SAN MATEO, Calif., Aug. 3, 2017 /PRNewswire/ -- GoPro, Inc. (NASDAQ:
GPRO) announced financial results for its second quarter ended
June 30, 2017.
"GoPro is building momentum," said Founder and CEO Nicholas Woodman. "Strong demand combined
with our cost management and margin initiatives contributed to
GoPro's EBITDA positive performance in the second quarter.
HERO6 and Fusion, our 5.2K spherical camera, are on course to
launch later this year and we continue to track toward our goal of
full-year, non-GAAP profitability in 2017."
Recent GoPro Highlights:
- QuikStories launched on July
27. The new GoPro app feature automatically pulls
footage from a HERO5 camera and creates ready-to-share videos on
your phone. QuikStories are polished, shareable videos featuring
customizable music, filters, and effects. "We believe QuikStories
is a game changer - it represents our biggest leap forward in
ease-of-use since the invention of the GoPro, itself," said Founder
and CEO Nicholas Woodman.
- Second Quarter revenue was $297
million, up 34% year-over-year and 36%
quarter-over-quarter. Adjusted EBITDA was $5.1 million.
- Sharp focus on inventory and channel management resulted in
a 39% reduction in inventory quarter-over-quarter; forward
weeks of supply in the channel is down 25%. Both position us well
for upcoming product launches.
- Global sell-thru of cameras increased 18% sequentially.
Additionally, camera sell-thru above $300 was up 13% year-over-year, including 7%
in EMEA and 194% in Japan.
According to GfK, camera unit sales in Japan are up 164% and dollar sales are up 147%
year-over-year in the second quarter.
- HERO5 Black was the best-selling digital image camera in
the U.S. in the second quarter, according to The NPD Group's Retail
Tracking Service.
- More than 50% of GoPro's revenue was generated in
markets outside of the U.S. in the second quarter.
- Demand for GoPro was high on Amazon Prime Day (July 11). A HERO Session bundle sold more
than ten-times the weekly run-rate; HERO5 Black was offered with no
discount and moved the equivalent of a full week of normal
sell-thru in just one day.
- The Quik mobile video editing app was installed 5.6 million
times in the second quarter, a year-over-year increase of 84%.
Second quarter monthly active users were up 112% year-over-year.
China represents Quik's second
largest user base globally. Capture App (now the GoPro App) total
monthly shares in the second quarter were up over 30%
year-over-year.
- GoPro gained 1.6 million new social media followers in
the second quarter. Instagram followers were up 39% year-over-year
to 13.7 million in the second quarter, with a 94% increase in
international followers. Facebook video views of GoPro content
reached 58.3 million in the first half of 2017, up almost 60%
year-over-year. YouTube videos of GoPro content in the first half
of 2017 have seen a 65% increase in median organic viewership per
video year-over-year.
- GoPro was honored with the prestigious Red Dot design
award, taking Best-of-the-Best in Product Design for
both Karma and HERO5 Black.
- GoPro's drone, Karma, was the #2 selling drone brand in the
U.S. in the second quarter, according to the NPD Group's Retail
Tracking Service.
Results
Summary:
|
|
|
|
Three Months Ended
June 30,
|
($ in thousands,
except per share amounts)
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
296,526
|
|
|
$
|
220,755
|
|
|
34.3
|
%
|
Gross
margin
|
|
|
|
|
|
|
GAAP
|
|
35.6
|
%
|
|
42.1
|
%
|
|
(650) bps
|
Non-GAAP
|
|
36.2
|
%
|
|
42.4
|
%
|
|
(620) bps
|
Operating
loss
|
|
|
|
|
|
|
GAAP
|
|
$
|
(24,983)
|
|
|
$
|
(109,377)
|
|
|
(77.2)
|
%
|
Non-GAAP
|
|
$
|
(9,250)
|
|
|
$
|
(89,298)
|
|
|
(89.6)
|
%
|
Net
loss
|
|
|
|
|
|
|
GAAP
|
|
$
|
(30,536)
|
|
|
$
|
(91,767)
|
|
|
(66.7)
|
%
|
Non-GAAP
|
|
$
|
(12,914)
|
|
|
$
|
(72,595)
|
|
|
(82.2)
|
%
|
Diluted net loss
per share
|
|
|
|
|
|
|
GAAP
|
|
$
|
(0.22)
|
|
|
$
|
(0.66)
|
|
|
(66.7)
|
%
|
Non-GAAP
|
|
$
|
(0.09)
|
|
|
$
|
(0.52)
|
|
|
(82.7)
|
%
|
Adjusted
EBITDA
|
|
$
|
5,120
|
|
|
$
|
(76,757)
|
|
|
(106.7)
|
%
|
Business Outlook
GoPro is providing the following guidance:
- Third Quarter 2017
-
- Revenue of $300 million +/-
$10 million
- GAAP and non-GAAP gross margin to be 37% +/- 1%
- GAAP operating expenses of between $131
million and $133 million
- Non-GAAP operating expenses of between $115 million and $117 million
- GAAP EPS to be $(0.24) +/-
$0.05
- Non-GAAP EPS to be $(0.06) +/-
$0.05
- 2017
-
- GAAP operating expenses below $570
million
- Non-GAAP operating expenses below $495
million
Upcoming Event
Management will participate in an investor conference on
September 7, 2017 in New York.
