SAN MATEO, Calif., Feb. 1, 2018 /PRNewswire/ -- GoPro, Inc.
(NASDAQ: GPRO) announced financial results for its fourth quarter
and full year ended December 31,
2017. The Company recorded full year 2017 revenue of
$1.18 billion, flat year-over-year.
Operating expenses decreased by more than 30% year-over-year. The
Company ended the year with $247
million in cash and marketable securities - up $50 million from the third quarter.
"The fourth quarter demonstrated there is significant demand for
GoPro products at the right price," said GoPro founder and CEO
Nicholas Woodman. "Our opportunity
in 2018 is to marry consumer demand for GoPro with new, higher
margin cameras launching in the second half that will appeal to
existing and new consumers. We are also focused on growing GoPro's
subscription service, Plus, and launching new initiatives as
subscription becomes an increasingly important focus for our
business."
Recent GoPro Highlights:
- GoPro reduced GAAP operating expenses to $548 million in 2017, down 34%
year-over-year. Non-GAAP operating expenses were down 33%
year-over-year to $476 million. In
2018, GoPro is targeting non-GAAP operating expenses below
$400 million – a cumulative reduction
of more than $300 million since
2016.
- GoPro strengthened its balance sheet, generating
$81 million in cash since
March 31st, excluding the
net proceeds from its convertible debt offering in April, ending
the year with $247 million in cash
and marketable securities.
- GAAP net loss for the year was approximately $183 million, or $1.32 per share, compared to a net loss of
$419 million in 2016, or $3.01 per share. GAAP net loss for the fourth
quarter 2017 was $56 million.
Non-GAAP net loss for the year, and for the fourth quarter of 2017,
was $96 million and $41 million, respectively.
- For the fourth straight year, GoPro's portfolio captured
more than 80% of the Action Camera category by unit volume in the
U.S. in 2017, according to The NPD Group's Retail Tracking
Service.
- In Europe, GoPro held 69%
and 44% of the Action Camera category by dollar and unit volume,
respectively, in 2017, according to GfK.
- In China, unit sales
grew by 28% year-over-year in 2017, marking 2 years of
consecutive sell-through growth, according to GfK.
- In Japan, unit sales
grew by 96% year-over-year in 2017, marking 2 years of
consecutive growth with sell-through doubling each year since 2015,
according to GfK.
- GoPro's 360-degree camera, Fusion, launched at over 1,000
Best Buy stores and B&H Photo, building on initial success
at gopro.com.
- Fusion earned a 2018 Edison Award in the Media, Visual
Communications & Entertainment Category in February.
- GoPro gained more than 4.8 million new social media
followers in 2017, growing its total following to 35 million
across all platforms, a 16% increase.
- Instagram followers increased by
26% year-over-year in 2017, with the addition of 3
million followers, reaching a total of 15 million.
- GoPro content was viewed ~700 million times on social media
platforms in 2017, up more than 25% year-over-year. GoPro
content on YouTube saw a 93% increase in median organic viewership
per video in 2017.
- The Quik Mobile Video Editing App was installed 38 million
times since it launched in 2016. Quik App installs grew 120%
year-over-year in 2017.
- 'Plus' subscription service has 130,000 paying
subscribers worldwide. In January
2018, GoPro expanded subscription benefits for Plus
subscribers, including replacement for damaged cameras, mobile
cloud backup, and greater storage capacity. This is the first of
several subscription initiatives planned for Plus subscribers in
2018.
