GoPro, Inc. (GPRO) Bundle
A Brief History of GoPro
GoPro, Inc. has undergone significant transformations since its inception, adapting to market changes and evolving consumer demands. Founded in 2002 by Nick Woodman, the company initially aimed to enable users to capture high-quality action videos. The introduction of the HERO camera series marked a turning point, establishing GoPro as a leader in the action camera market.
Financial Performance Overview
As of September 30, 2024, GoPro reported a total revenue of $258.9 million for the third quarter, down 12% from $294.3 million in the same period in 2023. For the nine months ended September 30, 2024, total revenue was $600.6 million, reflecting a 15% decrease from $710.0 million in the previous year.
| Period | Revenue ($ millions) | Net Loss ($ millions) | Basic Net Loss per Share ($) |
|---|---|---|---|
| Q3 2024 | 258.9 | (8.2) | (0.05) |
| Q3 2023 | 294.3 | (3.7) | (0.02) |
| 9M 2024 | 600.6 | (395.1) | (2.59) |
| 9M 2023 | 710.0 | (50.8) | (0.33) |
Operating Expenses and Losses
GoPro's operating expenses for the third quarter of 2024 totaled $99.9 million, compared to $97.9 million in Q3 2023. For the nine months ended September 30, 2024, operating expenses stood at $297.5 million, up from $288.6 million in the prior year.
Market Position and Challenges
The company has faced increased competition and market saturation, leading to a decline in camera units shipped. In Q3 2024, GoPro shipped 881 camera units, a 5% decrease from 923 units in Q3 2023. The average selling price of cameras also declined, from $319 in Q3 2023 to $294 in Q3 2024.
Tax Provisions and Valuation Allowances
GoPro recorded an income tax expense of $2.1 million for Q3 2024, on a pre-tax net loss of $6.1 million. For the nine months ended September 30, 2024, the company incurred an income tax expense of $301.6 million, primarily due to a valuation allowance on U.S. net deferred tax assets amounting to $293.4 million.
Cash Flow and Liquidity
As of September 30, 2024, GoPro's cash and cash equivalents totaled $130.2 million, a decrease from $222.7 million as of December 31, 2023. The company reported net cash used in operating activities of $100.0 million for the nine months ended September 30, 2024, attributed mainly to the net loss of $395.1 million.
| Metric | Value |
|---|---|
| Cash and Cash Equivalents (Sept 30, 2024) | $130.2 million |
| Net Cash Used in Operating Activities (9M 2024) | $(100.0 million) |
| Valuation Allowance on Deferred Tax Assets | $293.4 million |
Strategic Acquisitions
In February 2024, GoPro acquired Forcite Helmet Systems, a move aimed at expanding its product offerings and market reach. The acquisition has contributed to increased research and development costs, reflecting GoPro's commitment to innovation.
Future Outlook
Looking ahead, GoPro faces the challenge of revamping its product line and enhancing its competitive edge. The company's restructuring efforts aim to reduce operating costs and streamline operations, with plans to cut its workforce by approximately 26% in response to ongoing financial pressures.
As of September 30, 2024, GoPro continues to navigate a complex market landscape, focusing on strategic initiatives to drive growth and profitability.
A Who Owns GoPro, Inc. (GPRO)
Ownership Structure
As of 2024, GoPro, Inc. (GPRO) has a complex ownership structure consisting of Class A and Class B common stock. The breakdown of shares is as follows:
| Share Class | Shares Authorized | Shares Issued | Shares Outstanding |
|---|---|---|---|
| Class A | 500,000 | 128,502 | 128,502 |
| Class B | 150,000 | 26,259 | 26,259 |
Major Shareholders
The major shareholders of GoPro, Inc. as of 2024 are detailed below:
| Shareholder Name | Share Class | Percentage Ownership |
|---|---|---|
| GoPro Founders (Nick Woodman) | Class B | ~51% |
| Institutional Investors (Various) | Class A | ~30% |
| Retail Investors | Class A | ~19% |
Stock Performance
As of September 30, 2024, GoPro's stock was trading at approximately $7.40 per share. The stock has shown volatility, reflecting broader market trends and company performance.
Recent Financial Performance
For the third quarter of 2024, GoPro reported:
- Total revenue: $258.9 million
- Net loss: $8.2 million
- Basic and diluted net loss per share: $0.05
- Operating expenses: $99.9 million
Debt and Financial Obligations
As of September 30, 2024, GoPro reported:
- Total liabilities: $477.7 million
- Convertible notes outstanding: $93.8 million
- Cash and cash equivalents: $130.2 million
Stock-Based Compensation
GoPro's stock-based compensation for the third quarter of 2024 was:
| Expense Type | Amount (in thousands) |
|---|---|
| Stock-based compensation | $7,372 |
| Total stock-based compensation expense | $23,933 |
Conclusion of Ownership Analysis
The ownership and financial structure of GoPro, Inc. reflects a blend of founder control and institutional investment, with ongoing challenges in the consumer electronics market impacting its financial results.