GoPro will furnish a link to the webcast of this event on its
investor relations website, http://investor.gopro.com.
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.
To listen to the live conference call, please dial toll free
(877) 681-3376 or (719) 325-2452, access code 7396825,
approximately 5 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
http://investor.gopro.com. The webcast will be recorded and the
recording will be available on GoPro's website,
http://investor.gopro.com, approximately two hours after the call
and for 90 days thereafter.
About GoPro, Inc. (NASDAQ: GPRO)
GoPro makes it easy for people to celebrate and share
experiences. We believe life is more meaningful when shared.
We build cameras, software and accessories that help the world
share itself in immersive and exciting ways.
GoPro, HERO, Karma, Quik, QuikStories and their respective logos
are trademarks or registered trademarks of GoPro,
Inc. in the United States and other countries. All
other trademarks are the property of their respective owners. For
more information, visit www.gopro.com or connect
with GoPro on Facebook, Instagram,
LinkedIn, Pinterest, Twitter, YouTube,
and GoPro's The Inside Line.
For more information, visit www.gopro.com or connect with GoPro
on Facebook, Instagram, LinkedIn, Pinterest, Twitter, YouTube,
and GoPro's The Inside Line.
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
GoPro's pages on Facebook, Instagram, LinkedIn, Pinterest,
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), 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 costs, non-cash interest expense and the tax impact
of these items. A reconciliation of preliminary GAAP financial
measures to non-GAAP financial measures, as well as a description
of items excluded from the calculation of non-GAAP financial
measures, is presented in the financial statement portion of this
release. GoPro also provides future estimated ranges of
revenue, gross margin, operating expenses on a GAAP and non-GAAP
basis and Adjusted EBITDA.
Note on Forward-looking Statements
This press release may contain projections or other
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act. Forward-looking statements in
this press release include, but are not limited to, expectations
regarding our business outlook for the third quarter of 2017 and
calendar year 2017. 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 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, the fact that our
future growth depends in part on further penetrating our
addressable market and also growing internationally, and we may not
be successful in doing so; any inability to successfully manage
frequent product introductions (including our 2017 roadmap for new
hardware and software products including major new software
features) and transitions, including managing our sales channel and
inventory and accurately forecasting future sales; our reliance on
third party suppliers, some of which are sole source suppliers, to
provide components for our products; our dependence on sales of our
cameras, mounts and accessories for substantially all of our
revenue; the effect of a decrease in the sales or change in sales
mix of these products; the effect of a decrease in sales during the
holiday season; the fact that an economic downturn or economic
uncertainty in our key U.S. and international markets may adversely
affect consumer discretionary spending and demand for our products;
any inability to anticipate consumer preferences and successfully
develop and market desirable products; the risks associated with
the entrance into the consumer drone market and the re-launch of
our drone in February 2017; the
effects of the highly competitive market in which we operate; the
fact that we may not be able to achieve revenue growth or
profitability in the future; risks related to inventory, purchase
commitments and long-lived assets; difficulty in accurately
predicting our future customer demand; the importance of
maintaining the value and reputation of our brand; and other
