Revenue of $241
million was 10% Above Guidance
GoPro Subscribers Grew 27% Year-over-Year to
2.44 million, Exceeding Expectations
Subscription and Service Revenue was
$24 million or 10% of Revenue, up 21%
Year-over-Year
SAN
MATEO, Calif., Aug. 3, 2023
/PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) today announced
financial results for its second quarter ended June 30, 2023
and posted management commentary, including forward-looking
guidance, in the investor relations section of its website at
https://investor.gopro.com.
"In Q2, GoPro saw an immediate retail sales and GoPro
subscription lift as a result of our mid-quarter go-to-market
strategy shift that included a return to pre-pandemic pricing and a
greater emphasis on retail sales," said Nicholas Woodman, GoPro's founder and CEO. "We
exceeded our Q2 expectations for unit sales, revenue and subscriber
growth, all positive indicators that our strategy shift is
working."
"In the second quarter, we repurchased $15 million of stock and improved working capital
as we reduced inventory," said Brian
McGee, GoPro's CFO and COO.
For details on GoPro's Q2 performance and outlook for Q3 and the
rest of the year, please see the management commentary referenced
above and posted in the investor relations section of our website
at https://investor.gopro.com.
Q2 2023 Financial Results
- Revenue was $241 million, 10%
above guidance and down 4% year-over-year.
- GoPro subscriber count ended Q2 at approximately 2.44 million,
up 27% year-over-year.
- Revenue from the retail channel was $165
million, up 6% year-over-year. GoPro.com revenue,
including subscription and service revenue, was $76 million, or 31% of total revenue and down 21%
year-over-year.
- Subscription and service revenue increased 21% year-over-year
to $24 million.
- Attach rate via our mobile app from cameras purchased at retail
exceeded 40% in the quarter, up from approximately 33% a year ago,
an improvement of approximately 25%, year-over-year.
- GAAP net loss was $17 million, or
negative $0.11 per share, down from
net income of $3 million or
$0.02 per share in the prior year
period. Non-GAAP net loss was $11
million, or negative $0.07 per
share, down from non-GAAP net income of $13
million, or $0.08 per share,
in the prior year period.
- GAAP and non-GAAP gross margin was 31.4% and 31.6%,
respectively, which reflects $11
million of price protection charges related to our new
pricing strategy, as well as the strength of our lower margin
entry-level cameras. This compares to GAAP and non-GAAP gross
margin of 38.3% and 38.5%, respectively, in the prior year
period.
- Adjusted EBITDA was negative $10
million. This compares to positive $17 million in the prior year period. The
difference primarily reflects $11
million of price protection charges related to our new
pricing strategy, as well as the strength of our lower margin
entry-level cameras.
- Cameras with retail prices at or above $400 represented 75% of Q2 2023 camera revenue.
Entry level products increased dramatically, accounting for 25% of
camera revenue without cannibalizing premium cameras.
- Q2 2023 Street ASP was $342, a
13% decrease year-over-year.
- Days' sales outstanding was 31 days, down compared to the prior
year period of 32 days.
Recent Business Highlights
- In Q2 2023, GoPro bought back $15
million in stock, and we plan to continue executing on our
stock repurchase plan in 2023.
- In Q2 2023, GoPro initiated a go-to-market strategy that
includes restoring pricing of GoPro cameras to lower, pre-pandemic
levels.
- In July 2023, GoPro published its 2023 Sustainability
Snapshot, which outlines our commitment to understanding and
reducing our carbon footprint, supporting employees and the GoPro
community, and maintaining our corporate values. The 2023
Sustainability Snapshot is a follow-up to GoPro's inaugural
Sustainability Report published in November
2022.
- Earlier this year, GoPro was awarded Mental Health Program
of the Year by Transform.us, recognizing the company with the most
holistic, progressive and positive approach to supporting employee
mental health.
- Earlier this year, GoPro surpassed 2,000 patents
worldwide, and was included for the 5th consecutive year on the
Intellectual Property Owners Association's "Top 300 Organizations
Granted U.S. Patents in 2022" report.
