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]

Q4 2024 Preliminary Earnings Results Summary February 6, 2025 Copyright © 2025. GoPro, Inc. All rights reserved. SAFE HARBOR STATEMENT This presentation may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as "anticipate," "believe," "estimate," "expect," "intend," "should," "will," "plan" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward ...

Revenue Performance - Fourth quarter revenue was $201 million, down 32% year-over-year, with full year revenue at $801 million, down 20% year-over-year[7] - Subscription and service revenue increased 10% year-over-year to $107 million, with a subscriber count of 2.52 million, up 1% year-over-year[7] - Retail channel revenue was $150 million, accounting for 74% of total revenue, down 34% year-over-year[7] - Revenue for Q4 2024 was $200,882 thousand, a decrease of 32.0% compared to $295,420 thousand in Q4 2023[18] Profitability and Loss - GAAP net loss for Q4 was $37 million, or $(0.24) loss per share, compared to a net loss of $2 million or $(0.02) loss per share in the prior year[7] - Non-GAAP net loss for the full year was $370 million, or $(2.42) loss per share, compared to a non-GAAP net loss of $20 million or $(0.13) loss per share in the prior year[9] - Adjusted EBITDA for 2024 was negative $72 million, compared to negative $27 million in the prior year[9] - Operating loss for the year ended December 31, 2024, was $135,033 thousand, compared to a loss of $75,463 thousand in 2023, representing an increase of 78.9%[18] - Net loss for Q4 2024 was $37,191 thousand, significantly higher than the net loss of $2,418 thousand in Q4 2023[18] Cash Flow and Assets - Cash and cash equivalents decreased to $102,811 thousand as of December 31, 2024, from $222,708 thousand at the end of 2023, a decline of 53.8%[20] - Total assets decreased to $543,678 thousand in 2024 from $967,951 thousand in 2023, a reduction of 43.8%[20] - Total liabilities decreased slightly to $391,989 thousand in 2024 from $412,105 thousand in 2023, a decrease of 4.9%[20] Expenses - Research and development expenses increased to $50,025 thousand in Q4 2024, up 14.5% from $43,892 thousand in Q4 2023[18] - Total stock-based compensation for the year ended December 31, 2024, was $29,132 thousand, down from $41,479 thousand in 2023[25] - Total acquisition-related costs for the year ended December 31, 2024, were $2,352 thousand, up from $822 thousand in 2023[25] Future Plans and Strategies - The company plans to reduce operating expenses by nearly 30% in 2025 to return to growth and profitability by 2026[3] - The company plans to focus on new product development and market expansion strategies to improve future performance[22] - The company is diversifying its supply chain outside of China to improve operational efficiencies and gross margin[4] Gross Margin - GAAP gross margin for 2024 was 33.8%, an increase of 160 basis points compared to the prior year[9] - GAAP gross margin as a percentage of revenue for Q1 2024 was 34.7%, slightly up from 34.2% in Q1 2023[26] - Non-GAAP gross margin for Q1 2024 was 35.1%, compared to 34.4% in Q1 2023[26]

