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Press Release: GoPro Announces Fourth Quarter and Full Year 2020 Results

· 02/04/2021 16:05
-- Ended 2020 with 761,000 GoPro subscribers, up 52% sequentially and 145% year-over-year. -- GoPro.com generated a record $116 million in revenue in Q4, up 43% sequentially and 91% year-over-year. Full year 2020 GoPro.com revenue doubled year-over-year to $283 million. -- Camera unit sell-through was more than 1.2 million units in Q4, and 3.6 million for the full year. -- Channel inventory reduced approximately 10% sequentially and more than 50% since the start of 2020. -- Cameras with retail prices above $300 represented 91% of Q4 revenue. -- Q4 Street ASP increased 14% year-over-year to $323, while 2020 Street ASP increased 13% to $316. Results Summary: Three months ended December 31, Year ended December 31, ($ in thousands, except per share amounts) 2020 2019 % Change 2020 2019 % Change Revenue $357,772 $528,345 (32.3)% $891,925 $1,194,651 (25.3) % Gross margin GAAP 38.0 % 38.2 % (20) bps 35.3 % 34.6 % 70 bps Non-GAAP 38.3 % 38.6 % (30) bps 36.1 % 35.4 % 70 bps Operating income (loss) GAAP $55,355 $96,100 (42.4)% $(36,819) $(2,333) (1,478.2)% Non-GAAP $64,184 $105,021 (38.9)% $24,313 $44,869 (45.8) % Net income (loss) GAAP $44,413 $95,820 (53.6)% $(66,783) $(14,642) (356.1) % Non-GAAP $61,064 $102,498 (40.4)% $12,779 $35,255 (63.8) % Diluted net income (loss) per share GAAP $0.28 $0.65 (56.9)% $(0.45) $(0.10) (350.0) % Non-GAAP $0.39 $0.70 (44.3)% $0.08 $0.24 (66.7) % Adjusted EBITDA $67,744 $112,092 (39.6)% $43,200 $71,958 (40.0) %-- Revenue for Q4 2020 was $358 million, a 28% sequential improvement from $281 million in Q3 2020. Revenue for the full year 2020 was $892 million compared to $1.19 billion in 2019, down 25% year-over-year. -- GAAP and non-GAAP gross margin for Q4 2020 was 38.0% and 38.3%, respectively. GAAP and non-GAAP gross margin for 2020 both increased 70 bps year-over-year to 35.3% and 36.1%, respectively. -- Q4 2020 GAAP net income was $44 million, or $0.28 per share. Q4 2020 non-GAAP net income was $61 million, or $0.39 per share. -- 2020 GAAP net loss was $67 million compared to 2019 GAAP net loss of $15 million. 2020 non-GAAP net income was $13 million compared to $35 million in 2019. -- Q4 2020 GAAP and non-GAAP operating expenses decreased 24% and 26% year-over-year to $81 million and $73 million, respectively. -- 2020 GAAP and non-GAAP operating expenses decreased 15% and 21% to $351 million and $298 million, respectively. -- Adjusted EBITDA for Q4 and full year 2020 was $68 million and $43 million, respectively. -- Cash and investments totaled $328 million at the end of 2020, of which $108 million was generated from operations in Q4 and $73.0 million was from the net issuance of convertible notes.

GoPro Announces Fourth Quarter and Full Year 2020 Results

Subscribers Grow 145% Year-over-Year to 761,000

Cash Flow from Operations of $108 Million in Q4 2020

Q4 2020 GAAP EPS of $0.28; Non-GAAP EPS of $0.39

PR Newswire

SAN MATEO, Calif., Feb. 4, 2021

SAN MATEO, Calif., Feb. 4, 2021 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) today announced financial results for its fourth quarter and full year ended December 31, 2020 and posted management commentary on its investor relations website at https://investor.gopro.com.