Results Summary:
|
|
Three months ended
June 30,
|
($ in thousands,
except per share amounts)
|
|
2023
|
|
2022
|
|
%
Change
|
Revenue
|
|
$
241,020
|
|
$
250,685
|
|
(3.9) %
|
Gross
margin
|
|
|
|
|
|
|
GAAP
|
|
31.4 %
|
|
38.3 %
|
|
(690) bps
|
Non-GAAP
|
|
31.6 %
|
|
38.5 %
|
|
(690) bps
|
Operating income
(loss)
|
|
|
|
|
|
|
GAAP
|
|
$
(22,494)
|
|
$
4,655
|
|
(583.2) %
|
Non-GAAP
|
|
$
(12,092)
|
|
$
14,990
|
|
(180.7) %
|
Net income
(loss)
|
|
|
|
|
|
|
GAAP
|
|
$
(17,212)
|
|
$
2,519
|
|
(783.3) %
|
Non-GAAP
|
|
$
(11,291)
|
|
$
12,790
|
|
(188.3) %
|
Diluted net income
(loss) per share
|
|
|
|
|
|
|
GAAP
|
|
$
(0.11)
|
|
$
0.02
|
|
(650.0) %
|
Non-GAAP
|
|
$
(0.07)
|
|
$
0.08
|
|
(187.5) %
|
Adjusted
EBITDA
|
|
$
(10,290)
|
|
$
16,891
|
|
(160.9) %
|
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 call +1
833-470-1428 (US) or +1 404-975-4839 (International) and enter
access code 154237, 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,
from approximately two hours after the call through October 26, 2023.
About GoPro, Inc. (NASDAQ: GPRO)
Founded in 2002, GoPro helps the world to capture and share
itself in immersive and exciting ways.
For more information, visit GoPro.com. Open roles can be found
on our careers page. Members of the press can access official logos
and imagery on our press portal. GoPro customers can submit their
photos and videos to GoPro Awards for an opportunity to be featured
on GoPro's social channels and receive gear and cash awards.
Connect with GoPro on Facebook, Instagram, LinkedIn, TikTok,
Twitter, YouTube, and GoPro's blog, The Current.
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, and
GoPro's investor relations website and blog, The Current.
Note Regarding Use of Non-GAAP Financial Measures
GoPro reports gross profit, gross margin percentage, 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, and the tax impact of these
items. When planning, forecasting, and analyzing gross margin,
operating expenses, operating income (loss), 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
press release may include but are not limited to statements
regarding our expectations for profitability and subscription
growth; product pricing strategy, expanded distribution and overall
consumer demand for our products. 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 include the inability to achieve our revenue growth or
profitability in the future, and if revenue growth or profitability
is achieved, we may not be able to sustain it; the fact that an
economic downturn or economic uncertainty in our key U.S. and
international markets, inflation, volatility in the global banking
system, and fluctuations in interest rates or currency exchange
rates may adversely affect consumer discretionary spending and
demand for our products; the fact that our goal to grow revenue and
be profitable relies upon our ability to grow sales from our
direct-to-consumer business and our retail partners and
distributors; our ability to acquire and retain subscribers; our
reliance on third-party suppliers, some of which are sole-source
suppliers, to provide services and components for our products
which may be impacted due to supply shortages, long lead times or
other service disruptions and may lead to increased costs due to
the effects of global conflicts and geopolitical issues such as the
conflict in Ukraine or
China-Taiwan relations, inflation or the negative
impact on exchange rates; our ability to maintain the value and
reputation of our brand and protect our intellectual property and
proprietary rights; the risk that our sales fall below our
forecasts, especially during the holiday season; the risk we fail
to manage our operating expenses effectively, and may result in our
financial performance suffering the fact that our continued
profitability depends in part on further penetrating our total
addressable market, and we may not be successful in doing so; the
fact that we rely on sales of our cameras, mounts and accessories
for substantially all of our revenue, and any decrease in the sales
or change in sales mix of these products could harm our business;
the risk that we may not successfully manage product introductions,
product transitions, product pricing and marketing; the fact that a
small number of retailers and distributors account for a
substantial portion of our revenue and our level of business with
them could be significantly reduced; our ability to attract, engage
and retain qualified personnel; any changes to trade agreements,
trade policies, tariffs, and import/export regulations; the effects
of the highly competitive market in which we operate, including new
market entrants; the fact that we may experience fluctuating
revenue, expenses and profitability in the future; risks related to
inventory, purchase commitments and long-lived assets; ; the risk
that we will encounter problems with our distribution system; the
threat of a security breach or other disruption including
cyberattacks; the concern that our intellectual property and
proprietary rights may not adequately protect our products and
services; the continuing impact of the COVID-19 pandemic and the
effects of global conflicts and geopolitical issues such as the
conflict in Ukraine or
China-Taiwan relations and its effects on
the United States and global
economies and our business in particular; and other factors
detailed in the Risk Factors section of our Annual Report on Form
10-K for the year ended December 31,
2022, which is on file with the Securities and Exchange
Commission (SEC), and as updated in filings with the SEC. These
forward-looking statements speak only as of the date hereof or as
of the date otherwise stated herein. GoPro disclaims any obligation
to update these forward-looking statements.