Financial Data and Key Metrics Changes - GoPro reported Q3 2024 revenue of $259 million, exceeding guidance, with subscription and service revenue growing 11% year-over-year to $27.5 million, driven by a 9% increase in ARPU and a 2% growth in overall subscribers [8][20] - Non-GAAP EPS was breakeven, and EBITDA improved by $39 million sequentially to $5 million [9][21] - Gross margin for the second half of 2024 is expected to be 36%, reflecting an 1850 basis point improvement year-over-year [21][23] Business Line Data and Key Metrics Changes - Subscription and service revenue grew 11% year-over-year to $27.5 million, with a 4% year-over-year increase in aggregate retention rate to 67% and a 2% growth in subscribers to 2.56 million [20] - The subscription attach rate from cameras sold across all channels remained at 45%, consistent with prior year rates [20] Market Data and Key Metrics Changes - The consumer digital imaging market is growing, particularly in action cameras and 360-degree cameras, driven by consumer interest in alternative forms of capture beyond smartphones [14] - GoPro's global retail expansion strategy has added approximately 6,300 new retail doors, bringing the total to over 25,000, with over 1,200 doors added in Q3 alone [18] Company Strategy and Development Direction - GoPro is targeting a significant reduction in operating expenses to approximately $250 million in 2025, down from $360 million in 2024, aiming for a leaner and more focused operational model [15][23] - The company launched two new products in September 2024, including the HERO 13 Black and an entry-level HERO camera, designed to enhance profit margins [17] - GoPro is committed to defending its intellectual property through litigation against competitors infringing on its patents [10][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges due to global macroeconomic headwinds affecting consumer discretionary spending and competition, but expressed optimism about future growth opportunities [9][36] - The company expects to launch new products in 2025, including the delayed MAX 2 360-degree camera, which is anticipated to drive revenue growth [22][31] Other Important Information - GoPro's cash position is expected to be approximately $125 million at the end of the year, with a focus on preserving cash to repay debt and position for profitability in 2025 [22][24] Q&A Session Summary Question: What is the ideal outcome of the U.S. ITC investigation? - The ideal outcome is for the ITC to recognize the infringement and validate GoPro's patents, preventing the infringing company from selling those products in the U.S. market [26] Question: What is the timeline for the investigation to conclude? - The expected conclusion of the investigation is in 2025 [27] Question: What are the most impactful headwinds for the 2025 outlook? - The most significant headwind is macroeconomic factors, followed by the need to launch the new 360-degree camera and competition [28] Question: Where is the most share erosion occurring? - The biggest share erosion is in the 360-degree camera category, with some impact on the HERO action camera category due to the delay in launching the new MAX 2 camera [30]

Financial Performance - GoPro reported Q3 2024 revenue of $258.9 million, a decrease of 12% from $294.3 million in Q3 2023[11]. - Gross profit for Q3 2024 was $91.8 million, compared to $94.2 million in Q3 2023, reflecting a gross margin of approximately 35.4%[11]. - Operating loss for the nine months ended September 30, 2024, was $95.9 million, significantly higher than the loss of $66.1 million for the same period in 2023[11]. - Total revenue for the three months ended September 30, 2024, was $258.9 million, a decrease of 12% compared to $294.3 million for the same period in 2023[61]. - Revenue for the nine months ended September 30, 2024, decreased to $600.6 million from $710.0 million in the same period for 2023[131]. - The company reported a net loss of $395.1 million for the nine months ended September 30, 2024, with cash used in operating activities amounting to $100.0 million[105]. - For the three months ended September 30, 2024, the company recorded a net loss of $8.2 million, compared to a net loss of $3.7 million in the same period of 2023[47]. - Adjusted EBITDA for Q3 2024 was $5.4 million, down from $7.2 million in Q3 2023[80]. Cash and Assets - Total current assets decreased to $454.6 million as of September 30, 2024, down from $482.6 million at the end of 2023[7]. - Cash and cash equivalents dropped to $130.2 million from $222.7 million at the end of 2023, indicating a cash reduction of 41.5%[7]. - GoPro's total stockholders' equity decreased to $183.9 million as of September 30, 2024, down from $555.8 million at the end of 2023[9]. - As of September 30, 2024, GoPro reported a cash balance of $130.2 million and an accumulated deficit of $644.4 million[17]. - Cash equivalents as of September 30, 2024, were $60.3 million, down from $152.8 million as of December 31, 2023[24]. - Total liabilities increased to $477.7 million as of September 30, 2024, compared to $412.1 million at the end of 2023, marking a rise of 15.9%[8]. Research and Development - Research and development expenses for Q3 2024 were $44.3 million, an increase of 6.4% from $41.7 million in Q3 2023[11]. - Total research and development expense for the first nine months of 2024 increased by $14.1 million, or 11.6%, compared to the same period in 2023[88]. Inventory and Sales - Total inventory as of September 30, 2024, was $155.3 million, an increase from $106.3 million as of December 31, 2023[26]. - Camera units shipped in Q3 2024 totaled 881 thousand, compared to 923 thousand in Q3 2023, reflecting a 5% decline[75]. - Average selling price decreased by 7.8% year-over-year to $294, influenced by a 38.2% increase in entry-level camera sales[79]. Subscription and Services - Subscription and service revenue for Q3 2024 was $27.5 million, representing 10.6% of total revenue, while for the nine months ended September 30, 2024, it was $79.7 million, or 13.3% of total revenue[18]. - The company launched its Premium+ subscription in February 2024, which includes 500 GB of cloud storage and access to advanced video stabilization software[18]. - Subscription attach rate was 45% in Q3 2024, with an aggregate retention rate for annual subscribers at 67%, up from 65% in the same period last year[80]. Cost Management and Restructuring - The company initiated a cost reduction effort in October 2024, aiming to reduce headcount by approximately 26% compared to Q2 2024[17]. - The restructuring plan approved in August 2024 aims to reduce the global workforce by approximately 26%, with expected severance-related charges of up to $9 million[63]. - The company expects to incur up to $8 million in project cancellation costs related to the restructuring plan approved in October 2024[91]. Market and Economic Conditions - The company continues to face pressures from inflation and fluctuating interest rates, which may impact product pricing and consumer spending[71]. - The company experienced a negative impact of approximately $50 million on revenue, gross margin, and net income due to foreign currency fluctuations over the last 12 months ending September 30, 2024[120]. - Economic downturns and inflation may adversely affect consumer spending and demand for products, impacting financial results[134]. Legal and Regulatory Risks - The company has initiated legal proceedings against Arashi Vision Inc. for patent infringement related to its cameras and digital imaging technology[150]. - The company is subject to evolving privacy and data protection regulations, with potential fines of up to 4% of worldwide annual revenue for non-compliance with GDPR[153]. - The company faces potential claims related to consumer injuries while using its products, which could adversely affect its brand and financial condition[144]. Corporate Governance - As of September 30, 2024, Class B common stockholders hold approximately 67.1% of the voting power, with CEO Mr. Woodman controlling about 64.2% of the voting power[162]. - The company has a remaining share repurchase authorization of $60.4 million as of September 30, 2024, under its stock repurchase program[168]. - The dual class structure may discourage potential investors from acquiring Class A common stock due to limited voting power compared to Class B[162].

