Full Year Revenue of $1.6 billion, Up 16% from
2014Second Highest Revenue Quarter in Company History6.6 million
Cameras Shipped in 2015, Up 27% from 2014
GoPro, Inc. (NASDAQ:GPRO), enabler of some of today's most engaging
content, today announced financial results for its fourth quarter
and full year ended December 31, 2015.
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
($ in thousands, except
per share amounts) |
|
2015 |
|
2014 |
|
% Change |
|
2015 |
|
2014 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
436,603 |
|
|
$ |
633,913 |
|
|
(31.1 |
)% |
|
$ |
1,619,971 |
|
|
$ |
1,394,205 |
|
|
16.2 |
% |
Gross
margin |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
29.4 |
% |
|
47.9 |
% |
|
(1,850) bps |
|
41.6 |
% |
|
45.0 |
% |
|
(340) bps |
Non-GAAP |
|
29.6 |
% |
|
48.0 |
% |
|
(1,840) bps |
|
41.7 |
% |
|
45.1 |
% |
|
(340) bps |
Operating
income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
$ |
(41,294 |
) |
|
$ |
173,688 |
|
|
(123.8 |
)% |
|
$ |
54,748 |
|
|
$ |
187,035 |
|
|
(70.7 |
)% |
Non-GAAP |
|
$ |
(21,629 |
) |
|
$ |
193,241 |
|
|
(111.2 |
)% |
|
$ |
140,798 |
|
|
$ |
259,567 |
|
|
(45.8 |
)% |
Net income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
$ |
(34,451 |
) |
|
$ |
122,260 |
|
|
(128.2 |
)% |
|
$ |
36,131 |
|
|
$ |
128,088 |
|
|
(71.8 |
)% |
Non-GAAP |
|
$ |
(11,396 |
) |
|
$ |
144,898 |
|
|
(107.9 |
)% |
|
$ |
111,564 |
|
|
$ |
188,913 |
|
|
(40.9 |
)% |
Diluted net
income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
|
$ |
(0.25 |
) |
|
$ |
0.83 |
|
|
(130.1 |
)% |
|
$ |
0.25 |
|
|
$ |
0.92 |
|
|
(72.8 |
)% |
Non-GAAP |
|
$ |
(0.08 |
) |
|
$ |
0.99 |
|
|
(108.1 |
)% |
|
$ |
0.76 |
|
|
$ |
1.32 |
|
|
(42.4 |
)% |
Adjusted
EBITDA |
|
$ |
(9,268 |
) |
|
$ |
202,854 |
|
|
(104.6 |
)% |
|
$ |
179,309 |
|
|
$ |
293,380 |
|
|
(38.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“In 2015, we recorded 16% year-over-year revenue growth and the
fourth quarter represented the second highest revenue quarter in
the company’s history,” said GoPro Founder and CEO, Nicholas
Woodman. “However, growth slowed in the second half of the
year and we recognize the need to develop software solutions that
make it easier for our customers to offload, access and edit their
GoPro content.”
Fourth quarter revenue includes a $21 million reduction for
price protection related charges resulting from the HERO4 Session
repricing in December. Full year revenue also reflected charges of
approximately $40 million for price protection related charges
issued in connection with reductions of the HERO4 Session selling
price in September and December.
Fourth quarter and full year non-GAAP gross margin was impacted
by a charge of approximately $57 million to cost of revenue for
excess purchase order commitments, excess inventory and obsolete
tooling resulting from the Company’s decision to discontinue
production of the HERO cameras. This charge is greater than the $30
million to $35 million that was previously estimated in our
announcement of preliminary fourth quarter results on January 13,
2016 due to our subsequent decision to simplify GoPro’s product
offering to consist of HERO4 Black, HERO4 Silver, and HERO4
Session.
GoPro reports gross profit, 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. Non-GAAP items exclude, where
applicable, the effects of stock-based compensation,
acquisition-related costs, 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, is presented in the
financial statement portion of this release. GoPro also provides
future estimated ranges of gross margin, operating expense and
earnings per share on a non-GAAP basis, and provides a description
of the non-GAAP adjustments used in these projections.
