GoPro, Inc. (GPRO): Business Model Canvas [11-2024 Updated]
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
GoPro, Inc. (GPRO) Bundle
In the fast-paced world of action cameras, GoPro, Inc. (GPRO) stands out with its innovative approach and strong brand loyalty. This blog post delves into the Business Model Canvas of GoPro, uncovering how the company leverages
- key partnerships
- distinct value propositions
- effective customer relationships
- diverse revenue streams
GoPro, Inc. (GPRO) - Business Model: Key Partnerships
Collaborations with third-party suppliers for components
GoPro, Inc. collaborates with several third-party suppliers to obtain essential components for its cameras and accessories. These partnerships are crucial for maintaining product quality and managing production costs. For instance, GoPro's supply chain includes partnerships with manufacturers of image sensors, batteries, and lenses, which are fundamental to the camera's performance.
Relationships with major retailers and distributors
As of the third quarter of 2024, retail revenue for GoPro was $207.9 million, representing 80.3% of total revenue, compared to 78.5% in the same period of 2023. GoPro has expanded its retail presence significantly, adding over 6,300 new retail doors since the third quarter of 2023. Key retail partners include:
| Retailer | Region | Partnership Type |
|---|---|---|
| Best Buy | North America | Exclusive promotions and displays |
| Walmart | North America | Wide distribution and promotional offers |
| MediaMarkt | Europe | Product placement and marketing collaboration |
| Amazon | Global | Online retail partnership |
Partnerships with tech companies for software integration
GoPro has established partnerships with various technology companies to enhance its software capabilities. For instance, the integration with Adobe for video editing solutions allows users to utilize advanced editing tools for their GoPro footage. Additionally, GoPro's cloud storage services, included in its subscription offerings, have been enhanced through collaborations with cloud service providers to ensure reliable storage and accessibility for users.
Sponsorships with athletes and events to enhance brand visibility
GoPro invests in sponsorships with athletes and events to boost brand visibility and connect with its target audience. In 2024, the company allocated a significant portion of its marketing budget to sponsorships across various sports, including surfing, skiing, and motorsports. This strategy helps GoPro maintain a strong presence in action sports culture, appealing to its core customers.
| Event/Athlete | Sport | Sponsorship Type |
|---|---|---|
| X Games | Extreme Sports | Event sponsorship |
| Travis Rice | Snowboarding | Individual athlete sponsorship |
| Red Bull Cliff Diving | Cliff Diving | Event sponsorship |
| World Surf League | Surfing | Event sponsorship |
GoPro, Inc. (GPRO) - Business Model: Key Activities
Research and development for innovative products
In 2024, GoPro reported a total research and development expenditure of $135.9 million for the first nine months, reflecting a 12% increase compared to $121.8 million in the same period of 2023. This expenditure accounted for approximately 22.6% of total revenue during this period.
The breakdown for R&D expenses in the third quarter of 2024 was $44.3 million, up from $41.7 million in the third quarter of 2023, marking a year-over-year increase of 6%.
Marketing campaigns to promote brand and products
GoPro's sales and marketing expenses for the first nine months of 2024 amounted to $117.2 million, a decrease of 2% from $119.2 million in the same period of 2023. This constituted approximately 19.5% of total revenue.
In the third quarter of 2024, marketing expenses totaled $40.7 million, slightly down from $41.3 million in the same quarter of 2023. The company has focused on enhancing its marketing presence through various sponsorships and promotional activities, which included activating partnerships and utilizing point-of-purchase displays to drive sales.
Supply chain management for efficient production
GoPro's cost of revenue was reported at $398.0 million for the first nine months of 2024, down 18% from $487.6 million in the same period of 2023. This reduction was attributed to improved supply chain efficiencies and a decrease in the costs associated with camera production.
The gross margin for the third quarter of 2024 improved to 35.5%, up from 32.0% in the same period of 2023. The company attributed this improvement to lower operational costs, reduced tariff expenses, and more efficient production processes.
Customer support and engagement through services
Subscription and service revenue for GoPro increased by 10.1% to $79.7 million in the first nine months of 2024, up from $72.3 million in the same period of 2023. The subscription attach rate from both sales through GoPro.com and retail stood at 45% in the third quarter of 2024.
