SAN MATEO, Calif., Feb. 3, 2022 /PRNewswire/ -- GoPro, Inc. (NASDAQ:
GPRO) today announced financial results for its fourth quarter
ended December 31, 2021 and posted management commentary on
the investor relations section of its website at
https://investor.gopro.com.
"In 2021 GoPro navigated a challenging business environment –
and thrived," said Nicholas Woodman,
GoPro's founder and CEO. "We successfully launched innovative new
hardware, software and subscription offerings and leveraged the
first full year of our more direct-to-consumer,
subscription-centric strategy to grow revenue, margin and
profitability while generating a record year-end cash balance of
$539 million."
"The strategic shift we made in mid-2020 is bearing fruit in the
form of financial and operational improvements," said Brian McGee, GoPro's CFO and COO. "The result
has been strong revenue growth with significant margin improvement,
combined with controlled spending, and leading to growing
profitability and record cash flow generation."
Q4 Financial Highlights
- Revenue was $391 million, up 9%
year-over-year from $358
million.
- GoPro.com revenue, including subscription revenue, increased
10% year-over-year to $128 million,
or 33% of total revenue. GoPro and Quik subscription revenues
totaled $16.8 million, up 118%
year-over-year.
- GAAP and non-GAAP gross margin was 41.2% and 41.3%
respectively, up from the prior year period at 38.0% and 38.3%,
respectively.
- GAAP net income was $53 million,
or $0.32 per share, up from
$44 million or $0.28 per share in the prior year period.
Non-GAAP net income was $66 million,
or $0.41 per share, up from
$61 million, or $0.39 per share in the prior year period.
- Adjusted EBITDA was $72 million,
or 18% of revenue, compared to $68
million, or 19% of revenue in the prior year period.
- Cameras with retail prices at or above $300 represented 100% of Q4 2021 camera revenue,
up from 91% in the prior year period.
- Q4 2021 Street ASP was $379, up
17% year-over-year.
- Cash increased $160 million, or
41% of revenue.
2021 Financial Highlights
- Revenue was $1.16 billion, up 30%
year-over-year from $892 million in
2020.
- GoPro.com total revenue, including subscription revenue,
increased 39% year-over-year to $392
million, or 34% of total revenue. GoPro and Quik
subscription revenues totaled $52.9
million, up 131% year-over-year.
- GoPro subscriber count ended 2021 at approximately 1.6 million,
up 107% year-over-year.
- Quik app subscriber count grew to 221,000 after launching in
March 2021.
- GAAP and non-GAAP gross margin was 41.1% and 41.4%
respectively, up from the prior year at 35.3% and 36.1%,
respectively.
- 2021 GAAP net income was $371
million, or $2.27 per share,
up from a loss of $67 million, or
$0.45 loss per share in the prior
year. Non-GAAP net income was $146
million, or $0.90 per share,
up from $13 million, or $0.08 per share in the prior year.
- 2021 adjusted EBITDA was $168
million, or 14% of revenue, compared to $43 million, or 5% of revenue in the prior
year.
- Cameras with retail prices at or above $300 represented 97% of camera revenue.
- 2021 Street ASP was $369, up 17%
year-over-year.
- Cash grew 64% to $539
million.
Other Recent Business Highlights
- Won a 2nd Emmy® Award for Technical &
Engineering from the National Association of Television Arts &
Sciences for GoPro's innovation in in-camera sensor and software
stabilization technology.
- Ranked No. 1 Large Employer in Outside Magazine's "Best Places
to Work," recognizing U.S.-based companies leading in their
commitment to employee engagement and wellness.
- Launched the new high-performance Enduro Battery, improving
HERO10 and HERO9 cold temperature performance and extending
recording times in all conditions.
- On January 27, 2022, GoPro's
board of directors authorized the Company to repurchase up to
$100 million of its Class A common
stock. Share repurchases may take place from time to time, subject
to market conditions, using a variety of methods. GoPro expects to
fund repurchases through cash generated from operations. This stock
repurchase program has no time limit and may be modified, suspended
or discontinued at any time.