GoPro, Inc. (GPRO) Mission Statement
GoPro, Inc. aims to make it easy for the world to capture and share itself in immersive and exciting ways, helping people get the most out of their photos and videos. The Company is committed to developing solutions that create an easy, seamless experience for consumers to capture, create, manage, and share engaging personal content.
Financial Performance Overview
As of September 30, 2024, GoPro reported total revenue of $600.6 million for the first nine months of 2024, reflecting a 15.4% decrease compared to $710.0 million for the same period in 2023. The revenue decline was primarily attributed to a strategic pricing decision to reduce the manufacturer's suggested retail prices (MSRPs) across the camera lineup and a shift in camera revenue mix.
Revenue Breakdown
| Category | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Total Revenue | $258.9 | $294.3 | (12.0%) |
| Retail Revenue | $207.9 | $231.0 | (10.0%) |
| GoPro.com Revenue | $51.0 | $63.3 | (19.7%) |
| Subscription and Service Revenue | $27.5 | N/A | N/A |
Camera Units and Pricing
In the third quarter of 2024, GoPro shipped 881,000 camera units, a decrease of 5% from 923,000 units in Q3 2023. The average selling price (ASP) for cameras in Q3 2024 was $294, down from $319 in Q3 2023, marking an 8% decline.
Cost of Revenue and Gross Margin
The cost of revenue for the third quarter of 2024 was $167.1 million, down from $200.1 million in the same quarter of 2023, resulting in a gross margin of 35.5%, an increase from 32.0% year-over-year.
| Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Cost of Revenue (in millions) | $167.1 | $200.1 | (16%) |
| Gross Margin | 35.5% | 32.0% | 350 bps |
Operating Expenses
Total operating expenses in Q3 2024 were $99.9 million, slightly up from $98.0 million in Q3 2023. Research and development costs increased to $44.3 million from $41.7 million, while sales and marketing expenses decreased to $40.7 million from $41.3 million.
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Research and Development | $44.3 | $41.7 | 6% |
| Sales and Marketing | $40.7 | $41.3 | (1%) |
| Total Operating Expenses | $99.9 | $98.0 | 2% |
Net Loss and Income Tax Expense
GoPro reported a net loss of $8.2 million in Q3 2024, compared to a net loss of $3.7 million in Q3 2023. The income tax expense for the three months ended September 30, 2024, was $2.1 million on a pre-tax loss of $6.1 million.
Accumulated Deficit
As of September 30, 2024, GoPro had an accumulated deficit of $644.4 million, compared to $249.3 million at the end of 2023.
Cash and Cash Equivalents
GoPro's cash and cash equivalents at the end of Q3 2024 stood at $130.2 million, a significant decrease from $222.7 million at the end of 2023.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents (in millions) | $130.2 | $222.7 | Accumulated Deficit (in millions) | $644.4 | $249.3 |
How GoPro, Inc. (GPRO) Works
Financial Performance Overview
For the first nine months of 2024, GoPro, Inc. reported total revenue of $600.6 million, reflecting a 15.4% decrease compared to the same period in 2023. The decline was attributed to a strategic pricing decision made in May 2023, which reduced the manufacturer's suggested retail prices (MSRPs) across the camera lineup, leading to an 11.4% decrease in units shipped (1.9 million units compared to 2.1 million in 2023). The average selling price for cameras decreased by 4.5% year-over-year to $325.
| Metric | 2024 (9 months) | 2023 (9 months) | % Change |
|---|---|---|---|
| Total Revenue | $600.6 million | $710.0 million | -15.4% |
| Units Shipped | 1.9 million | 2.1 million | -11.4% |
| Average Selling Price | $325 | $340 | -4.5% |
| Subscription Revenue | $79.7 million | $72.3 million | +10.1% |
Revenue Breakdown
In the third quarter of 2024, total revenue was $258.9 million, a 12.0% decrease from the same period in 2023. Retail revenue accounted for 80.3% of total revenue at $207.9 million, while GoPro.com revenue, including subscription services, was $51.0 million, representing 19.7% of total revenue.
| Region | Q3 2024 Revenue | Q3 2023 Revenue | % Change |
|---|---|---|---|
| Americas | $109.3 million | $131.6 million | -17% |
| EMEA | $84.4 million | $83.5 million | +1% |
| APAC | $65.2 million | $79.2 million | -18% |
Cost of Revenue and Gross Margin
GoPro's cost of revenue for the first nine months of 2024 was $398.997 million, down 18% from $487.561 million in the same period of 2023. The gross margin improved to 33.6%, up from 31.3% in the prior year.
| Metric | 2024 (9 months) | 2023 (9 months) | % Change |
|---|---|---|---|
| Cost of Revenue | $398.997 million | $487.561 million | -18% |
| Gross Margin | 33.6% | 31.3% | +230 bps |
Operating Expenses
Total operating expenses for the first nine months of 2024 were $297.5 million, up from $288.6 million in 2023. This includes research and development expenses of $135.9 million, which represented an increase of 12% year-over-year.
