SAN MATEO, Calif., Feb. 2, 2017 /PRNewswire/ --
Second Highest Revenue Quarter in Company History
Record Quarterly Revenue for EMEA and APAC Regions
HERO5 Black was the Best-Selling Digital Imaging Device in
Units and Dollars in the U.S. and EMEA
Four Million Installs of Quik Mobile App in 4Q16, Up Nearly
30% Sequentially
Quik Mobile December Monthly Active Users More Than Tripled
Year-Over-Year
GoPro, Inc. (NASDAQ: GPRO) announced financial results for its
fourth quarter and full year ended December 31, 2016.
"In 2016, big investments in hardware, cloud, and mobile yielded
a solid foundational experience for our customers," said
Nicholas Woodman, GoPro's Founder
and CEO. "In 2017, we will build on this foundation for our
customers while improving efficiency and managing cost to achieve
profitability."
Recent GoPro Highlights Include:
- GoPro's Board of Directors appointed CJ Prober to serve
as the Chief Operating Officer.
- GoPro experienced a GAAP loss of $116
million, or $0.82 loss
per diluted share, in the fourth quarter of 2016, which
included charges of $102 million for
a full valuation allowance on U.S. deferred tax assets and nearly
$37 million for restructuring
costs.
- GoPro was profitable in fourth quarter of 2016 on a non-GAAP
basis with income of $42 million, or
$0.29 per diluted share.
- According to The NPD Group's Retail Tracking Service, in
the U.S. in the fourth quarter GoPro accounted for 3 of the top 5
products, including the top 2 spots, on a unit basis in the digital
camera/camcorder category. HERO5 Black was the best-selling digital
image camera on a unit basis in the U.S. By our estimate, HERO
Session was the #2 best-selling camera in the U.S. on a unit
basis.
- According to NPD, GoPro's fourth quarter combined
digital camera/camcorder unit share increased over 400 basis points
year-over-year to 26.7% in the U.S.
- According to GfK, in the fourth quarter GoPro's digital
imaging unit share in Europe
increased 90 basis points year-over-year to 12.2%, Also in the
fourth quarter, HERO5 Black sold thru more units in a single
quarter in Europe than any other GoPro camera ever.
- China remains a top-ten
country for GoPro with fourth quarter and 2016 sell-thru up 61%
and 90%, respectively, year-over-year.
- In the fourth quarter, we released several GoPro accessories
including Karma Grip, a
handheld and wearable stabilization accessory, Remo, a
voice-activated waterproof remote for HERO5 cameras, and Quik
Key, a mobile microSD card reader that enables fast editing and
sharing from a smartphone.
- Instagram followers were up 53% year-over-year to nearly
12 million followers in the fourth quarter, driven by a 245%
year-over-year increase in international followers.
- Social media views of GoPro content reached
approximately 238 million, up over 40% year-over-year, driven by a
160% year-over-year increase in views on Facebook.
- According to YouTube, the equivalent of twenty-two years of
content with GoPro in the title, description or keyword was
uploaded to YouTube in 2016, a year-over-year increase of 35%. The
hours of GoPro-related content watched on YouTube in 2016 increased
86% year-over-year to approximately 78 million hours.
- GoPro Plus to debut in International markets in the
coming months. High retention rate amongst early U.S.
adopters.
- In the fourth quarter, the number of shares per month initiated
from the Capture App increased 128% year-over-year. The
number of people sharing content monthly increased 45%
year-over-year.
- The Quik mobile app was named one of Google Play's Best
Apps of 2016. December monthly active users and monthly exports
tripled over the prior year period.