GoPro's customer engagement strategies have led to an aggregate retention rate for annual subscribers of 67%, up from 65% in the previous year. The company continues to invest in enhancing customer support, aiming to improve user experience and foster brand loyalty.
| Key Activity | 2024 Q3 Expenditure (in millions) | 2023 Q3 Expenditure (in millions) | % Change |
|---|---|---|---|
| Research and Development | $44.3 | $41.7 | 6% |
| Sales and Marketing | $40.7 | $41.3 | -1% |
| Cost of Revenue | $398.0 | $487.6 | -18% |
| Subscription and Service Revenue | $79.7 | $72.3 | 10.1% |
GoPro, Inc. (GPRO) - Business Model: Key Resources
Strong brand reputation and customer loyalty
GoPro, Inc. has established a strong brand reputation in the action camera market, bolstered by a loyal customer base. As of September 2024, GoPro's aggregate retention rate for annual subscribers improved to 67%, compared to 65% in the same period in 2023. This loyalty is reflected in the company's subscription and service revenue, which increased by 10.1% year-over-year to $79.7 million for the first nine months of 2024. GoPro's innovative marketing strategies, including user-generated content and sponsorships, have further solidified its brand presence.
Proprietary technology and patents for product differentiation
GoPro's competitive advantage is significantly attributed to its proprietary technologies and patented innovations. The company invests heavily in research and development, spending $119.4 million in R&D during the first nine months of 2024, an increase of 11% from the prior year. This investment has resulted in advanced features such as HyperSmooth video stabilization and cloud storage solutions. GoPro's focus on innovation is critical for maintaining its market position against competitors, particularly as it launches new subscription services like the Premium+ offering in February 2024.
Skilled workforce in R&D and marketing
GoPro employs a diverse and skilled workforce that is crucial for its R&D and marketing efforts. The company’s total operating expenses for the first nine months of 2024 were approximately $297.5 million, reflecting the costs associated with maintaining a talented workforce. The R&D department, specifically, accounted for a significant portion of these expenses, highlighting GoPro's commitment to innovation. The company's ability to attract and retain skilled professionals in these areas is essential for developing new products and enhancing existing ones.
Extensive distribution network including retail and online channels
GoPro's distribution network encompasses both retail and online channels, providing a broad reach to customers. In the third quarter of 2024, retail revenue accounted for 80.3% of total revenue, amounting to $207.9 million. The company has expanded its retail presence by adding over 6,300 new retail doors since Q3 2023. Online sales through GoPro.com generated $51.0 million, representing 19.7% of total revenue for the same quarter. This dual-channel strategy not only increases sales but also enhances customer accessibility to GoPro products.
| Key Resource | Details | Financial Impact |
|---|---|---|
| Brand Reputation | Strong customer loyalty with a retention rate of 67% | Subscription revenue: $79.7 million (9M 2024) |
| Proprietary Technology | Invested $119.4 million in R&D (9M 2024) | Enhanced product features driving sales |
| Skilled Workforce | Operating expenses of $297.5 million (9M 2024) | Critical for product development and marketing |
| Distribution Network | 80.3% retail revenue share; over 6,300 new retail doors added | Retail revenue: $207.9 million (Q3 2024) |
GoPro, Inc. (GPRO) - Business Model: Value Propositions
High-quality, durable cameras for extreme conditions
GoPro, Inc. offers a range of cameras known for their high-quality imaging and durability, designed specifically for extreme conditions. As of 2024, GoPro's average selling price (ASP) for cameras was $325, reflecting a 4.5% year-over-year decrease. The company has shifted its product lineup to include entry-level cameras priced below $300, expanding access to a broader customer base. In the first nine months of 2024, GoPro shipped approximately 1.9 million units, down from 2.1 million in the same period in 2023.
Unique features like cloud storage and editing tools
GoPro's offerings include unique features such as cloud storage and editing tools integrated into its subscription services. The Premium+ subscription, launched in February 2024, provides up to 500 GB of cloud storage for both GoPro and non-GoPro content, alongside advanced video stabilization software. Subscription and service revenue reached $79.7 million for the first nine months of 2024, representing a 10.1% increase compared to the previous year.
