GoPro Subscribers up 65% year-over-year to
1.91 million
GAAP EPS of $0.02 and non-GAAP EPS of $0.08
Camera Sell-through at High-end of Q2
Guidance
SAN
MATEO, Calif., Aug. 4, 2022
/PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) today announced
financial results for its second quarter ended June 30, 2022
and posted management commentary on the investor relations section
of its website at https://investor.gopro.com.
"GoPro shined in the second quarter, exceeding expectations on
sell-through, revenue and earnings per share," said Nicholas Woodman, GoPro's founder and CEO.
"We're excited about our upcoming hardware and software launches in
the second half of 2022, and we expect them to contribute to
continued profitability and impressive subscription growth."
"In the second quarter, Asia
Pacific and Europe
recovered with strong year-over-year revenue growth which
contributed to solid Q2 revenue and sell-through performance," said
Brian McGee, GoPro's CFO and COO.
"Subscribers grew 65% year-over year with subscription and service
revenue representing a powerful driver of profitability."
Q2 2022 Financial Results &
Recent Business Highlights
- Revenue was $251 million, up
slightly year-over-year from $250
million, with a strong U.S. dollar unfavorably impacting Q2
revenue by approximately $8 million
year-over-year.
- GoPro.com revenue, including subscription and service revenue,
increased 9% year-over-year to $95
million, or 38% of total revenue. Subscription and service
revenue increased 71% year-over-year to $20
million.
- GoPro subscriber count increased 65% year-over-year to 1.91
million.
- GAAP and non-GAAP gross margin was 38.3% and 38.5%
respectively, down from the prior year period at 39.8% and 40.1%,
respectively.
- GAAP net income was $3 million,
or $0.02 per share, down from net
income of $17 million or $0.10 per share which included a $12 million tax benefit in the prior year period.
Non-GAAP net income was $13 million,
or $0.08 per share, down 36% from
$20 million, or $0.12 per share in the prior year period.
- Adjusted EBITDA was $17 million,
or 7% of revenue, compared to $25
million, or 10% of revenue in the prior year period.
- Cameras with retail prices at or above $400 represented 93% of Q2 2022 camera revenue,
up from 77% in Q2 2021.
- Q2 2022 Street ASP increased 13% year-over-year to $392.
Results
Summary:
|
|
|
|
Three months ended
June 30,
|
($ in thousands,
except per share amounts)
|
|
2022
|
|
2021
|
|
%
Change
|
Revenue
|
|
$
250,685
|
|
$
249,586
|
|
0.4 %
|
Gross
margin
|
|
|
|
|
|
|
GAAP
|
|
38.3 %
|
|
39.8 %
|
|
-150 bps
|
Non-GAAP
|
|
38.5 %
|
|
40.1 %
|
|
-160 bps
|
Operating
income
|
|
|
|
|
|
|
GAAP
|
|
$
4,655
|
|
$
9,502
|
|
(51.0) %
|
Non-GAAP
|
|
$
14,990
|
|
$
20,724
|
|
(27.7) %
|
Net
income
|
|
|
|
|
|
|
GAAP
|
|
$
2,519
|
|
$
16,952
|
|
(85.1) %
|
Non-GAAP
|
|
$
12,790
|
|
$
19,862
|
|
(35.6) %
|
Diluted net income
per share
|
|
|
|
|
|
|
GAAP
|
|
$
0.02
|
|
$
0.10
|
|
(80.0) %
|
Non-GAAP
|
|
$
0.08
|
|
$
0.12
|
|
(33.3) %
|
Adjusted
EBITDA
|
|
$
16,891
|
|
$
25,065
|
|
(32.6) %
|
Conference Call
GoPro management will host a conference call and live webcast
for analysts and investors today at 2 p.m.
Pacific Time (5 p.m. Eastern
Time) to discuss the Company's financial results.
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 3600393, 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 October 27,
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, and
GoPro's investor relations website and blog, The Current.
