SAN MATEO, Calif., April 28, 2015 /PRNewswire/ -- GoPro, Inc.
(NASDAQ: GPRO), maker of the world's most versatile camera and
enabler of some of today's most immersive and engaging content,
today announced financial results for its first quarter ended
March 31, 2015.
"We kicked off 2015 by delivering the second highest revenue
quarter in GoPro's history," said GoPro Founder and CEO,
Nicholas Woodman. "We are making
investments in talent, technology, software, and innovative new
products that will fuel growth and strengthen GoPro's
ecosystem."
Summary of First Quarter 2015 GAAP Results:
- Revenue of $363.1 million
increased 54.0% compared to $235.7
million in the first quarter of 2014
- Gross margin of 45.1% compared to 40.9% in the first quarter of
2014
- Operating income of $22.3 million
increased 34.5% compared to $16.6
million in the first quarter of 2014
- Net income attributable to common stockholders of $16.8 million or $0.11 per diluted share increased 98.2% compared
to $8.5 million or $0.08 per diluted share in the first quarter of
2014
- Cash, cash equivalents and marketable securities of
$491.9 million compared to
$422.3 million at December 31, 2014
GoPro reports gross profit, operating expenses, operating
income, net income and diluted net income per share in accordance
with generally accepted accounting principles (GAAP) and on a
non-GAAP basis. Non-GAAP net income excludes, where applicable, the
effects of stock-based compensation, acquisition-related charges,
and the tax impact of these items. Additionally, GoPro
reports non-GAAP adjusted EBITDA. 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 including adjusted EBITDA, is presented
in the financial statement portion of this release.
Summary of First Quarter Non-GAAP Results:
- Gross margin of 45.2% compared to 41.1% in the first quarter of
2014
- Operating income of $49.1 million
increased 135.2% compared to $20.9
million in the first quarter of 2014
- Adjusted EBITDA of $56.5 million
increased 97.4% compared to $28.6
million in the first quarter of 2014
- Net income of $35.6 million or
$0.24 per diluted share increased
149.4% compared to $14.3 million
or $0.10 per diluted share in the
first quarter of 2014
First Quarter 2015 and Recent GoPro Highlights
Include:
- International sales accounted for more than half of Q1 revenue;
EMEA and APAC revenue was up 66% year-over-year.
- According to NPD, GoPro's five capture device models accounted
for all five of the top five products in the combined digital
camera and camcorder category, on a unit basis, in the US for
Q1. In the same category, on a dollar share basis, GoPro capture
devices accounted for 3 of the top 5 products, including the #1
spot. GoPro was also the leader in accessory unit sales with 7 of
the top 10 selling accessories.
- A study commissioned by GoPro and conducted by IPSOS, a global
market research firm, showed a 70% year-over-year increase in aided
awareness of the GoPro brand among consumers in nine countries
across five continents.
- GoPro unveiled HEROCast™, the smallest, lightest and most
cost-effective wireless HD micro transmitter on the broadcast
market, enabling consumers to experience live events like never
before.
- The GoPro Channel launched on premium video service Vessel,
joining Roku, Xbox, LG Smart TVs, and Virgin America In-Flight
entertainment.
- In Q1, the GoPro Channel App reached over one million downloads
on the Xbox platform, with users watching an average of 25 minutes
of GoPro videos during each viewing session.
- The GoPro Mobile App was downloaded 2.6 million times in Q1,
totaling nearly 16 million cumulative downloads; Q1 installs of
GoPro Studio exceeded 1.7 million with average daily exports of
nearly 40,000, a 68% year-over-year increase.
- In Q1, videos published on the GoPro Channel on YouTube were up
93% while views were up 46% year-over-year.
- Content submissions to GoPro's Photo and Video of the
Day program increased 50% quarter-over-quarter.
- GoPro agreed to acquire Kolor, a leader in virtual reality and
spherical media solutions.
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
(888) 686-9705 or (913) 312-1469, access code 7553228,
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
http://investor.gopro.com. To access the live webcast, please log
in 15 minutes prior to the start of the call to download and
install any necessary audio software. 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 six months thereafter.