| Expense Type | 2024 (9 months) | 2023 (9 months) | % Change |
|---|---|---|---|
| Total Operating Expenses | $297.5 million | $288.6 million | +3.1% |
| Research and Development | $135.9 million | $121.8 million | +12% |
| Sales and Marketing | $117.2 million | $119.2 million | -1.7% |
| General and Administrative | $44.5 million | $47.6 million | -7.0% |
Net Loss and Earnings Per Share
The net loss for the first nine months of 2024 was $395.1 million, compared to a net loss of $50.8 million in the same period in 2023. The diluted net loss per share was $(2.59) for the first nine months of 2024, compared to $(0.33) in 2023.
| Metric | 2024 (9 months) | 2023 (9 months) | % Change |
|---|---|---|---|
| Net Loss | $(395.1 million) | $(50.8 million) | +678% |
| Diluted Net Loss per Share | $(2.59) | $(0.33) | +684% |
Subscription Services
GoPro's subscription and service revenue for the first nine months of 2024 increased to $79.7 million, representing 10.3% of total revenue. The overall subscription attach rate was 45% in the third quarter of 2024, with an aggregate retention rate for annual subscribers at 67%.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Subscription Revenue | $27.5 million | $24.9 million | +10.6% |
| Attach Rate | 45% | 42% | +3% |
| Retention Rate | 67% | 65% | +2% |
Restructuring Plans
In August 2024, GoPro approved a restructuring plan to reduce its global workforce by approximately 15%. This was later amended in October 2024 to increase the reduction to 26%. The anticipated costs associated with this restructuring include up to $9 million in severance and $8 million in project cancellation costs.
How GoPro, Inc. (GPRO) Makes Money
Revenue Streams
GoPro, Inc. derives its revenue primarily from two main sources: camera sales and subscription services. As of the first nine months of 2024, total revenue was $600.6 million, which represented a 15.4% decrease compared to the same period in 2023 due to a strategic pricing decision and a decrease in units shipped.
| Revenue Source | Revenue (in millions) | % of Total Revenue | Year-over-Year Change |
|---|---|---|---|
| Camera Sales | $520.9 | 86.6% | -17.4% |
| Subscription and Service Revenue | $79.7 | 13.4% | +10.1% |
Camera Sales
Camera sales continue to be the largest contributor to GoPro's revenue. In the first nine months of 2024, GoPro shipped 1.9 million units, an 11.4% decrease from 2.1 million units in the same period of 2023. The average selling price (ASP) of cameras decreased by 4.5% year-over-year to $325. The revenue mix from cameras with an MSRP of $400 or more was 74%, down from 78% in the previous year.
Subscription Services
Subscription services have shown resilience, with revenue increasing by 10.1% to $79.7 million in the first nine months of 2024. GoPro's subscription offerings include Premium+, Premium, and Quik subscriptions, providing users with cloud storage, video editing tools, and discounts on GoPro products. The attach rate for subscriptions from camera sales was reported at 45% in Q3 2024.
| Subscription Type | Revenue (in millions) | Features |
|---|---|---|
| Premium+ | $27.5 | 500 GB cloud storage, HyperSmooth Pro software |
| Premium | $52.2 | 25 GB cloud storage, damage replacement |
| Quik | $0.0 | Video editing tools |
Geographic Revenue Distribution
The geographic distribution of GoPro's revenue shows a significant reliance on the Americas, which accounted for 45.7% of total revenue in the first nine months of 2024.
| Region | Revenue (in millions) | % of Total Revenue |
|---|---|---|
| Americas | $274.6 | 45.7% |
| EMEA | $200.9 | 33.5% |
| APAC | $125.0 | 20.8% |
Cost Structure and Profitability
GoPro reported a gross margin of 33.6% for the first nine months of 2024, up from 31.3% in the same period of 2023, primarily due to lower operational costs. The cost of revenue for the first nine months was $398.997 million, an 18% decrease compared to the previous year.
| Cost Category | Cost (in millions) | Year-over-Year Change |
|---|---|---|
| Cost of Revenue | $398.997 | -18% |
| Research and Development | $135.872 | +12% |
| Sales and Marketing | $117.185 | -2% |
Net Loss and Financial Health
GoPro reported a net loss of $395.1 million for the first nine months of 2024, compared to a net loss of $50.8 million in the same period in 2023. The company continues to face challenges in the consumer market, particularly due to macroeconomic factors affecting sales in the Americas and Asia-Pacific regions.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $8.211 million | $3.684 million |
| Adjusted EBITDA | $5.447 million | $7.232 million |
GoPro, Inc. (GPRO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- GoPro, Inc. (GPRO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of GoPro, Inc. (GPRO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View GoPro, Inc. (GPRO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.