SAN MATEO, Calif., Nov. 5, 2020 /PRNewswire/ -- GoPro, Inc.
(NASDAQ: GPRO) today announced financial results for its third
quarter ended September 30, 2020, and posted management
commentary on its investor relations website at
https://investor.gopro.com.
"Thanks to consistent momentum throughout the quarter and the
strong launch of HERO9 Black coupled with our GoPro subscription
service, in Q3 GoPro achieved GAAP and non-GAAP profitability,
generated $100 million of operating
cash flow, and surpassed 500,000 subscribers," said GoPro founder
and CEO, Nicholas Woodman.
"In Q3 2020, our direct-to-consumer and subscription-centric
strategy expanded margin, increased subscribers and significantly
lowered our operating expenses, resulting in GAAP and non-GAAP
profitability. This approach is also enabling efficient
working capital management as we drove DSO's down 25% sequentially,
lowered channel inventories and reduced our own investments in
inventory," said Brian McGee, GoPro
CFO and COO.
GoPro Q3 2020 Financial Results
- Revenue for Q3 2020 was $281
million, a 109% sequential improvement from $134 million in Q2 2020.
- GAAP gross margin for Q3 2020 was 35.4%, up from 21.7%
year-over-year. Non-GAAP gross margin for Q3 2020 was 36.2%, up
from 23.4% year-over-year.
- Q3 2020 GAAP net income was $3
million, or $0.02 per share.
Q3 2020 non-GAAP net income was $31
million, or $0.20 per
share.
- Q3 2020 GAAP operating expenses of $90
million decreased 9% year-over-year. Q3 2020 non-GAAP
operating expenses were $68 million,
down 25% year-over-year.
- Adjusted EBITDA for Q3 2020 was $39
million, compared to negative ($53)
million in Q3 2019.
- Cash and investments totaled $147
million at the end of Q3 2020, compared to $79 million in Q3 2019.
GoPro Q3 2020 Highlights
- In September, GoPro launched HERO9 Black to widespread global
acclaim.
- GoPro ended Q3 2020 with 501,000 subscribers, up 35%
sequentially and 65% year-over-year.
- GoPro.com achieved a record $81
million in revenue in Q3 2020, up 37% sequentially.
- Camera sell-through was more than 950,000 units in Q3
2020.
- Channel inventory reduced approximately 10% sequentially and
45% since the beginning of 2020.
- Cameras with retail prices above $300 represented 83% of Q3 2020 revenue.
- Street ASPs increased 11% year-over-year to $304.
Results Summary:
|
|
Three months ended
September 30,
|
($ in thousands,
except per share amounts)
|
|
2020
|
|
2019
|
|
%
Change
|
Revenue
|
|
$
|
280,507
|
|
|
$
|
131,169
|
|
|
113.9
|
%
|
Gross
margin
|
|
|
|
|
|
|
GAAP
|
|
35.4
|
%
|
|
21.7
|
%
|
|
1,370 bps
|
Non-GAAP
|
|
36.2
|
%
|
|
23.4
|
%
|
|
1,280 bps
|
Operating income
(loss)
|
|
|
|
|
|
|
GAAP
|
|
$
|
8,854
|
|
|
$
|
(71,198)
|
|
|
(112.4)
|
%
|
Non-GAAP
|
|
$
|
33,446
|
|
|
$
|
(59,566)
|
|
|
(156.1)
|
%
|
Net income
(loss)
|
|
|
|
|
|
|
GAAP
|
|
$
|
3,307
|
|
|
$
|
(74,810)
|
|
|
(104.4)
|
%
|
Non-GAAP
|
|
$
|
31,049
|
|
|
$
|
(61,265)
|
|
|
(150.7)
|
%
|
Diluted net income
(loss) per share
|
|
|
|
|
|
|
GAAP
|
|
$
|
0.02
|
|
|
$
|
(0.51)
|
|
|
(103.9)
|
%
|
Non-GAAP
|
|
$
|
0.20
|
|
|
$
|
(0.42)
|
|
|
(147.6)
|
%
|
Adjusted
EBITDA
|
|
$
|
39,179
|
|
|
$
|
(52,715)
|
|
|
(174.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
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) 367-2403 or (334) 777-6978, access code 2978336,
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 capture and share itself in immersive
and exciting ways.
For more information, visit www.gopro.com. Members of
the press can access official brand and product images, logos and
reviewer guides by visiting GoPro's press portal. GoPro users can
submit their photos, raw video clips and edits to GoPro Awards for
an opportunity to be featured on GoPro's social channels and
receive gear and cash awards. 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, HERO and their respective logos are trademarks or
registered trademarks of GoPro, Inc. in the United
States and other countries.