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
press release may include but are not limited to our upcoming
hardware and software launches in the second half of 2022 and our
expectation that they will continue to contribute to profitability
and subscription growth; 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 we may not be able to achieve
our forecast, sustain revenue growth or profitability in the
future, and our operating results may fluctuate unpredictably; 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 continuing impact of the COVID-19
pandemic and the war in Ukraine
and their effects on the United
States and global economies and our business in particular;
our ability to maintain the value and reputation of our brand and
protect our intellectual property and proprietary rights ; 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 continued 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; the fact that an economic downturn or economic
uncertainty in our key U.S. and international markets, inflation,
and fluctuations in interest rates or currency exchange rates, may
adversely affect consumer discretionary spending and demand for our
products; the impact of fluctuations in foreign currency exchange
rates on our results of operations; our ability to attract, engage
and retain qualified personnel; 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, 2021, 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, 2022. 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 Statements of Operations
(unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in thousands,
except per share data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
$
250,685
|
|
$
249,586
|
|
$
467,390
|
|
$
453,266
|
Cost of
revenue
|
154,681
|
|
150,304
|
|
280,910
|
|
275,288
|
Gross
profit
|
96,004
|
|
99,282
|
|
186,480
|
|
177,978
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
36,218
|
|
37,800
|
|
67,816
|
|
70,230
|
Sales and
marketing
|
39,439
|
|
35,670
|
|
74,812
|
|
71,460
|
General and
administrative
|
15,692
|
|
16,310
|
|
31,035
|
|
30,298
|
Total operating
expenses
|
91,349
|
|
89,780
|
|
173,663
|
|
171,988
|
Operating
income
|
4,655
|
|
9,502
|
|
12,817
|
|
5,990
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(1,538)
|
|
(5,532)
|
|
(3,747)
|
|
(11,412)
|
Other expense,
net
|
(488)
|
|
1,312
|
|
(807)
|
|
1,755
|
Total other expense,
net
|
(2,026)
|
|
(4,220)
|
|
(4,554)
|
|
(9,657)
|
Income (loss) before
income taxes
|
2,629
|
|
5,282
|
|
8,263
|
|
(3,667)
|
Income tax expense
(benefit)
|
110
|
|
(11,670)
|
|
59
|
|
(10,451)
|
Net income
|
$
2,519
|
|
$
16,952
|
|
$
8,204
|
|
$
6,784
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.02
|
|
$
0.11
|
|
$
0.05
|
|
$
0.04
|
Diluted
|
$
0.02
|
|
$
0.10
|
|
$
0.06
|
|
$
0.04
|
|
|
|
|
|
|
|
|
Shares used to compute
net income per share:
|
|
|
|
|
|
|
|
Basic
|
156,645
|
|
153,634
|
|
156,751
|
|
152,911
|
Diluted
|
176,860
|
|
164,857
|
|
183,170
|
|
162,455
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Balance Sheets
(unaudited)
|
|
(in
thousands)
|
June 30,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
203,279
|
|
$
401,087
|
Marketable
securities
|
119,172
|
|
137,830
|
Accounts receivable,
net
|
88,419
|
|
114,221
|
Inventory
|
126,007
|
|
86,409
|
Prepaid expenses and
other current assets
|
28,549
|
|
42,311
|
Total current
assets
|
565,426
|
|
781,858
|
Property and equipment,
net
|
16,400
|
|
19,003
|
Operating lease
right-of-use assets
|
25,012
|
|
27,320
|
Goodwill
|
146,459
|
|
146,459
|
Other long-term
assets
|
290,774
|
|
285,239
|
Total
assets
|
$
1,044,071
|
|
$
1,259,879
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
96,988
|
|
$
171,545
|
Accrued expenses and
other current liabilities
|
105,249
|
|
128,572
|
Short-term operating
lease liabilities
|
9,886
|
|
9,819
|
Deferred
revenue
|
46,116
|
|
42,505
|
Short-term
debt
|
—
|
|
122,391
|