"GoPro's shift to a more subscription-centric consumer-direct model is resulting in a simpler, more profitable business with materially better cash generation," said Nicholas Woodman, GoPro's founder and CEO. "The steps we've taken to improve our business during the pandemic should serve us very well when the world begins to recover in earnest -- but as a business, fortunately we don't have to wait for that to happen."

"GoPro generated more than $200 million in cash flow from operations in the second half, fourth quarter subscriber growth of 52% sequentially, and we exited the year with historically low levels of channel inventory. Our subscription-based consumer-direct strategy is proving to be successful and we look forward to continued gains in 2021," said Brian McGee, GoPro CFO and COO.

GoPro Q4 and Full Year 2020 Financial Results

GoPro Q4 2020 Highlights

Conference Call

GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results.

Prior to the start of the call, the Company will post Management Commentary on the "Events & Presentations" section of its investor relations website at https://investor.gopro.com. Management will make brief opening comments before taking questions.

To listen to the live conference call, please dial toll free (888) 394-8218 or (646) 828-8193, access code 1965695, approximately 15 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at https://investor.gopro.com. A recording of the webcast will be available on GoPro's website, https://investor.gopro.com, approximately two hours after the call and for 90 days thereafter.

About GoPro, Inc. (NASDAQ: GPRO)

GoPro helps the world capture and share itself in immersive and exciting ways.

For more information, visit www.gopro.com. Members of the press can access official brand and product images, logos and reviewer guides by visiting GoPro's press portal. GoPro customers can submit their photos, raw video clips and edits to GoPro Awards for an opportunity to be featured on GoPro's social channels and receive gear and cash awards. Learn more at www.gopro.com/awards. Connect with GoPro on Facebook, Instagram, LinkedIn, TikTok, Twitter, YouTube, and GoPro's blog The Inside Line.

GoPro, HERO and their respective logos are trademarks or registered trademarks of GoPro, Inc. in the United States and other countries.

GoPro's Use of Social Media

GoPro announces material financial information using the Company's investor relations website, SEC filings, press releases, public conference calls and webcasts. GoPro may also use social media channels to communicate about the Company, its brand and other matters; these communications could be deemed material information. Investors and others are encouraged to review posts on Facebook, Instagram, LinkedIn, TikTok, Twitter, YouTube, GoPro's investor relations website and The Inside Line.

Note Regarding Use of Non-GAAP Financial Measures

GoPro reports gross profit, gross margin, operating expenses, operating income (loss), other income (expense), tax expense, net income (loss) and diluted net income (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis. Additionally, GoPro reports non-GAAP adjusted EBITDA. Non-GAAP items exclude, where applicable, the effects of stock-based compensation, acquisition-related costs, restructuring and other related costs, non-cash interest expense, gain on sale and license of intellectual property and the tax impact of these items. When planning, forecasting and analyzing gross margin, operating expenses, other income (expense), tax expense, net income (loss) and net income (loss) per share for future periods, GoPro does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for reconciling items which are inherently difficult to predict with reasonable accuracy.

Note on Forward-looking Statements

This press release 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" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements in this presentation may include but are not limited to planned growth and expansion of our total addressable market through new products and subscription services; increased profitability in 2021 and beyond; overall consumer demand, and the impact of the COVID-19 pandemic on our business. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are our ability to achieve revenue growth or profitability in the future, and if revenue growth or profitability is achieved, we may not be able to sustain it; our ability to effectively manage our shift of sales strategy to focus on our direct-to-consumer channel; the risk that we are not able to increase the number of and retain our existing paying subscribers; the risk that our reduction in operating expenses may impact our ability to meet our business objectives and achieve our revenue targets, and may not result in the expected improvement in our profitability; our ability to continue to focus on expense management; the fact that our plan to profitability depends in part on further penetrating our total addressable market, and we may not be successful in doing so; the risk that growing our direct-to-consumer business while reducing our reliance on our other sales channels could impact profitability; the impact of the COVID-19 pandemic and its effect on the United States and global economies and our business in particular; any inability to successfully manage

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February 04, 2021 16:05 ET (21:05 GMT)