Results Summary
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
($ in thousands,
except per share amounts)
|
|
2017
|
|
2016
|
|
%
Change
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
334,796
|
|
|
$
|
540,621
|
|
|
(38.1)
|
%
|
|
$
|
1,179,741
|
|
|
$
|
1,185,481
|
|
|
(0.5)
|
%
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
23.8
|
%
|
|
39.2
|
%
|
|
(1,540)
bps
|
|
32.6
|
%
|
|
39.0
|
%
|
|
(640) bps
|
Non-GAAP
|
|
24.8
|
%
|
|
39.5
|
%
|
|
(1,470)
bps
|
|
33.3
|
%
|
|
39.3
|
%
|
|
(600) bps
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
(58,311)
|
|
|
$
|
(26,568)
|
|
|
(119.5)
|
%
|
|
$
|
(163,460)
|
|
|
$
|
(372,969)
|
|
|
56.2
|
%
|
Non-GAAP
|
|
$
|
(37,427)
|
|
|
$
|
31,639
|
|
|
(218.3)
|
%
|
|
$
|
(82,922)
|
|
|
$
|
(243,007)
|
|
|
65.9
|
%
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
(55,848)
|
|
|
$
|
(115,709)
|
|
|
51.7
|
%
|
|
$
|
(182,873)
|
|
|
$
|
(419,003)
|
|
|
56.4
|
%
|
Non-GAAP
|
|
$
|
(41,319)
|
|
|
$
|
42,367
|
|
|
(197.5)
|
%
|
|
$
|
(95,867)
|
|
|
$
|
(201,247)
|
|
|
52.4
|
%
|
Diluted net income
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
(0.41)
|
|
|
$
|
(0.82)
|
|
|
50.0
|
%
|
|
$
|
(1.32)
|
|
|
$
|
(3.01)
|
|
|
56.1
|
%
|
Non-GAAP
|
|
$
|
(0.30)
|
|
|
$
|
0.29
|
|
|
(203.4)
|
%
|
|
$
|
(0.69)
|
|
|
$
|
(1.44)
|
|
|
52.1
|
%
|
Adjusted
EBITDA
|
|
$
|
(26,544)
|
|
|
$
|
44,343
|
|
|
(159.9)
|
%
|
|
$
|
(31,368)
|
|
|
$
|
(192,807)
|
|
|
83.7
|
%
|
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) 271-8595 or (719) 325-2484, access code 2807712,
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 . A recording of the webcast will be
available on GoPro's website, http://investor.gopro.com,
approximately two hours after the call and for 90 days
thereafter.
About GoPro, Inc. (NASDAQ: GPRO)
GoPro makes it easy for people to celebrate and share
experiences. We believe life is more meaningful when shared.
We build cameras, software and accessories that help the world
share itself in immersive and exciting ways.
GoPro, HERO, Quik, QuikStories and their respective logos are
trademarks or registered trademarks of GoPro,
Inc. in the United States and other countries. All
other trademarks are the property of their respective owners. For
more information, visit www.gopro.com or connect
with GoPro on Facebook, Instagram,
LinkedIn, Pinterest, Twitter, YouTube,
and GoPro's The Inside Line.
GoPro's Use of Social Media
GoPro announces material financial information using the
Company's investor relations website, SEC filings, press releases,
public conference calls and webcasts. GoPro may also use
social media channels to communicate about the Company, its brand
and other matters; these communications could be deemed material
information. Investors and others are encouraged to review posts on
GoPro's pages on Facebook, Instagram, LinkedIn, Pinterest,
Twitter, YouTube, GoPro's investor relations website and The Inside
Line.
Note Regarding Use of Non-GAAP Financial Measures
GoPro reports gross profit, gross margin, operating
expenses, operating income (loss), net income (loss) and diluted
net income (loss) per share in accordance
with U.S. generally accepted accounting principles (GAAP)
and on a non-GAAP basis. Additionally, GoPro reports non-GAAP
adjusted EBITDA. Non-GAAP items exclude, where applicable, the
effects of stock-based compensation, acquisition-related costs,
restructuring costs, non-cash interest expense and the tax impact
of these items. A reconciliation to 2018 target GAAP gross margin
and operating expenses have not been provided because doing so
would require an unreasonable effort due to the unavailability of
information needed to calculate reconciling items and due to the
variability, complexity and limited visibility of the adjusting
items that would be excluded from the non-GAAP financial measures
in future periods.