GoPro,
Inc.
Preliminary
Condensed Consolidated Statements of Operations
(unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in thousands,
except per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
$
241,020
|
|
$
250,685
|
|
$
415,740
|
|
$
467,390
|
Cost of
revenue
|
165,248
|
|
154,681
|
|
287,466
|
|
280,910
|
Gross
profit
|
75,772
|
|
96,004
|
|
128,274
|
|
186,480
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
41,903
|
|
36,218
|
|
80,088
|
|
67,816
|
Sales and
marketing
|
39,906
|
|
39,439
|
|
77,961
|
|
74,812
|
General and
administrative
|
16,457
|
|
15,692
|
|
32,533
|
|
31,035
|
Total operating
expenses
|
98,266
|
|
91,349
|
|
190,582
|
|
173,663
|
Operating income
(loss)
|
(22,494)
|
|
4,655
|
|
(62,308)
|
|
12,817
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(1,139)
|
|
(1,538)
|
|
(2,292)
|
|
(3,747)
|
Other income
(expense), net
|
2,423
|
|
(488)
|
|
5,268
|
|
(807)
|
Total other income
(expense), net
|
1,284
|
|
(2,026)
|
|
2,976
|
|
(4,554)
|
Income (loss) before
income taxes
|
(21,210)
|
|
2,629
|
|
(59,332)
|
|
8,263
|
Income tax expense
(benefit)
|
(3,998)
|
|
110
|
|
(12,251)
|
|
59
|
Net income
(loss)
|
$
(17,212)
|
|
$
2,519
|
|
$
(47,081)
|
|
$
8,204
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.11)
|
|
$
0.02
|
|
$
(0.30)
|
|
$
0.05
|
Diluted
|
$
(0.11)
|
|
$
0.02
|
|
$
(0.30)
|
|
$
0.06
|
|
|
|
|
|
|
|
|
Shares used to compute
net income (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
154,562
|
|
156,645
|
|
154,980
|
|
156,751
|
Diluted
|
154,562
|
|
176,860
|
|
154,980
|
|
183,170
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Balance Sheets
(unaudited)
|
|
(in
thousands)
|
June 30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
189,913
|
|
$
223,735
|
Marketable
securities
|
81,793
|
|
143,602
|
Accounts receivable,
net
|
82,341
|
|
77,008
|
Inventory
|
135,409
|
|
127,131
|
Prepaid expenses and
other current assets
|
33,738
|
|
34,551
|
Total current
assets
|
523,194
|
|
606,027
|
Property and equipment,
net
|
10,516
|
|
13,327
|
Operating lease
right-of-use assets
|
19,691
|
|
21,819
|
Goodwill
|
146,459
|
|
146,459
|
Other long-term
assets
|
309,237
|
|
289,293
|
Total
assets
|
$
1,009,097
|
|
$
1,076,925
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
95,082
|
|
$
91,648
|
Accrued expenses and
other current liabilities
|
100,142
|
|
118,877
|
Short-term operating
lease liabilities
|
10,130
|
|
9,553
|
Deferred
revenue
|
54,369
|
|
55,850
|
Total current
liabilities
|
259,723
|
|
275,928
|
Long-term taxes
payable
|
11,586
|
|
9,536
|
Long-term
debt
|
141,493
|
|
141,017
|
Long-term operating
lease liabilities
|
29,156
|
|
33,446
|
Other long-term
liabilities
|
3,660
|
|
5,439
|
Total
liabilities
|
445,618
|
|
465,366
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
979,904
|
|
960,903
|
Treasury stock, at
cost
|
(173,231)
|
|
(153,231)
|
Accumulated
deficit
|
(243,194)
|
|
(196,113)
|
Total stockholders'
equity
|
563,479
|
|
611,559
|
Total liabilities and
stockholders' equity
|
$
1,009,097
|
|
$
1,076,925
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Statements of Cash Flows
(unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(17,212)
|
|
$
2,519
|
|
$
(47,081)
|
|
$
8,204
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,748
|
|
2,253
|
|
3,557
|
|
4,555
