SAN MATEO, Calif., July 27, 2016 /PRNewswire/ -- GoPro, Inc.
(NASDAQ: GPRO) announced financial results for its second quarter
ended June 30, 2016.
"GoPro is well-positioned for the second half of the year.
We now have a simple product line, a clean retail channel and clear
indications of strong consumer demand," said GoPro Founder and CEO,
Nicholas Woodman. "HERO5 and Karma
will contribute to the largest introduction of products in our
history, all in time for what we believe will be GoPro's most
exciting fourth quarter, ever -- a quarter where we expect to
return to profitability."
Recent GoPro Highlights Include
- Since the May rebranding of Quik and Splice, these mobile apps
have doubled their combined monthly active users to 3.7 million
and doubled the amount of shared content each month. Combined,
these apps have 37 million cumulative downloads.
- The GoPro Mobile App was downloaded 2.6 million times in the
second quarter, totaling over 30 million cumulative downloads; Q2
installs of GoPro Studio was 1.5 million, totaling over 17.7
million cumulative installs, with average daily video exports up
15.3% year-over-year to over 43,500.
- According to The NPD Group's Retail Tracking Service, GoPro
accounted for 6 of the top 10 products, including the top 3 spots,
on a unit basis in the digital camera/camcorder category in the
U.S. in the second quarter. HERO4 Silver remains the
best-selling digital image camera on a unit and dollar basis for
the seventh consecutive quarter. By our estimate, Session
continues to be the #2 best-selling camera on a unit basis.
- According to NPD, GoPro's second quarter combined digital
camera/camcorder unit share increased 110 basis points
year-over-year to 21.3% in the U.S.
- According to GfK, GoPro's second quarter digital imaging unit
share in Europe increased 110
basis points year-over-year to 9.4%. GoPro accounted for 4 of the
top 5 camcorders in Europe on a
unit basis.
- Revenue was up 20% to $221
million sequentially, driven by an 8% increase in units
shipped to 759,000 and an 11% increase in average selling price. On
a year-over-year basis, average selling price increased 14%.
- Unit sell-thru was up approximately 10% sequentially and was
more than 50% higher than sell-in for the second quarter in a row,
resulting in an estimated 35% sequential reduction in channel
inventory.
- Inventory declined $50 million,
or 36%, from the first quarter to $90
million, our lowest inventory level since the second quarter
of 2014.
- GoPro announced an exclusive partnership with Reliance Digital,
India's largest Consumer
Electronics retailer, that will put GoPro's cameras, mounts and
accessories, on the shelves of up to 1,800 Reliance Digital across
India.
- GoPro is an official partner of MotoGP, a global race series
with a TV audience of 280 million homes and a social following of
15 million. GoPro now sponsors nine-time world-champion MotoGP
racer, Valentino Rossi.
- GoPro has signed content partnerships to create episodic
content with some of the world's most recognized brands including
Ford, Wimbledon, and Real Madrid. The first series, produced with
Ford Motor Company titled "Unstoppable Life," profiles GoPro
athletes who demonstrate the perseverance and determination on
their respective life journeys.
- GoPro's professional VR camera Odyssey, designed for Google's
Jump platform, is being used to capture the Democratic and
Republican National Conventions. News organizations including
Bloomberg, TIME, The Washington Post, are using Odyssey to shoot
the conventions in 360-degree, stereoscopic video.
- Launched GoPro Care to U.S. consumers, a fee-based service
offering a range of support options, including extended warranty
and accidental damage coverage.
- Lauren Zalaznick was appointed
to GoPro's Board of Directors. A 12-year executive at NBCUniversal,
Ms. Zalaznick has devoted her career to transforming the cultural
landscape in media, and has been named one of Time's 100 Most
Influential People and Fortune's 50 Most Powerful Women.