factors detailed in the Risk Factors section of our Annual
Report on Form 10-K for the year ended December 31, 2016, which is on file with the
Securities and Exchange Commission and as supplemented by Item 1A
Risk Factors in our Quarterly Report on Form 10-Q for the quarter
ended March 31, 2017. Additional
information will also be set forth in our Quarterly Report on Form
10-Q for the quarter ended June 30,
2017. 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 Statement of Operations
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
(in thousands,
except per share data)
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
296,526
|
|
|
$
|
220,755
|
|
|
$
|
515,140
|
|
|
$
|
404,291
|
|
Cost of
revenue
|
190,894
|
|
|
127,753
|
|
|
340,942
|
|
|
251,575
|
|
Gross
profit
|
105,632
|
|
|
93,002
|
|
|
174,198
|
|
|
152,716
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
55,497
|
|
|
93,049
|
|
|
121,663
|
|
|
170,028
|
|
Sales and
marketing
|
56,678
|
|
|
84,888
|
|
|
124,534
|
|
|
164,337
|
|
General and
administrative
|
18,440
|
|
|
24,442
|
|
|
41,199
|
|
|
49,163
|
|
Total operating
expenses
|
130,615
|
|
|
202,379
|
|
|
287,396
|
|
|
383,528
|
|
Operating
loss
|
(24,983)
|
|
|
(109,377)
|
|
|
(113,198)
|
|
|
(230,812)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(3,784)
|
|
|
(516)
|
|
|
(4,598)
|
|
|
(659)
|
|
Other income,
net
|
222
|
|
|
1,176
|
|
|
383
|
|
|
1,012
|
|
Total other income
(expense), net
|
(3,562)
|
|
|
660
|
|
|
(4,215)
|
|
|
353
|
|
Loss before income
taxes
|
(28,545)
|
|
|
(108,717)
|
|
|
(117,413)
|
|
|
(230,459)
|
|
Income tax expense
(benefit)
|
1,991
|
|
|
(16,950)
|
|
|
24,273
|
|
|
(31,233)
|
|
Net loss
|
$
|
(30,536)
|
|
|
$
|
(91,767)
|
|
|
$
|
(141,686)
|
|
|
$
|
(199,226)
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.22)
|
|
|
$
|
(0.66)
|
|
|
$
|
(1.02)
|
|
|
$
|
(1.44)
|
|
Diluted
|
$
|
(0.22)
|
|
|
$
|
(0.66)
|
|
|
$
|
(1.02)
|
|
|
$
|
(1.44)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute net loss per share:
|
|
|
|
|
|
|
|
Basic
|
136,288
|
|
|
138,942
|
|
|
139,575
|
|
|
138,243
|
|
Diluted
|
136,288
|
|
|
138,942
|
|
|
139,575
|
|
|
138,243
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Balance Sheets
|
(unaudited)
|
|
(in
thousands)
|
June 30,
2017
|
|
December 31,
2016
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
149,755
|
|
|
$
|
192,114
|
|
Marketable
securities
|
—
|
|
|
25,839
|
|
Accounts receivable,
net
|
95,872
|
|
|
164,553
|
|
Inventory
|
126,708
|
|
|
167,192
|
|
Prepaid expenses and
other current assets
|
29,515
|
|
|
38,115
|
|
Total current
assets
|
401,850
|
|
|
587,813
|
|
Property and
equipment, net
|
71,833
|
|
|
76,509
|
|
Intangible assets,
net and goodwill
|
175,460
|
|
|
179,989
|
|
Other long-term
assets
|
72,828
|
|
|
78,329
|
|
Total
assets
|
$
|
721,971
|
|
|
$
|
922,640
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
76,208
|
|
|
$
|
205,028
|
|
Accrued
liabilities
|
151,317
|
|
|
211,323
|
|
Deferred
revenue
|
15,036
|
|
|
14,388
|
|
Total current
liabilities
|
242,561
|
|
|
430,739
|
|
Long-term
debt
|
125,817
|
|
|
—
|
|
Other long-term
liabilities
|
40,771
|
|
|
44,956
|
|
Total
liabilities
|
409,149
|
|
|
475,695
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
827,382
|
|
|
757,226
|
|
Treasury stock, at
cost
|
(113,613)
|
|
|
(35,613)
|
|
Accumulated
deficit
|
(400,947)
|
|
|
(274,668)
|
|
Total
stockholders' equity
|
312,822
|
|
|
446,945
|
|
Total
liabilities and stockholders' equity
|
$
|
721,971
|
|
|
$
|
922,640
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statement of Cash Flows
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
(in
thousands)
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
Operating
activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(30,536)
|
|
|
$
|
(91,767)
|
|
|
$
|
(141,686)
|
|
|
$
|
(199,226)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
11,467
|
|
|
9,482
|
|
|
23,160
|
|
|
17,804
|
|
Stock-based
compensation
|
11,235
|
|
|
17,404
|
|
|
24,360
|
|
|
33,135
|
|
Excess tax benefit from
