SAN MATEO, Calif., Nov. 4,
2021 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) today announced
financial results for its third quarter ended September 30,
2021 and posted management commentary on the investor relations
section of its website at https://investor.gopro.com.
"GoPro had an outstanding third quarter with strong revenue,
earnings, margin, and cash flow growth that have led us to raise
our margin and profitability outlook for the year," said
Nicholas Woodman, GoPro's founder
and CEO. "Strong demand, effectively managed supply chain and
channel inventory combined with a successful new product launch to
yield our highest gross margins since 2015."
"GoPro delivered exceptional earnings driven by revenue growth,
expanded gross margins, and free cash flow from operations," said
Brian McGee, GoPro's CFO and COO.
"We generated $166 million of free
cash flow, or 15% of revenue on a trailing twelve-month basis,
thanks to continued camera mix shift to the high-end and execution
of our direct-to-consumer, subscription-centric strategy."
Q3 2021 Financial Highlights
- Revenue was $317 million, up 13%
year-over-year from $281
million.
- GoPro.com total revenue, including subscription revenue,
increased 16% year-over-year to $94
million – 30% of total revenue.
- Subscription revenue was $14
million, up 143% year-over-year.
- GoPro subscriber count was 1.34 million, up 168%
year-over-year.
- Quik app subscriber count was 168,000.
- GAAP and non-GAAP gross margins were 43.6% and 43.8%
respectively, up from the prior year period at 35.4% and 36.2%,
respectively.
- GAAP net income was $312 million,
or $1.92 per share, up from
$3 million or $0.02 per share in the prior year period.
Non-GAAP net income was $55 million,
or $0.34 per share, up from
$31 million, or $0.20 per share in the prior year period.
- GAAP and non-GAAP operating expenses were $89 million and $80
million, respectively, compared to $90 million and $68
million, respectively in the prior year period.
- Adjusted EBITDA was $60 million,
or 19% of revenue, compared to $39
million, or 14% of revenue in the prior year period.
- Cameras with retail prices at or above $300 represented 98% of Q3 2021 camera revenue,
up from 83% in the prior year period.
- Q3 2021 Street ASP was $381, up
25% year-over-year.
Recent Business Highlights
- Launched new flagship, HERO10 Black, delivering breakthrough
performance.
- Patent portfolio surpassed 1,000 U.S. granted patents, bringing
its total granted patents to more than 1,600 globally.
- Appointed consumer products leader Shaz
Kahng to GoPro's Board of Directors.
- Announced new high-performance Enduro Battery that improves
HERO10 and HERO9 cold temperature performance and extends recording
times in all conditions.
- Ranked No. 2 amongst online photo and video equipment retailers
in Newsweek's recent report, "America's Best Customer Service –
2022."
Results
Summary:
|
|
|
Three months ended
September 30,
|
($ in thousands,
except per share amounts)
|
|
2021
|
|
2020
|
|
%
Change
|
Revenue
|
|
$
|
316,669
|
|
|
$
|
280,507
|
|
|
12.9
|
%
|
Gross
margin
|
|
|
|
|
|
|
GAAP
|
|
43.6
|
%
|
|
35.4
|
%
|
|
820 bps
|
Non-GAAP
|
|
43.8
|
%
|
|
36.2
|
%
|
|
760 bps
|
Operating
income
|
|
|
|
|
|
|
GAAP
|
|
$
|
48,601
|
|
|
$
|
8,854
|
|
|
448.9
|
%
|
Non-GAAP
|
|
$
|
58,798
|
|
|
$
|
33,446
|
|
|
75.8
|
%
|
Net
income
|
|
|
|
|
|
|
GAAP
|
|
$
|
311,761
|
|
|
$
|
3,307
|
|
|
9,327.3
|
%
|
Non-GAAP
|
|
$
|
55,320
|
|
|
$
|
31,049
|
|
|
78.2
|
%
|
Diluted net income
per share
|
|
|
|
|
|
|
GAAP
|
|
$
|
1.92
|
|
|
$
|
0.02
|
|
|
9,500.0
|
%
|
Non-GAAP
|
|
$
|
0.34
|
|
|
$
|
0.20
|
|
|
70.0
|
%
|
Adjusted
EBITDA
|
|
$
|
60,442
|
|
|
$
|
39,179
|
|
|
54.3
|
%
|
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 8402962,
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 customers 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 blog, 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
expansion of our total addressable market through new products and