Stock Repurchase Program and Cash, Cash Equivalents and
Marketable Securities
Commencing in the fourth quarter of 2015, GoPro
has acquired approximately 1.5 million shares of its Class A
capital stock at an average price per share of approximately
$23.05, representing a total share repurchase of approximately
$35.6 million through December 31, 2015. The Company has a
remaining share repurchase authorization of $264.4 million. GoPro
ended 2015 with cash, cash equivalents & marketable securities
totaling $474 million, an increase of approximately $52 million
from year end 2014.
Recent GoPro Highlights
Include:
- According to NPD, GoPro’s fourth quarter digital
camera/camcorder unit share increased 180 basis points
year-over-year to 21.3%. GoPro accounted for 6 of the top 10
products, including the #1 spot, on a dollar basis in the digital
camera/camcorder category. GoPro was also the leader in
accessory unit sales with 6 of the top 10 selling accessories,
including the #1 spot.
- According to GfK, GoPro’s fourth quarter digital imaging unit
share in Europe increased 400 basis points year-over-year to 12%.
In the fourth quarter, GoPro accounted for 6 of the top 10
camcorders in Europe, including all of the top five spots in
December, on a unit basis.
- International sales totaled more than 50% of full year 2015
revenue; combined Europe and Asia revenue was up over 49%
year-over-year.
- In the fourth quarter, China remained a top ten market for
GoPro.
- Launched the GoPro Channel on Amazon Fire TV and Fire TV Stick
with a custom-designed streaming channel that will be a one-stop
destination for delivering on-demand GoPro videos to millions of
Amazon customers.
- Launched the GoPro Channel on the PlayStation® Network. The
custom designed GoPro Channel app allows PlayStation owners to
stream GoPro content on-demand, browse GoPro cameras and
accessories, and more. PlayStation joins GoPro's growing roster of
distribution partners including Amazon Fire TV, Roku, Comcast
Watchable, Sky, Vessel Entertainment, Xbox, LG and Virgin
America.
- The GoPro Channel will launch on SkyQ, the next-generation home
entertainment system in early 2016. GoPro videos will be available
on two of the largest TV platforms on the globe - Comcast in the
U.S. and Sky, with 21 million customers in the UK, Ireland,
Germany, Austria and Italy.
- The GoPro Mobile App was downloaded 2.75 million times in the
fourth quarter, totaling almost 24 million cumulative downloads; Q4
installs of GoPro Studio totaled nearly 1.7 million,
totaling over 15 million cumulative installs, with average daily
video exports of over 49,000 in the fourth quarter.
- The GoPro creative community has submitted more than 86,000
content submissions and GoPro has awarded almost $240,000 for video
and photo content. Winning videos and pictures can be viewed
at http://gopro.com/awards.
- The PGA Tour, SkratchTV and GoPro announced a partnership that
will ‘GoPro’ the game of golf. GoPro will produce episodic videos
that bring fans inside-the-ropes at PGA TOUR events, giving them
unique access to the events and athletes, including recently signed
GoPro athlete and PGA TOUR member, Justin Thomas.
- Periscope users can now broadcast live directly from
their GoPro HERO4 Black or Silver camera. In the five
days following the agreement signed in January, 2,700 people used a
GoPro to broadcast live on periscope.
- In 2015, GoPro tied with Apple on the Google Brand Leaderboard
- a measure of the most popular brands on YouTube.
- According to Google, more than 4.6 years of content was
uploaded to YouTube in 2015 with GoPro in the title - up 22 percent
from 2014.
Business Outlook:
GoPro is providing guidance for the first quarter and full year
of 2016:
|
($ in millions) |
|
Q1 2016 |
|
Full Year 2016 |
|
|
|
|
|
Revenue |
|
$160 -
$180 |
|
$1,350
- $1,500 |
Non-GAAP gross
margin |
|
36%
+/- 100bps |
|
|
Non-GAAP operating
expenses(1) |
|
$165 -
$170 |
|
|
Adjusted EBITDA |
|
$(95)
+/- $2.5 |
|
|
|
|
|
|
|
(1) Excluding estimated restructuring expenses for Q1 2016 of $5
million to $10 million
GoPro Names Brian McGee Chief Financial Officer –
Effective March 11.