|
Non-cash operating
lease cost
|
645
|
|
630
|
|
2,128
|
|
2,308
|
Stock-based
compensation
|
11,117
|
|
10,251
|
|
21,431
|
|
20,087
|
Deferred income
taxes
|
(6,152)
|
|
(534)
|
|
(16,073)
|
|
2,397
|
Other
|
(667)
|
|
1,012
|
|
(1,993)
|
|
2,016
|
Net changes in
operating assets and liabilities
|
2,669
|
|
(3,275)
|
|
(36,923)
|
|
(100,118)
|
Net cash provided by
(used in) operating activities
|
(7,852)
|
|
12,856
|
|
(74,954)
|
|
(60,551)
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(478)
|
|
(774)
|
|
(961)
|
|
(1,294)
|
Purchases of marketable
securities
|
—
|
|
(23,966)
|
|
(25,782)
|
|
(47,077)
|
Maturities of
marketable securities
|
56,204
|
|
49,249
|
|
90,204
|
|
65,149
|
Net cash provided by
investing activities
|
55,726
|
|
24,509
|
|
63,461
|
|
16,778
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock
|
—
|
|
87
|
|
2,324
|
|
2,686
|
Taxes paid related to
net share settlement of equity awards
|
(583)
|
|
(1,313)
|
|
(4,834)
|
|
(8,488)
|
Repurchase of
outstanding common stock
|
(15,000)
|
|
(11,762)
|
|
(20,000)
|
|
(21,762)
|
Repayment of
borrowings
|
—
|
|
(125,000)
|
|
—
|
|
(125,000)
|
Net cash used in
financing activities
|
(15,583)
|
|
(137,988)
|
|
(22,510)
|
|
(152,564)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(204)
|
|
(1,417)
|
|
181
|
|
(1,471)
|
Net change in cash and
cash equivalents
|
32,087
|
|
(102,040)
|
|
(33,822)
|
|
(197,808)
|
Cash and cash
equivalents at beginning of period
|
157,826
|
|
305,319
|
|
223,735
|
|
401,087
|
Cash and cash
equivalents at end of period
|
$
189,913
|
|
$
203,279
|
|
$
189,913
|
|
$
203,279
|
GoPro, Inc.
Reconciliation of
Preliminary GAAP to Non-GAAP Financial Measures
To supplement our unaudited selected financial data presented on
a basis consistent with GAAP, we disclose certain non-GAAP
financial measures, including non-GAAP gross profit, gross margin,
operating expenses, operating income (loss), other income
(expense), tax expense, net income (loss), diluted net income
(loss) per share and adjusted EBITDA. We also provide forecasts of
non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other
income (expense), non-GAAP tax expense, non-GAAP net income (loss)
and non-GAAP diluted net income (loss) per share. We use these
non-GAAP financial measures to help us understand and evaluate our
core operating performance and trends, to prepare and approve our
annual budget, and to develop short-term and long-term operational
plans. Our management uses, and believes that investors benefit
from referring to these non-GAAP financial measures in assessing
our operating results. These non-GAAP financial measures should not
be considered in isolation from, or as an alternative to, the
measures prepared in accordance with GAAP, and are not based on any
comprehensive set of accounting rules or principles. We believe
that these non-GAAP measures, when read in conjunction with our
GAAP financials, provide useful information to investors by
facilitating:
- the comparability of our on-going operating results over the
periods presented;
- the ability to identify trends in our underlying business;
and
- the comparison of our operating results against analyst
financial models and operating results of other public companies
that supplement their GAAP results with non-GAAP financial
measures.