subscription services; increased profitability in 2021 and beyond;
overall 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 include our cumulative GAAP
income from the past three years may not be sustainable in future
periods, we may not be able to achieve our forecast, sustain
revenue growth or profitability, and our operating results may
fluctuate unpredictably; our ability to effectively grow our
direct-to-consumer and subscription business; the risk that our
sales fall below our forecasts, especially during the holiday
season; the risk we fail to manage our operating expenses
effectively, and may result in our financial performance suffering
the fact that our plan to profitability depends in part on further
penetrating our total addressable market, and we may not be
successful in doing so; the fact that sales of our cameras, mounts
and accessories for substantially all of our revenue, and any
decrease in the sales or change in sales mix of these products
could harm our business; the risk that growing our
direct-to-consumer and subscription 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
product introductions, product transitions, product pricing and
marketing; 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; 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 which may be impacted due to
supply shortages, long lead times for components, and supply
changes, any of which could disrupt our supply chain and may
increase our costs such as increased freight rates or shipping
delays; 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 experience fluctuating
revenue, expenses and 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,
2020, 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, 2021. 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)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
$
|
316,669
|
|
|
$
|
280,507
|
|
|
$
|
769,935
|
|
|
$
|
534,153
|
|
Cost of
revenue
|
178,616
|
|
|
181,195
|
|
|
453,904
|
|
|
355,722
|
|
Gross
profit
|
138,053
|
|
|
99,312
|
|
|
316,031
|
|
|
178,431
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
36,458
|
|
|
37,235
|
|
|
106,688
|
|
|
104,074
|
|
Sales and
marketing
|
37,352
|
|
|
34,378
|
|
|
108,812
|
|
|
112,845
|
|
General and
administrative
|
15,642
|
|
|
18,845
|
|
|
45,940
|
|
|
53,686
|
|
Total operating
expenses
|
89,452
|
|
|
90,458
|
|
|
261,440
|
|
|
270,605
|
|
Operating income
(loss)
|
48,601
|
|
|
8,854
|
|
|
54,591
|
|
|
(92,174)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(5,748)
|
|
|
(5,260)
|
|
|
(17,160)
|
|
|
(14,774)
|
|
Other income
(expense), net
|
(1,320)
|
|
|
955
|
|
|
435
|
|
|
462
|
|
Total other expense,
net
|
(7,068)
|
|
|
(4,305)
|
|
|
(16,725)
|
|
|
(14,312)
|
|
Income (loss) before
income taxes
|
41,533
|
|
|
4,549
|
|
|
37,866
|
|
|
(106,486)
|
|
Income tax expense
(benefit)
|
(270,228)
|
|
|
1,242
|
|
|
(280,679)
|
|
|
4,710
|
|
Net income
(loss)
|
$
|
311,761
|
|
|
$
|
3,307
|
|
|
$
|
318,545
|
|
|
$
|
(111,196)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
2.01
|
|
|
$
|
0.02
|
|
|
$
|
2.07
|
|
|
$
|
(0.75)
|
|
Diluted
|
$
|
1.92
|
|
|
$
|
0.02
|
|
|
$
|
1.96
|
|
|
$
|
(0.75)
|
|
|
|
|
|
|
|
|
|
Shares used to
compute net income (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
155,009
|
|
|
149,406
|
|
|
153,618
|
|
|
148,491
|
|
Diluted
|
162,746
|
|
|
151,849
|
|
|
162,728
|
|
|
148,491
|
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Balance Sheets
(unaudited)
|
|
(in
thousands)
|
September
30,
2021
|
|
December
31,
2020
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
296,357
|
|
|
$
|
325,654
|
|
Restricted
cash
|
—
|
|
|
2,000
|
|
Marketable
securities
|
82,184
|
|
|
—
|
|
Accounts receivable,
net
|
98,832
|
|
|
107,244
|
|
Inventory
|
120,891
|
|
|
97,914
|
|
Prepaid expenses and
other current assets
|
44,830
|
|
|
23,872
|
|
Total current
assets
|
643,094
|
|
|
556,684
|
|
Property and
equipment, net
|
20,409
|
|
|
23,711
|
|
Operating lease
right-of-use assets
|
27,762
|
|
|
31,560
|
|
Intangible assets,
net and goodwill
|