Note on Forward-looking Statements
This press release may contain projections or other
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act. Forward-looking statements in
this press release include, but are not limited to, expectations
regarding our business outlook for 2018. These statements involve
risks and uncertainties, and actual events or results may differ
materially. Among the important factors that could cause
actual results to differ materially from those in the
forward-looking statements are the risk that our reduction in
operating expenses may impact our ability to meet our business
objectives and achieve our revenue targets and may not result in
the expected improvement in our profitability; the fact that our
future growth depends in part on further penetrating our
addressable market and growing internationally, and we may not be
successful in doing so; any inability to successfully manage
frequent product introductions (including our 2018 roadmap for new
hardware and software products and major new software features) and
transitions, including managing our sales channel and inventory and
accurately forecasting future sales; our reliance on third party
suppliers, some of which are sole source suppliers, to provide
components for our products; our dependence on sales of our
cameras, mounts and accessories for substantially all of our
revenue; the effect of a decrease in the sales or change in sales
mix of these products; the effect of a decrease in sales during the
holiday season; the fact that an economic downturn or economic
uncertainty in our key U.S. and international markets may adversely
affect consumer discretionary spending and demand for our products;
any inability to anticipate consumer preferences and successfully
develop and market desirable products; the effects of the highly
competitive market in which we operate; the fact that we may not be
able to achieve revenue growth or profitability in the future;
risks related to inventory, purchase commitments and long-lived
assets; the importance of maintaining the value and reputation of
our brand; and other factors detailed in the Risk Factors
section of our Annual Report on Form 10-K for the year ended
December 31, 2016, which is on file
with the Securities and Exchange Commission and as supplemented by
Item 1A Risk Factors in our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2017.
These forward-looking statements speak only as of the date hereof
or as of the date otherwise stated herein. GoPro disclaims any
obligation to update these forward-looking statements.
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statement of Operations
|
(unaudited)
|
|
|
Three months
ended
|
|
Twelve months
ended
|
(in thousands,
except per share data)
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
334,796
|
|
|
$
|
540,621
|
|
|
$
|
1,179,741
|
|
|
$
|
1,185,481
|
|
Cost of
revenue
|
255,010
|
|
|
328,486
|
|
|
795,211
|
|
|
723,561
|
|
Gross
profit
|
79,786
|
|
|
212,135
|
|
|
384,530
|
|
|
461,920
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
52,504
|
|
|
92,728
|
|
|
229,265
|
|
|
358,902
|
|
Sales and
marketing
|
65,425
|
|
|
112,716
|
|
|
236,581
|
|
|
368,620
|
|
General and
administrative
|
20,168
|
|
|
33,259
|
|
|
82,144
|
|
|
107,367
|
|
Total operating
expenses
|
138,097
|
|
|
238,703
|
|
|
547,990
|
|
|
834,889
|
|
Operating
loss
|
(58,311)
|
|
|
(26,568)
|
|
|
(163,460)
|
|
|
(372,969)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(4,508)
|
|
|
(1,177)
|
|
|
(13,660)
|
|
|
(2,992)
|
|
Other income,
net
|
28
|
|
|
(573)
|
|
|
733
|
|
|
787
|
|
Total other
expense, net
|
(4,480)
|
|
|
(1,750)
|
|
|
(12,927)
|
|
|
(2,205)
|
|
Loss before income
taxes
|
(62,791)
|
|
|
(28,318)
|
|
|
(176,387)
|
|
|
(375,174)
|
|
Income tax expense
(benefit)
|
(6,943)
|
|
|
87,391
|
|
|
6,486
|
|
|
43,829
|
|