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|----------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q3 2024 Preliminary Earnings | | | | | | | | | | | Results Summary November 7, 2024 | | | SAFE HARBOR STATEMENT This presentation may contain projections or other forward-looking statements within the meaning Section 27A of the Private S ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $186 million, exceeding guidance by 9% and driven by increased demand for the HERO12 Black camera in Europe and North America [7][13] - Gross margin decreased to 30.7% from 31.6% in Q2 2023 [13] - Non-GAAP EPS loss was $0.24, while GAAP loss per share was $0.31 [8][14] - Subscription and service revenue grew 8% year-over-year to $26 million, with a subscriber base of 2.53 million, reflecting a 4% growth [8][14] Business Line Data and Key Metrics Changes - Retail revenue was $137 million, accounting for 74% of total revenue, down 17% year-over-year [14] - GoPro.com product revenue was $23 million, representing 12% of total revenue [14] - Sell-through units were slightly above 600,000, down 9% year-over-year, with channel inventory decreasing to approximately 700,000 units [14][15] Market Data and Key Metrics Changes - The company added approximately 800 new retail doors globally, with significant growth in EMEA and Latin America [8] - The digital imaging market is experiencing growth, particularly in the 360-degree camera segment, which is expected to recover significant market share in 2025 [9][16] Company Strategy and Development Direction - The company aims to achieve profitability in 2025 through new product launches and reduced operating expenses, targeting a reduction of nearly $50 million from 2024 levels [9][17] - Expansion into tech-enabled motorcycle helmets and a broader product portfolio are part of the strategy to grow the business and restore long-term profitability [10][36] - Upcoming product launches include the HERO13 Black and a new $199 entry-level HERO camera, which are expected to enhance margins and market appeal [11][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year due to lower consumer confidence, increased competition, and executional challenges [9][15] - The company is confident in regaining market share in the 360-degree camera category and believes that new product introductions will drive growth in 2025 [22][42] - Management emphasized the importance of operating GoPro as a profitable business, with a commitment to reducing operating expenses and improving gross margins [12][19] Other Important Information - The company is facing a cumulative impact of delayed product launches, which is expected to affect sales by approximately $100 million in 2024 [15] - The anticipated launch of the new 360-degree camera in 2025 is expected to significantly contribute to revenue growth [16][42] Q&A Session Summary Question: What was driving the delays in product launches? - Delays were attributed to the company's commitment to innovation and ensuring product quality, with confidence in upcoming launches [20][21] Question: Are there concerns about losing market share in the 360-degree camera segment? - Management acknowledged potential market share loss but expressed confidence in regaining it with new product launches in 2025 [26][28] Question: Can you elaborate on cost cuts and sources of savings for 2025? - Operating expenses are expected to be reduced by $50 million, with significant savings from non-recurring engineering development expenses [30][31] Question: Who are the core camera users and potential new users? - Core users include content creators and active consumers, with opportunities to diversify the product roadmap to attract new markets [33][36] Question: What are the expectations for growth in 2025? - The company anticipates growth driven by new product launches and improved margins, with a focus on profitability [41][46]