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
($ in thousands,
except per share amounts)
|
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
540,621
|
|
|
$
|
436,603
|
|
|
23.8
|
%
|
|
$
|
1,185,481
|
|
|
$
|
1,619,971
|
|
|
(26.8)
|
%
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
39.2
|
%
|
|
29.4
|
%
|
|
980 bps
|
|
39.0
|
%
|
|
41.6
|
%
|
|
(260) bps
|
Non-GAAP
|
|
39.5
|
%
|
|
29.6
|
%
|
|
990 bps
|
|
39.3
|
%
|
|
41.7
|
%
|
|
(240) bps
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
(26,568)
|
|
|
$
|
(41,294)
|
|
|
|
|
$
|
(372,969)
|
|
|
$
|
54,748
|
|
|
|
Non-GAAP
|
|
$
|
31,639
|
|
|
$
|
(21,629)
|
|
|
|
|
$
|
(243,007)
|
|
|
$
|
140,798
|
|
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
(115,709)
|
|
|
$
|
(34,451)
|
|
|
|
|
$
|
(419,003)
|
|
|
$
|
36,131
|
|
|
|
Non-GAAP
|
|
$
|
42,367
|
|
|
$
|
(11,396)
|
|
|
|
|
$
|
(201,247)
|
|
|
$
|
111,564
|
|
|
|
Diluted net income
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
(0.82)
|
|
|
$
|
(0.25)
|
|
|
|
|
$
|
(3.01)
|
|
|
$
|
0.25
|
|
|
|
Non-GAAP
|
|
$
|
0.29
|
|
|
$
|
(0.08)
|
|
|
|
|
$
|
(1.44)
|
|
|
$
|
0.76
|
|
|
|
Adjusted
EBITDA
|
|
$
|
44,343
|
|
|
$
|
(9,268)
|
|
|
|
|
$
|
(192,807)
|
|
|
$
|
179,309
|
|
|
|
Business Outlook
GoPro is providing the following guidance:
- First Quarter 2017
- Revenue of $200 million +/-
$10 million
- GAAP and non-GAAP gross margin in the low 30% range
- GAAP operating expenses of between $168
million and $178 million
- Non-GAAP operating expenses of between $145 million and $155 million
- 2017
- GAAP operating expenses below $688
million
- Non-GAAP operating expenses below $600
million
Upcoming Events
Management will participate in investor conference on
February 14, 2017 in San Francisco. 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) 204-4517 or (913) 312-0652, access code 9901185,
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 capture and
share their lives. What began as an idea to help athletes
self-document themselves engaged in sport, GoPro has
become a mobile storytelling solution that helps the world share
itself through immersive content.
GoPro, HERO, 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. Additionally,
GoPro reports non-GAAP adjusted EBITDA. Non-GAAP items exclude,
where applicable, the effects of stock-based compensation,
acquisition-related costs, restructuring costs 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, tax rate, and earnings
per share on a GAAP and non-GAAP basis.
Note on Forward-looking Statements
This press release contains projections and other
forward-looking statements regarding future events, including but
not limited to, those regarding our business outlook for the first
quarter of 2017 and for 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 our dependence on sales of our
cameras, mounts, and accessories for substantially all of our
revenue and any decrease in the sales or change in sales mix of
these products would harm our business; the effect of a fall in
sales during the holiday season; 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; 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, operating expenses, and gross margin, and
profitability in past periods might not be indicative of future
performance; any inability to successfully manage frequent product
introductions and transitions, including managing our sales channel
and inventory and accurately forecasting future sales; 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 this quarter; 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, and in our Quarterly Report
on Form 10-Q for the quarter ended September