Net loss
|
$
|
(55,848)
|
|
|
$
|
(115,709)
|
|
|
$
|
(182,873)
|
|
|
$
|
(419,003)
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.41)
|
|
|
$
|
(0.82)
|
|
|
$
|
(1.32)
|
|
|
$
|
(3.01)
|
|
Diluted
|
$
|
(0.41)
|
|
|
$
|
(0.82)
|
|
|
$
|
(1.32)
|
|
|
$
|
(3.01)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute net loss per share:
|
|
|
|
|
|
|
|
Basic
|
136,886
|
|
|
141,063
|
|
|
138,056
|
|
|
139,425
|
|
Diluted
|
136,886
|
|
|
141,063
|
|
|
138,056
|
|
|
139,425
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Balance Sheets
|
(unaudited)
|
|
(in
thousands)
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
202,504
|
|
|
$
|
192,114
|
|
Marketable
securities
|
44,886
|
|
|
25,839
|
|
Accounts receivable,
net
|
112,935
|
|
|
164,553
|
|
Inventory
|
150,551
|
|
|
167,192
|
|
Prepaid expenses and
other current assets
|
62,811
|
|
|
38,115
|
|
Total current
assets
|
573,687
|
|
|
587,813
|
|
Property and
equipment, net
|
68,587
|
|
|
76,509
|
|
Intangible assets,
net and goodwill
|
170,958
|
|
|
179,989
|
|
Other long-term
assets
|
37,014
|
|
|
78,329
|
|
Total
assets
|
$
|
850,246
|
|
|
$
|
922,640
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
138,257
|
|
|
$
|
205,028
|
|
Accrued
liabilities
|
213,030
|
|
|
211,323
|
|
Deferred
revenue
|
19,244
|
|
|
14,388
|
|
Total current
liabilities
|
370,531
|
|
|
430,739
|
|
Long-term
debt
|
130,048
|
|
|
—
|
|
Other long-term
liabilities
|
50,962
|
|
|
44,956
|
|
Total
liabilities
|
551,541
|
|
|
475,695
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
854,452
|
|
|
757,226
|
|
Treasury stock, at
cost
|
(113,613)
|
|
|
(35,613)
|
|
Accumulated
deficit
|
(442,134)
|
|
|
(274,668)
|
|
Total
stockholders' equity
|
298,705
|
|
|
446,945
|
|
Total
liabilities and stockholders' equity
|
$
|
850,246
|
|
|
$
|
922,640
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statement of Cash Flows
|
(unaudited)
|
|
|
Three months
ended
|
|
Twelve months
ended
|
(in
thousands)
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
Operating
activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(55,848)
|
|
$
|
(115,709)
|
|
$
|
(182,873)
|
|
$
|
(419,003)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
9,218
|
|
11,100
|
|
41,478
|
|
41,640
|
Stock-based
compensation
|
15,020
|
|
17,926
|
|
51,255
|
|
69,527
|
Excess tax benefit from
stock-based compensation
|
—
|
|
(1,089)
|
|
—
|
|
(3,463)
|
Deferred income
taxes
|
(709)
|
|
59,524
|
|
(2,527)
|
|
38,568
|
Non-cash restructuring
charges
|
3,456
|
|
17,601
|
|
7,315
|
|
17,601
|
Impairment of
intangible assets
|
—
|
|
1,088
|
|
—
|
|
7,088
|
Non-cash interest
expense
|
1,979
|
|
—
|
|
5,345
|
|
—
|
Other
|
203
|
|
2,820
|
|
4,094
|
|
7,574
|
Net
changes in operating assets and liabilities
|
83,671
|
|
19,435
|
|
|
39,060
|
|
132,715
|
Net cash
provided by (used in) operating activities
|
56,990
|
|
12,696
|
|
|
(36,853)
|
|
(107,753)
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(5,748)
|
|
(17,111)
|
|
(24,061)
|
|
(43,627)
|
Purchases of
marketable securities
|
(20,400)
|
|
—
|
|
(52,318)
|
|
—
|
Maturities of
marketable securities
|
7,499
|
|
26,694
|
|
21,659
|
|
119,918
|
Sale of marketable
securities
|
—
|
|
40,557
|
|
11,623
|
|
47,348
|
Acquisitions, net of
cash acquired
|
—
|
|
—
|
|
—
|
|
(104,353)
|
Net cash provided by
(used in) investing activities
|
(18,649)
|
|
50,140
|
|
|
(43,097)
|
|
19,286
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock
|
128
|
|
3,462
|
|
9,751
|
|
9,664
|
Taxes paid related to
net share settlement of equity awards
|
(840)
|
|
(6,029)
|
|
(12,118)
|
|
(6,889)
|
Proceeds from
issuance of convertible senior notes
|
—
|
|
—
|
|
175,000
|
|
—
|
Prepayment of forward
stock repurchase transaction
|
—
|
|
—
|
|
(78,000)
|
|
—
|
Excess tax benefit
from stock-based compensation
|
—
|
|
1,089
|
|
—
|
|
3,463
|
Payment of deferred
