GoPro (GPRO) Q2 Loss Narrower Than Expected, Revenues Beat

Core Viewpoint - GoPro, Inc reported a narrower non-GAAP loss of 24 cents per share for Q2 2024, with revenues of $186 million, down 23% year-over-year, but exceeding guidance and consensus estimates [1][2]. Financial Performance - GoPro generated revenues of $186 million, down 23% year-over-year, but above the guidance of $170 million and consensus by 9.2% [1] - The company incurred a non-GAAP loss of 24 cents per share, compared to a loss of 5 cents per share in the same quarter last year [1] - Gross profit decreased by 25.2% year-over-year to $56.7 million, while total operating expenses rose by 5% to $103.2 million, resulting in an operating loss of $46.5 million [5] - Adjusted EBITDA loss was $33.4 million, compared to a loss of $10.3 million a year ago [5] Unit Sales and Subscribers - GoPro shipped 576 million camera units in the reported quarter, down 18.2% year-over-year [2] - The company recorded 2.53 million subscribers, marking a 4% year-over-year growth, with an expectation of reaching 2.6 million by the end of 2024 [2] Revenue Breakdown by Region - Revenues from the Americas totaled $88.7 million (47.6% of total revenues), down 27% year-over-year [2] - Revenues from Europe, the Middle East, and Africa were $64.5 million (34.6%), declining 3% year-over-year [2] - Asia Pacific revenues were $33 million (17.8%), down 38% year-over-year [2] Revenue Breakdown by Channel - GoPro.com revenues were $49.1 million (26.4%), plunging 35.1% year-over-year [2] - Retail channel revenues were $137.1 million (73.6%), falling 17.1% year-over-year [3] - Hardware revenues totaled $22.8 million, down from $51.2 million in the prior-year quarter, while subscription revenues increased by 8% to $26.3 million [3] Inventory and Cash Flow - The company had $97.3 million in inventory, down from $135.4 million in the year-earlier quarter [4] - GoPro generated $0.6 million of net cash from operating activities, compared to $7.852 million used in the year-earlier quarter [6] Guidance and Future Outlook - For Q3 2024, revenues are estimated to be $255 million (+/- $5 million), with a forecasted non-GAAP adjusted loss of 5 cents per share [7] - The company expects a delay in the launch of a new entry-level camera to 2025, impacting Q4 2024 revenues by $20-$25 million [7] - Revised revenue expectations for 2024 are between $850-$870 million, down from slightly above $900 million [8]