Brian McGee, a 30-year finance veteran who has served as CFO of
two publicly-traded companies and who joined GoPro in 2015 from
Qualcomm will succeed CFO Jack Lazar effective March 11. “The past
two years have been incredibly rewarding and I am honored to have
worked with Nick and the rest of the GoPro team. I will miss them
all and I am excited that Brian is taking over the CFO role,” said
Jack Lazar, who is retiring after two years at GoPro. “Jack
has been a great leader who helped GoPro navigate the path to
becoming a publicly-traded company. While he will be missed, we are
also grateful to have Brian and a strong bench of leaders running
Finance at GoPro,” said Nick Woodman.
Upcoming Events
Management will participate in upcoming investor conferences on
February 10th and March 2nd of 2016. GoPro will furnish a link to
these events on its investor relations website,
http://investor.gopro.com/ for both the live and archived
webcasts.
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) 806-6221 or (913) 981-5588, access code 4243159,
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 people visually capture and
share their lives. What began as an idea to help athletes
self-document themselves engaged in their sport, GoPro has become a
standard for how people capture themselves engaged in their
interests, whatever they may be. From extreme to mainstream,
professional to consumer, GoPro enables the world to capture and
share its passion in the form of immersive and engaging
content.
GOPRO® and HERO® are trademarks or registered trademarks of
GoPro Inc. in the United States and other countries.
For more information, visit www.gopro.com or connect
with GoPro on YouTube, Twitter, Facebook, Pinterest,
Instagram, or LinkedIn.
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 investor relations and The Inside Line website, and GoPro’s
pages on YouTube, Twitter, Facebook, Pinterest, Instagram, and
LinkedIn.
Note on Forward-looking Statements
This press release may contain projections or other
forward-looking statements regarding future events, including but
not limited to, those regarding our business outlook for the first
quarter and full year of 2016. 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.
|
GoPro, Inc. |
Preliminary Condensed Consolidated Statement
of Operations |
(unaudited) |
|
|
Three months ended |
|
Year ended |
(in thousands,
except per share data) |
December 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
|
|
|
|
|
|
|
|
Revenue |
$ |
436,603 |
|
|
$ |
633,913 |
|
|
$ |
1,619,971 |
|
|
$ |
1,394,205 |
|
Cost of revenue |
308,092 |
|
|
330,100 |
|
|
946,757 |
|
|
766,970 |
|
Gross profit |
128,511 |
|
|
303,813 |
|
|
673,214 |
|
|
627,235 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and development |
66,432 |
|
|
46,074 |
|
|
241,694 |
|
|
151,852 |
|
Sales and marketing |
82,649 |
|
|
61,226 |
|
|
268,939 |
|
|
194,377 |
|
General and administrative |
20,724 |
|
|
22,825 |
|
|
107,833 |
|
|
93,971 |
|
Total operating expenses |
169,805 |
|
|
130,125 |
|
|
618,466 |
|
|
440,200 |
|
Operating income
(loss) |
(41,294 |
) |
|
173,688 |
|
|
54,748 |
|
|
187,035 |
|
Other income (expense),
net |
322 |
|
|
(1,115 |
) |
|
(2,163 |
) |
|
(6,060 |
) |
Income (loss) before
income taxes |
(40,972 |
) |
|
172,573 |
|
|
52,585 |
|
|
180,975 |
|
Income tax expense
(benefit) |
(6,521 |
) |
|
50,313 |
|
|
16,454 |
|
|
52,887 |
|
Net income (loss) |
$ |
(34,451 |
) |
|
$ |
122,260 |
|
