SAN MATEO, Calif., Aug. 6, 2020 /PRNewswire/ -- GoPro, Inc.
(NASDAQ: GPRO) today announced financial results for its second
quarter ended June 30, 2020.
"Our strategic shift to a more direct-to-consumer business with
lower operating costs is working. Camera sell-through during Q2
demonstrates resilient consumer demand for GoPro and an increasing
shift to online shopping. We believe GoPro has proven to be a part
of global consumers' 'new normal' during the pandemic and we feel
well positioned for the remainder of the year," said GoPro founder
and CEO, Nicholas Woodman.
GoPro Q2 2020 Financial Results
- Revenue for Q2 2020 was $134
million, a 12% sequential improvement from $119 million in Q1 2020.
- GAAP gross margin for Q2 2020 was 30.3%, down from 34.9%
year-over-year. Non-GAAP gross margin for Q2 2020 was 31.6%, down
from 35.8% year-over-year.
- Q2 2020 GAAP net loss was $51
million, or $0.34 per share.
Non-GAAP net loss was $30 million, or
$0.20 per share.
- Q2 2020 GAAP operating expenses of $86
million decreased 22% year-over-year. Q2 2020 non-GAAP
operating expenses were $69 million,
down 29% year-over-year. GAAP and non-GAAP operating expenses were
at their lowest levels since Q1 2014 and Q3 2013,
respectively.
- Adjusted EBITDA for Q2 2020 was negative $22 million, compared to $14 million in the same period a year ago.
- Cash and investments totaled $80
million at the end of Q2 2020.
Recent GoPro Highlights
- Camera sell-through of nearly 750,000 in Q2 2020.
- Channel inventory reduction of 25% sequentially and 45% since
Q4 2019.
- GoPro.com represented a record percentage of revenue in Q2 2020
at 44%, up from slightly below 10% of revenue in Q2 2019.
- GoPro's Plus subscription service ended Q2 2020 with 372,000
paid subscribers, up 5% sequentially and up 57%
year-over-year.
- Cameras with retail prices above $300 represented 95% of Q2 2020 revenue,
reflecting consumer preference for GoPro's premium products.
- Street ASPs increased 11% year-over-year to $300.
- GoPro ended Q2 2020 with 741 employees, the lowest headcount
since 2014.
- Launched diversified products including Zeus Mini, The World's Most Versatile Light, and
Lifestyle Gear including bags, apparel and accessories.
- HERO8 Black updated to work as a webcam.
"In Q2 2020, we saw steadily increasing demand and
better-than-expected sell-through across all geographies," said
Brian McGee, GoPro CFO and COO. "Our
direct-to-consumer model is gaining momentum and we're seeing a
faster-than-expected rebound at retail. These factors, along with
our strong hardware, software and subscription roadmap give us
confidence going into the second half of the year."
Results Summary:
|
|
Three months ended
June 30,
|
($ in thousands,
except per share amounts)
|
|
2020
|
|
2019
|
|
%
Change
|
Revenue
|
|
$
|
134,246
|
|
|
$
|
292,429
|
|
|
(54.1)
|
%
|
Gross
margin
|
|
|
|
|
|
|
GAAP
|
|
30.3
|
%
|
|
34.9
|
%
|
|
(460) bps
|
Non-GAAP
|
|
31.6
|
%
|
|
35.8
|
%
|
|
(420) bps
|
Operating income
(loss)
|
|
|
|
|
|
|
GAAP
|
|
$
|
(44,914)
|
|
|
$
|
(6,947)
|
|
|
546.5
|
%
|
Non-GAAP
|
|
$
|
(26,663)
|
|
|
$
|
7,532
|
|
|
(454.0)
|
%
|
Net income
(loss)
|
|
|
|
|
|
|
GAAP
|
|
$
|
(50,975)
|
|
|
$
|
(11,287)
|
|
|
351.6
|
%
|
Non-GAAP
|
|
$
|
(29,721)
|
|
|
$
|
4,193
|
|
|
(808.8)
|
%
|
Diluted net income
(loss) per share
|
|
|
|
|
|
|
GAAP
|
|
$
|
(0.34)
|
|
|
$
|
(0.08)
|
|
|
325.0
|
%
|
Non-GAAP
|
|
$
|
(0.20)
|
|
|
$
|
0.03
|
|
|
(766.7)
|
%
|
Adjusted
EBITDA
|
|
$
|
(22,367)
|
|
|
$
|
13,616
|
|
|
(264.3)
|
%
|
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.