- GoPro entered into a multi-year, global agreement with
Red Bull that includes content
production, distribution, and cross-promotion through which GoPro
will become Red Bull's exclusive
provider of point-of-view imaging technology. Content will be
distributed across both Red Bull and
GoPro's digital distribution networks, including The GoPro Channel,
Red Bull TV, RedBull.com and in the Red Bull Content Pool,
Red Bull's media service
platform.
|
|
Three Months Ended
June 30,
|
($ in thousands,
except per share amounts)
|
|
2016
|
|
2015
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
220,755
|
|
$
|
419,919
|
|
(47.4)%
|
Gross
margin
|
|
|
|
|
|
|
GAAP
|
|
42.1%
|
|
46.3%
|
|
(420) bps
|
Non-GAAP
|
|
42.4%
|
|
46.4%
|
|
(400) bps
|
Operating income
(loss)
|
|
|
|
|
|
|
GAAP
|
|
$
|
(109,377)
|
|
$
|
46,138
|
|
(337.1)%
|
Non-GAAP
|
|
$
|
(89,298)
|
|
$
|
65,845
|
|
(235.6)%
|
Net income
(loss)
|
|
|
|
|
|
|
GAAP
|
|
$
|
(91,767)
|
|
$
|
35,031
|
|
(362.0)%
|
Non-GAAP
|
|
$
|
(72,595)
|
|
$
|
50,715
|
|
(243.1)%
|
Diluted net income
(loss) per share
|
|
|
|
|
|
|
GAAP
|
|
$
|
(0.66)
|
|
$
|
0.24
|
|
(375.0)%
|
Non-GAAP
|
|
$
|
(0.52)
|
|
$
|
0.35
|
|
(248.6)%
|
Adjusted
EBITDA
|
|
$
|
(76,757)
|
|
$
|
75,349
|
|
(201.9)%
|
Business Outlook
GoPro is providing the following guidance:
- Revenue between $1.35 billion and $1.5
billion for 2016
- GAAP and non-GAAP gross margin of 40% +/- 1% for the second
half of 2016
- GAAP and non-GAAP net income profitable for the fourth quarter
of 2016
Upcoming Events
Management will participate in an investor conference on
August 9, 2016. 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
(888) 208-1361 or (913) 312-0949, access code 4241073,
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, 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, HERO, and Karma, 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.
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, 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, restructuring 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 revenue and gross margin on a
GAAP and non-GAAP basis.
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 second
half of the year 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 our dependence on sales of our
cameras and accessories for substantially all of our revenue and
the effect of a fall in sales during the holiday season; the fact
that we do not expect to continue to grow in the future at the same
rate as we have in the past, that we may fail to manage our growth,
and profitability in past periods might not be indicative of future
performance; any inability to successfully manage frequent product
introductions and transitions or to anticipate consumer preferences
and successfully develop desirable products; the risks associated
with our expected entrance into the consumer drone market; the
effects of the highly competitive market in which we operate; the
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, 2015, 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
|
|
Six months
ended
|
(in thousands,
except per share data)
|
June 30,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
220,755
|
|
|
$
|
419,919
|
|
|
$
|
404,291
|
|
|
$
|
783,028
|
|
Cost of
revenue
|
127,753
|
|
|
225,579
|
|
|
251,575
|
|
|
424,955
|
|
Gross
profit
|
93,002
|
|
|
194,340
|
|
|
152,716
|
|
|
358,073
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
93,049
|
|
|
58,453
|
|
|
170,028
|
|
|
107,890
|
|
Sales and
marketing
|
84,888
|
|
|
63,494
|
|
|
164,337
|
|
|
119,863
|
|
General and
administrative
|
24,442
|
|
|
26,255
|
|
|
49,163
|
|
|
61,914
|
|
Total operating
expenses
|
202,379
|
|
|
148,202
|
|
|
383,528
|
|
|
289,667
|
|
Operating income
(loss)
|
(109,377)
|
|
|
46,138
|
|
|
(230,812)
|
|
|
68,406
|
|
Other income
(expense), net
|
660
|
|
|
122
|
|
|
353
|
|
|
(2,122)
|
|
Income (loss) before
income taxes
|
(108,717)
|
|
|
46,260
|
|
|
(230,459)
|
|
|
66,284
|
|
Income tax expense
(benefit)
|
(16,950)
|
|
|
11,229
|
|
|
(31,233)
|
|
|
14,501
|
|
Net income
(loss)
|
$
|
(91,767)
|
|
|
$
|
35,031
|
|
|
$
|
(199,226)
|
|
|
$
|
51,783
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.66)
|
|
|
$
|
0.26
|
|
|
$
|
(1.44)
|
|
|
$
|
0.39
|
|
Diluted
|
$
|
(0.66)
|
|
|
$
|
0.24
|
|
|
$
|
(1.44)
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute net income (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
138,942
|
|
|
133,150
|
|
|
138,243
|
|
|
132,716
|
|
Diluted
|
138,942
|
|
|
146,781
|
|
|
138,243
|
|
|
147,720
|
|
GoPro, Inc.