Results
Summary:
|
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
($ in thousands,
except per share amounts)
|
|
2021
|
|
2020
|
|
%
Change
|
|
2021
|
|
2020
|
|
%
Change
|
Revenue
|
|
$ 391,149
|
|
$ 357,772
|
|
9.3 %
|
|
$
1,161,084
|
|
$ 891,925
|
|
30.2 %
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
41.2 %
|
|
38.0 %
|
|
320 bps
|
|
41.1 %
|
|
35.3 %
|
|
580 bps
|
Non-GAAP
|
|
41.3 %
|
|
38.3 %
|
|
300 bps
|
|
41.4 %
|
|
36.1 %
|
|
530 bps
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$ 58,625
|
|
$ 55,355
|
|
5.9 %
|
|
$ 113,216
|
|
$ (36,819)
|
|
407.5 %
|
Non-GAAP
|
|
$ 69,232
|
|
$ 64,184
|
|
7.9 %
|
|
$ 155,667
|
|
$ 24,313
|
|
540.3 %
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$ 52,626
|
|
$ 44,413
|
|
18.5 %
|
|
$ 371,171
|
|
$ (66,783)
|
|
655.8 %
|
Non-GAAP
|
|
$ 66,147
|
|
$ 61,064
|
|
8.3 %
|
|
$ 146,068
|
|
$ 12,779
|
|
1,043.0 %
|
Diluted net income
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$ 0.32
|
|
$ 0.28
|
|
14.3 %
|
|
$ 2.27
|
|
$ (0.45)
|
|
604.4 %
|
Non-GAAP
|
|
$ 0.41
|
|
$ 0.39
|
|
5.1 %
|
|
$ 0.90
|
|
$ 0.08
|
|
1,025.0 %
|
Adjusted
EBITDA
|
|
$ 71,571
|
|
$ 67,744
|
|
5.6 %
|
|
$ 167,798
|
|
$ 43,200
|
|
288.4 %
|
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 call +1
800-289-0720 (US) or +1 323-701-0160 (International) and enter
access code 3025961, 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 from approximately
two hours after the call through April
28, 2022.
About GoPro, Inc. (NASDAQ: GPRO)
Celebrating its 20th anniversary in 2022, GoPro helps the world to
capture and share itself in immersive and exciting ways.
For more information, visit GoPro.com. Open roles can be found
on our careers page. Members of the press can access official logos
and imagery on our press portal. GoPro customers can submit their
photos and videos to GoPro Awards for an opportunity to be featured
on GoPro's social channels and receive gear and cash awards.
Connect with GoPro on Facebook, Instagram, LinkedIn, TikTok,
Twitter, YouTube, and GoPro's blog The Current.
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 our direct-to-consumer and subscription-centric
strategy to grow revenue; our share repurchase plan; and overall
consumer demand. 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 impact of theCOVID-19 outbreak on the
United States and global economies could have a material
adverse impact on our business in particular; 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;
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 services and 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 interest rates or
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 attracting and retaining qualified personnel; the importance of
maintaining the value and reputation of our brand; 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.
