SAN MATEO, Calif., Nov. 1, 2018 /PRNewswire/ -- GoPro, Inc. (NASDAQ:
GPRO) announced financial results for its third quarter ended
September 30, 2018.
"GoPro completed a successful third quarter highlighted by a
very strong reception and global demand for HERO7 Black," said
founder and CEO Nicholas Woodman.
"We expect to achieve profitability in Q4 and for the second-half
of 2018, and exit the year with low channel inventory to be well
positioned for Q1 2019."
Recent GoPro Highlights
- Revenue for Q3 2018 was $286
million, down 13% year-over-year and up 1%
sequentially.
- GAAP gross margin for Q3 2018 was 32%, up from 29% in the
prior quarter. Non-GAAP gross margin for Q3 2018 was 33%, up
from 31% in the prior quarter.
- Q3 2018 GAAP net loss of $27
million represents a 27% sequential improvement –
resulting in a $0.19 loss per share
and a non-GAAP net loss of $6
million, or $0.04 loss per
share.
- Cash and investments totaled $148
million at the end of Q3 2018.
- GoPro reduced GAAP and non-GAAP operating expenses by
$10 million, or 8% and 9%,
year-over-year, respectively.
- HERO7 Black achieved the strongest month-one unit
sell-through in company history.
- GoPro.com generated a record breaking first month of camera
unit sales after the launch of HERO7.
- In the US, GoPro held 96% dollar share and 87% unit share of
the action camera category. The top-six cameras sold by unit
volume were GoPro cameras in Q3 2018 according to the NPD
Group.
- In the US, Fusion captured 47% dollar share of the spherical
camera market according to the NPD Group.
- In Europe, in the
$150 and above price band, GoPro held
84% unit share, up from 78% a year ago in Q3 2018 according to
GfK.
- In Japan, GoPro market
share in Q3 2018 was 58% and 71% by units and dollars, up from 51%
and 61% respectively year-over-year, according to GfK.
- In Korea, GoPro market share in Q3 2018 was 47% and 61% by
units and dollars, up from 28% and 38% respectively year-over-year,
according to GfK.
- GoPro Plus subscription service reached 185,000 active
paying subscribers at the end of Q3 2018, up 16%
sequentially.
- Social followers increased by 997,000 in the quarter to
approximately 37.4 million driven primarily by increases on YouTube
and Instagram.
- GoPro content achieved 142 million organic video views in
Q3, up 9% sequentially.
- Social sharing of GoPro content reached a 21-month high in
September.
- Jim Lanzone was appointed to
GoPro's Board of Directors. Mr. Lanzone is Chief Digital
Officer at CBS and CEO of CBS Interactive.
- Entered into a collaboration with Adobe to make thousands of
curated GoPro video clips available for license on the Adobe Stock
marketplace under a revenue sharing agreement.
- For the 19th straight quarter, GoPro is the number one
selling camera by unit volume in North
America.
Results
Summary:
|
|
|
Three months ended
September 30,
|
($ in thousands,
except per share amounts)
|
|
2018
|
|
2017
|
|
%
Change
|
Revenue
|
|
$
|
285,936
|
|
|
$
|
329,805
|
|
|
(13.3)
|
%
|
Gross
margin
|
|
|
|
|
|
|
GAAP
|
|
31.8
|
%
|
|
39.6
|
%
|
|
(780)
|
bps
|
Non-GAAP
|
|
33.2
|
%
|
|
40.1
|
%
|
|
(690)
|
bps
|
Operating income
(loss)
|
|
|
|
|
|
|
GAAP
|
|
$
|
(21,354)
|
|
|
$
|
8,049
|
|
|
(365.3)
|
%
|
Non-GAAP
|
|
$
|
(3,638)
|
|
|
$
|
24,042
|
|
|
(115.1)
|
%
|
Net income
(loss)
|
|
|
|
|
|
|
GAAP
|
|
$
|
(27,089)
|
|
|
$
|
14,661
|
|
|
(284.8)
|
%
|
Non-GAAP
|
|
$
|
(6,058)
|
|
|
$
|
21,149
|
|
|
(128.6)
|
%
|
Diluted net income
(loss) per share
|
|
|
|
|
|
|
GAAP
|
|
$
|
(0.19)
|
|
|
$
|
0.10
|
|
|
(290.0)
|
%
|
Non-GAAP
|
|
$
|
(0.04)
|
|
|
$
|
0.15
|
|
|
(126.7)
|
%
|
Adjusted
EBITDA
|
|
$
|
6,205
|
|
|
$
|
35,725
|
|
|
(82.6)
|
%
|
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) 220-8451 or (323) 794-2588, access code 1753774,
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 helps the world capture and share itself in immersive
and exciting ways.