About GoPro, Inc. (NASDAQ: GPRO):
GoPro,
Inc. is transforming the way consumers capture, manage, share and
enjoy meaningful life experiences. We do this by enabling people to
self-capture engaging, immersive photo and video content of
themselves participating in their favorite activities. Our
customers include some of the world's most active and passionate
people. The quality and volume of their shared GoPro content,
coupled with their enthusiasm for our brand, virally drives
awareness and demand for our products.
What began as an idea to help athletes document themselves
engaged in their sport has become a widely adopted solution for
people to document themselves engaged in their interests, whatever
they may be. From extreme to mainstream, professional to consumer,
GoPro has enabled the world to capture and share its passions. And
in doing so the world, in turn, is helping GoPro become one of the
most exciting and aspirational companies of our time.
For more information, visit www.gopro.com or connect with
GoPro on YouTube, Twitter, Facebook, Pinterest, or
LinkedIn.
GOPRO® and HERO® are trademarks
or registered trademarks of GoPro Inc. in the United States and other countries.
Note on Forward-looking Statements
This press release
may contain projections or other forward-looking statements
regarding future events. 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 effects of the highly
competitive market in which we operate; our dependence on sales of
our capture devices for substantially all of our revenue; our
reliance on third-party suppliers, some of which are sole-source
suppliers, to provide components for our products; the fact that we
do not expect to continue to grow in the future at the same rate as
we have in the past, and profitability in recent periods might not
be indicative of future performance; difficulty in accurately
predicting our future customer demand; the importance of
maintaining the value and reputation of our brand; any inability to
successfully manage frequent product introductions and transitions;
the effects of international business uncertainties; our reliance
on our Chief Executive Officer; and other factors detailed in the
Risk Factors section of our Annual Report on Form 10-K for the year
ended December 31, 2014, which is on
file with the Securities and Exchange Commission. 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.
Investor Contact:
Peter Salkowski (855) GOPROHD or
(855) 467-7643
investor@gopro.com
Media Contact:
Jeff Brown (650) 332-7600 x 9997
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statement of Operations
|
(unaudited)
|
|
|
Three months
ended
|
(in thousands,
except per share data)
|
March
31,
2015
|
|
March
31,
2014
|
|
|
|
|
Revenue
|
$
|
363,109
|
|
$
|
235,716
|
Cost of
revenue
|
199,376
|
|
139,202
|
Gross
profit
|
163,733
|
|
96,514
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
49,437
|
|
28,739
|
Sales and
marketing
|
56,369
|
|
41,341
|
General and
administrative
|
35,659
|
|
9,878
|
Total
operating expenses
|
141,465
|
|
79,958
|
Operating
income
|
22,268
|
|
16,556
|
Other expense,
net
|
(2,244)
|
|
(1,625)
|
Income before income
taxes
|
20,024
|
|
14,931
|
Income tax
expense
|
3,272
|
|
3,882
|
Net income
|
$
|
16,752
|
|
$
|
11,049
|
|
|
|
|
Less: net income
allocable to participating securities
|
—
|
|
3,040
|
Net income
attributable to common stockholders—basic
|
$
|
16,752
|
|
$
|
8,009
|
Add: net income
allocable to dilutive participating securities
|
—
|
|
443
|
Net income
attributable to common stockholders—diluted
|
$
|
16,752
|
|
$
|
8,452
|
|
|
|
|
Net income per share
attributable to common stockholders:
|
|
|
|
Basic
|
$
|
0.13
|
|
$
|
0.10
|
Diluted
|
$
|
0.11
|
|
$
|
0.08
|
|
|
|
|
Weighted-average
shares used to compute net income per share attributable to common
stockholders:
|
|
|
|
Basic
|
132,278
|
|
81,582
|
Diluted
|
148,573
|
|
100,783
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Balance Sheets
|
(unaudited)
|
|
(in
thousands)
|
March
31,
2015
|
|
December
31,
2014
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
323,165