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
December 31,
|
|
Year ended
December 31,
|
(in thousands,
except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
$ 391,149
|
|
$ 357,772
|
|
$
1,161,084
|
|
$ 891,925
|
Cost of
revenue
|
230,075
|
|
221,689
|
|
683,979
|
|
577,411
|
Gross
profit
|
161,074
|
|
136,083
|
|
477,105
|
|
314,514
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
34,806
|
|
27,515
|
|
141,494
|
|
131,589
|
Sales and
marketing
|
47,882
|
|
38,535
|
|
156,694
|
|
151,380
|
General and
administrative
|
19,761
|
|
14,678
|
|
65,701
|
|
68,364
|
Total operating
expenses
|
102,449
|
|
80,728
|
|
363,889
|
|
351,333
|
Operating income
(loss)
|
58,625
|
|
55,355
|
|
113,216
|
|
(36,819)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(5,780)
|
|
(5,483)
|
|
(22,940)
|
|
(20,257)
|
Other expense,
net
|
(611)
|
|
(5,343)
|
|
(176)
|
|
(4,881)
|
Total other
expense, net
|
(6,391)
|
|
(10,826)
|
|
(23,116)
|
|
(25,138)
|
Income (loss) before
income taxes
|
52,234
|
|
44,529
|
|
90,100
|
|
(61,957)
|
Income tax expense
(benefit)
|
(392)
|
|
116
|
|
(281,071)
|
|
4,826
|
Net income
(loss)
|
$ 52,626
|
|
$ 44,413
|
|
$ 371,171
|
|
$ (66,783)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$ 0.34
|
|
$ 0.29
|
|
$ 2.41
|
|
$ (0.45)
|
Diluted
|
$ 0.32
|
|
$ 0.28
|
|
$ 2.27
|
|
$ (0.45)
|
|
|
|
|
|
|
|
|
Shares used to
compute net income (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
156,221
|
|
150,663
|
|
154,274
|
|
149,037
|
Diluted
|
162,742
|
|
156,464
|
|
163,178
|
|
149,037
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Balance Sheets
|
(unaudited)
|
|
(in
thousands)
|
December
31,
2021
|
|
December
31,
2020
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 401,087
|
|
$ 325,654
|
Restricted
cash
|
—
|
|
2,000
|
Marketable
securities
|
137,830
|
|
—
|
Accounts receivable,
net
|
114,221
|
|
107,244
|
Inventory
|
86,409
|
|
97,914
|
Prepaid expenses and
other current assets
|
42,311
|
|
23,872
|
Total current
assets
|
781,858
|
|
556,684
|
Property and
equipment, net
|
19,003
|
|
23,711
|
Operating lease
right-of-use assets
|
27,320
|
|
31,560
|
Intangible assets,
net and goodwill
|
146,521
|
|
147,673
|
Other long-term
assets
|
285,177
|
|
11,771
|
Total
assets
|
$
1,259,879
|
|
$ 771,399
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 171,545
|
|
$ 111,399
|
Accrued expenses and
other current liabilities
|
128,572
|
|
113,776
|
Short-term operating
lease liabilities
|
9,819
|
|
9,369
|
Deferred
revenue
|
42,505
|
|
28,149
|
Short-term
debt
|
122,391
|
|
—
|
Total current
liabilities
|
474,832
|
|
262,693
|
Long-term
debt
|
111,289
|
|
218,172
|
Long-term operating
lease liabilities
|
43,025
|
|
51,986
|
Other long-term
liabilities
|
14,819
|
|
22,530
|
Total
liabilities
|
643,965
|
|
555,381
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
1,008,872
|
|
980,147
|
Treasury stock, at
cost
|
(113,613)
|
|
(113,613)
|
Accumulated
deficit
|
(279,345)
|
|
(650,516)
|
Total
stockholders' equity
|
615,914
|
|
216,018
|
Total
liabilities and stockholders' equity
|
$
1,259,879
|
|
$ 771,399