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 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 fourth quarter 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 our shift of sales strategy to focus on our
direct-to-consumer channel; the risk that we are not able to
increase the number of and retain our existing paying subscribers;
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;
our transition away from some distributors and retailers; 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; 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
September 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
September 30,
|
|
Nine months ended
September 30,
|
(in thousands,
except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
$
|
280,507
|
|
|
$
|
131,169
|
|
|
$
|
534,153
|
|
|
$
|
666,306
|
|
Cost of
revenue
|
181,195
|
|
|
102,737
|
|
|
355,722
|
|
|
455,342
|
|
Gross
profit
|
99,312
|
|
|
28,432
|
|
|
178,431
|
|
|
210,964
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
37,235
|
|
|
34,940
|
|
|
104,074
|
|
|
111,215
|
|
Sales and
marketing
|
34,378
|
|
|
48,848
|
|
|
112,845
|
|
|
148,273
|
|
General and
administrative
|
18,845
|
|
|
15,842
|
|
|
53,686
|
|
|
49,909
|
|
Total
operating expenses
|
90,458
|
|
|
99,630
|
|
|
270,605
|
|
|
309,397
|
|
Operating income
(loss)
|
8,854
|
|
|
(71,198)
|
|
|
(92,174)
|
|
|
(98,433)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(5,260)
|
|
|
(4,623)
|
|
|
(14,774)
|
|
|
(14,032)
|
|
Other income
(expense), net
|
955
|
|
|
738
|
|
|
462
|
|
|
1,503
|
|
Total
other expense, net
|
(4,305)
|
|
|
(3,885)
|
|
|
(14,312)
|
|
|
(12,529)
|
|
Income (loss) before
income taxes
|
4,549
|
|
|
(75,083)
|
|
|
(106,486)
|
|
|
(110,962)
|
|
Income tax expense
(benefit)
|
1,242
|
|
|
(273)
|
|
|
4,710
|
|
|
(500)
|
|
Net income
(loss)
|
$
|
3,307
|
|
|
$
|
(74,810)
|
|
|
$
|
(111,196)
|
|
|
$
|
(110,462)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
$
|
0.02
|
|
|
$
|
(0.51)
|
|
|
$
|
(0.75)
|
|
|
$
|
(0.77)
|
|
Diluted
|
$
|
0.02
|
|
|
$
|
(0.51)
|
|
|
$
|
(0.75)
|
|
|
$
|
(0.77)
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
149,406
|
|
|
145,617
|
|
|
148,491
|
|
|
144,306
|
|
Diluted
|
151,849
|
|
|
145,617
|
|
|
148,491
|
|
|
144,306
|
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Balance Sheets
(unaudited)
|
(in
thousands)
|
September
30,
2020
|
|
December
31,
2019
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
146,871
|
|
|
$
|
150,301
|
|
Marketable
securities
|
—
|
|
|
14,847
|
|
Accounts receivable,
net
|
107,168
|
|
|
200,634
|
|
Inventory
|
132,816
|
|
|
144,236
|
|
Prepaid expenses and
other current assets
|
26,124
|
|
|
25,958
|
|
Total
current assets
|
412,979
|
|
|
535,976
|
|
Property and
equipment, net
|
26,455
|
|
|
36,539
|
|
Operating lease
right-of-use assets
|
33,218
|
|
|
53,121
|
|
Intangible assets,
net and goodwill
|
148,396
|
|
|
151,706
|
|
Other long-term
assets
|
12,539
|
|
|
15,461
|
|
Total
assets
|
$
|
633,587
|
|
|
$
|
792,803
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
124,996
|
|
|
$
|
160,695
|
|
Accrued expenses and
other current liabilities
|
104,026
|
|
|
141,790
|
|
Short-term operating
lease liabilities
|
9,053
|
|
|
9,099
|
|
Deferred
revenue
|
19,459
|
|
|
15,467
|
|
Total
current liabilities
|
257,534
|
|
|
327,051
|
|
Long-term
debt
|
156,782
|
|
|
148,810
|
|
Long-term operating
lease liabilities
|
54,293
|
|
|
62,961
|
|