These non-GAAP financial measures have limitations in that they
do not reflect all of the amounts associated with our results of
operations as determined in accordance with GAAP. Some of these
limitations are:
- adjusted EBITDA does not reflect tax payments that reduce cash
available to us;
- adjusted EBITDA excludes depreciation and amortization and,
although these are non-cash charges, the property and equipment
being depreciated and amortized often will have to be replaced in
the future, and adjusted EBITDA does not reflect any cash capital
expenditure requirements for such replacements;
- adjusted EBITDA excludes the amortization of point of purchase
(POP) display assets because it is a non-cash charge, and is
treated similarly to depreciation of property and equipment and
amortization of acquired intangible assets;
- adjusted EBITDA and non-GAAP net income (loss) exclude
restructuring and other related costs which primarily include
severance-related costs, stock-based compensation expenses,
manufacturing consolidation charges, facilities consolidation
charges recorded in connection with restructuring actions,
including right-of-use asset impairment charges, and the related
ongoing operating lease cost of those facilities recorded
under ASC 842, Leases. These expenses do not reflect
expected future operating expenses and do not contribute to a
meaningful evaluation of current operating performance or
comparisons to the operating performance in other periods;
- adjusted EBITDA and non-GAAP net income (loss) exclude
stock-based compensation expense related to equity awards granted
primarily to our workforce. We exclude stock-based compensation
expense because we believe that the non-GAAP financial measures
excluding this item provide meaningful supplemental information
regarding operational performance. In particular, we note that
companies calculate stock-based compensation expense for the
variety of award types that they employ using different valuation
methodologies and subjective assumptions. These non-cash charges
are not factored into our internal evaluation of net income (loss)
as we believe their inclusion would hinder our ability to assess
core operational performance;
- non-GAAP net income (loss) excludes acquisition-related costs
including the amortization of acquired intangible assets (primarily
consisting of acquired technology), the impairment of acquired
intangible assets (if applicable), as well as third-party
transaction costs incurred for legal and other professional
services. These costs are not factored into our evaluation of
potential acquisitions, or of our performance after completion of
the acquisitions, because these costs are not related to our core
operating performance or reflective of ongoing operating results in
the period, and the frequency and amount of such costs vary
significantly based on the timing and magnitude of our acquisition
transactions and the maturities of the businesses being
acquired. Although we exclude the amortization of acquired
intangible assets from our non-GAAP net income (loss), management
believes that it is important for investors to understand that such
intangible assets were recorded as part of purchase accounting and
contribute to revenue generation;
- non-GAAP net income (loss) includes income tax adjustments. We
utilize a cash-based non-GAAP tax expense approach (based upon
expected annual cash payments for income taxes) for evaluating
operating performance as well as for planning and forecasting
purposes. This non-GAAP tax approach eliminates the effects of
period specific items, which can vary in size and frequency and
does not necessarily reflect our long-term operations.
Historically, we computed a non-GAAP tax rate based on non-GAAP
pre-tax income on a quarterly basis, which considered the income
tax effects of the adjustments above;
- GAAP and non-GAAP net income (loss) per share includes the
dilutive, tax effected cash interest expense associated with our
2022 Notes and 2025 Notes in periods of net income, as if converted
at the beginning of the period in connection with the adoption
of ASU 2020-06 on January 1,
2022; and
- other companies may calculate these non-GAAP financial measures
differently than we do, limiting their usefulness as comparative
measures.
GoPro,
Inc.