stock-based compensation
|
—
|
|
|
(227)
|
|
|
—
|
|
|
(917)
|
|
Deferred income
taxes
|
156
|
|
|
(3,166)
|
|
|
(1,894)
|
|
|
(13,494)
|
|
Non-cash restructuring
charges
|
1,834
|
|
|
—
|
|
|
2,800
|
|
|
—
|
|
Non-cash interest
expense
|
1,530
|
|
|
—
|
|
|
1,530
|
|
|
—
|
|
Other
|
2,133
|
|
|
397
|
|
|
3,763
|
|
|
1,162
|
|
Net changes in
operating assets and liabilities
|
(9,247)
|
|
|
22,417
|
|
|
(61,399)
|
|
|
82,811
|
|
Net cash used in
operating activities
|
(11,428)
|
|
|
(45,460)
|
|
|
(149,366)
|
|
|
(78,725)
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(4,946)
|
|
|
(3,973)
|
|
|
(10,112)
|
|
|
(12,192)
|
|
Maturities of
marketable securities
|
—
|
|
|
19,279
|
|
|
14,160
|
|
|
71,302
|
|
Sale of marketable
securities
|
—
|
|
|
4,585
|
|
|
11,623
|
|
|
6,791
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(59,313)
|
|
|
—
|
|
|
(104,353)
|
|
Net cash provided by
(used in) investing activities
|
(4,946)
|
|
|
(39,422)
|
|
|
15,671
|
|
|
(38,452)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock
|
591
|
|
|
620
|
|
|
6,629
|
|
|
5,265
|
|
Taxes paid related to
net share settlement of equity awards
|
(1,927)
|
|
|
(318)
|
|
|
(8,210)
|
|
|
(860)
|
|
Proceeds from
issuance of convertible senior notes
|
175,000
|
|
|
—
|
|
|
175,000
|
|
|
—
|
|
Prepayment of forward
stock repurchase transaction
|
(78,000)
|
|
|
—
|
|
|
(78,000)
|
|
|
—
|
|
Excess tax benefit
from stock-based compensation
|
—
|
|
|
227
|
|
|
—
|
|
|
917
|
|
Payment of deferred
acquisition-related consideration
|
—
|
|
|
(594)
|
|
|
(75)
|
|
|
(950)
|
|
Payment of debt
issuance costs
|
(5,250)
|
|
|
(136)
|
|
|
(5,250)
|
|
|
(3,221)
|
|
Net cash provided by
(used in) financing activities
|
90,414
|
|
|
(201)
|
|
|
90,094
|
|
|
1,151
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
838
|
|
|
(122)
|
|
|
1,242
|
|
|
(134)
|
|
Net increase
(decrease) in cash and cash equivalents
|
74,878
|
|
|
(85,205)
|
|
|
(42,359)
|
|
|
(116,160)
|
|
Cash and cash
equivalents at beginning of period
|
74,877
|
|
|
248,717
|
|
|
192,114
|
|
|
279,672
|
|
Cash and cash
equivalents at end of period
|
$
|
149,755
|
|
|
$
|
163,512
|
|
|
$
|
149,755
|
|
|
$
|
163,512
|
|
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), net income (loss),
earnings (loss) per share and adjusted EBITDA. We also provide
forecasts of non-GAAP gross margin, non-GAAP operating expenses,
non-GAAP net income (loss) and non-GAAP diluted earnings per share.
These non-GAAP measures are not in accordance with, nor serve as an
alternative for GAAP. We believe that these non-GAAP measures
have limitations in that they do not reflect all of the amounts
associated with our GAAP results of operations. These non-GAAP
measures should only be viewed in conjunction with corresponding
GAAP measures.
In calculating non-GAAP financial measures, we exclude certain
items to facilitate a review of the comparability of our core
operating performance on a period-to-period basis. The excluded
items represent stock-based compensation and other charges that we
do not consider to be directly related to core operating
performance. We use non-GAAP measures to evaluate the core
operating performance of our business, for comparison with
forecasts and strategic plans and for calculating return on
investment. In addition, management's incentive compensation is
determined using non-GAAP measures. Since we find these measures to
be useful, we believe that investors benefit from seeing results
reviewed by management in addition to seeing GAAP results. 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.
The following are explanations of each type of adjustment that
we incorporate into non-GAAP financial measures:
- Stock-based compensation expense relates 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. We believe that excluding this
expense provides greater visibility to the underlying performance
of our business operations, facilitates comparison of our results
with other periods, and may also facilitate comparison with the
results of other companies in our industry.