|
|
$
|
319,929
|
Marketable
securities
|
168,741
|
|
102,327
|
Accounts receivable,
net
|
105,970
|
|
183,992
|
Inventory
|
164,044
|
|
153,026
|
Prepaid expenses and
other current assets
|
60,334
|
|
63,769
|
Total
current assets
|
822,254
|
|
823,043
|
Property and
equipment, net
|
43,890
|
|
41,556
|
Intangible assets and
goodwill
|
24,874
|
|
17,032
|
Other long-term
assets
|
39,616
|
|
36,060
|
Total
assets
|
$
|
930,634
|
|
$
|
917,691
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
91,919
|
|
$
|
126,240
|
Accrued
liabilities
|
103,350
|
|
115,775
|
Deferred
revenue
|
12,327
|
|
14,022
|
Income taxes
payable
|
2,940
|
|
2,732
|
Total
current liabilities
|
210,536
|
|
258,769
|
Other long-term
liabilities
|
18,378
|
|
17,718
|
Total
liabilities
|
228,914
|
|
276,487
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
576,764
|
|
533,000
|
Retained
earnings
|
124,956
|
|
108,204
|
Total
stockholders' equity
|
701,720
|
|
641,204
|
Total
liabilities and stockholders' equity
|
$
|
930,634
|
|
$
|
917,691
|
|
|
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statement of Cash Flows
|
(unaudited)
|
|
|
Three months
ended
|
(in
thousands)
|
March
31,
2015
|
|
March
31,
2014
|
|
|
|
|
Operating
activities:
|
|
|
|
Net income
|
$
|
16,752
|
|
$
|
11,049
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
5,369
|
|
3,811
|
Stock-based
compensation
|
26,501
|
|
4,037
|
Foreign currency
remeasurement and transaction losses
|
2,190
|
|
—
|
Deferred
taxes
|
(1,590)
|
|
(330)
|
Other
|
639
|
|
247
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
77,684
|
|
75,359
|
Inventory
|
(11,017)
|
|
21,807
|
Prepaids and other
assets
|
1,451
|
|
1,068
|
Accounts payable and
other liabilities
|
(50,017)
|
|
(97,042)
|
Deferred
revenue
|
(1,695)
|
|
908
|
Net cash provided by
operating activities
|
66,267
|
|
20,914
|
|
|
|
|
Investing
activities:
|
|
|
|
Purchases of property
and equipment
|
(5,207)
|
|
(4,701)
|
Purchases of
marketable securities
|
(79,368)
|
|
—
|
Sales and maturities
of marketable securities
|
12,503
|
|
—
|
Business
acquisitions
|
(5,100)
|
|
(3,200)
|
Net cash used in
investing activities
|
(77,172)
|
|
(7,901)
|
|
|
|
|
Financing
activities:
|
|
|
|
Proceeds from
issuance of common stock, net of repurchases
|
12,325
|
|
522
|
Taxes paid related to
net share settlement of equity awards
|
(1,321)
|
|
—
|
Excess tax benefit
from stock-based compensation
|
6,067
|
|
69
|
Payment of deferred
public offering costs
|
(903)
|
|
(799)
|
Repayment of
debt
|
—
|
|
(3,000)
|
Net cash provided by
(used in) financing activities
|
16,168
|
|
(3,208)
|
Effect of exchange
rate changes on cash and cash equivalents
|
(2,027)
|
|
—
|
Net increase in cash and cash equivalents
|
3,236
|
|
9,805
|
Cash and cash
equivalents at beginning of period
|
319,929
|
|
101,410
|
Cash and cash
equivalents at end of period
|
$
|
323,165
|
|
$
|
111,215
|
|
|
|
|
GoPro,
Inc.
|
Reconciliation of
Preliminary GAAP to Non-GAAP Financial Measures
|
(unaudited)
|
|
|
Three months
ended
|
(in thousands,
except per share data)
|
March
31,
2015
|
|
March
31,
2014
|
|
|
|
|
GAAP net
income
|
$
|
16,752
|
|
$
|
11,049
|
Stock-based
compensation:
|
|
|
|
Cost of
revenue
|
283
|
|
168
|
Research and
development
|
3,535
|
|
1,401
|
Sales and
marketing
|
3,066
|
|
1,414
|
General and
administrative
|
19,617
|
|
1,054
|
Total
stock-based compensation
|
26,501
|
|
4,037
|
|
|
|
|
Amortization of
acquisition-related intangible assets:
|
|
|
|
Cost of
revenue
|
222
|
|
222
|
Research and
development
|
87
|
|
20
|
Sales and
marketing
|
33
|
|
42
|
Total
amortization of acquisition-related intangible assets
|
342
|
|
284
|
|
|
|
|
Income tax
adjustments
|
(7,976)
|
|
(1,088)
|
Non-GAAP net
income
|
$
|
35,619
|
|
$
|
14,282
|
|
|
|
|
GAAP shares for
diluted net income per share
|
148,573
|
|
100,783
|
Add: preferred shares conversion
|
—
|
|
30,523
|
Add: initial public offering shares
|
—
|
|
8,900
|
Non-GAAP shares
for diluted net income per share
|
148,573
|
|
140,206
|
|
|
|
|
Non-GAAP diluted
net income per share
|
$
|
0.24
|
|
$
|
0.10
|
|
|
|
|
GoPro, Inc.