Prior to the start of the call, the Company will post Management
Commentary on the "Events & Presentations" section of its
Investor Relations website at https://investor.gopro.com.
Management will make brief opening comments before taking
questions.
To listen to the live conference call, please dial toll free
(800) 353-6461 or (334) 323-0501, access code 2952876,
approximately 15 minutes prior to the start of the call. A live
webcast of the conference call will be accessible on the "Events
& Presentations" section of the Company's website at
https://investor.gopro.com. A recording of the webcast will be
available on GoPro's website, https://investor.gopro.com,
approximately two hours after the call and for 90 days
thereafter.
About GoPro, Inc. (NASDAQ: GPRO)
GoPro helps the world celebrate 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, TikTok,
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, TikTok,
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), other income (expense), tax
expense, 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 and other related costs,
non-cash interest expense, gain on sale and license of intellectual
property and the tax impact of these items. When planning,
forecasting and analyzing gross margin, operating expenses, other
income (expense), tax expense, net income (loss) and net income
(loss) 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 planned growth and
increased profitability in the second half of 2020 and beyond, and
consumer demand and the impact of the COVID-19 pandemic on our
business. 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 ability to
effectively manage late stage production delay, 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; our
ability to continue to focus on expense management; the fact that
our plan to profitability depends in part on further penetrating
our addressable market, and we may not be successful in doing so;
the risk that growing our direct-to-consumer business while
reducing our reliance on our other sales channels could impact
profitability; the impact of the COVID-19 pandemic and its effect
on the United States and global
economies and our business in particular; any inability to
successfully manage frequent product introductions (including
roadmap for new hardware, software and subscription products) and
transitions, including managing our sales channel and inventory,
and accurately forecasting future sales; the fact that a small
number of retailers and distributors account for a substantial
portion of our revenue and our level of business with them could be
significantly reduced due to retail closures related to COVID-19;
the fact that we plan to further transition from some distributors
and retailers as we shift our sales strategy to focus on our
direct-to-consumer channel, and that transition may result in
reduced revenue and profitability; our reliance on third party
suppliers, some of which are sole source suppliers, to provide
components for our products and our reliance on third party
logistics partners to deliver without interruption; our dependence
on sales of our cameras, mounts and accessories, and subscription
services for substantially all of our revenue (and the effects of
changes in the sales mix or decrease in demand for these products);
the fact that an economic downturn or economic uncertainty in our
key U.S. and international markets, as well as fluctuations in
currency exchange rates, may adversely affect consumer
discretionary spending; any changes to trade agreements, trade
policies, tariffs, and import/export regulations; our ability to
manufacture in Mexico; the effects
of the highly competitive market in which we operate, including new
market entrants; 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; difficulty
in accurately predicting our future customer demand; the importance
of maintaining the value and reputation of our brand; the risk that
