million for the three months ended June 30, 2023, compared to $108.0 million in 2022, a decrease of 1.4%[72]. Assets and Liabilities - Total current assets decreased to $523.19 million as of June 30, 2023, down from $606.03 million at the end of 2022, primarily due to declines in cash and marketable securities[11]. - GoPro's total liabilities decreased to $445.62 million as of June 30, 2023, compared to $465.37 million at the end of 2022[11]. - Cash and cash equivalents at the end of Q2 2023 were $189.91 million, down from $223.74 million at the beginning of the period[16]. - GoPro's inventory increased to $135.41 million as of June 30, 2023, compared to $127.13 million at the end of 2022, indicating potential challenges in sales[11]. - Total stockholders' equity as of June 30, 2023, was $563,479 thousand, a decrease from $611,559 thousand as of December 31, 2022, reflecting a decline of 7.8%[19]. - The net property and equipment decreased to $10.5 million as of June 30, 2023, from $13.3 million as of December 31, 2022, a decline of about 21%[29]. - Long-term deferred tax assets rose to $295.0 million as of June 30, 2023, up from $279.0 million as of December 31, 2022, an increase of approximately 5.7%[32]. - Accrued expenses and other current liabilities decreased to $100.1 million as of June 30, 2023, from $118.9 million as of December 31, 2022, a reduction of about 16%[33]. - The warranty liability was recorded at $7.3 million as of June 30, 2023, compared to $7.9 million as of December 31, 2022, indicating a decrease of approximately 7%[34]. Deferred Revenue and Tax Benefits - The company recognized $22.5 million in revenue from deferred revenue during the three months ended June 30, 2023, compared to $17.2 million for the same period in 2022, representing a 30.8% increase[22]. - GoPro's total short-term and long-term deferred revenue balances were $57.4 million as of June 30, 2023, compared to $60.4 million as of December 31, 2022, showing a decrease of 4.9%[23]. - The company’s gross unrecognized tax benefits were $25.3 million as of June 30, 2023, an increase from $23.4 million at the end of 2022[58]. - The company expects to recognize $11.6 million of unrecognized tax benefits, which would reduce income tax expense if recognized[58]. - The company recorded an income tax benefit of $4.0 million for the three months ended June 30, 2023, on a pre-tax net loss of $21.2 million[58]. Stock and Compensation - Stock-based compensation expense for the three months ended June 30, 2023, was $11,117 thousand, up from $10,314 thousand for the same period in 2022, indicating a 7.8% increase[19]. - Common stock issued under employee benefit plans for the three months ended June 30, 2023, was 375 shares, compared to 421 shares for the same period in 2022, reflecting a decrease of 10.9%[19]. - The total non-vested shares of Restricted Stock Units (RSUs) increased to 12,246 thousand shares as of June 30, 2023, from 8,727 thousand shares at the end of 2022[47]. - The Company granted 1,254 thousand Performance Stock Units (PSUs) during the six months ended June 30, 2023, with a weighted-average grant date fair value of $5.79[50]. - The Company issued 0.5 million shares under its Employee Stock Purchase Plan (ESPP) for the six months ended June 30, 2023, at a weighted-average price of $5.09 per share[50]. Strategic Decisions and Future Outlook - GoPro plans to continue focusing on expanding its product offerings and improving operational efficiencies to drive future growth[7]. - The Company recorded a total price protection charge of $26.7 million in March 2023 due to a strategic pricing decision to reduce the MSRP of its cameras, effective May 2023[23]. - The stock repurchase program authorized up to $140 million, with $80.4 million remaining as of June 30, 2023[40]. - During the three months ended June 30, 2023, the Company repurchased 3,606 shares at an average price of $4.16 per share, totaling $15 million[41]. - The average price per share for stock repurchases in the six months ended June 30, 2023 was $4.45, compared to $7.45 in the same period of 2022[41].