Total current
liabilities
|
258,239
|
|
474,832
|
Long-term
debt
|
140,542
|
|
111,289
|
Long-term operating
lease liabilities
|
38,271
|
|
43,025
|
Other long-term
liabilities
|
14,508
|
|
14,819
|
Total
liabilities
|
451,560
|
|
643,965
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
944,642
|
|
1,008,872
|
Treasury stock, at
cost
|
(135,375)
|
|
(113,613)
|
Accumulated
deficit
|
(216,756)
|
|
(279,345)
|
Total stockholders'
equity
|
592,511
|
|
615,914
|
Total liabilities and
stockholders' equity
|
$
1,044,071
|
|
$
1,259,879
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Statements of Cash Flows
(unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
|
$
2,519
|
|
$
16,952
|
|
$
8,204
|
|
$
6,784
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,253
|
|
2,694
|
|
4,555
|
|
6,228
|
Non-cash operating
lease cost
|
630
|
|
1,526
|
|
2,308
|
|
2,446
|
Stock-based
compensation
|
10,251
|
|
10,029
|
|
20,087
|
|
18,898
|
Deferred income
taxes
|
(534)
|
|
(7)
|
|
2,397
|
|
(9)
|
Non-cash restructuring
charges
|
—
|
|
—
|
|
—
|
|
(99)
|
Non-cash interest
expense
|
—
|
|
3,512
|
|
—
|
|
6,945
|
Other
|
1,012
|
|
(943)
|
|
2,016
|
|
(831)
|
Net changes in
operating assets and liabilities
|
(3,275)
|
|
(10,589)
|
|
(100,118)
|
|
(42,680)
|
Net cash provided by
(used in) operating activities
|
12,856
|
|
23,174
|
|
(60,551)
|
|
(2,318)
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(774)
|
|
(950)
|
|
(1,294)
|
|
(2,018)
|
Purchases of marketable
securities
|
(23,966)
|
|
(32,890)
|
|
(47,077)
|
|
(32,890)
|
Maturities of
marketable securities
|
49,249
|
|
—
|
|
65,149
|
|
—
|
Net cash provided by
(used in) investing activities
|
24,509
|
|
(33,840)
|
|
16,778
|
|
(34,908)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock
|
87
|
|
1,202
|
|
2,686
|
|
4,200
|
Taxes paid related to
net share settlement of equity awards
|
(1,313)
|
|
(1,729)
|
|
(8,488)
|
|
(7,975)
|
Repurchase of
outstanding common stock
|
(11,762)
|
|
—
|
|
(21,762)
|
|
—
|
Repayment of
borrowings
|
(125,000)
|
|
—
|
|
(125,000)
|
|
—
|
Net cash used in
financing activities
|
(137,988)
|
|
(527)
|
|
(152,564)
|
|
(3,775)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(1,417)
|
|
245
|
|
(1,471)
|
|
(847)
|
Net change in cash,
cash equivalents and restricted cash
|
(102,040)
|
|
(10,948)
|
|
(197,808)
|
|
(41,848)
|
Cash, cash equivalents
and restricted cash at beginning of period
|
305,319
|
|
296,754
|
|
401,087
|
|
327,654
|
Cash, cash equivalents
and restricted cash at end of period
|
$
203,279
|
|
$
285,806
|
|
$
203,279
|
|
$
285,806
|
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, 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;
- 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. Additionally, in connection with the adoption
of ASU 2020-06 on January 1, 2022, we
add back the tax effected cash interest expense associated with our
2022 Notes and 2025 Notes, as if converted at the beginning of the
period, if the impact is dilutive;
- non-GAAP net income (loss) excludes non-cash interest expense.
Prior to the adoption of ASU 2020-06 in fiscal year 2022, we were
required to recognize non-cash interest expense related to the
amortization of a debt discount associated with our 2022 Notes and
2025 Notes in accordance with the prior authoritative accounting
guidance for convertible debt that may be settled in cash. From
fiscal year 2022 and onwards, this debt discount accounting
requirement was removed, and as a result, non-cash interest expense
will no longer be a reconciling item between GAAP and non-GAAP net
income (loss);
- 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;
- GAAP and non-GAAP net income (loss) per share includes the
dilutive, tax effected cash interest expense associated with our
2022 Notes and 2025 Notes, as if converted at the beginning of the
period in connection with the adoption of ASU 2020-06 on