acquisition-related consideration
|
1
|
|
—
|
|
(75)
|
|
(950)
|
Payment of credit
facility issuance costs
|
(1)
|
|
(46)
|
|
(5,964)
|
|
(3,333)
|
Net cash provided by
(used in) financing activities
|
(712)
|
|
(1,524)
|
|
|
88,594
|
|
1,955
|
Effect of exchange
rate changes on cash and cash equivalents
|
259
|
|
(775)
|
|
1,746
|
|
(1,046)
|
Net increase
(decrease) in cash and cash equivalents
|
37,888
|
|
60,537
|
|
10,390
|
|
(87,558)
|
Cash and cash
equivalents at beginning of period
|
|
164,616
|
|
131,577
|
|
|
192,114
|
|
279,672
|
Cash and cash
equivalents at end of period
|
$
202,504
|
|
$
|
192,114
|
|
$
202,504
|
|
$
|
192,114
|
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),
diluted net income (loss) per share and adjusted EBITDA. We also
provide forecasts of non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP net income (loss) and non-GAAP diluted net
income (loss) per share. We use these non-GAAP financial measures
to help us understand and evaluate our core operating performance
and trends, to prepare and approve our annual budget, and to
develop short-term and long-term operational plans. We believe that
these measures provide useful information to investors and others
in understanding and evaluating our operating results in the same
manner as our management and board of directors. These non-GAAP
financial measures should not be considered in isolation from, or
as an alternative to, the measures prepared in accordance with
GAAP, and are not based on any comprehensive set of accounting
rules or principles. 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.
These non-GAAP financial measures have limitations in that they
do not reflect all of the amounts associated with our results of
operations as determined in accordance with GAAP. Some of these
limitations are:
- adjusted EBITDA does not reflect tax payments that reduce cash
available to us;
- adjusted EBITDA excludes depreciation and amortization and,
although these are non-cash charges, the property and equipment
being depreciated and amortized often will have to be replaced in
the future, and adjusted EBITDA does not reflect any cash capital
expenditure requirements for such replacements;
- adjusted EBITDA excludes the amortization of POP display assets
because it is a non-cash charge, and is treated similarly to
depreciation of property and equipment and amortization of acquired
intangible assets;
- adjusted EBITDA and non-GAAP net income (loss) exclude the
impairment of intangible assets because it is a non-cash charge
that is inconsistent in amount and frequency;
- adjusted EBITDA and non-GAAP net income (loss) exclude
restructuring costs which primarily include severance-related
costs, stock-based compensation expenses and facilities
consolidation charges recorded in connection with restructuring
actions announced in the first and fourth quarters of 2016 and the
first quarter of 2017. These expenses do not reflect expected
future operating expenses and do not contribute to a meaningful
evaluation of current operating performance or comparisons to the
operating performance in other periods;
- adjusted EBITDA and non-GAAP net income (loss) exclude
stock-based compensation expense related
to equity awards granted primarily to our workforce. We exclude
stock-based compensation expense because we believe that the
non-GAAP financial measures excluding this item provide meaningful
supplemental information regarding operational performance. In
particular, we note that companies calculate stock-based
compensation expense for the variety of award types that they
employ using different valuation methodologies and subjective
assumptions. These non-cash charges are not factored into our
internal evaluation of net income (loss) as we believe their
inclusion would hinder our ability to assess core operational
performance.