GoPro, HERO and their respective logos are trademarks or
registered trademarks of GoPro, Inc. in the United
States and other countries.
For more information, visit www.gopro.com. GoPro users
can submit their photos, raw clips and video edits to GoPro Awards
for social stoke, GoPro gear and cash prizes. Learn more
at www.gopro.com/awards. Connect with GoPro on Facebook,
Instagram, LinkedIn, Pinterest, Twitter, YouTube, and GoPro's blog
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. When planning, forecasting and analyzing gross
margin, operating expenses, tax expense, net income and earnings
per share for future periods, GoPro does so primarily on a non-GAAP
basis without preparing a GAAP analysis as that would require
estimates for reconciling items which are inherently difficult to
predict with reasonable accuracy.
Note on Forward-looking Statements
This press release may contain projections or other
forward-looking statements within the meaning Section 27A of the
Private Securities Litigation Reform Act. Words such as
"anticipate," "believe," "estimate," "expect," "intend," "should,"
"will" and variations of these terms or the negative of these
terms and similar expressions are intended to identify these
forward-looking statements. Forward-looking statements in this
presentation may include, but are not limited to, expectations
regarding our business outlook for 2018 and our ability to address
the industry-wide shortage in supply of passive components. 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 roadmap for new hardware
and software products) 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; the
effects of the industry-wide shortage of passive components; our
dependence on sales of our cameras, mounts and accessories for
substantially all of our revenue (and the effects of changes in the
sales mix or decrease in demand for these products) and; the
effects 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; any changes to trade policies, tariffs, and
import/export regulations; 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; expectations
regarding the volatility of the Company's tax provision and
resulting effective tax rate; 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, 2017 and
Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, and as updated in future filings
with the SEC including the Quarterly Report on Form 10-Q for the
quarter ended September 30, 2018, each of which are 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
September 30,
|
|
Nine months ended
September 30,
|
(in thousands,
except per share data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue
|
$
|
285,936
|
|
|
$
|
329,805
|
|
|
$
|
770,959
|
|
|
$
|
844,945
|
|
Cost of
revenue
|
194,904
|
|
|
199,259
|
|
|
551,642
|
|
|
540,201
|
|
Gross
profit
|
91,032
|
|
|
130,546
|
|
|
219,317
|
|
|
304,744
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
41,157
|
|
|
55,098
|
|
|
130,361
|
|
|
176,761
|
|
Sales and
marketing
|
55,871
|
|
|
46,622
|
|
|
165,297
|
|
|
171,156
|
|
General and
administrative
|
15,358
|
|
|
20,777
|
|
|
50,588
|
|
|
61,976
|
|
Total
operating expenses
|
112,386
|
|
|
122,497
|
|
|
346,246
|
|
|
409,893
|
|
Operating income
(loss)
|
(21,354)
|
|
|
8,049
|
|
|
(126,929)
|
|
|
(105,149)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(4,616)