Subscription services providing added value to customers
The company's subscription services have become a significant revenue stream. In the third quarter of 2024, subscription and service revenue accounted for 10.6% of total revenue, amounting to $27.5 million. The overall subscription attach rate from both sales on GoPro.com and retail was 45% during this period. Additionally, the retention rate for annual subscribers improved to 67%, up from 65% in the same quarter of 2023.
Community engagement through user-generated content sharing
GoPro emphasizes community engagement by encouraging user-generated content sharing. This strategy not only enhances brand loyalty but also serves as a powerful marketing tool. The company continues to leverage its community to promote products and share experiences, which contributes to its brand strength. The growing presence of GoPro content across social media platforms reinforces the brand's connection with its customers and potential buyers.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $258.9 million | $294.3 million | -12.0% |
| Camera Units Shipped | 881,000 | 923,000 | -5.0% |
| Average Selling Price | $294 | $319 | -7.8% |
| Subscription Revenue | $27.5 million | N/A | N/A |
| Subscription Attach Rate | 45% | N/A | N/A |
| Retention Rate | 67% | 65% | +4% |
GoPro, Inc. (GPRO) - Business Model: Customer Relationships
Direct engagement through GoPro.com and social media
GoPro engages directly with its customers through its official website, GoPro.com, and various social media platforms. In the third quarter of 2024, GoPro.com generated $51.0 million in revenue, accounting for 19.7% of total revenue. This represents a decline from 21.5% in the same period in 2023. The company has seen a decrease in overall sales from its website, which reflects broader market trends and increased competition. GoPro actively utilizes social media channels such as Instagram, Facebook, and YouTube to foster community engagement and promote its products, showcasing user-generated content to enhance brand visibility and customer interaction.
Subscription model fostering ongoing customer interaction
GoPro has implemented a subscription model that enhances ongoing customer interaction. As of September 30, 2024, the company reported a subscription and service revenue of $79.7 million for the first nine months of 2024, marking a 10.1% increase year-over-year. The overall subscription attach rate from both sales on GoPro.com and retail was 45% in the third quarter of 2024. The launch of the Premium+ subscription in February 2024, which offers additional features such as 500GB of cloud storage and access to advanced editing tools, has contributed to this growth.
Customer support via multiple channels (email, chat, phone)
GoPro offers comprehensive customer support through various channels including email, chat, and phone. This multi-channel approach ensures that customers can receive assistance in a manner that is most convenient for them. The company maintains a focus on delivering timely responses and high-quality support, which is critical in retaining customers and addressing their needs effectively. Additionally, the company provides an extensive online support center that includes FAQs and troubleshooting guides, further enhancing the customer experience.
Community-building initiatives to encourage brand loyalty
GoPro invests in community-building initiatives aimed at fostering brand loyalty among its users. The company encourages users to share their experiences through social media, creating a vibrant community around the GoPro brand. This strategy not only enhances customer engagement but also generates user-generated content that serves as authentic marketing material. In addition, GoPro hosts events and contests that invite participation from its user base, strengthening the bond between the brand and its customers. Such initiatives have been instrumental in maintaining a loyal customer base, as evidenced by an aggregate retention rate for annual subscribers of 67% in the third quarter of 2024, up from 65% in the same period of 2023.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| GoPro.com Revenue | $51.0 million | $63.3 million | -19% |
| Subscription and Service Revenue | $79.7 million | $72.3 million | +10.1% |
| Subscription Attach Rate | 45% | N/A | N/A |
| Annual Subscriber Retention Rate | 67% | 65% | +2% |
GoPro, Inc. (GPRO) - Business Model: Channels
Retail partnerships for physical product sales
GoPro has significantly expanded its retail partnerships, adding over 6,300 new retail doors since the third quarter of 2023. In the third quarter of 2024, retail revenue was $207.9 million, accounting for 80.3% of total revenue, compared to 78.5% in the same period of 2023.
GoPro.com for direct-to-consumer sales
The GoPro website plays a critical role in the company’s sales strategy. In the third quarter of 2024, revenue generated from GoPro.com was $51.0 million, representing 19.7% of total revenue, a decrease from 21.5% in the same quarter of 2023. For the first nine months of 2024, GoPro.com revenue amounted to $149.2 million, which was 24.8% of total revenue.