- non-GAAP net income (loss) exclude
acquisition-related costs including 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.
- non-GAAP net income (loss) exclude non-cash
interest expense. In connection with issuance of the
Convertible Senior Notes in April
2017, we are required to recognize non-cash interest expense
in accordance with the authoritative accounting guidance for
convertible debt that may be settled in cash.
- non-GAAP net income (loss) include income
tax adjustments. Beginning
in the first quarter of 2017, we implemented a cash-based non-GAAP
tax expense approach (based upon expected annual cash payments for
income taxes) for evaluating operating performance as well as for
planning and forecasting purposes. This non-GAAP tax approach
eliminates the effects of period specific items, which can vary in
size and frequency and does not necessarily reflect our long-term
operations. Historically, we computed a non-GAAP tax rate based on
non-GAAP pre-tax income on a quarterly basis, which considered the
income tax effects of the adjustments above.
- other companies may calculate these non-GAAP financial
measures differently than we do, limiting their usefulness as
comparative measures.
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
|
|
Twelve months
ended
|
(in thousands,
except per share data)
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(55,848)
|
|
|
$
|
(115,709)
|
|
|
$
|
(182,873)
|
|
|
$
|
(419,003)
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
580
|
|
|
421
|
|
|
1,935
|
|
|
1,616
|
|
Research and
development
|
7,924
|
|
|
10,230
|
|
|
24,963
|
|
|
31,365
|
|
Sales and
marketing
|
3,203
|
|
|
3,184
|
|
|
10,498
|
|
|
13,883
|
|
General and
administrative
|
3,313
|
|
|
4,091
|
|
|
13,859
|
|
|
22,663
|
|
Total
stock-based compensation
|
15,020
|
|
|
17,926
|
|
|
51,255
|
|
|
69,527
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
2,360
|
|
|
1,093
|
|
|
5,985
|
|
|
1,759
|
|
Research and
development
|
—
|
|
|
2,581
|
|
|
3,028
|
|
|
14,439
|
|
Sales and
marketing
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
General and
administrative
|
—
|
|
|
26
|
|
|
(22)
|
|
|
1,126
|
|
Total
acquisition-related costs
|
2,360
|
|
|
3,700
|
|
|
8,991
|
|
|
17,346
|
|
|
|
|
|
|
|
|
|
Restructuring
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
176
|
|
|
133
|
|
|
634
|
|
|
497
|
|
Research and
development
|
1,686
|
|
|
14,542
|
|
|
10,092
|
|
|
17,197
|
|
Sales and
marketing
|
1,087
|
|
|
9,386
|
|
|
7,047
|
|
|
12,064
|
|
General and
administrative
|
555
|
|
|
12,520
|
|
|
2,519
|
|
|
13,331
|
|
Total
restructuring costs
|
3,504
|
|
|
36,581
|
|
|
20,292
|
|
|
43,089
|
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
1,979
|
|
|
—
|
|
|
5,345
|
|
|
—
|
|
Income tax
adjustments
|
(8,334)
|
|
|
99,869
|
|
|
1,123
|
|
|
87,794
|
|
Non-GAAP net
income (loss)
|
$
|
(41,319)
|
|
|
$
|
42,367
|
|
|
$
|
(95,867)
|
|
|
$
|
(201,247)
|
|
|
|
|
|
|
|
|
|
GAAP shares for
diluted net loss per share
|
136,886
|
|
|
141,063
|
|
|
138,056
|
|
|
139,425
|
|
Add: dilutive shares