- Acquisition-related costs include 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 are inconsistent and vary
significantly based on the timing and magnitude of our acquisition
transactions and the maturities of the businesses being
acquired.
- Restructuring costs primarily include severance-related
costs, stock-based compensation expenses and facilities
consolidation charges recorded in connection with restructuring
actions announced in the first and fourth quarters of 2016 and the
first quarter of 2017. We believe that excluding these costs
provides greater visibility to the underlying performance of our
business operations, facilitates comparison of our results with
other periods, and may also facilitate comparison with the results
of other companies in our industry.
- Non-cash interest expense. In connection with issuance
of the Convertible Senior Notes in April
2017, we are required to recognize non-cash interest expense
in accordance with the authoritative accounting guidance for
convertible debt that may be settled in cash. We exclude this
incremental non-cash interest expense for purposes of calculating
non-GAAP net income (loss). We believe that excluding non-cash
interest expense provides greater visibility to the underlying
performance of our business operations, facilitates comparison of
our results with other periods, and may also facilitate comparison
with the results of other companies in our industry.
- Income tax adjustments. Beginning in the first quarter
of 2017, we have implemented 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.
- Adjusted EBITDA excludes the amortization of
point-of-purchase (POP) display assets because it is a non-cash
charge, and is similar to the depreciation of property and
equipment and amortization of acquired intangible assets.
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
|
|
Six months
ended
|
(in thousands,
except per share data)
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(30,536)
|
|
|
$
|
(91,767)
|
|
|
$
|
(141,686)
|
|
|
$
|
(199,226)
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
415
|
|
|
412
|
|
|
910
|
|
|
769
|
|
Research and
development
|
5,390
|
|
|
7,086
|
|
|
11,072
|
|
|
13,096
|
|
Sales and
marketing
|
1,995
|
|
|
3,679
|
|
|
4,686
|
|
|
6,883
|
|
General and
administrative
|
3,435
|
|
|
6,227
|
|
|
7,692
|
|
|
12,387
|
|
Total stock-based
compensation
|
11,235
|
|
|
17,404
|
|
|
24,360
|
|
|
33,135
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
1,195
|
|
|
222
|
|
|
2,430
|
|
|
444
|
|
Research and
development
|
946
|
|
|
2,218
|
|
|
2,082
|
|
|
3,503
|
|
Sales and
marketing
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
General and
administrative
|
1
|
|
|
235
|
|
|
(22)
|
|
|
1,104
|
|
Total
acquisition-related costs
|
2,142
|
|
|
2,675
|
|
|
4,490
|
|
|
5,073
|
|
|
|
|
|
|
|
|
|
Restructuring
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
25
|
|
|
—
|
|
|
418
|
|
|
364
|
|
Research and
development
|
1,702
|
|
|
—
|
|
|
7,381
|
|
|
2,655
|
|
Sales and
marketing
|
361
|
|
|
—
|
|
|
5,603
|
|
|
2,678
|
|
General and
administrative
|
268
|
|
|
—
|
|
|
1,409
|
|
|
811
|
|
Total restructuring
costs
|
2,356
|
|
|
—
|
|
|
14,811
|
|
|
6,508
|
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
1,530
|
|
|
—
|
|
|
1,530
|
|
|
—
|
|
Income tax
adjustments
|
359
|
|
|
(907)
|
|
|
20,798
|
|
|
(4,825)
|
|
Non-GAAP net
loss
|
$
|
(12,914)
|
|
|
$
|
(72,595)
|
|
|
$
|
(75,697)
|
|
|
$
|
(159,335)
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
net loss per share
|
$
|
(0.09)