Online marketplaces for broader reach
GoPro's products are also available on various online marketplaces, enhancing its reach. Specific revenue figures from online marketplaces were not disclosed in the latest reports; however, the overall e-commerce segment continues to be a vital part of their distribution strategy, particularly as consumer preferences shift towards online shopping.
Social media platforms for marketing and community engagement
GoPro effectively utilizes social media platforms for marketing and community engagement. For the third quarter of 2024, GoPro reported an overall subscription attach rate of 45% from both sales on GoPro.com and retail, indicating strong community engagement and brand loyalty. The aggregate retention rate for annual subscribers improved to 67%.
| Channel | Q3 2024 Revenue ($ million) | Percentage of Total Revenue | Q3 2023 Revenue ($ million) | Percentage Change |
|---|---|---|---|---|
| Retail Partnerships | 207.9 | 80.3% | 230.99 | -10% |
| GoPro.com | 51.0 | 19.7% | 63.31 | -19% |
In summary, GoPro's channels for delivering value include a robust network of retail partnerships, a direct sales platform through GoPro.com, engagement through online marketplaces, and active marketing through social media, all contributing to the company's overall sales strategy and community presence.
GoPro, Inc. (GPRO) - Business Model: Customer Segments
Adventure Enthusiasts and Extreme Sports Participants
GoPro's primary customer segment includes adventure enthusiasts and extreme sports participants who utilize the cameras for high-action activities such as surfing, skiing, and mountain biking. This demographic values durability, high-resolution video quality, and portability, which GoPro products are designed to deliver. In 2024, GoPro's revenue mix from cameras priced at $400 and above constituted 74% of total camera revenue, indicating a strong preference for high-quality offerings among this segment.
Content Creators Looking for High-Quality Video Equipment
This segment encompasses YouTubers, vloggers, and professional filmmakers who require reliable and high-performance video equipment. GoPro's subscription service, which includes cloud storage and video editing tools, has been particularly appealing to this group. As of the third quarter of 2024, the subscription and service revenue increased by 10.6%, amounting to $27.5 million, representing 10.6% of total revenue for that quarter.
Casual Users Seeking Durable Cameras for Everyday Use
Casual users represent a significant portion of GoPro's customer base, attracted to the brand for its ruggedness and ease of use. These consumers often purchase entry-level models, especially since GoPro introduced cameras at a price point below $300 for the first time since 2019. In the first nine months of 2024, GoPro shipped approximately 1.9 million camera units, reflecting an 11.4% decrease from the previous year, which may indicate a shift in consumer behavior towards more affordable options.
Subscribers to GoPro Services for Additional Features
GoPro's subscription services, including Premium+ and Quik, have become increasingly important for generating recurring revenue. The overall subscription attach rate from camera sales was 45% in the third quarter of 2024, with an annual retention rate of 67%, up from 65% in the previous year. The Premium+ subscription launched in February 2024, includes enhanced features such as 500 GB of cloud storage and access to advanced video editing tools, catering to the needs of both content creators and casual users alike.
| Customer Segment | Key Characteristics | Revenue Contribution (Q3 2024) | Subscription Revenue (Q3 2024) |
|---|---|---|---|
| Adventure Enthusiasts | High-action activities, durability, high-res video | 74% of camera revenue from $400+ models | N/A |
| Content Creators | YouTubers, vloggers, professionals | N/A | $27.5 million (10.6% of total revenue) |
| Casual Users | Durable, easy-to-use cameras | 1.9 million units shipped (11.4% decrease) | N/A |
| Subscribers | Recurring revenue, enhanced features | N/A | $79.7 million (13.3% of total revenue) |
GoPro, Inc. (GPRO) - Business Model: Cost Structure
Research and Development Expenses for Product Innovation
In the first nine months of 2024, GoPro, Inc. incurred $135.9 million in research and development expenses, which represents an 11% increase compared to $121.8 million for the same period in 2023. This growth was primarily driven by a $9.8 million increase in consulting and professional services, alongside a $3.4 million rise in restructuring costs.
For the third quarter of 2024 alone, total research and development expenses were $44.3 million, compared to $41.7 million in the third quarter of 2023, marking a 6% increase.
| Period | R&D Expenses ($ millions) | % Change YoY |
|---|---|---|
| Q3 2024 | 44.3 | 6% |
| 9M 2024 | 135.9 | 11% |
| 9M 2023 | 121.8 | - |
Marketing and Advertising Costs to Promote Brand
GoPro's sales and marketing expenses for the first nine months of 2024 totaled $117.2 million, a decrease of 2% from $119.2 million during the same period in 2023. In the third quarter of 2024, sales and marketing expenses were $40.7 million, compared to $41.3 million in Q3 2023, reflecting a 1% decline.