146,592
|
|
|
147,673
|
|
Other long-term
assets
|
280,390
|
|
|
11,771
|
|
Total
assets
|
$
|
1,118,247
|
|
|
$
|
771,399
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
118,876
|
|
|
$
|
111,399
|
|
Accrued expenses and
other current liabilities
|
112,480
|
|
|
113,776
|
|
Short-term operating
lease liabilities
|
9,542
|
|
|
9,369
|
|
Deferred
revenue
|
34,400
|
|
|
28,149
|
|
Short-term
debt
|
120,213
|
|
|
—
|
|
Total current
liabilities
|
395,511
|
|
|
262,693
|
|
Long-term
debt
|
109,470
|
|
|
218,172
|
|
Long-term operating
lease liabilities
|
45,138
|
|
|
51,986
|
|
Other long-term
liabilities
|
13,133
|
|
|
22,530
|
|
Total
liabilities
|
563,252
|
|
|
555,381
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
1,000,579
|
|
|
980,147
|
|
Treasury stock, at
cost
|
(113,613)
|
|
|
(113,613)
|
|
Accumulated
deficit
|
(331,971)
|
|
|
(650,516)
|
|
Total stockholders'
equity
|
554,995
|
|
|
216,018
|
|
Total liabilities and
stockholders' equity
|
$
|
1,118,247
|
|
|
$
|
771,399
|
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Statement of Cash Flows
(unaudited)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
311,761
|
|
|
$
|
3,307
|
|
|
$
|
318,545
|
|
|
$
|
(111,196)
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,370
|
|
|
4,802
|
|
|
8,598
|
|
|
15,495
|
|
Non-cash operating
lease cost
|
1,352
|
|
|
749
|
|
|
3,798
|
|
|
4,907
|
|
Stock-based
compensation
|
9,329
|
|
|
8,413
|
|
|
28,227
|
|
|
21,926
|
|
Deferred income
taxes
|
(269,913)
|
|
|
(104)
|
|
|
(269,922)
|
|
|
(51)
|
|
Non-cash restructuring
charges
|
—
|
|
|
1,943
|
|
|
(99)
|
|
|
5,242
|
|
Impairment of
right-of-use assets
|
—
|
|
|
12,460
|
|
|
—
|
|
|
12,460
|
|
Non-cash interest
expense
|
3,590
|
|
|
2,498
|
|
|
10,535
|
|
|
7,348
|
|
Other
|
1,705
|
|
|
(461)
|
|
|
874
|
|
|
738
|
|
Net changes in
operating assets and liabilities
|
7,429
|
|
|
65,950
|
|
|
(35,251)
|
|
|
30,660
|
|
Net cash provided by
(used in) operating activities
|
67,623
|
|
|
99,557
|
|
|
65,305
|
|
|
(12,471)
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(2,822)
|
|
|
(2,397)
|
|
|
(4,840)
|
|
|
(4,560)
|
|
Purchases of
marketable securities
|
(49,380)
|
|
|
—
|
|
|
(82,270)
|
|
|
—
|
|
Maturities of
marketable securities
|
—
|
|
|
—
|
|
|
—
|
|
|
14,830
|
|
Asset
acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
(438)
|
|
Net cash provided by
(used in) investing activities
|
(52,202)
|
|
|
(2,397)
|
|
|
(87,110)
|
|
|
9,832
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock
|
3,025
|
|
|
1,599
|
|
|
7,225
|
|
|
3,508
|
|
Taxes paid related to
net share settlement of equity awards
|
(7,038)
|
|
|
(2,359)
|
|
|
(15,013)
|
|
|
(4,713)
|
|
Proceeds from
borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
30,000
|
|
Repayment of
borrowings
|
—
|
|
|
(30,000)
|
|
|
—
|
|
|
(30,000)
|
|
Net cash provided by
(used in) financing activities
|
(4,013)
|
|
|
(30,760)
|
|
|
(7,788)
|
|
|
(1,205)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(857)
|
|
|
792
|
|
|
(1,704)
|
|
|
414
|
|
Net change in cash,
cash equivalents and restricted cash
|
10,551
|
|
|
67,192
|
|
|
(31,297)
|
|
|
(3,430)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
285,806
|
|
|
79,679
|
|
|
327,654
|
|
|
150,301
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
296,357
|
|
|
$
|
146,871
|
|
|
$
|
296,357
|
|
|
$
|
146,871
|
|
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
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, including right-of-use asset impairment charges, 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;
- adjusted EBITDA and non-GAAP net income (loss) exclude the loss
on extinguishment of debt because it is not reflective of ongoing
operating results in the period, and such losses vary in the
frequency and amount;
- 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 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 and November 2020, we are required to recognize
non-cash interest expense, such as the amortization of debt