Reconciliation of
Preliminary GAAP to Non-GAAP Financial
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, operating
expenses, operating income, net income, earnings per share and
adjusted EBITDA. 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 charges that
are primarily driven by discrete events 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
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 charges include the amortization of
acquired intangible assets primarily consisting of acquired
technology, customer relationships, trade names, and covenants not
to compete related to our acquisitions. These charges are not
factored into our evaluation of potential acquisitions, or of our
performance after completion of acquisitions, because they are not
related to our core operating performance, and the frequency and
amount of such charges vary significantly based on the timing and
magnitude of our acquisition transactions and the maturities of the
businesses being acquired.
- Adjustment for taxes relates to the tax effect of the
adjustments that we incorporate into non-GAAP measures in order to
provide a more meaningful measure of non-GAAP net income. We
believe that these adjustments provide us with the ability to more
clearly view trends in our core operating performance.
- Adjustment to shares includes the conversion of the redeemable
convertible preferred stock into shares of common stock as though
the conversion had occurred at the beginning of the period and the
initial public offering shares issued July
2014, as if they had been outstanding since the beginning of
the period.
Reconciliations of non-GAAP financial measures are set forth
below ($ in thousands):
|
Three months
ended
|
|
March
31,
2015
|
|
March
31,
2014
|
GAAP gross
profit
|
$
|
163,733
|
|
$
|
96,514
|
Stock-based
compensation
|
283
|
|
168
|
Amortization of
acquisition-related intangible assets
|
222
|
|
222
|
Non-GAAP gross
profit
|
$
|
164,238
|
|
$
|
96,904
|
|
|
|
|
GAAP gross profit
as a % of revenue
|
45.1%
|
|
40.9%
|
Stock-based
compensation
|
0.1
|
|
0.1
|
Amortization of
acquisition-related intangible assets
|
—
|
|
0.1
|
Non-GAAP gross
profit as a % of revenue
|
45.2%
|
|
41.1%
|
|
|
|
|
GAAP operating
expenses
|
$
|
141,465
|
|
$
|
79,958
|
Stock-based
compensation
|
(26,218)
|
|
(3,869)
|
Amortization of
acquisition-related intangible assets
|
(120)
|
|
(62)
|
Non-GAAP operating
expenses
|
$
|
115,127
|
|
$
|
76,027
|
|
|
|
|
GAAP operating
income
|
$
|
22,268
|
|
$
|
16,556
|
Stock-based
compensation
|
26,501
|
|
4,037
|
Amortization of
acquisition-related intangible assets
|
342
|
|
284
|
Non-GAAP operating
income
|
$
|
49,111
|
|
$
|
20,877
|
|
|
|
|
GAAP operating
income as a % of revenue
|
6.1%
|
|
7.0%
|
Stock-based
compensation
|
7.3
|
|
1.7
|
Amortization of
acquisition-related intangible assets
|
0.1
|
|
0.2
|
Non-GAAP operating
income as a % of revenue
|
13.5%
|
|
8.9%
|
|
|
|
|
Reconciliations of non-GAAP financial measures are set forth
below ($ in thousands):
|
Three months
ended
|
|
March
31,
2015
|
|
March
31,
2014
|
GAAP net
income
|
$
|
16,752
|
|
$
|
11,049
|
Income tax
expense
|
3,272
|
|
3,882
|
Interest expense,
net
|
65
|
|
1,335
|
Depreciation and
amortization
|
5,369
|
|
3,811
|
POP display
amortization
|
4,548
|
|
4,513
|
Stock-based
compensation
|
26,501
|
|
4,037
|
Adjusted
EBITDA
|
$
|
56,507
|
|
$
|
28,627
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gopro-announces-first-quarter-2015-results-300073667.html
SOURCE GoPro, Inc.