|
|
|
(4,554)
|
|
|
(13,804)
|
|
|
(9,152)
|
|
Other income
(expense), net
|
661
|
|
|
322
|
|
|
(268)
|
|
|
705
|
|
Total
other expense, net
|
(3,955)
|
|
|
(4,232)
|
|
|
(14,072)
|
|
|
(8,447)
|
|
Income (loss) before
income taxes
|
(25,309)
|
|
|
3,817
|
|
|
(141,001)
|
|
|
(113,596)
|
|
Income tax (benefit)
expense
|
1,780
|
|
|
(10,844)
|
|
|
(296)
|
|
|
13,429
|
|
Net income
(loss)
|
$
|
(27,089)
|
|
|
$
|
14,661
|
|
|
$
|
(140,705)
|
|
|
$
|
(127,025)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.19)
|
|
|
$
|
0.11
|
|
|
$
|
(1.01)
|
|
|
$
|
(0.92)
|
|
Diluted
|
$
|
(0.19)
|
|
|
$
|
0.10
|
|
|
$
|
(1.01)
|
|
|
$
|
(0.92)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute net income (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
140,072
|
|
|
136,236
|
|
|
139,028
|
|
|
138,450
|
|
Diluted
|
140,072
|
|
|
140,288
|
|
|
139,028
|
|
|
138,450
|
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Balance Sheets
(unaudited)
|
|
(in
thousands)
|
September 30,
2018
|
|
December 31,
2017
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
143,246
|
|
|
$
|
202,504
|
|
Marketable
securities
|
4,996
|
|
|
44,886
|
|
Accounts receivable,
net
|
149,449
|
|
|
112,935
|
|
Inventory
|
123,249
|
|
|
150,551
|
|
Prepaid expenses and
other current assets
|
31,958
|
|
|
62,811
|
|
Total current
assets
|
452,898
|
|
|
573,687
|
|
Property and
equipment, net
|
53,043
|
|
|
68,587
|
|
Intangible assets,
net and goodwill
|
161,606
|
|
|
170,958
|
|
Other long-term
assets
|
21,026
|
|
|
37,014
|
|
Total
assets
|
$
|
688,573
|
|
|
$
|
850,246
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
123,357
|
|
|
$
|
138,257
|
|
Accrued
liabilities
|
193,913
|
|
|
213,030
|
|
Deferred
revenue
|
14,418
|
|
|
19,244
|
|
Total current
liabilities
|
331,688
|
|
|
370,531
|
|
Long-term
debt
|
136,659
|
|
|
130,048
|
|
Other long-term
liabilities
|
48,180
|
|
|
50,962
|
|
Total
liabilities
|
516,527
|
|
|
551,541
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
886,360
|
|
|
854,452
|
|
Treasury stock, at
cost
|
(113,613)
|
|
|
(113,613)
|
|
Accumulated
deficit
|
(600,701)
|
|
|
(442,134)
|
|
Total stockholders'
equity
|
172,046
|
|
|
298,705
|
|
Total liabilities and
stockholders' equity
|
$
|
688,573
|
|
|
$
|
850,246
|
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Statement of Cash Flows
(unaudited)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(27,089)
|
|
|
$
|
14,661
|
|
|
$
|
(140,705)
|
|
|
$
|
(127,025)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
9,693
|
|
|
9,100
|
|
|
27,773
|
|
|
32,260
|
|
Stock-based
compensation
|
10,337
|
|
|
11,875
|
|
|
31,171
|
|
|
36,235
|
|
Deferred income
taxes
|
(362)
|
|
|
76
|
|
|
(987)
|
|
|
(1,818)
|
|
Non-cash
restructuring charges
|
2,532
|
|
|
1,059
|
|
|
5,788
|
|
|
3,859
|
|
Non-cash interest
expense
|
2,036
|
|
|
1,836
|
|
|
5,988
|
|
|
3,366
|
|
Other
|
266
|
|
|
128
|
|
|
(301)
|
|
|
3,891
|
|
Net changes in
operating assets and liabilities
|
12,350
|
|
|
16,788
|
|
|
(17,124)
|
|
|
(44,611)
|
|
Net cash provided by
(used in) operating activities
|
9,763
|
|
|
55,523
|
|
|
(88,397)
|
|
|
(93,843)
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(1,326)
|
|
|
(8,201)
|
|
|
(8,204)
|
|
|
(18,313)
|
|
Purchases of
marketable securities
|
—
|
|
|
(31,918)
|
|
|
(14,896)
|
|
|
(31,918)
|
|
Maturities of
marketable securities