Preliminary Condensed Consolidated Balance Sheets
(unaudited)
|
|
|
|
|
(in
thousands)
|
June 30, 2016
|
|
December 31,
2015
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
163,512
|
|
|
$
|
279,672
|
|
Marketable
securities
|
115,688
|
|
|
194,386
|
|
Accounts receivable,
net
|
65,016
|
|
|
145,692
|
|
Inventory
|
89,889
|
|
|
188,232
|
|
Prepaid expenses and
other current assets
|
38,057
|
|
|
25,261
|
|
Total
current assets
|
472,162
|
|
|
833,243
|
|
Property and
equipment, net
|
66,525
|
|
|
70,050
|
|
Intangible assets,
net and goodwill
|
192,532
|
|
|
88,122
|
|
Other long-term
assets
|
133,161
|
|
|
111,561
|
|
Total
assets
|
$
|
864,380
|
|
|
$
|
1,102,976
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
63,642
|
|
|
$
|
89,989
|
|
Accrued
liabilities
|
151,102
|
|
|
192,446
|
|
Deferred
revenue
|
11,605
|
|
|
12,742
|
|
Total
current liabilities
|
226,349
|
|
|
295,177
|
|
Long-term
liabilities
|
40,641
|
|
|
35,766
|
|
Total
liabilities
|
266,990
|
|
|
330,943
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
687,894
|
|
|
663,311
|
|
Treasury stock, at
cost
|
(35,613)
|
|
|
(35,613)
|
|
Retained earnings
(accumulated deficit)
|
(54,891)
|
|
|
144,335
|
|
Total
stockholders' equity
|
597,390
|
|
|
772,033
|
|
Total
liabilities and stockholders' equity
|
$
|
864,380
|
|
|
$
|
1,102,976
|
|
GoPro, Inc.
Preliminary Condensed Consolidated Statement of Cash Flows
(unaudited)
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
(in
thousands)
|
June 30,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(91,767)
|
|
|
$
|
35,031
|
|
|
$
|
(199,226)
|
|
|
$
|
51,783
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
9,482
|
|
|
6,422
|
|
|
17,804
|
|
|
11,791
|
|
Stock-based
compensation
|
17,404
|
|
|
18,189
|
|
|
33,135
|
|
|
44,690
|
|
Excess tax benefit from
stock-based compensation
|
(227)
|
|
|
(22,072)
|
|
|
(917)
|
|
|
(28,139)
|
|
Deferred income
taxes
|
(3,166)
|
|
|
(5,066)
|
|
|
(13,494)
|
|
|
(6,656)
|
|
Other
|
397
|
|
|
127
|
|
|
1,162
|
|
|
2,956
|
|
Net changes in
operating assets and liabilities
|
22,417
|
|
|
33,243
|
|
|
82,811
|
|
|
55,716
|
|
Net cash provided by
(used in) operating activities
|
(45,460)
|
|
|
65,874
|
|
|
(78,725)
|
|
|
132,141
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(3,973)
|
|
|
(16,062)
|
|
|
(12,192)
|
|
|
(21,269)
|
|
Purchases of
marketable securities
|
—
|
|
|
(32,958)
|
|
|
—
|
|
|
(112,326)
|
|
Maturities and sales
of marketable securities
|
23,864
|
|
|
21,943
|
|
|
78,093
|
|
|
34,446
|
|
Acquisitions, net of
cash acquired
|
(59,313)
|
|
|
(52,606)
|
|
|
(104,353)
|
|
|
(57,706)
|
|
Net cash used in
investing activities
|
(39,422)
|
|
|
(79,683)
|
|
|
(38,452)
|
|
|
(156,855)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock, net
|
302
|
|
|
6,135
|
|
|
4,405
|
|
|
17,139
|
|
Excess tax benefit