discounts, 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. 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)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP net income
(loss)
|
$
|
311,761
|
|
|
$
|
3,307
|
|
|
$
|
318,545
|
|
|
$
|
(111,196)
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
483
|
|
|
340
|
|
|
1,420
|
|
|
1,175
|
|
Research and
development
|
4,380
|
|
|
3,597
|
|
|
13,131
|
|
|
9,682
|
|
Sales and
marketing
|
1,950
|
|
|
1,601
|
|
|
5,968
|
|
|
4,107
|
|
General and
administrative
|
2,516
|
|
|
2,875
|
|
|
7,708
|
|
|
6,962
|
|
Total stock-based
compensation
|
9,329
|
|
|
8,413
|
|
|
28,227
|
|
|
21,926
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
70
|
|
|
964
|
|
|
1,081
|
|
|
3,875
|
|
Total
acquisition-related costs
|
70
|
|
|
964
|
|
|
1,081
|
|
|
3,875
|
|
|
|
|
|
|
|
|
|
Restructuring and
other costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
51
|
|
|
938
|
|
|
150
|
|
|
1,270
|
|
Research and
development
|
417
|
|
|
5,883
|
|
|
1,290
|
|
|
8,383
|
|
Sales and
marketing
|
199
|
|
|
3,974
|
|
|
677
|
|
|
11,189
|
|
General and
administrative
|
131
|
|
|
4,420
|
|
|
419
|
|
|
5,660
|
|
Total restructuring
and other costs
|
798
|
|
|
15,215
|
|
|
2,536
|
|
|
26,502
|
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
3,590
|
|
|
2,498
|
|
|
10,535
|
|
|
7,348
|
|
Income tax
adjustments
|
(270,228)
|
|
|
652
|
|
|
(280,907)
|
|
|
3,260
|
|
Non-GAAP net
income (loss)
|
$
|
55,320
|
|
|
$
|
31,049
|
|
|
$
|
80,017
|
|
|
$
|
(48,285)
|
|
|
|
|
|
|
|
|
|
GAAP shares for
diluted net income (loss) per share
|
162,746
|
|
|
151,849
|
|
|
162,728
|
|
|
148,491
|
|
Non-GAAP shares
for diluted net income (loss) per share
|
162,746
|
|
|
151,849
|
|
|
162,728
|
|
|
148,491
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
$
|
1.92
|
|
|
$
|
0.02
|
|
|
$
|
1.96
|
|
|
$
|
(0.75)
|
|
Non-GAAP diluted
net income (loss) per share
|
$
|
0.34
|
|
|
$
|
0.20
|
|
|
$
|
0.49
|
|
|
$
|
(0.33)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(dollars in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP gross profit
as a % of revenue
|
43.6
|
%
|
|
35.4
|
%
|
|
41.0
|
%
|
|
33.4
|
%
|
Stock-based
compensation
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
Acquisition-related
costs
|
—
|
|
|
0.4
|
|
|
0.2
|
|
|
0.8
|
|
Restructuring and
other costs
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.2
|
|
Non-GAAP gross
profit as a % of revenue
|
43.8
|
%
|
|
36.2
|
%
|
|
41.4
|
%
|
|
34.6
|
%
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
89,452
|
|
|
$
|
90,458
|
|
|
$
|
261,440
|
|
|
$
|
270,605
|
|
Stock-based
compensation
|
(8,846)
|
|
|
(8,073)
|
|
|
(26,807)
|
|
|
(20,751)
|
|
Restructuring and
other costs
|
(747)
|
|
|
(14,277)
|
|
|
(2,386)
|
|
|
(25,232)
|
|
Non-GAAP operating
expenses
|
$
|
79,859
|
|
|
$
|
68,108
|
|
|
$
|
232,247
|
|
|
$
|
224,622
|
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss)
|
$
|
48,601
|
|
|
$
|
8,854
|
|
|
$
|
54,591
|
|
|
$
|
(92,174)
|
|
Stock-based
compensation
|
9,329
|
|
|
8,413
|
|
|
28,227
|
|
|
21,926
|
|
Acquisition-related
costs
|
70
|
|
|
964
|
|
|
1,081
|
|
|
3,875
|
|
Restructuring and
other costs
|
798
|
|
|
15,215
|
|
|
2,536
|
|
|
26,502
|
|
Non-GAAP operating
income (loss)
|
$
|
58,798
|
|
|
$
|
33,446
|
|
|
$
|
86,435
|
|
|
$
|
(39,871)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP net income
(loss)
|
$
|
311,761
|
|
|
$
|
3,307
|
|
|
$
|
318,545
|
|
|
$
|
(111,196)
|
|
Income tax
expense
|
(270,228)
|
|
|
1,242
|
|
|
(280,679)
|
|
|
4,710
|
|
Interest expense,
net
|
5,697
|
|
|
5,241
|
|
|
16,977
|
|
|
14,551
|
|
Depreciation and
amortization
|
2,371
|
|
|
4,802
|
|
|
8,599
|
|
|
15,495
|
|
POP display
amortization
|
714
|
|
|
959
|
|
|
2,022
|
|
|
3,468
|
|
Stock-based
compensation
|
9,329
|
|
|
8,413
|
|
|
28,227
|
|
|
21,926
|
|
Restructuring and
other costs
|
798
|
|
|
15,215
|
|
|
2,536
|
|
|
26,502
|
|
Adjusted
EBITDA
|
$
|
60,442
|
|
|
$
|
39,179
|
|
|
$
|
96,227
|
|
|
$
|
(24,544)
|
|
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SOURCE GoPro, Inc.