30, 2016. 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,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
540,621
|
|
|
$
|
436,603
|
|
|
$
|
1,185,481
|
|
|
$
|
1,619,971
|
|
Cost of
revenue
|
328,486
|
|
|
308,092
|
|
|
723,561
|
|
|
946,757
|
|
Gross
profit
|
212,135
|
|
|
128,511
|
|
|
461,920
|
|
|
673,214
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
92,728
|
|
|
66,432
|
|
|
358,902
|
|
|
241,694
|
|
Sales and
marketing
|
112,716
|
|
|
82,649
|
|
|
368,620
|
|
|
268,939
|
|
General and
administrative
|
33,259
|
|
|
20,724
|
|
|
107,367
|
|
|
107,833
|
|
Total
operating expenses
|
238,703
|
|
|
169,805
|
|
|
834,889
|
|
|
618,466
|
|
Operating income
(loss)
|
(26,568)
|
|
|
(41,294)
|
|
|
(372,969)
|
|
|
54,748
|
|
Other
income (expense), net
|
(1,750)
|
|
|
322
|
|
|
(2,205)
|
|
|
(2,163)
|
|
Income (loss) before
income taxes
|
(28,318)
|
|
|
(40,972)
|
|
|
(375,174)
|
|
|
52,585
|
|
Income tax expense
(benefit)
|
87,391
|
|
|
(6,521)
|
|
|
43,829
|
|
|
16,454
|
|
Net income
(loss)
|
$
|
(115,709)
|
|
|
$
|
(34,451)
|
|
|
$
|
(419,003)
|
|
|
$
|
36,131
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.82)
|
|
|
$
|
(0.25)
|
|
|
$
|
(3.01)
|
|
|
$
|
0.27
|
|
Diluted
|
$
|
(0.82)
|
|
|
$
|
(0.25)
|
|
|
$
|
(3.01)
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute net income (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
141,063
|
|
|
137,086
|
|
|
139,425
|
|
|
134,595
|
|
Diluted
|
141,063
|
|
|
137,086
|
|
|
139,425
|
|
|
146,486
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Balance Sheets
|
(unaudited)
|
|
(in
thousands)
|
December
31, 2016
|
|
December
31, 2015
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
192,114
|
|
|
$
|
279,672
|
|
Marketable
securities
|
25,839
|
|
|
194,386
|
|
Accounts receivable,
net
|
164,553
|
|
|
145,692
|
|
Inventory
|
167,192
|
|
|
188,232
|
|
Prepaid expenses and
other current assets
|
38,115
|
|
|
25,261
|
|
Total
current assets
|
587,813
|
|
|
833,243
|
|
Property and
equipment, net
|
76,509
|
|
|
70,050
|
|
Intangible assets,
net and goodwill
|
179,989
|
|
|
88,122
|
|
Other long-term
assets
|
78,329
|
|
|
111,561
|
|
Total
assets
|
$
|
922,640
|
|
|
$
|
1,102,976
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
205,028
|
|
|
$
|
89,989
|
|
Accrued
liabilities
|
211,323
|
|
|
192,446
|
|
Deferred
revenue
|
14,388
|
|
|
12,742
|
|
Total
current liabilities
|
430,739
|
|
|
295,177
|
|
Long-term
liabilities
|
44,956
|
|
|
35,766
|
|
Total
liabilities
|
475,695
|
|
|
330,943
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
757,226
|
|
|
663,311
|
|
Treasury stock, at
cost
|
(35,613)
|
|
|
(35,613)
|
|
Retained earnings
(accumulated deficit)
|
(274,668)
|
|
|
144,335
|
|
Total
stockholders' equity
|
446,945
|
|
|
772,033
|
|
Total
liabilities and stockholders' equity
|
$
|
922,640
|
|
|
$
|
1,102,976
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statement of Cash Flows
|
(unaudited)
|
|
|
Three months
ended
|
|
Year
ended
|
(in
thousands)
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(115,709)
|
|
|
$
|
(34,451)
|
|
|
$
|
(419,003)
|
|
|
$
|
36,131
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
11,100
|
|
|
9,596
|
|
|
41,640
|
|
|
28,981
|
|
Stock-based
compensation
|
17,926
|
|
|
18,120
|
|
|
69,527
|
|
|
80,680
|
|
Excess tax benefit from
stock-based compensation
|
(1,089)
|
|
|
3,202
|
|
|
(3,463)
|
|
|
(29,348)
|
|
Deferred income
taxes
|
59,524
|
|
|
(4,580)
|
|
|
38,568
|
|
|
(11,468)
|
|
Non-cash restructuring
charges
|
17,601
|
|
|
—
|
|
|
17,601
|
|
|
—
|
|
Impairment of
intangible assets
|
1,088
|
|
|
—
|
|
|
7,088
|
|
|
—
|
|
Other
|
2,820
|
|
|
994
|
|
|
7,574
|
|
|
5,427
|
|
Net changes in
operating assets and liabilities
|
19,435
|
|
|
27,967