from stock-based compensation
|
227
|
|
|
22,072
|
|
|
917
|
|
|
28,139
|
|
Payment of deferred
acquisition-related consideration
|
(594)
|
|
|
—
|
|
|
(950)
|
|
|
—
|
|
Payment of credit
facility issuance costs
|
(136)
|
|
|
—
|
|
|
(3,221)
|
|
|
—
|
|
Payment of deferred
public offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(903)
|
|
Net cash provided by
(used in) financing activities
|
(201)
|
|
|
28,207
|
|
|
1,151
|
|
|
44,375
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(122)
|
|
|
468
|
|
|
(134)
|
|
|
(1,559)
|
|
Net increase (decrease) in cash and cash equivalents
|
(85,205)
|
|
|
14,866
|
|
|
(116,160)
|
|
|
18,102
|
|
Cash and cash
equivalents at beginning of period
|
248,717
|
|
|
323,165
|
|
|
279,672
|
|
|
319,929
|
|
Cash and cash
equivalents at end of period
|
$
|
163,512
|
|
|
$
|
338,031
|
|
|
$
|
163,512
|
|
|
$
|
338,031
|
|
|
|
|
|
|
|
|
|
GoPro, Inc.
Reconciliation of Preliminary GAAP to Non-GAAP Financial
Measures
(unaudited)
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
(in thousands,
except per share data)
|
June 30,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
(91,767)
|
|
|
$
|
35,031
|
|
|
$
|
(199,226)
|
|
|
$
|
51,783
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
412
|
|
|
350
|
|
|
769
|
|
|
633
|
|
Research and
development
|
7,086
|
|
|
3,710
|
|
|
13,096
|
|
|
7,245
|
|
Sales and
marketing
|
3,679
|
|
|
2,932
|
|
|
6,883
|
|
|
5,998
|
|
General and
administrative
|
6,227
|
|
|
11,197
|
|
|
12,387
|
|
|
30,814
|
|
Total
stock-based compensation
|
17,404
|
|
|
18,189
|
|
|
33,135
|
|
|
44,690
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
222
|
|
|
295
|
|
|
444
|
|
|
517
|
|
Research and
development
|
2,218
|
|
|
612
|
|
|
3,503
|
|
|
699
|
|
Sales and
marketing
|
—
|
|
|
33
|
|
|
22
|
|
|
66
|
|
General and
administrative
|
235
|
|
|
578
|
|
|
1,104
|
|
|
578
|
|
Total
acquisition-related costs
|
2,675
|
|
|
1,518
|
|
|
5,073
|
|
|
1,860
|
|
|
|
|
|
|
|
|
|
Restructuring
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
—
|
|
|
—
|
|
|
364
|
|
|
—
|
|
Research and
development
|
—
|
|
|
—
|
|
|
2,655
|
|
|
—
|
|
Sales and
marketing
|
—
|
|
|
—
|
|
|
2,678
|
|
|
—
|
|
General and
administrative
|
—
|
|
|
—
|
|
|
811
|
|
|
—
|
|
Total
restructuring costs
|
—
|
|
|
—
|
|
|
6,508
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Income tax
adjustments
|
(907)
|
|
|
(4,023)
|
|
|
(4,825)
|
|
|
(11,999)
|
|
Non-GAAP net
income (loss)
|
$
|
(72,595)
|
|
|
$
|
50,715
|
|
|
$
|
(159,335)
|
|
|
$
|
86,334
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
net income (loss) per share
|
$
|
(0.52)
|
|
|
$
|
0.35
|
|
|
$
|
(1.15)
|
|
|
$
|
0.58
|
|
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 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 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.