|
$ |
36,131 |
|
|
$ |
128,088 |
|
|
|
|
|
|
|
|
|
Less: net income
allocable to participating securities |
— |
|
|
(152 |
) |
|
— |
|
|
(16,512 |
) |
Net income attributable
to common stockholders—basic |
$ |
(34,451 |
) |
|
$ |
122,108 |
|
|
$ |
36,131 |
|
|
$ |
111,576 |
|
Add: net income
allocable to dilutive participating securities |
— |
|
|
20 |
|
|
— |
|
|
2,277 |
|
Net income attributable
to common stockholders—diluted |
$ |
(34,451 |
) |
|
$ |
122,128 |
|
|
$ |
36,131 |
|
|
$ |
113,853 |
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common stockholders: |
|
|
|
|
|
|
|
Basic |
$ |
(0.25 |
) |
|
$ |
0.96 |
|
|
$ |
0.27 |
|
|
$ |
1.07 |
|
Diluted |
$ |
(0.25 |
) |
|
$ |
0.83 |
|
|
$ |
0.25 |
|
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
Weighted-average shares
used to compute net income (loss) per share attributable to common
stockholders: |
|
|
|
|
|
|
|
Basic |
137,086 |
|
|
126,849 |
|
|
134,595 |
|
|
104,453 |
|
Diluted |
137,086 |
|
|
146,723 |
|
|
146,486 |
|
|
123,630 |
|
|
GoPro, Inc. |
Preliminary Condensed Consolidated Balance
Sheets |
(unaudited) |
|
(in
thousands) |
December 31, 2015 |
|
December 31, 2014 |
|
|
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
279,672 |
|
|
$ |
319,929 |
|
Marketable securities |
194,386 |
|
|
102,327 |
|
Accounts receivable, net |
145,692 |
|
|
183,992 |
|
Inventory |
188,232 |
|
|
153,026 |
|
Prepaid expenses and other current
assets |
25,261 |
|
|
63,769 |
|
Total current assets |
833,243 |
|
|
823,043 |
|
Property and equipment,
net |
70,050 |
|
|
41,556 |
|
Intangible assets, net
and goodwill |
88,122 |
|
|
17,032 |
|
Other long-term
assets |
111,561 |
|
|
36,060 |
|
Total assets |
$ |
1,102,976 |
|
|
$ |
917,691 |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
89,989 |
|
|
$ |
126,240 |
|
Accrued liabilities |
184,910 |
|
|
115,775 |
|
Deferred revenue |
12,742 |
|
|
14,022 |
|
Income taxes payable |
7,536 |
|
|
2,732 |
|
Total current liabilities |
295,177 |
|
|
258,769 |
|
Other long-term
liabilities |
35,766 |
|
|
17,718 |
|
Total liabilities |
330,943 |
|
|
276,487 |
|
|
|
|
|
Stockholders’
equity: |
|
|
|
Common stock and additional paid-in
capital |
663,311 |
|
|
533,000 |
|
Treasury stock, at cost |
(35,613 |
) |
|
— |
|
Retained earnings |
144,335 |
|
|
108,204 |
|
Total stockholders’ equity |
772,033 |
|
|
641,204 |
|
Total liabilities and stockholders’
equity |
$ |
1,102,976 |
|
|
$ |
917,691 |
|
|
|
|
|
GoPro, Inc. |
Preliminary Condensed Consolidated Statement of
Cash Flows |
(unaudited) |
|
|
Year ended |
(in
thousands) |
December 31, 2015 |
|
December 31, 2014 |
Operating
activities: |
|
|
|
Net income (loss) |
$ |
36,131 |
|
|
$ |
128,088 |
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
28,981 |
|
|
17,945 |
|
Stock-based compensation |
80,680 |
|
|
71,399 |
|
Excess
tax benefit from stock-based compensation |
(29,348 |
) |
|
(77,134 |
) |
Foreign
currency remeasurement |
1,792 |
|
|
— |
|
Deferred
income taxes |
(11,468 |
) |
|
(16,920 |
) |
Accretion
and unrealized loss on investments |
3,001 |
|
|
— |
|
Other |
634 |
|
|
1,865 |
|
Net changes in
operating assets and liabilities |
47,208 |
|
|
(28,321 |
) |
Net cash
provided by operating activities |
157,611 |
|
|
96,922 |
|
|
|
|
|
Investing
activities: |
|
|
|
Purchases of property
and equipment, net |
(51,245 |
) |
|
(27,210 |
) |
Purchases of marketable
securities |
(220,055 |
) |
|
(103,827 |
) |
Maturities of
marketable securities |
94,680 |
|