|
20,000
|
|
|
—
|
|
|
55,000
|
|
|
14,160
|
|
Sale of marketable
securities
|
—
|
|
|
—
|
|
|
—
|
|
|
11,623
|
|
Net cash provided by
(used in) investing activities
|
18,674
|
|
|
(40,119)
|
|
|
31,900
|
|
|
(24,448)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock
|
1,706
|
|
|
2,994
|
|
|
5,131
|
|
|
9,623
|
|
Taxes paid related to
net share settlement of equity awards
|
(1,636)
|
|
|
(3,068)
|
|
|
(5,388)
|
|
|
(11,278)
|
|
Proceeds from
issuance of convertible senior notes
|
—
|
|
|
—
|
|
|
—
|
|
|
175,000
|
|
Prepayment of forward
stock repurchase transaction
|
—
|
|
|
—
|
|
|
—
|
|
|
(78,000)
|
|
Payment of deferred
acquisition-related consideration
|
—
|
|
|
(1)
|
|
|
(2,450)
|
|
|
(76)
|
|
Payment of credit
facility issuance costs
|
—
|
|
|
(713)
|
|
|
—
|
|
|
(5,963)
|
|
Net cash provided by
(used in) financing activities
|
70
|
|
|
(788)
|
|
|
(2,707)
|
|
|
89,306
|
|
Effect of exchange
rate changes on cash and cash
equivalents
|
(104)
|
|
|
245
|
|
|
(54)
|
|
|
1,487
|
|
Net change in cash
and cash equivalents
|
28,403
|
|
|
14,861
|
|
|
(59,258)
|
|
|
(27,498)
|
|
Cash and cash
equivalents at beginning of period
|
114,843
|
|
|
149,755
|
|
|
202,504
|
|
|
192,114
|
|
Cash and cash
equivalents at end of period
|
$
|
143,246
|
|
|
$
|
164,616
|
|
|
$
|
143,246
|
|
|
$
|
164,616
|
|
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. Our management
uses, and believes that investors benefit from referring to, these
non-GAAP financial measures in assessing our operating results.
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, first
quarter of 2017 and first quarter of 2018. These expenses were tied
to unique circumstances related to organizational restructuring, 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) excludes 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) excludes non-cash interest expense.
In connection with the 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) includes 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; and
- 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
September 30,
|
|
Nine months ended
September 30,
|
(in thousands,
except per share data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP net income
(loss)
|
$
|
(27,089)
|
|
|
$
|
14,661
|
|
|
$
|
(140,705)
|
|
|
$
|
(127,025)
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
534
|
|
|
445
|
|
|
1,406
|
|
|
1,355
|
|
Research and
development
|
4,977
|
|
|
5,967
|
|
|
14,942
|
|
|
17,039
|
|
Sales and
marketing
|
2,429
|
|
|
2,609
|
|
|
7,489
|
|
|
7,295
|
|
General and
administrative
|
2,397
|
|
|
2,854
|
|
|
7,334
|
|
|
10,546
|
|
Total stock-based
compensation
|
10,337
|
|
|
11,875
|
|
|
31,171
|
|
|
36,235
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
3,363
|
|
|
1,195
|
|
|
9,352
|
|
|
3,625
|
|
Research and
development
|
—
|
|
|
946
|
|
|
—
|
|
|
3,028
|
|
General and
administrative
|
—
|
|
|
—
|
|
|
3
|
|
|
(22)
|
|
Total
acquisition-related costs
|
3,363
|
|
|
2,141
|
|
|
9,355
|
|
|
6,631
|
|
|
|
|
|
|
|
|
|
Restructuring
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
115
|
|
|
40
|
|
|
1,357
|
|
|
458
|
|
Research and
development
|
2,288
|
|
|
1,025
|
|
|
12,032
|
|
|
8,406
|
|
Sales and
marketing
|
1,195
|
|
|
357
|
|
|
5,042
|
|
|
5,960
|
|
General and
administrative
|
418
|
|
|
555
|
|
|
3,095
|
|
|
1,964
|
|