Reconciliation of
Preliminary GAAP to Non-GAAP Financial Measures
(unaudited)
|
|
Reconciliations of
non-GAAP financial measures are set forth below:
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in thousands,
except per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP net income
(loss)
|
$
(17,212)
|
|
$
2,519
|
|
$
(47,081)
|
|
$
8,204
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
530
|
|
483
|
|
996
|
|
930
|
Research and
development
|
4,922
|
|
4,405
|
|
9,668
|
|
8,563
|
Sales and
marketing
|
2,359
|
|
2,229
|
|
4,537
|
|
4,352
|
General and
administrative
|
3,306
|
|
3,134
|
|
6,230
|
|
6,242
|
Total stock-based
compensation
|
11,117
|
|
10,251
|
|
21,431
|
|
20,087
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
—
|
|
—
|
|
—
|
|
47
|
Total
acquisition-related costs
|
—
|
|
—
|
|
—
|
|
47
|
|
|
|
|
|
|
|
|
Restructuring and other
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
(211)
|
|
4
|
|
(225)
|
|
9
|
Research and
development
|
(280)
|
|
43
|
|
(415)
|
|
82
|
Sales and
marketing
|
(149)
|
|
24
|
|
(224)
|
|
46
|
General and
administrative
|
(75)
|
|
13
|
|
(112)
|
|
26
|
Total restructuring
and other costs
|
(715)
|
|
84
|
|
(976)
|
|
163
|
|
|
|
|
|
|
|
|
Income tax
adjustments
|
(4,481)
|
|
(64)
|
|
(13,242)
|
|
(515)
|
Non-GAAP net income
(loss)
|
$
(11,291)
|
|
$
12,790
|
|
$
(39,868)
|
|
$
27,986
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
- basic
|
$
(17,212)
|
|
$
2,519
|
|
$
(47,081)
|
|
$
8,204
|
Add: Interest on
convertible notes, tax
effected
|
—
|
|
715
|
|
—
|
|
2,236
|
GAAP net income (loss)
- diluted
|
$
(17,212)
|
|
$
3,234
|
|
$
(47,081)
|
|
$
10,440
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss) - basic
|
$
(11,291)
|
|
$
12,790
|
|
$
(39,868)
|
|
$
27,986
|
Add: Interest on
convertible notes, tax
effected
|
—
|
|
715
|
|
—
|
|
2,236
|
Non-GAAP net income
(loss) - diluted
|
$
(11,291)
|
|
$
13,505
|
|
$
(39,868)
|
|
$
30,222
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP
shares for diluted
net income (loss) per share
|
154,562
|
|
176,860
|
|
154,980
|
|
183,170
|
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
$
(0.11)
|
|
$
0.02
|
|
$
(0.30)
|
|
$
0.06
|
Non-GAAP diluted net
income (loss) per
share
|
$
(0.07)
|
|
$
0.08
|
|
$
(0.26)
|
|
$
0.16
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(dollars in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP gross margin as
a % of revenue
|
31.4 %
|
|
38.3 %
|
|
30.9 %
|
|
39.9 %
|
Stock-based
compensation
|
0.3
|
|
0.2
|
|
0.2
|
|
0.2
|
Restructuring and
other costs
|
(0.1)
|
|
—
|
|
(0.1)
|
|
—
|
Non-GAAP gross
margin as a % of
revenue
|
31.6 %
|
|
38.5 %
|
|
31.0 %
|
|
40.1 %
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
98,266
|
|
$
91,349
|
|
$
190,582
|
|
$
173,663
|
Stock-based
compensation
|
(10,587)
|
|
(9,768)
|
|
(20,435)
|
|
(19,157)
|
Restructuring and
other costs
|
504
|
|
(80)
|
|
751
|
|
(154)
|
Non-GAAP operating
expenses
|
$
88,183
|
|
$
81,501
|
|
$
170,898
|
|
$
154,352
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss)
|
$
(22,494)
|
|
$
4,655
|
|
$
(62,308)
|
|
$
12,817
|
Stock-based
compensation
|
11,117
|
|
10,251
|
|
21,431
|
|
20,087
|
Acquisition-related
costs
|
—
|
|
—
|
|
—
|
|
47
|
Restructuring and
other costs
|
(715)
|
|
84
|
|
(976)
|
|
163
|
Non-GAAP operating
income (loss)
|
$
(12,092)
|
|
$
14,990
|
|
$
(41,853)
|
|
$
33,114
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP net income
(loss)
|
$
(17,212)
|
|
$
2,519
|
|
$
(47,081)
|
|
$
8,204
|
Income tax expense
(benefit)
|
(3,998)
|
|
110
|
|
(12,251)
|
|
59
|
Interest (income)
expense, net
|
(1,635)
|
|
1,244
|
|
(3,318)
|
|
3,355
|
Depreciation and
amortization
|
1,748
|
|
2,253
|
|
3,557
|
|
4,555
|
POP display
amortization
|
405
|
|
430
|
|
822
|
|
1,117
|
Stock-based
compensation
|
11,117
|
|
10,251
|
|
21,431
|
|
20,087
|
Restructuring and
other costs
|
(715)
|
|
84
|
|
(976)
|
|
163
|
Adjusted
EBITDA
|
$
(10,290)
|
|
$
16,891
|
|
$
(37,816)
|
|
$
37,540
|
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SOURCE GoPro, Inc.