GoPro(GPRO)2024-02-08 00:00Financial Data and Key Metrics Changes - In Q4 2023, revenue was 325 million, primarily due to lower-than-expected demand trends in North America [11] - Non-GAAP earnings per share for Q4 was $0.02, with gross margin outperforming guidance by 140 basis points [11][12] - The company expects gross margin to improve from 32% in 2023 to a range of 35.5% plus/minus 50 basis points in 2024 [12] Business Line Data and Key Metrics Changes - Retail channel unit sell-through grew by 25% from May 2023 to the end of the year, while GoPro.com revenue, excluding subscription and services, decreased to 14% of total revenue from 33% in the prior year [6][7] - Entry-level camera sell-through represented 28% of the product mix in Q4, up from zero in the prior year [8] Market Data and Key Metrics Changes - The company added over 3,200 new retail doors since May 2023, exceeding its target for the year [10] - The subscriber base closed 2023 with over 2.5 million subscribers, representing a 12% year-over-year growth [16] Company Strategy and Development Direction - The company initiated a multi-year Total Addressable Market (TAM) expanding strategy aimed at long-term revenue, subscriber, and profit growth [6] - Plans to launch four new camera SKUs in 2024, with a focus on expanding product offerings and entering the motorcycle helmet market through the acquisition of Forcite Helmet Systems [13][14] Management Comments on Operating Environment and Future Outlook - Management noted that the strategic shift in pricing and marketing has created a groundswell of opportunity at retail [7] - The company is optimistic about the potential for subscriber growth and the impact of new product launches on overall revenue [16][18] Other Important Information - The company plans to refresh point-of-purchase merchandisers and enhance in-store brand presence to support retail growth [10] - The Quik desktop app for macOS and a new Premium+ subscription tier were launched to enhance subscriber offerings [17] Q&A Session Summary Question: Clarification on 2024 revenue guidance - Management indicated that they are currently only guiding for Q1 and that sell-through is performing well, with expectations of 550,000 units [20][21] Question: Incremental TAM from Forcite acquisition - Management acknowledged some cannibalization but emphasized the potential for expanded TAM through integrated technology in helmets [24][26] Question: Long-term growth for subscriber base - Management noted improvements in Average Revenue Per User (ARPU) and indicated that subscriber growth is tied to unit growth over time [30][31] Question: Gross margin outlook for 2024 - Management confirmed that key components for margin improvement remain the same, including new product costs and tariff savings [35][36]