|
|
|
132,715
|
|
|
47,208
|
|
Net cash
provided by (used in) operating activities
|
12,696
|
|
|
20,848
|
|
|
(107,753)
|
|
|
157,611
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(17,111)
|
|
|
(18,919)
|
|
|
(43,627)
|
|
|
(51,245)
|
|
Purchases of
marketable securities
|
—
|
|
|
(12,869)
|
|
|
—
|
|
|
(220,055)
|
|
Maturities of
marketable securities
|
26,694
|
|
|
44,144
|
|
|
119,918
|
|
|
94,680
|
|
Sale of marketable
securities
|
40,557
|
|
|
6,093
|
|
|
47,348
|
|
|
30,048
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
—
|
|
|
(104,353)
|
|
|
(65,405)
|
|
Net cash
provided by (used in) investing activities
|
50,140
|
|
|
18,449
|
|
|
19,286
|
|
|
(211,977)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock, net
|
(2,567)
|
|
|
(974)
|
|
|
2,775
|
|
|
22,833
|
|
Excess tax benefit
from stock-based compensation
|
1,089
|
|
|
(3,202)
|
|
|
3,463
|
|
|
29,348
|
|
Payment of deferred
acquisition-related consideration
|
—
|
|
|
—
|
|
|
(950)
|
|
|
—
|
|
Payment of credit
facility issuance costs
|
(46)
|
|
|
—
|
|
|
(3,333)
|
|
|
—
|
|
Payment of deferred
public offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(903)
|
|
Repurchases of
outstanding common stock
|
—
|
|
|
(35,613)
|
|
|
—
|
|
|
(35,613)
|
|
Net cash
provided by (used in) financing activities
|
(1,524)
|
|
|
(39,789)
|
|
|
1,955
|
|
|
15,665
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(775)
|
|
|
195
|
|
|
(1,046)
|
|
|
(1,556)
|
|
Net increase
(decrease) in cash and cash equivalents
|
60,537
|
|
|
(297)
|
|
|
(87,558)
|
|
|
(40,257)
|
|
Cash and cash
equivalents at beginning of period
|
131,577
|
|
|
279,969
|
|
|
279,672
|
|
|
319,929
|
|
Cash and cash
equivalents at end of period
|
$
|
192,114
|
|
|
$
|
279,672
|
|
|
$
|
192,114
|
|
|
$
|
279,672
|
|
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 tax rate, non-GAAP net income 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
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. 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.
- 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 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
|
|
Year
ended
|
(in thousands,
except per share data)
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
(115,709)
|
|
|
$
|
(34,451)
|
|
|
$
|
(419,003)
|
|
|
$
|
36,131
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
421
|
|
|
449
|
|
|
1,616
|
|
|
1,492
|
|
Research and
development
|
10,230
|
|
|
5,907
|
|
|
31,365
|
|
|
18,024
|
|
Sales and
marketing
|
3,184
|
|
|
4,248
|
|
|
13,883
|
|
|
13,762
|
|
General and
administrative
|
4,091
|
|
|
7,516
|
|
|
22,663
|
|
|
47,402
|
|
Total
stock-based compensation
|
17,926
|
|
|
18,120
|
|
|
69,527
|
|
|
80,680
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
1,093
|
|
|
222
|
|
|
1,759
|
|
|
961
|
|
Research and
development
|
2,581
|
|
|
1,257
|
|
|
14,439
|
|
|
3,154
|
|
Sales and
marketing
|
—
|
|
|
33
|
|
|
22
|
|
|
132
|
|
General and
administrative
|
26
|
|
|
33
|
|
|
1,126
|
|
|
1,123
|
|
Total
acquisition-related costs
|
3,700
|
|
|
1,545
|
|
|
17,346
|
|
|
5,370
|
|
|
|
|
|
|
|
|
|
Restructuring
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
133
|
|
|
—
|
|
|
497
|
|
|
—
|
|
Research and
development
|
14,542
|
|
|
—
|
|
|
17,197
|
|
|
—
|
|
Sales and
marketing
|
9,386
|
|
|
—
|
|
|
12,064
|
|
|
—
|
|
General and
administrative
|
12,520
|
|
|
—
|
|
|
13,331
|
|
|
—
|
|
Total
restructuring costs
|
36,581
|
|
|
—
|
|
|
43,089
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Income tax
adjustments
|
99,869
|
|
|
3,390
|
|
|
87,794
|
|
|
(10,617)
|
|
Non-GAAP net
income (loss)
|
$
|
42,367
|
|
|
$
|
(11,396)
|
|
|
$
|
(201,247)
|
|
|
$
|
111,564
|
|
|
|
|
|
|
|