| --- | --- | --- | --- | --- | |-------|-------|-------|-----------------------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q2 2024 Preliminary Earnings Results Summary | | | | | | August 6, 2024 | | Copyright © 2024. GoPro, Inc. All rights reserved. SAFE HARBOR STATEMENT This presentation may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as "anticipa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number: 001-36514 GOPRO, INC. (Exact name of registrant as specified in its charter) Delaware 77-0629474 (State or ot ...

Revenue Performance - Revenue for Q2 2024 was $186 million, down 23% year-over-year[2] - Revenue from the retail channel was $137 million, or 74% of total revenue, down 17% year-over-year[2] - Revenue for Q2 2024 was $186,224 thousand, a decrease of 22.7% compared to $241,020 thousand in Q2 2023[14] Profit and Loss - GAAP net loss was $48 million, or a $0.31 loss per share, compared to a net loss of $17 million or $0.11 loss per share in the prior year period[3] - Non-GAAP net loss was $36 million, or a $0.24 loss per share, compared to a non-GAAP net loss of $8 million, or $0.05 loss per share, in the prior year period[3] - Net loss for Q2 2024 was $(47,821) thousand, compared to $(17,212) thousand in Q2 2023[17] - Basic and diluted net loss per share for Q2 2024 was $(0.31), compared to $(0.11) in Q2 2023[14] - GAAP net loss for Q2 2024 was $47,821 thousand, compared to a loss of $17,212 thousand in Q2 2023, representing a 178% increase in losses year-over-year[21] - Non-GAAP net loss for Q2 2024 was $36,179 thousand, compared to a loss of $7,928 thousand in Q2 2023, indicating a 356% increase in losses year-over-year[21] Margins and Expenses - GAAP gross margin was 30.5%, down from 31.4% in the prior year period[3] - Non-GAAP gross margin as a percentage of revenue for Q2 2024 was 30.7%, down from 31.6% in Q2 2023[22] - Total operating expenses for Q2 2024 were $103,219 thousand, an increase from $98,266 thousand in Q2 2023, reflecting a 3.9% rise[22] - Adjusted EBITDA was negative $33 million, compared to negative $10 million in the prior year period[3] - Adjusted EBITDA for Q2 2024 was $(33,426) thousand, compared to $(10,290) thousand in Q2 2023, indicating a significant decline in performance[23] - Stock-based compensation for Q2 2024 totaled $7,791 thousand, down from $11,117 thousand in Q2 2023, a decrease of 30.9%[22] - Total restructuring and other costs for Q2 2024 were $2,736 thousand, compared to a benefit of $(715) thousand in Q2 2023, reflecting a significant increase in costs[23] Assets and Liabilities - Total current assets decreased to $351,427 thousand as of June 30, 2024, from $482,591 thousand at the end of 2023[15] - Cash and cash equivalents dropped to $133,036 thousand as of June 30, 2024, down from $222,708 thousand at the end of 2023[15] - Total liabilities decreased to $372,075 thousand as of June 30, 2024, from $412,105 thousand at the end of 2023[15] Growth and Future Plans - GoPro's subscriber base grew 4% year-over-year to 2.53 million, with subscription and service revenue increasing 8% year-over-year to $26 million[2] - GoPro plans to launch two new products in September, including the HERO13 Black and a new entry-level HERO camera priced at $199[1] - GoPro announced a partnership with SoftBank Group's SB C&S Corporation for additional distribution in Japan[4] - The company celebrated surpassing 50 million cameras sold since the launch of the original HD HERO camera in 2009[5] Research and Development - Research and development expenses rose to $46,932 thousand in Q2 2024, up 11.4% from $41,903 thousand in Q2 2023[14]