- Restructuring costs primarily include severance-related
costs recorded in connection with our global workforce reduction in
January 2016. 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.
- Income tax adjustments relate 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.
- Additionally, adjusted EBITDA excludes the amortization of
point-of-purchase (POP) display assets because it is a non-cash
charge, and similar to depreciation of property and equipment and
amortization of acquired intangible assets.
Reconciliations of non-GAAP financial measures are set forth
below:
|
Three months
ended
|
|
Six months
ended
|
(dollars in
thousands)
|
June 30,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
GAAP gross
profit
|
$
|
93,002
|
|
|
$
|
194,340
|
|
|
$
|
152,716
|
|
|
$
|
358,073
|
|
Stock-based
compensation
|
412
|
|
|
350
|
|
|
769
|
|
|
633
|
|
Acquisition-related
costs
|
222
|
|
|
295
|
|
|
444
|
|
|
517
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
364
|
|
|
—
|
|
Non-GAAP gross
profit
|
$
|
93,636
|
|
|
$
|
194,985
|
|
|
$
|
154,293
|
|
|
$
|
359,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
as a % of revenue
|
42.1%
|
|
|
46.3%
|
|
|
37.8%
|
|
|
45.7%
|
|
Stock-based
compensation
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
Acquisition-related
costs
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Non-GAAP gross
profit as a % of revenue
|
42.4%
|
|
|
46.4%
|
|
|
38.2%
|
|
|
45.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
202,379
|
|
|
$
|
148,202
|
|
|
$
|
383,528
|
|
|
$
|
289,667
|
|
Stock-based
compensation
|
(16,992)
|
|
|
(17,839)
|
|
|
(32,366)
|
|
|
(44,057)
|
|
Acquisition-related
costs
|
(2,453)
|
|
|
(1,223)
|
|
|
(4,629)
|
|
|
(1,343)
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
(6,144)
|
|
|
—
|
|
Non-GAAP operating
expenses
|
$
|
182,934
|
|
|
$
|
129,140
|
|
|
$
|
340,389
|
|
|
$
|
244,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss)
|
$
|
(109,377)
|
|
|
$
|
46,138
|
|
|
$
|
(230,812)
|
|
|
$
|
68,406
|
|
Stock-based
compensation
|
17,404
|
|
|
18,189
|
|
|
33,135
|
|
|
44,690
|
|
Acquisition-related
costs
|
2,675
|
|
|
1,518
|
|
|
5,073
|
|
|
1,860
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
6,508
|
|
|
—
|
|
Non-GAAP operating
income (loss)
|
$
|
(89,298)
|
|
|
$
|
65,845
|
|
|
$
|
(186,096)
|
|
|
$
|
114,956
|
|
|
Three months
ended
|
|
Six months
ended
|
(in
thousands)
|
June 30,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
GAAP net income
(loss)
|
$
|
(91,767)
|
|
|
$
|
35,031
|
|
|
$
|
(199,226)
|
|
|
$
|
51,783
|
|
Income tax expense
(benefit)
|
(16,950)
|
|
|
11,229
|
|
|
(31,233)
|
|
|
14,501
|
|
Interest (income)
expense, net
|
117
|
|
|
155
|
|
|
(217)
|
|
|
220
|
|
Depreciation and
amortization
|
9,482
|
|
|
6,422
|
|
|
17,805
|
|
|
11,791
|
|
POP display
amortization
|
4,957
|
|
|
4,323
|
|
|
9,700
|
|
|
8,871
|
|
Stock-based
compensation
|
17,404
|
|
|
18,189
|
|
|
33,135
|
|
|
44,690
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
6,508
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
(76,757)
|
|
|
$
|
75,349
|
|
|
$
|
(163,528)
|
|
|
$
|
131,856
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gopro-announces-second-quarter-2016-results-300305039.html
SOURCE GoPro, Inc.