January 1, 2022; 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)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
GAAP net
income
|
$
2,519
|
|
$
16,952
|
|
$
8,204
|
|
$
6,784
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
483
|
|
508
|
|
930
|
|
937
|
Research and
development
|
4,405
|
|
4,615
|
|
8,563
|
|
8,751
|
Sales and
marketing
|
2,229
|
|
2,153
|
|
4,352
|
|
4,018
|
General and
administrative
|
3,134
|
|
2,753
|
|
6,242
|
|
5,192
|
Total stock-based
compensation
|
10,251
|
|
10,029
|
|
20,087
|
|
18,898
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
—
|
|
288
|
|
47
|
|
1,011
|
Total
acquisition-related costs
|
—
|
|
288
|
|
47
|
|
1,011
|
|
|
|
|
|
|
|
|
Restructuring and other
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
4
|
|
49
|
|
9
|
|
99
|
Research and
development
|
43
|
|
432
|
|
82
|
|
873
|
Sales and
marketing
|
24
|
|
279
|
|
46
|
|
478
|
General and
administrative
|
13
|
|
145
|
|
26
|
|
288
|
Total restructuring
and other costs
|
84
|
|
905
|
|
163
|
|
1,738
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
—
|
|
3,512
|
|
—
|
|
6,945
|
Income tax
adjustments
|
(64)
|
|
(11,824)
|
|
(515)
|
|
(10,679)
|
Non-GAAP net
income
|
$
12,790
|
|
$
19,862
|
|
$
27,986
|
|
$
24,697
|
|
|
|
|
|
|
|
|
GAAP net income -
basic
|
$
2,519
|
|
$
16,952
|
|
$
8,204
|
|
$
6,784
|
Add: Interest on
convertible notes, tax
effected*
|
715
|
|
—
|
|
2,236
|
|
—
|
GAAP net income -
diluted
|
$
3,234
|
|
$
16,952
|
|
$
10,440
|
|
$
6,784
|
|
|
|
|
|
|
|
|
Non-GAAP net income -
basic
|
$
12,790
|
|
$
19,862
|
|
$
27,986
|
|
$
24,697
|
Add: Interest on
convertible notes, tax
effected*
|
715
|
|
—
|
|
2,236
|
|
—
|
Non-GAAP net income -
diluted
|
$
13,505
|
|
$
19,862
|
|
$
30,222
|
|
$
24,697
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP
shares for diluted net income per share
|
176,860
|
|
164,857
|
|
183,170
|
|
162,455
|
|
|
|
|
|
|
|
|
GAAP diluted net
income per share
|
$
0.02
|
|
$
0.10
|
|
$
0.06
|
|
$
0.04
|
Non-GAAP diluted net
income per share
|
$
0.08
|
|
$
0.12
|
|
$
0.16
|
|
$
0.15
|
|
|
|
|
|
|
|
|
* Reflects the use of
the if-converted method for our convertible notes, effective
January 1, 2022 due to the adoption of ASU 2020-06.
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(dollars in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
GAAP gross profit as
a % of revenue
|
38.3 %
|
|
39.8 %
|
|
39.9 %
|
|
39.3 %
|
Stock-based
compensation
|
0.2
|
|
0.2
|
|
0.2
|
|
0.2
|
Acquisition-related
costs
|
—
|
|
0.1
|
|
—
|
|
0.2
|
Non-GAAP gross
profit as a % of revenue
|
38.5 %
|
|
40.1 %
|
|
40.1 %
|
|
39.7 %
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
91,349
|
|
$
89,780
|
|
$
173,663
|
|
$
171,988
|
Stock-based
compensation
|
(9,768)
|
|
(9,521)
|
|
(19,157)
|
|
(17,961)
|
Restructuring and
other costs
|
(80)
|
|
(856)
|
|
(154)
|
|
(1,639)
|
Non-GAAP operating
expenses
|
$
81,501
|
|
$
79,403
|
|
$
154,352
|
|
$
152,388
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
4,655
|
|
$
9,502
|
|
$
12,817
|
|
$
5,990
|
Stock-based
compensation
|
10,251
|
|
10,029
|
|
20,087
|
|
18,898
|
Acquisition-related
costs
|
—
|
|
288
|
|
47
|
|
1,011
|
Restructuring and
other costs
|
84
|
|
905
|
|
163
|
|
1,738
|
Non-GAAP operating
income
|
$
14,990
|
|
$
20,724
|
|
$
33,114
|
|
$
27,637
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
GAAP net
income
|
$
2,519
|
|
$
16,952
|
|
$
8,204
|
|
$
6,784
|
Income tax expense
(benefit)
|
110
|
|
(11,670)
|
|
59
|
|
(10,451)
|
Interest expense,
net
|
1,244
|
|
5,484
|
|
3,355
|
|
11,280
|
Depreciation and
amortization
|
2,253
|
|
2,694
|
|
4,555
|
|
6,228
|
POP display
amortization
|
430
|
|
671
|
|
1,117
|
|
1,308
|
Stock-based
compensation
|
10,251
|
|
10,029
|
|
20,087
|
|
18,898
|
Restructuring and
other costs
|
84
|
|
905
|
|
163
|
|
1,738
|
Adjusted
EBITDA
|
$
16,891
|
|
$
25,065
|
|
$
37,540
|
|
$
35,785
|
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SOURCE GoPro, Inc.