|
|
|
$
|
(0.52)
|
|
|
$
|
(0.54)
|
|
|
$
|
(1.15)
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
(dollars in
thousands)
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
GAAP gross
profit
|
$
|
105,632
|
|
|
$
|
93,002
|
|
|
$
|
174,198
|
|
|
$
|
152,716
|
|
Stock-based
compensation
|
415
|
|
|
412
|
|
|
910
|
|
|
769
|
|
Acquisition-related
costs
|
1,195
|
|
|
222
|
|
|
2,430
|
|
|
444
|
|
Restructuring
costs
|
25
|
|
|
—
|
|
|
418
|
|
|
364
|
|
Non-GAAP gross
profit
|
$
|
107,267
|
|
|
$
|
93,636
|
|
|
$
|
177,956
|
|
|
$
|
154,293
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
as a % of revenue
|
35.6
|
%
|
|
42.1
|
%
|
|
33.8
|
%
|
|
37.8
|
%
|
Stock-based
compensation
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
Acquisition-related
costs
|
0.4
|
|
|
0.1
|
|
|
0.4
|
|
|
0.1
|
|
Restructuring
costs
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Non-GAAP gross
profit as a % of revenue
|
36.2
|
%
|
|
42.4
|
%
|
|
34.5
|
%
|
|
38.2
|
%
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
130,615
|
|
|
$
|
202,379
|
|
|
$
|
287,396
|
|
|
$
|
383,528
|
|
Stock-based
compensation
|
(10,820)
|
|
|
(16,992)
|
|
|
(23,450)
|
|
|
(32,366)
|
|
Acquisition-related
costs
|
(947)
|
|
|
(2,453)
|
|
|
(2,060)
|
|
|
(4,629)
|
|
Restructuring
costs
|
(2,331)
|
|
|
—
|
|
|
(14,393)
|
|
|
(6,144)
|
|
Non-GAAP operating
expenses
|
$
|
116,517
|
|
|
$
|
182,934
|
|
|
$
|
247,493
|
|
|
$
|
340,389
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss
|
$
|
(24,983)
|
|
|
$
|
(109,377)
|
|
|
$
|
(113,198)
|
|
|
$
|
(230,812)
|
|
Stock-based
compensation
|
11,235
|
|
|
17,404
|
|
|
24,360
|
|
|
33,135
|
|
Acquisition-related
costs
|
2,142
|
|
|
2,675
|
|
|
4,490
|
|
|
5,073
|
|
Restructuring
costs
|
2,356
|
|
|
—
|
|
|
14,811
|
|
|
6,508
|
|
Non-GAAP operating
loss
|
$
|
(9,250)
|
|
|
$
|
(89,298)
|
|
|
$
|
(69,537)
|
|
|
$
|
(186,096)
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
(in
thousands)
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
GAAP net
loss
|
$
|
(30,536)
|
|
|
$
|
(91,767)
|
|
|
$
|
(141,686)
|
|
|
$
|
(199,226)
|
|
Income tax expense
(benefit)
|
1,991
|
|
|
(16,950)
|
|
|
24,273
|
|
|
(31,233)
|
|
Interest expense
(income), net
|
3,652
|
|
|
117
|
|
|
4,413
|
|
|
(217)
|
|
Depreciation and
amortization
|
11,467
|
|
|
9,482
|
|
|
23,160
|
|
|
17,805
|
|
POP display
amortization
|
4,955
|
|
|
4,957
|
|
|
10,120
|
|
|
9,700
|
|
Stock-based
compensation
|
11,235
|
|
|
17,404
|
|
|
24,360
|
|
|
33,135
|
|
Restructuring
costs
|
2,356
|
|
|
—
|
|
|
14,811
|
|
|
6,508
|
|
Adjusted
EBITDA
|
$
|
5,120
|
|
|
$
|
(76,757)
|
|
|
$
|
(40,549)
|
|
|
$
|
(163,528)
|
|
Reconciliations of non-GAAP financial measures for business
outlook are set forth below:
(in
thousands)
|
Q3
2017
|
|
Full year
2017
|
GAAP operating
expenses
|
$ 130,000 - $
133,000
|
|
$
|
570,000
|
Estimated adjustments
for:
|
|
|
|
Stock-based
compensation
|
13,500
|
|
55,000
|
Acquisition-related
costs
|
1,500
|
|
4,000
|
Restructuring
costs
|
1,000
|
|
16,000
|
Non-GAAP operating
expenses
|
$ 115,000 - $
117,000
|
|
$
|
495,000
|
|
|
Q3
2017
|
|
GAAP net loss per
share
|
$ (0.29) - $
(0.19)
|
|
Estimated adjustments
for:
|
|
|
Stock-based
compensation
|
0.10
|
|
Acquisition-related
costs
|
0.02
|
|
Restructuring
costs
|
0.01
|
|
Non-cash interest
expense
|
0.01
|
|
Income tax
adjustments
|
0.04
|
|
Non-GAAP net loss
per share
|
$ (0.11) - $
(0.01)
|
|
View original
content:http://www.prnewswire.com/news-releases/gopro-announces-second-quarter-2017-results-300499374.html
SOURCE GoPro, Inc.