the e-commerce technology systems that give consumers the ability
to shop online do not function effectively; the risk that we will
encounter problems with our distribution system; the threat of a
security breach or other disruption including cyberattacks; the
concern that our intellectual property and proprietary rights may
not adequately protect our products and services; and other factors
detailed in the Risk Factors section of our Annual Report on Form
10-K for the year ended December 31,
2019, which is on file with the Securities and Exchange
Commission (SEC), and as updated in future filings with the SEC
including the Quarterly Report on Form 10-Q for the quarter ended
June 30, 2020. 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
June 30,
|
|
Six months ended
June 30,
|
(in thousands,
except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
$
|
134,246
|
|
|
$
|
292,429
|
|
|
$
|
253,646
|
|
|
$
|
535,137
|
|
Cost of
revenue
|
93,554
|
|
|
190,244
|
|
|
174,527
|
|
|
352,605
|
|
Gross
profit
|
40,692
|
|
|
102,185
|
|
|
79,119
|
|
|
182,532
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
34,558
|
|
|
38,811
|
|
|
66,839
|
|
|
76,275
|
|
Sales and
marketing
|
34,965
|
|
|
52,135
|
|
|
78,467
|
|
|
99,425
|
|
General and
administrative
|
16,083
|
|
|
18,186
|
|
|
34,841
|
|
|
34,067
|
|
Total operating
expenses
|
85,606
|
|
|
109,132
|
|
|
180,147
|
|
|
209,767
|
|
Operating
loss
|
(44,914)
|
|
|
(6,947)
|
|
|
(101,028)
|
|
|
(27,235)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(4,671)
|
|
|
(4,882)
|
|
|
(9,514)
|
|
|
(9,409)
|
|
Other income
(expense), net
|
(321)
|
|
|
(63)
|
|
|
(493)
|
|
|
765
|
|
Total other expense,
net
|
(4,992)
|
|
|
(4,945)
|
|
|
(10,007)
|
|
|
(8,644)
|
|
Loss before income
taxes
|
(49,906)
|
|
|
(11,892)
|
|
|
(111,035)
|
|
|
(35,879)
|
|
Income tax expense
(benefit)
|
1,069
|
|
|
(605)
|
|
|
3,468
|
|
|
(227)
|
|
Net loss
|
$
|
(50,975)
|
|
|
$
|
(11,287)
|
|
|
$
|
(114,503)
|
|
|
$
|
(35,652)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
|
(0.34)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.77)
|
|
|
$
|
(0.25)
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding, basic and diluted
|
148,497
|
|
|
144,668
|
|
|
148,028
|
|
|
143,640
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Balance Sheets
|
(unaudited)
|
|
(in
thousands)
|
June 30,
2020
|
|
December
31,
2019
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
79,679
|
|
|
$
|
150,301
|
|
Marketable
securities
|
—
|
|
|
14,847
|
|
Accounts receivable,
net
|
68,498
|
|
|
200,634
|
|
Inventory
|
142,151
|
|
|
144,236
|
|
Prepaid expenses and
other current assets
|
23,773
|
|
|
25,958
|
|
Total current
assets
|
314,101
|
|
|
535,976
|
|
Property and
equipment, net
|
29,180
|
|
|
36,539
|
|
Operating lease
right-of-use assets
|
48,963
|
|
|
53,121
|
|
Intangible assets,
net and goodwill
|
149,360
|
|
|
151,706
|
|
Other long-term
assets
|
13,564
|
|
|
15,461
|
|
Total
assets
|
$
|
555,168
|
|
|
$
|
792,803
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
48,959
|
|
|
$
|
160,695
|
|
Accrued expenses and
other current liabilities
|
88,605
|
|
|
141,790
|
|
Short-term operating
lease liabilities
|
8,936
|
|
|
9,099
|
|
Deferred
revenue
|
13,627
|
|
|
15,467
|
|
Short-term
debt
|
30,000
|
|
|
—
|
|
Total current
liabilities
|
190,127
|
|
|
327,051
|
|
Long-term
debt
|
154,063
|
|
|
148,810
|
|
Long-term operating
lease liabilities
|
57,916
|
|
|
62,961
|
|
Other long-term
liabilities
|
20,984
|
|
|
20,452
|
|
Total
liabilities
|
423,090
|
|
|
559,274
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
943,927
|
|
|
930,875
|
|
Treasury stock, at
cost
|
(113,613)
|
|
|
(113,613)
|
|
Accumulated
deficit
|
(698,236)
|
|
|
(583,733)
|
|
Total stockholders'
equity
|
132,078
|
|
|
233,529
|
|
Total liabilities and
stockholders' equity
|
$
|
555,168
|
|
|
$
|
792,803
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statement of Cash Flows