|
1,083 |
|
Sales of marketable
securities |
30,048 |
|
|
— |
|
Acquisitions, net of
cash acquired |
(65,405 |
) |
|
(3,950 |
) |
Net cash
provided by (used in) investing activities |
(211,977 |
) |
|
(133,904 |
) |
|
|
|
|
Financing
activities: |
|
|
|
Proceeds from issuance
of common stock |
36,776 |
|
|
300,657 |
|
Taxes paid related to
net share settlement of equity awards |
(13,943 |
) |
|
(560 |
) |
Repurchases of
outstanding common stock |
(35,613 |
) |
|
— |
|
Excess tax benefit from
stock-based compensation |
29,348 |
|
|
77,134 |
|
Payment of
indemnification holdback on acquired company |
— |
|
|
(2,000 |
) |
Payment of debt
issuance costs and deferred public offering costs |
(903 |
) |
|
(5,730 |
) |
Repayment of debt |
— |
|
|
(114,000 |
) |
Net cash
provided by (used in) financing activities |
15,665 |
|
|
255,501 |
|
Effect of exchange rate
changes on cash and cash equivalents |
(1,556 |
) |
|
— |
|
Net
increase (decrease) in cash and cash equivalents |
(40,257 |
) |
|
218,519 |
|
Cash and cash
equivalents at beginning of period |
319,929 |
|
|
101,410 |
|
Cash and cash
equivalents at end of period |
$ |
279,672 |
|
|
$ |
319,929 |
|
|
|
|
|
|
GoPro, Inc. |
Reconciliation of Preliminary GAAP to Non-GAAP
Financial Measures |
(unaudited) |
|
|
Three months ended |
|
Year ended |
(in thousands,
except per share data) |
December 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
|
|
|
|
|
|
|
|
GAAP net income
(loss) |
(34,451 |
) |
|
122,260 |
|
|
36,131 |
|
|
128,088 |
|
Stock-based
compensation: |
|
|
|
|
|
|
|
Cost of revenue |
449 |
|
|
280 |
|
|
1,492 |
|
|
835 |
|
Research and development |
5,907 |
|
|
6,154 |
|
|
18,024 |
|
|
11,640 |
|
Sales and marketing |
4,248 |
|
|
4,135 |
|
|
13,762 |
|
|
10,428 |
|
General and administrative |
7,516 |
|
|
8,687 |
|
|
47,402 |
|
|
48,496 |
|
Total stock-based compensation |
18,120 |
|
|
19,256 |
|
|
80,680 |
|
|
71,399 |
|
|
|
|
|
|
|
|
|
Acquisition-related
costs: |
|
|
|
|
|
|
|
Cost of revenue |
222 |
|
|
221 |
|
|
961 |
|
|
888 |
|
Research and development |
1,257 |
|
|
43 |
|
|
3,154 |
|
|
103 |
|
Sales and marketing |
33 |
|
|
33 |
|
|
132 |
|
|
142 |
|
General and administrative |
33 |
|
|
— |
|
|
1,123 |
|
|
— |
|
Total acquisition-related
costs |
1,545 |
|
|
297 |
|
|
5,370 |
|
|
1,133 |
|
|
|
|
|
|
|
|
|
Income tax
adjustments |
3,390 |
|
|
3,085 |
|
|
(10,617 |
) |
|
(11,707 |
) |
Non-GAAP net
income (loss) |
$ |
(11,396 |
) |
|
$ |
144,898 |
|
|
$ |
111,564 |
|
|
$ |
188,913 |
|
|
|
|
|
|
|
|
|
GAAP shares for
diluted net income (loss) per share |
137,086 |
|
|
146,723 |
|
|
146,486 |
|
|
123,630 |
|
Add: preferred shares
conversion |
— |
|
|
— |
|
|
— |
|
|
15,136 |
|
Add: initial public offering
shares |
— |
|
|
— |
|
|
— |
|
|
4,414 |
|
Non-GAAP shares
for diluted net income (loss) per share |
137,086 |
|
|
146,723 |
|
|
146,486 |
|
|
143,180 |
|
|
|
|
|
|
|
|
|
Non-GAAP
diluted net income (loss) per share |
$ |
(0.08 |
) |
|
$ |
0.99 |
|
|
$ |
0.76 |
|
|
$ |
1.32 |
|
|
GoPro,
Inc.Reconciliation of 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
provides forecasts of non-GAAP gross margin, operating expenses 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 costs include the amortization of acquired
intangible assets (primarily consisting of acquired technology), 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 they are not related to our
core operating performance, 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.