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statement of Cash Flows
|
(unaudited)
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ 52,626
|
|
$ 44,413
|
|
$ 371,171
|
|
$ (66,783)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,363
|
|
3,570
|
|
10,962
|
|
19,065
|
Non-cash operating
lease cost
|
442
|
|
1,658
|
|
4,240
|
|
6,565
|
Stock-based
compensation
|
10,423
|
|
8,037
|
|
38,650
|
|
29,963
|
Deferred income
taxes
|
(3,619)
|
|
1
|
|
(273,541)
|
|
(50)
|
Non-cash restructuring
charges
|
—
|
|
—
|
|
(99)
|
|
5,242
|
Impairment of
right-of-use assets
|
—
|
|
—
|
|
—
|
|
12,460
|
Non-cash interest
expense
|
3,673
|
|
3,018
|
|
14,208
|
|
10,366
|
Loss on extinguishment
of debt
|
—
|
|
5,389
|
|
—
|
|
5,389
|
Other
|
1,370
|
|
334
|
|
2,243
|
|
1,072
|
Net changes in
operating assets and liabilities
|
96,570
|
|
39,833
|
|
61,319
|
|
70,493
|
Net cash
provided by operating activities
|
163,848
|
|
106,253
|
|
229,153
|
|
93,782
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(705)
|
|
(321)
|
|
(5,545)
|
|
(4,881)
|
Purchases of
marketable securities
|
(64,245)
|
|
—
|
|
(146,515)
|
|
—
|
Maturities of
marketable securities
|
8,341
|
|
—
|
|
8,341
|
|
14,830
|
Asset
acquisition
|
—
|
|
—
|
|
—
|
|
(438)
|
Net cash provided by
(used in) investing activities
|
(56,609)
|
|
(321)
|
|
(143,719)
|
|
9,511
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock
|
265
|
|
1,927
|
|
7,490
|
|
5,435
|
Taxes paid related to
net share settlement of equity awards
|
(2,366)
|
|
(1,494)
|
|
(17,379)
|
|
(6,207)
|
Proceeds from
issuance of 2025 convertible senior notes
|
—
|
|
143,750
|
|
—
|
|
143,750
|
Payment of debt
issuance costs
|
|
|
(4,752)
|
|
—
|
|
(4,752)
|
Purchase of capped
calls related to 2025 convertible senior notes
|
—
|
|
(10,249)
|
|
—
|
|
(10,249)
|
Payments for 2022
convertible senior notes partial repurchase
|
—
|
|
(56,000)
|
|
—
|
|
(56,000)
|
Proceeds from
borrowings
|
—
|
|
—
|
|
—
|
|
30,000
|
Repayment of
borrowings
|
—
|
|
—
|
|
—
|
|
(30,000)
|
Net cash provided by
(used in) financing activities
|
(2,101)
|
|
73,182
|
|
(9,889)
|
|
71,977
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(408)
|
|
1,669
|
|
(2,112)
|
|
2,083
|
Net change in cash,
cash equivalents and restricted cash
|
104,730
|
|
180,783
|
|
73,433
|
|
177,353
|
Cash, cash
equivalents and restricted cash at beginning of period
|
296,357
|
|
146,871
|
|
327,654
|
|
150,301
|
Cash, cash
equivalents and restricted cash at end of period
|
$ 401,087
|
|
$ 327,654
|
|
$ 401,087
|
|
$ 327,654
|
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
December 31,
|
|
Year ended
December 31,
|
(in thousands,
except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP net income
(loss)
|
$ 52,626
|
|
$ 44,413
|
|
$ 371,171
|
|
$ (66,783)
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
374
|
|
373
|
|
1,794
|
|
1,548
|
Research and
development
|
4,132
|
|
3,733
|
|
17,263
|
|
13,415
|
Sales and
marketing
|
2,077
|
|
1,672
|
|
8,045
|
|
5,779
|
General and
administrative
|
3,840
|
|
2,259
|
|
11,548
|
|
9,221
|
Total
stock-based compensation
|
10,423
|
|
8,037
|
|
38,650
|
|
29,963