Total restructuring
costs
|
4,016
|
|
|
1,977
|
|
|
21,526
|
|
|
16,788
|
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
2,036
|
|
|
1,836
|
|
|
5,988
|
|
|
3,366
|
|
Income tax
adjustments
|
1,279
|
|
|
(11,341)
|
|
|
(1,600)
|
|
|
9,457
|
|
Non-GAAP net
income (loss)
|
$
|
(6,058)
|
|
|
$
|
21,149
|
|
|
$
|
(74,265)
|
|
|
$
|
(54,548)
|
|
|
|
|
|
|
|
|
|
GAAP shares for
diluted net income (loss) per share
|
140,072
|
|
|
136,236
|
|
|
139,028
|
|
|
138,450
|
|
Add: dilutive shares
|
—
|
|
|
4,052
|
|
|
—
|
|
|
—
|
|
Non-GAAP shares
for diluted net income (loss) per share
|
140,072
|
|
|
140,288
|
|
|
139,028
|
|
|
138,450
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
net income (loss) per share
|
$
|
(0.04)
|
|
|
$
|
0.15
|
|
|
$
|
(0.53)
|
|
|
$
|
(0.39)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(dollars in
thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP gross
profit
|
$
|
91,032
|
|
|
$
|
130,546
|
|
|
$
|
219,317
|
|
|
$
|
304,744
|
|
Stock-based
compensation
|
534
|
|
|
445
|
|
|
1,406
|
|
|
1,355
|
|
Acquisition-related
costs
|
3,363
|
|
|
1,195
|
|
|
9,352
|
|
|
3,625
|
|
Restructuring
costs
|
115
|
|
|
40
|
|
|
1,357
|
|
|
458
|
|
Non-GAAP gross
profit
|
$
|
95,044
|
|
|
$
|
132,226
|
|
|
$
|
231,432
|
|
|
$
|
310,182
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
as a % of revenue
|
31.8
|
%
|
|
39.6
|
%
|
|
28.4
|
%
|
|
36.1
|
%
|
Stock-based
compensation
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
Acquisition-related
costs
|
1.2
|
|
|
0.4
|
|
|
1.2
|
|
|
0.4
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Non-GAAP gross
profit as a % of revenue
|
33.2
|
%
|
|
40.1
|
%
|
|
30.0
|
%
|
|
36.7
|
%
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
112,386
|
|
|
$
|
122,497
|
|
|
$
|
346,246
|
|
|
$
|
409,893
|
|
Stock-based
compensation
|
(9,803)
|
|
|
(11,430)
|
|
|
(29,765)
|
|
|
(34,880)
|
|
Acquisition-related
costs
|
—
|
|
|
(946)
|
|
|
(3)
|
|
|
(3,006)
|
|
Restructuring
costs
|
(3,901)
|
|
|
(1,937)
|
|
|
(20,169)
|
|
|
(16,330)
|
|
Non-GAAP operating
expenses
|
$
|
98,682
|
|
|
$
|
108,184
|
|
|
$
|
296,309
|
|
|
$
|
355,677
|
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss)
|
$
|
(21,354)
|
|
|
$
|
8,049
|
|
|
$
|
(126,929)
|
|
|
$
|
(105,149)
|
|
Stock-based
compensation
|
10,337
|
|
|
11,875
|
|
|
31,171
|
|
|
36,235
|
|
Acquisition-related
costs
|
3,363
|
|
|
2,141
|
|
|
9,355
|
|
|
6,631
|
|
Restructuring
costs
|
4,016
|
|
|
1,977
|
|
|
21,526
|
|
|
16,788
|
|
Non-GAAP operating
income (loss)
|
$
|
(3,638)
|
|
|
$
|
24,042
|
|
|
$
|
(64,877)
|
|
|
$
|
(45,495)
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP net income
(loss)
|
$
|
(27,089)
|
|
|
$
|
14,661
|
|
|
$
|
(140,705)
|
|
|
$
|
(127,025)
|
|
Income tax (benefit)
expense
|
1,780
|
|
|
(10,844)
|
|
|
(296)
|
|
|
13,429
|
|
Interest expense,
net
|
4,297
|
|
|
4,228
|
|
|
12,808
|
|
|
8,641
|
|
Depreciation and
amortization
|
9,693
|
|
|
9,100
|
|
|
27,773
|
|
|
32,260
|
|
POP display
amortization
|
3,171
|
|
|
4,728
|
|
|
10,694
|
|
|
14,848
|
|
Stock-based
compensation
|
10,337
|
|
|
11,875
|
|
|
31,171
|
|
|
36,235
|
|
Restructuring
costs
|
4,016
|
|
|
1,977
|
|
|
21,526
|
|
|
16,788
|
|
Adjusted
EBITDA
|
$
|
6,205
|
|
|
$
|
35,725
|
|
|
$
|
(37,029)
|
|
|
$
|
(4,824)
|
|
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SOURCE GoPro, Inc.