Other long-term
liabilities
|
21,881
|
|
|
20,452
|
|
Total
liabilities
|
490,490
|
|
|
559,274
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
951,639
|
|
|
930,875
|
|
Treasury stock, at
cost
|
(113,613)
|
|
|
(113,613)
|
|
Accumulated
deficit
|
(694,929)
|
|
|
(583,733)
|
|
Total
stockholders' equity
|
143,097
|
|
|
233,529
|
|
Total
liabilities and stockholders' equity
|
$
|
633,587
|
|
|
$
|
792,803
|
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Statement of Cash Flows
(unaudited)
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
3,307
|
|
|
$
|
(74,810)
|
|
|
$
|
(111,196)
|
|
|
$
|
(110,462)
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
4,802
|
|
|
6,421
|
|
|
15,495
|
|
|
19,823
|
|
Non-cash operating
lease cost
|
749
|
|
|
2,210
|
|
|
4,907
|
|
|
7,599
|
|
Stock-based
compensation
|
8,413
|
|
|
9,769
|
|
|
21,926
|
|
|
30,160
|
|
Deferred income
taxes
|
(104)
|
|
|
110
|
|
|
(51)
|
|
|
13
|
|
Non-cash restructuring
charges
|
1,943
|
|
|
—
|
|
|
5,242
|
|
|
(199)
|
|
Restructuring-related
impairment
|
12,460
|
|
|
—
|
|
|
12,460
|
|
|
—
|
|
Non-cash interest
expense
|
2,498
|
|
|
2,255
|
|
|
7,348
|
|
|
6,633
|
|
Other
|
(461)
|
|
|
(1,008)
|
|
|
738
|
|
|
(779)
|
|
Net changes in
operating assets and liabilities
|
65,950
|
|
|
8,378
|
|
|
30,660
|
|
|
(65,483)
|
|
Net cash provided by
(used in) operating activities
|
99,557
|
|
|
(46,675)
|
|
|
(12,471)
|
|
|
(112,695)
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(2,397)
|
|
|
(4,311)
|
|
|
(4,560)
|
|
|
(6,310)
|
|
Purchases of marketable
securities
|
—
|
|
|
(13,469)
|
|
|
—
|
|
|
(43,636)
|
|
Maturities of
marketable securities
|
—
|
|
|
16,460
|
|
|
14,830
|
|
|
51,738
|
|
Sale of marketable
securities
|
—
|
|
|
—
|
|
|
—
|
|
|
1,889
|
|
Asset
acquisition
|
—
|
|
|
—
|
|
|
(438)
|
|
|
—
|
|
Net cash provided by
(used in) investing activities
|
(2,397)
|
|
|
(1,320)
|
|
|
9,832
|
|
|
3,681
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock
|
1,599
|
|
|
1,697
|
|
|
3,508
|
|
|
5,574
|
|
Taxes paid related to
net share settlement of equity awards
|
(2,359)
|
|
|
(1,801)
|
|
|
(4,713)
|
|
|
(5,798)
|
|
Proceeds from
borrowings
|
—
|
|
|
—
|
|
|
30,000
|
|
|
—
|
|
Repayment of
borrowings
|
(30,000)
|
|
|
—
|
|
|
(30,000)
|
|
|
—
|
|
Net cash used in
financing activities
|
(30,760)
|
|
|
(104)
|
|
|
(1,205)
|
|
|
(224)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
792
|
|
|
(135)
|
|
|
414
|
|
|
159
|
|
Net change in cash and
cash equivalents
|
67,192
|
|
|
(48,234)
|
|
|
(3,430)
|
|
|
(109,079)
|
|
Cash and cash
equivalents at beginning of period
|
79,679
|
|
|
91,250
|
|
|
150,301
|
|
|
152,095
|
|
Cash and cash
equivalents at end of period
|
$
|
146,871
|
|
|
$
|
43,016
|
|
|
$
|
146,871
|
|
|
$
|
43,016
|
|
|
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
September 30,
|
|
Nine months ended
September 30,
|
(in thousands,
except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP net income
(loss)
|
$
|
3,307
|
|
|
$
|
(74,810)
|
|
|
$
|
(111,196)
|
|
|
$
|
(110,462)
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
340
|
|
|
448
|
|
|
1,175
|
|
|
1,483
|
|
Research and
development
|
3,597
|
|
|
4,507
|
|
|
9,682
|
|
|
14,068
|
|
Sales and
marketing
|
1,601
|
|
|
2,084
|
|
|
4,107
|
|
|
6,518
|
|
General and
administrative
|
2,875
|
|
|
2,730
|
|
|
6,962
|
|
|
8,091
|
|
Total
stock-based compensation
|
8,413
|
|
|
9,769
|
|
|
21,926
|
|
|
30,160