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
71
|
|
723
|
|
1,152
|
|
4,598
|
Total
acquisition-related costs
|
71
|
|
723
|
|
1,152
|
|
4,598
|
|
|
|
|
|
|
|
|
Restructuring and
other costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
7
|
|
11
|
|
157
|
|
1,281
|
Research and
development
|
53
|
|
159
|
|
1,343
|
|
8,542
|
Sales and
marketing
|
35
|
|
(264)
|
|
712
|
|
10,925
|
General and
administrative
|
18
|
|
163
|
|
437
|
|
5,823
|
Total
restructuring and other costs
|
113
|
|
69
|
|
2,649
|
|
26,571
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
3,673
|
|
3,018
|
|
14,208
|
|
10,366
|
Loss on
extinguishment of debt
|
—
|
|
5,389
|
|
—
|
|
5,389
|
Income tax
adjustments
|
(759)
|
|
(585)
|
|
(281,762)
|
|
2,675
|
Non-GAAP net
income
|
$ 66,147
|
|
$ 61,064
|
|
$ 146,068
|
|
$ 12,779
|
|
|
|
|
|
|
|
|
GAAP shares for
diluted net income (loss) per share
|
162,742
|
|
156,464
|
|
163,178
|
|
149,037
|
Add: dilutive
shares
|
—
|
|
—
|
|
—
|
|
3,096
|
Non-GAAP shares
for diluted net income per share
|
162,742
|
|
156,464
|
|
163,178
|
|
152,133
|
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
$ 0.32
|
|
$ 0.28
|
|
$ 2.27
|
|
$ (0.45)
|
Non-GAAP diluted
net income per share
|
$ 0.41
|
|
$ 0.39
|
|
$ 0.90
|
|
$
0.08
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
(dollars in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP gross profit
as a % of revenue
|
41.2 %
|
|
38.0 %
|
|
41.1 %
|
|
35.3 %
|
Stock-based
compensation
|
0.1
|
|
0.1
|
|
0.2
|
|
0.2
|
Acquisition-related
costs
|
—
|
|
0.2
|
|
0.1
|
|
0.5
|
Restructuring and
other costs
|
—
|
|
—
|
|
—
|
|
0.1
|
Non-GAAP gross
profit as a % of revenue
|
41.3 %
|
|
38.3 %
|
|
41.4 %
|
|
36.1 %
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$ 102,449
|
|
$ 80,728
|
|
$ 363,889
|
|
$ 351,333
|
Stock-based
compensation
|
(10,049)
|
|
(7,664)
|
|
(36,856)
|
|
(28,415)
|
Restructuring and
other costs
|
(106)
|
|
(58)
|
|
(2,492)
|
|
(25,290)
|
Non-GAAP operating
expenses
|
$ 92,294
|
|
$ 73,006
|
|
$ 324,541
|
|
$ 297,628
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss)
|
$ 58,625
|
|
$ 55,355
|
|
$ 113,216
|
|
$ (36,819)
|
Stock-based
compensation
|
10,423
|
|
8,037
|
|
38,650
|
|
29,963
|
Acquisition-related
costs
|
71
|
|
723
|
|
1,152
|
|
4,598
|
Restructuring and
other costs
|
113
|
|
69
|
|
2,649
|
|
26,571
|
Non-GAAP operating
income
|
$ 69,232
|
|
$ 64,184
|
|
$ 155,667
|
|
$ 24,313
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP net income
(loss)
|
$ 52,626
|
|
$ 44,413
|
|
$ 371,171
|
|
$ (66,783)
|
Income tax
expense
|
(392)
|
|
116
|
|
(281,071)
|
|
4,826
|
Interest expense,
net
|
5,701
|
|
5,442
|
|
22,678
|
|
19,993
|
Depreciation and
amortization
|
2,363
|
|
3,570
|
|
10,962
|
|
19,065
|
POP display
amortization
|
737
|
|
708
|
|
2,759
|
|
4,176
|
Stock-based
compensation
|
10,423
|
|
8,037
|
|
38,650
|
|
29,963
|
Loss on extinguishment
of debt
|
—
|
|
5,389
|
|
—
|
|
5,389
|
Restructuring and
other costs
|
113
|
|
69
|
|
2,649
|
|
26,571
|
Adjusted
EBITDA
|
$ 71,571
|
|
$ 67,744
|
|
$ 167,798
|
|
$ 43,200
|
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SOURCE GoPro, Inc.