- 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 (loss). 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:
|
|
Three months ended |
|
Year ended |
(dollars in
thousands) |
December 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
GAAP gross
profit |
$ |
128,511 |
|
|
$ |
303,813 |
|
|
$ |
673,214 |
|
|
$ |
627,235 |
|
Stock-based
compensation |
449 |
|
|
280 |
|
|
1,492 |
|
|
835 |
|
Acquisition-related
costs |
222 |
|
|
221 |
|
|
961 |
|
|
888 |
|
Non-GAAP gross
profit |
$ |
129,182 |
|
|
$ |
304,314 |
|
|
$ |
675,667 |
|
|
$ |
628,958 |
|
|
|
|
|
|
|
|
|
GAAP gross
profit as a % of revenue |
29.4 |
% |
|
47.9 |
% |
|
41.6 |
% |
|
45.0 |
% |
Stock-based
compensation |
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
— |
|
Acquisition-related
costs |
0.1 |
|
|
— |
|
|
— |
|
|
0.1 |
|
Non-GAAP gross
profit as a % of revenue |
29.6 |
% |
|
48.0 |
% |
|
41.7 |
% |
|
45.1 |
% |
|
|
|
|
|
|
|
|
GAAP operating
expenses |
$ |
169,805 |
|
|
$ |
130,125 |
|
|
$ |
618,466 |
|
|
$ |
440,200 |
|
Stock-based
compensation |
(17,671 |
) |
|
(18,976 |
) |
|
(79,188 |
) |
|
(70,564 |
) |
Acquisition-related
costs |
(1,323 |
) |
|
(76 |
) |
|
(4,409 |
) |
|
(245 |
) |
Non-GAAP
operating expenses |
$ |
150,811 |
|
|
$ |
111,073 |
|
|
$ |
534,869 |
|
|
$ |
369,391 |
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss) |
$ |
(41,294 |
) |
|
$ |
173,688 |
|
|
$ |
54,748 |
|
|
$ |
187,035 |
|
Stock-based
compensation |
18,120 |
|
|
19,256 |
|
|
80,680 |
|
|
71,399 |
|
Acquisition-related
costs |
1,545 |
|
|
297 |
|
|
5,370 |
|
|
1,133 |
|
Non-GAAP
operating income (loss) |
$ |
(21,629 |
) |
|
$ |
193,241 |
|
|
$ |
140,798 |
|
|
$ |
259,567 |
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss) as a % of revenue |
(9.5 |
)% |
|
27.4 |
% |
|
3.4 |
% |
|
13.4 |
% |
Stock-based
compensation |
4.1 |
|
|
3.0 |
|
|
5.0 |
|
|
5.1 |
|
Acquisition-related
costs |
0.4 |
|
|
0.1 |
|
|
0.3 |
|
|
0.1 |
|
Non-GAAP
operating income (loss) as a % of revenue |
(5.0 |
)% |
|
30.5 |
% |
|
8.7 |
% |
|
18.6 |
% |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
(in
thousands) |
December 31, 2015 |
|
December 31, 2014 |
|
December 31, 2015 |
|
December 31, 2014 |
GAAP net income
(loss) |
$ |
(34,451 |
) |
|
$ |
122,260 |
|
|
$ |
36,131 |
|
|
$ |
128,088 |
|
Income tax expense
(benefit) |
(6,521 |
) |
|
50,313 |
|
|
16,454 |
|
|
52,887 |
|
Interest (income)
expense, net |
(126 |
) |
|
1,029 |
|
|
234 |
|
|
5,038 |
|
Depreciation and
amortization |
9,596 |
|
|
5,176 |
|
|
28,981 |
|
|
17,945 |
|
POP display
amortization |
4,114 |
|
|
4,820 |
|
|
16,829 |
|
|
18,023 |
|
Stock-based
compensation |
18,120 |
|
|
19,256 |
|
|
80,680 |
|
|
71,399 |
|
Adjusted
EBITDA |
$ |
(9,268 |
) |
|
$ |
202,854 |
|
|
$ |
179,309 |
|
|
$ |
293,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:
Peter Salkowski (855) GOPROHD or (855) 467-7643
investor@gopro.com
Media Contact:
Jeff Brown (650) 332-7600 x 9997
GoPro (NASDAQ:GPRO)
Historical Stock Chart
From Jun 2024 to Jul 2024
GoPro (NASDAQ:GPRO)
Historical Stock Chart
From Jul 2023 to Jul 2024