|
(unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in
thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(50,975)
|
|
|
$
|
(11,287)
|
|
|
$
|
(114,503)
|
|
|
$
|
(35,652)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
4,710
|
|
|
6,552
|
|
|
10,693
|
|
|
13,402
|
|
Non-cash operating
lease cost
|
2,123
|
|
|
2,763
|
|
|
4,158
|
|
|
5,389
|
|
Stock-based
compensation
|
5,876
|
|
|
10,606
|
|
|
13,513
|
|
|
20,391
|
|
Deferred income
taxes
|
47
|
|
|
(59)
|
|
|
53
|
|
|
(97)
|
|
Non-cash restructuring
charges
|
3,299
|
|
|
2
|
|
|
3,299
|
|
|
(199)
|
|
Non-cash interest
expense
|
2,477
|
|
|
2,236
|
|
|
4,850
|
|
|
4,378
|
|
Other
|
527
|
|
|
558
|
|
|
1,199
|
|
|
229
|
|
Net changes in
operating assets and liabilities
|
(11,828)
|
|
|
(12,407)
|
|
|
(35,290)
|
|
|
(73,861)
|
|
Net cash used in
operating activities
|
(43,744)
|
|
|
(1,036)
|
|
|
(112,028)
|
|
|
(66,020)
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(1,368)
|
|
|
(1,275)
|
|
|
(2,163)
|
|
|
(1,999)
|
|
Purchases of marketable
securities
|
—
|
|
|
(23,219)
|
|
|
—
|
|
|
(30,167)
|
|
Maturities of
marketable securities
|
7,500
|
|
|
30,878
|
|
|
14,830
|
|
|
35,278
|
|
Sale of marketable
securities
|
—
|
|
|
—
|
|
|
—
|
|
|
1,889
|
|
Asset
acquisition
|
—
|
|
|
—
|
|
|
(438)
|
|
|
—
|
|
Net cash provided by
investing activities
|
6,132
|
|
|
6,384
|
|
|
12,229
|
|
|
5,001
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock
|
22
|
|
|
65
|
|
|
1,909
|
|
|
3,877
|
|
Taxes paid related to
net share settlement of equity awards
|
(351)
|
|
|
(1,324)
|
|
|
(2,354)
|
|
|
(3,997)
|
|
Proceeds from
borrowings
|
—
|
|
|
—
|
|
|
30,000
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
(329)
|
|
|
(1,259)
|
|
|
29,555
|
|
|
(120)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
185
|
|
|
220
|
|
|
(378)
|
|
|
294
|
|
Net change in cash and
cash equivalents
|
(37,756)
|
|
|
4,309
|
|
|
(70,622)
|
|
|
(60,845)
|
|
Cash and cash
equivalents at beginning of period
|
117,435
|
|
|
86,941
|
|
|
150,301
|
|
|
152,095
|
|
Cash and cash
equivalents at end of period
|
$
|
79,679
|
|
|
$
|
91,250
|
|
|
$
|
79,679
|
|
|
$
|
91,250
|
|
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), other income
(expense), tax expense, 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 other
income (expense), non-GAAP tax expense, 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 point of purchase
(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 and other related costs which primarily include
severance-related costs, stock-based compensation expenses,
facilities consolidation charges recorded in connection with
restructuring actions announced in the fourth quarter of 2016,
first quarter of 2017, first quarter of 2018 and second quarter of
2020, and the related ongoing operating lease cost of those
facilities recorded under Accounting Standards Codification 842,
Leases. 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) 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. Although we exclude the amortization of
acquired intangible assets from our non-GAAP net income (loss),
management believes that it is important for investors to
understand that such intangible assets were recorded as part of
purchase accounting and contribute to revenue generation;
- 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) excludes a gain on the sale and
license of intellectual property. This gain is not related to our
core operating performance or reflective of ongoing operating
results in the period, and the frequency and amount of such gains
are inconsistent;
- non-GAAP net income (loss) includes income tax
adjustments. We utilize 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
June 30,
|
|
Six months ended
June 30,
|
(in thousands,
except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP net
loss
|
$
|
(50,975)
|
|
|
$
|
(11,287)
|
|
|
$
|
(114,503)