The decrease was primarily due to a reduction in credit card fees and allocated overhead costs, although there were increases in advertising and marketing expenses related to sponsorships.
| Period | Marketing Expenses ($ millions) | % Change YoY |
|---|---|---|
| Q3 2024 | 40.7 | -1% |
| 9M 2024 | 117.2 | -2% |
| 9M 2023 | 119.2 | - |
Manufacturing Costs Incurred Through Third-Party Suppliers
In the first nine months of 2024, GoPro reported a total cost of revenue of $399.0 million, which is an 18% decrease from $487.6 million in the same period in 2023. The cost of revenue in Q3 2024 was $167.1 million, down 17% from $200.1 million in Q3 2023.
This reduction in costs has been attributed to lower operational costs, including reduced tariff expenses and improved warranty expenses.
| Period | Cost of Revenue ($ millions) | % Change YoY |
|---|---|---|
| Q3 2024 | 167.1 | -17% |
| 9M 2024 | 399.0 | -18% |
| 9M 2023 | 487.6 | - |
Operational Costs Associated with Customer Support and Logistics
For the first nine months of 2024, GoPro's total operating expenses, which include customer support and logistics, amounted to $297.5 million, a slight increase of 3% from $288.6 million in the same period in 2023. The operational costs for Q3 2024 were $99.9 million, which is an increase of 2% from $98.0 million in Q3 2023.
General and administrative expenses were $44.5 million for the first nine months of 2024, representing a 7% decrease from $47.6 million in 2023.
| Period | Operational Expenses ($ millions) | % Change YoY |
|---|---|---|
| Q3 2024 | 99.9 | 2% |
| 9M 2024 | 297.5 | 3% |
| 9M 2023 | 288.6 | - |
GoPro, Inc. (GPRO) - Business Model: Revenue Streams
Sales from cameras, mounts, and accessories
In the first nine months of 2024, GoPro reported total revenue of $600.6 million, which reflects a 15.4% decrease compared to the same period in 2023. This decline was influenced by a strategic pricing decision made in May 2023, which reduced the manufacturer's suggested retail prices (MSRPs) across its camera lineup. The average selling price (ASP) for cameras decreased by 4.5% year-over-year to $325, with a significant shift towards entry-level cameras priced below $300.
Units shipped during the same period totaled 1.9 million, down from 2.1 million in 2023, marking an 11.4% decrease. The camera revenue mix indicated that 74% of sales came from cameras with an MSRP of $400 or higher, down from 78% in the previous year.
| 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% |
| Camera Revenue Mix (≥$400 MSRP) | 74% | 78% | -4% |
Subscription fees from GoPro services
GoPro's subscription and service revenue reached $79.7 million for the first nine months of 2024, representing a 10.1% increase from the previous year. This revenue is derived from several subscription offerings, including Premium+, Premium, and Quik. The overall attach rate for subscriptions from camera sales was approximately 45%.
For the third quarter of 2024 alone, subscription revenue accounted for $27.5 million, or 10.6% of total revenue, while total subscription revenue for the first nine months represented 13.3% of overall revenue.
| Metric | 2024 (9 months) | 2023 (9 months) | % Change |
|---|---|---|---|
| Subscription Revenue | $79.7 million | $72.3 million | +10.1% |
| Q3 Subscription Revenue | $27.5 million | $24.9 million | +10.6% |
| Subscription Revenue (% of Total) | 13.3% | Not material | N/A |
Revenue from software and app sales
Revenue from GoPro's software and app offerings, particularly the Quik app, is integrated within the subscription service revenue. The Quik subscription provides access to editing tools and features that enhance the user experience, although specific revenue figures for software alone are not disclosed separately.
Licensing agreements for technology and features
GoPro has engaged in licensing agreements that allow third-party companies to use its technology and features. While specific financial figures are not publicly detailed in the available reports, these agreements contribute to GoPro's overall revenue strategy and enhance the value of its intellectual property.
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.