|
—
|
|
|
5,198
|
|
|
—
|
|
|
—
|
|
Non-GAAP shares for
diluted net income (loss) per share
|
136,886
|
|
|
146,261
|
|
|
138,056
|
|
|
139,425
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
net income (loss) per share
|
$
|
(0.30)
|
|
|
$
|
0.29
|
|
|
$
|
(0.69)
|
|
|
$
|
(1.44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
(dollars in
thousands)
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
GAAP gross
profit
|
$
|
79,786
|
|
|
$
|
212,135
|
|
|
$
|
384,530
|
|
|
$
|
461,920
|
|
Stock-based
compensation
|
580
|
|
|
421
|
|
|
1,935
|
|
|
1,616
|
|
Acquisition-related
costs
|
2,360
|
|
|
1,093
|
|
|
5,985
|
|
|
1,759
|
|
Restructuring
costs
|
176
|
|
|
133
|
|
|
634
|
|
|
497
|
|
Non-GAAP gross
profit
|
$
|
82,902
|
|
|
$
|
213,782
|
|
|
$
|
393,084
|
|
|
$
|
465,792
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
as a % of revenue
|
23.8
|
%
|
|
39.2
|
%
|
|
32.6
|
%
|
|
39.0
|
%
|
Stock-based
compensation
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
Acquisition-related
costs
|
0.7
|
|
|
0.2
|
|
|
0.5
|
|
|
0.2
|
|
Restructuring
costs
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Non-GAAP gross
profit as a % of revenue
|
24.8
|
%
|
|
39.5
|
%
|
|
33.3
|
%
|
|
39.3
|
%
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
138,097
|
|
|
$
|
238,703
|
|
|
$
|
547,990
|
|
|
$
|
834,889
|
|
Stock-based
compensation
|
(14,440)
|
|
|
(17,505)
|
|
|
(49,320)
|
|
|
(67,911)
|
|
Acquisition-related
costs
|
—
|
|
|
(2,607)
|
|
|
(3,006)
|
|
|
(15,587)
|
|
Restructuring
costs
|
(3,328)
|
|
|
(36,448)
|
|
|
(19,658)
|
|
|
(42,592)
|
|
Non-GAAP operating
expenses
|
$
|
120,329
|
|
|
$
|
182,143
|
|
|
$
|
476,006
|
|
|
$
|
708,799
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss
|
$
|
(58,311)
|
|
|
$
|
(26,568)
|
|
|
$
|
(163,460)
|
|
|
$
|
(372,969)
|
|
Stock-based
compensation
|
15,020
|
|
|
17,926
|
|
|
51,255
|
|
|
69,527
|
|
Acquisition-related
costs
|
2,360
|
|
|
3,700
|
|
|
8,991
|
|
|
17,346
|
|
Restructuring
costs
|
3,504
|
|
|
36,581
|
|
|
20,292
|
|
|
43,089
|
|
Non-GAAP operating
income (loss)
|
$
|
(37,427)
|
|
|
$
|
31,639
|
|
|
$
|
(82,922)
|
|
|
$
|
(243,007)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
(in
thousands)
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
GAAP net
loss
|
$
|
(55,848)
|
|
|
$
|
(115,709)
|
|
|
$
|
(182,873)
|
|
|
$
|
(419,003)
|
|
Income tax expense
(benefit)
|
(6,943)
|
|
|
87,391
|
|
|
6,486
|
|
|
43,829
|
|
Interest expense,
net
|
4,163
|
|
|
1,022
|
|
|
12,804
|
|
|
1,401
|
|
Depreciation and
amortization
|
9,218
|
|
|
11,100
|
|
|
41,478
|
|
|
41,639
|
|
POP display
amortization
|
4,342
|
|
|
4,944
|
|
|
19,190
|
|
|
19,623
|
|
Stock-based
compensation
|
15,020
|
|
|
17,926
|
|
|
51,255
|
|
|
69,527
|
|
Impairment of
intangible assets
|
—
|
|
|
1,088
|
|
|
—
|
|
|
7,088
|
|
Restructuring
costs
|
3,504
|
|
|
36,581
|
|
|
20,292
|
|
|
43,089
|
|
Adjusted
EBITDA
|
$
|
(26,544)
|
|
|
$
|
44,343
|
|
|
$
|
(31,368)
|
|
|
$
|
(192,807)
|
|
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SOURCE GoPro, Inc.