|
|
GAAP shares for
diluted net income (loss) per share
|
141,063
|
|
|
137,086
|
|
|
139,425
|
|
|
146,486
|
|
Add: dilutive
shares
|
5,198
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP shares for
diluted net income (loss) per share
|
146,261
|
|
|
137,086
|
|
|
139,425
|
|
|
146,486
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
net income (loss) per share
|
$
|
0.29
|
|
|
$
|
(0.08)
|
|
|
$
|
(1.44)
|
|
|
$
|
0.76
|
|
|
Three months
ended
|
|
Year
ended
|
(dollars in
thousands)
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
GAAP gross
profit
|
$
|
212,135
|
|
|
$
|
128,511
|
|
|
$
|
461,920
|
|
—
|
|
$
|
673,214
|
|
Stock-based
compensation
|
421
|
|
|
449
|
|
|
1,616
|
|
|
1,492
|
|
Acquisition-related
costs
|
1,093
|
|
|
222
|
|
|
1,759
|
|
|
961
|
|
Restructuring
costs
|
133
|
|
|
—
|
|
|
497
|
|
|
—
|
|
Non-GAAP gross
profit
|
$
|
213,782
|
|
|
$
|
129,182
|
|
|
$
|
465,792
|
|
|
$
|
675,667
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
as a % of revenue
|
39.2
|
%
|
|
29.4
|
%
|
|
39.0
|
%
|
|
41.6
|
%
|
Stock-based
compensation
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
Acquisition-related
costs
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
—
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP gross
profit as a % of revenue
|
39.5
|
%
|
|
29.6
|
%
|
|
39.3
|
%
|
|
41.7
|
%
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
238,703
|
|
|
$
|
169,805
|
|
|
$
|
834,889
|
|
|
$
|
618,466
|
|
Stock-based
compensation
|
(17,505)
|
|
|
(17,671)
|
|
|
(67,911)
|
|
|
(79,188)
|
|
Acquisition-related
costs
|
(2,607)
|
|
|
(1,323)
|
|
|
(15,587)
|
|
|
(4,409)
|
|
Restructuring
costs
|
(36,448)
|
|
|
—
|
|
|
(42,592)
|
|
|
—
|
|
Non-GAAP operating
expenses
|
$
|
182,143
|
|
|
$
|
150,811
|
|
|
$
|
708,799
|
|
|
$
|
534,869
|
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss)
|
$
|
(26,568)
|
|
|
$
|
(41,294)
|
|
|
$
|
(372,969)
|
|
|
$
|
54,748
|
|
Stock-based
compensation
|
17,926
|
|
|
18,120
|
|
|
69,527
|
|
|
80,680
|
|
Acquisition-related
costs
|
3,700
|
|
|
1,545
|
|
|
17,346
|
|
|
5,370
|
|
Restructuring
costs
|
36,581
|
|
|
—
|
|
|
43,089
|
|
|
—
|
|
Non-GAAP operating
income (loss)
|
$
|
31,639
|
|
|
$
|
(21,629)
|
|
|
$
|
(243,007)
|
|
|
$
|
140,798
|
|
|
Three months
ended
|
|
Year
ended
|
(in
thousands)
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
GAAP net income
(loss)
|
$
|
(115,709)
|
|
|
$
|
(34,451)
|
|
|
$
|
(419,003)
|
|
|
$
|
36,131
|
|
Income tax expense
(benefit)
|
87,391
|
|
|
(6,521)
|
|
|
43,829
|
|
|
16,454
|
|
Interest expense
(income), net
|
1,022
|
|
|
(126)
|
|
|
1,401
|
|
|
234
|
|
Depreciation and
amortization
|
11,100
|
|
|
9,596
|
|
|
41,639
|
|
|
28,981
|
|
POP display
amortization
|
4,944
|
|
|
4,114
|
|
|
19,623
|
|
|
16,829
|
|
Stock-based
compensation
|
17,926
|
|
|
18,120
|
|
|
69,527
|
|
|
80,680
|
|
Impairment of
intangible assets
|
1,088
|
|
|
—
|
|
|
7,088
|
|
|
—
|
|
Restructuring
costs
|
36,581
|
|
|
—
|
|
|
43,089
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
44,343
|
|
|
$
|
(9,268)
|
|
|
$
|
(192,807)
|
|
|
$
|
179,309
|
|
Reconciliations of non-GAAP financial measures for business
outlook are set forth below:
(in
thousands)
|
Q1
2017
|
|
Full year
2017
|
GAAP operating
expenses
|
$
|
168,000 -
$178,000
|
|
|
$
|
688,000
|
|
Estimated adjustments
for:
|
|
|
|
Stock-based
compensation
|
18,000
|
|
|
80,000
|
|
Acquisition-related
costs
|
1,000
|
|
|
4,000
|
|
Restructuring
costs
|
4,000
|
|
|
4,000
|
|
Non-GAAP operating
expenses
|
$
|
145,000 -
$155,000
|
|
|
$
|
600,000
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gopro-announces-fourth-quarter-and-full-year-2016-results-300401582.html
SOURCE GoPro, Inc.