|
|
|
$
|
(35,652)
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
332
|
|
|
522
|
|
|
835
|
|
|
1,035
|
|
Research and
development
|
3,063
|
|
|
4,884
|
|
|
6,085
|
|
|
9,561
|
|
Sales and
marketing
|
789
|
|
|
2,221
|
|
|
2,506
|
|
|
4,434
|
|
General and
administrative
|
1,692
|
|
|
2,979
|
|
|
4,087
|
|
|
5,361
|
|
Total stock-based
compensation
|
5,876
|
|
|
10,606
|
|
|
13,513
|
|
|
20,391
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
1,024
|
|
|
2,009
|
|
|
2,911
|
|
|
4,091
|
|
Total
acquisition-related costs
|
1,024
|
|
|
2,009
|
|
|
2,911
|
|
|
4,091
|
|
|
|
|
|
|
|
|
|
Restructuring and
other costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
336
|
|
|
71
|
|
|
332
|
|
|
87
|
|
Research and
development
|
2,524
|
|
|
784
|
|
|
2,500
|
|
|
881
|
|
Sales and
marketing
|
7,234
|
|
|
395
|
|
|
7,215
|
|
|
498
|
|
General and
administrative
|
1,257
|
|
|
614
|
|
|
1,240
|
|
|
701
|
|
Total restructuring
and other costs
|
11,351
|
|
|
1,864
|
|
|
11,287
|
|
|
2,167
|
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
2,477
|
|
|
2,236
|
|
|
4,850
|
|
|
4,378
|
|
Income tax
adjustments
|
526
|
|
|
(1,235)
|
|
|
2,608
|
|
|
(1,353)
|
|
Non-GAAP net
income (loss)
|
$
|
(29,721)
|
|
|
$
|
4,193
|
|
|
$
|
(79,334)
|
|
|
$
|
(5,978)
|
|
|
|
|
|
|
|
|
|
GAAP shares for
diluted net loss per share
|
148,497
|
|
|
144,668
|
|
|
148,028
|
|
|
143,640
|
|
Non-GAAP shares
for diluted net income (loss) per share
|
148,497
|
|
|
146,290
|
|
|
148,028
|
|
|
143,640
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
loss per share
|
$
|
(0.34)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.77)
|
|
|
$
|
(0.25)
|
|
Non-GAAP diluted
net income (loss) per share
|
$
|
(0.20)
|
|
|
$
|
0.03
|
|
|
$
|
(0.54)
|
|
|
$
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(dollars in
thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP gross profit
as a % of revenue
|
30.3
|
%
|
|
34.9
|
%
|
|
31.2
|
%
|
|
34.1
|
%
|
Stock-based
compensation
|
0.2
|
|
|
0.2
|
|
|
0.3
|
|
|
0.2
|
|
Acquisition-related
costs
|
0.8
|
|
|
0.7
|
|
|
1.2
|
|
|
0.8
|
|
Restructuring and
other costs
|
0.3
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Non-GAAP gross
profit as a % of revenue
|
31.6
|
%
|
|
35.8
|
%
|
|
32.8
|
%
|
|
35.1
|
%
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
85,606
|
|
|
$
|
109,132
|
|
|
$
|
180,147
|
|
|
$
|
209,767
|
|
Stock-based
compensation
|
(5,544)
|
|
|
(10,084)
|
|
|
(12,678)
|
|
|
(19,356)
|
|
Restructuring and
other costs
|
(11,015)
|
|
|
(1,793)
|
|
|
(10,955)
|
|
|
(2,080)
|
|
Non-GAAP operating
expenses
|
$
|
69,047
|
|
|
$
|
97,255
|
|
|
$
|
156,514
|
|
|
$
|
188,331
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss
|
$
|
(44,914)
|
|
|
$
|
(6,947)
|
|
|
$
|
(101,028)
|
|
|
$
|
(27,235)
|
|
Stock-based
compensation
|
5,876
|
|
|
10,606
|
|
|
13,513
|
|
|
20,391
|
|
Acquisition-related
costs
|
1,024
|
|
|
2,009
|
|
|
2,911
|
|
|
4,091
|
|
Restructuring and
other costs
|
11,351
|
|
|
1,864
|
|
|
11,287
|
|
|
2,167
|
|
Non-GAAP operating
income (loss)
|
$
|
(26,663)
|
|
|
$
|
7,532
|
|
|
$
|
(73,317)
|
|
|
$
|
(586)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in
thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP net
loss
|
$
|
(50,975)
|
|
|
$
|
(11,287)
|
|
|
$
|
(114,503)
|
|
|
$
|
(35,652)
|
|
Income tax expense
(benefit)
|
1,069
|
|
|
(605)
|
|
|
3,468
|
|
|
(227)
|
|
Interest expense,
net
|
4,629
|
|
|
4,479
|
|
|
9,310
|
|
|
8,562
|
|
Depreciation and
amortization
|
4,711
|
|
|
6,552
|
|
|
10,693
|
|
|
13,402
|
|
POP display
amortization
|
972
|
|
|
2,007
|
|
|
2,509
|
|
|
3,938
|
|
Stock-based
compensation
|
5,876
|
|
|
10,606
|
|
|
13,513
|
|
|
20,391
|
|
Restructuring and
other costs
|
11,351
|
|
|
1,864
|
|
|
11,287
|
|
|
2,167
|
|
Adjusted
EBITDA
|
$
|
(22,367)
|
|
|
$
|
13,616
|
|
|
$
|
(63,723)
|
|
|
$
|
12,581
|
|
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SOURCE GoPro, Inc.