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
964
|
|
|
1,863
|
|
|
3,875
|
|
|
5,954
|
|
Total
acquisition-related costs
|
964
|
|
|
1,863
|
|
|
3,875
|
|
|
5,954
|
|
|
|
|
|
|
|
|
|
Restructuring and
other costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
938
|
|
|
—
|
|
|
1,270
|
|
|
87
|
|
Research and
development
|
5,883
|
|
|
—
|
|
|
8,383
|
|
|
881
|
|
Sales and
marketing
|
3,974
|
|
|
—
|
|
|
11,189
|
|
|
498
|
|
General and
administrative
|
4,420
|
|
|
—
|
|
|
5,660
|
|
|
701
|
|
Total
restructuring and other costs
|
15,215
|
|
|
—
|
|
|
26,502
|
|
|
2,167
|
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
2,498
|
|
|
2,255
|
|
|
7,348
|
|
|
6,633
|
|
Income tax
adjustments
|
652
|
|
|
(342)
|
|
|
3,260
|
|
|
(1,695)
|
|
Non-GAAP net
income (loss)
|
$
|
31,049
|
|
|
$
|
(61,265)
|
|
|
$
|
(48,285)
|
|
|
$
|
(67,243)
|
|
|
|
|
|
|
|
|
|
GAAP shares for
diluted net income (loss) per share
|
151,849
|
|
|
145,617
|
|
|
148,491
|
|
|
144,306
|
|
Non-GAAP shares
for diluted net income (loss) per share
|
151,849
|
|
|
145,617
|
|
|
148,491
|
|
|
144,306
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
$
|
0.02
|
|
|
$
|
(0.51)
|
|
|
$
|
(0.75)
|
|
|
$
|
(0.77)
|
|
Non-GAAP diluted
net income (loss) per share
|
$
|
0.20
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.47)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(dollars in
thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP gross profit
as a % of revenue
|
35.4
|
%
|
|
21.7
|
%
|
|
33.4
|
%
|
|
31.7
|
%
|
Stock-based
compensation
|
0.1
|
|
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
Acquisition-related
costs
|
0.4
|
|
|
1.4
|
|
|
0.8
|
|
|
0.9
|
|
Restructuring and
other costs
|
0.3
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Non-GAAP gross
profit as a % of revenue
|
36.2
|
%
|
|
23.4
|
%
|
|
34.6
|
%
|
|
32.8
|
%
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
90,458
|
|
|
$
|
99,630
|
|
|
$
|
270,605
|
|
|
$
|
309,397
|
|
Stock-based
compensation
|
(8,073)
|
|
|
(9,321)
|
|
|
(20,751)
|
|
|
(28,677)
|
|
Restructuring and
other costs
|
(14,277)
|
|
|
—
|
|
|
(25,232)
|
|
|
(2,080)
|
|
Non-GAAP operating
expenses
|
$
|
68,108
|
|
|
$
|
90,309
|
|
|
$
|
224,622
|
|
|
$
|
278,640
|
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss)
|
$
|
8,854
|
|
|
$
|
(71,198)
|
|
|
$
|
(92,174)
|
|
|
$
|
(98,433)
|
|
Stock-based
compensation
|
8,413
|
|
|
9,769
|
|
|
21,926
|
|
|
30,160
|
|
Acquisition-related
costs
|
964
|
|
|
1,863
|
|
|
3,875
|
|
|
5,954
|
|
Restructuring and
other costs
|
15,215
|
|
|
—
|
|
|
26,502
|
|
|
2,167
|
|
Non-GAAP operating
income (loss)
|
$
|
33,446
|
|
|
$
|
(59,566)
|
|
|
$
|
(39,871)
|
|
|
$
|
(60,152)
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
GAAP net income
(loss)
|
$
|
3,307
|
|
|
$
|
(74,810)
|
|
|
$
|
(111,196)
|
|
|
$
|
(110,462)
|
|
Income tax expense
(benefit)
|
1,242
|
|
|
(273)
|
|
|
4,710
|
|
|
(500)
|
|
Interest expense,
net
|
5,241
|
|
|
4,278
|
|
|
14,551
|
|
|
12,840
|
|
Depreciation and
amortization
|
4,802
|
|
|
6,421
|
|
|
15,495
|
|
|
19,823
|
|
POP display
amortization
|
959
|
|
|
1,900
|
|
|
3,468
|
|
|
5,838
|
|
Stock-based
compensation
|
8,413
|
|
|
9,769
|
|
|
21,926
|
|
|
30,160
|
|
Restructuring and
other costs
|
15,215
|
|
|
—
|
|
|
26,502
|
|
|
2,167
|
|
Adjusted
EBITDA
|
$
|
39,179
|
|
|
$
|
(52,715)
|
|
|
$
|
(24,544)
|
|
|
$
|
(40,134)
|
|
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SOURCE GoPro, Inc.