GoPro Subscribers Grew 55% year-over-year to
2.1 million
GAAP EPS of $0.10 and non-GAAP EPS of $0.19
Revenue of $305
Million 3% Above Consensus
SAN
MATEO, Calif., Nov. 3, 2022
/PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) today announced
financial results for its third quarter ended September 30,
2022, and posted management commentary in the investor relations
section of its website at https://investor.gopro.com.
"In Q3 GoPro delivered revenue at the high-end of guidance and
solid GAAP and non-GAAP earnings," said Nicholas Woodman, GoPro's founder and CEO.
"GoPro's resilience during this challenging economic environment is
testament to the meaningful role GoPro plays in the lives of the
world's most active and creative people."
"GoPro continued to drive solid operating and financial results,
including effective management of key balance sheet metrics," said
Brian McGee, GoPro's CFO and COO.
"Revenue of $305 million was down 4%
on a dollar basis and up 2% year-over-year on a constant currency
basis, while subscription and service revenue grew 48%
year-over-year to $21 million for the
quarter. Now that we have crossed the two million subscriber
threshold, we are positioned to generate more than $100 million in annual recurring high-margin
subscription revenue moving forward."
Q3 2022 Financial Results & Recent Business
Highlights
- Revenue was $305 million, down 4%
on a dollar basis, and up 2% in constant currency compared to the
prior year period.
- GoPro.com revenue, including subscription and service revenue,
increased 4% year-over-year to $99
million, or 32% of total revenue. Subscription and service
revenue increased 48% year-over-year to $21
million.
- GoPro subscriber count increased 55% year-over-year to 2.1
million.
- Third quarter cash net of debt was $205
million, nearly doubling from $110
million in Q3'21.
- GAAP and non-GAAP gross margin was 38.0% and 38.2%
respectively, down from the prior year period at 43.6% and 43.8%,
respectively.
- GAAP net income was $18 million,
or $0.10 per share, down
year-over-year from net income of $312
million or $1.92 per share,
which was primarily driven by the release of a $263 million tax valuation allowance during the
third quarter of 2021.
- Non-GAAP net income was $32
million, or $0.19 per share,
down 42% from $55 million, or
$0.34 per share in the prior year
period.
- Adjusted EBITDA was $35 million,
or 12% of revenue, compared to $60
million, or 19% of revenue in the prior year period.
- Cameras with retail prices at or above $400 represented 87% of Q3 2022 camera revenue,
down from 88% in Q3 2021.
- Q3 2022 Street ASP increased 1% year-over-year to $383, or up 6% year-over-year in constant
currency.
- Days' sales outstanding was 25 days, down from 28 days in
Q3'21.
- Announced three new cameras - HERO11 Black, HERO11 Black
Creator Edition and HERO11 Black Mini - and auto highlight videos
for subscribers.
- Revenue grew sequentially across all geographies led by
Asia Pacific, which also delivered
year-over-year revenue growth.
Results
Summary:
|
|
|
|
|
Three months ended
September 30,
|
($ in thousands,
except per share amounts)
|
|
|
2022
|
|
|
2021
|
|
%
Change
|
Revenue
|
|
$
|
305,130
|
|
$
|
316,669
|
|
(3.6) %
|
Gross
margin
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
38.0 %
|
|
|
43.6 %
|
|
-560 bps
|
Non-GAAP
|
|
|
38.2 %
|
|
|
43.8 %
|
|
-560 bps
|
Operating
income
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
24,431
|
|
$
|
48,601
|
|
(49.7) %
|
Non-GAAP
|
|
$
|
33,356
|
|
$
|
58,798
|
|
(43.3) %
|
Net
income
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
17,570
|
|
$
|
311,761
|
|
(94.4) %
|
Non-GAAP
|
|
$
|
31,847
|
|
$
|
55,224
|
|
(42.3) %
|
Diluted net income
per share
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
0.10
|
|
$
|
1.92
|
|
(94.8) %
|
Non-GAAP
|
|
$
|
0.19
|
|
$
|
0.34
|
|
(44.1) %
|
Adjusted
EBITDA
|
|
$
|
35,200
|
|
$
|
60,442
|
|
(41.8) %
|
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
833-927-1758 (US) or +1 929-526-1599 (International) and enter
access code 695322, 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 February 1, 2023.
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, operating income (loss), 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. GoPro also reports revenue, gross
profit, gross profit percentage, adjusted EBITDA as a percentage of
revenue, and street average selling price on a constant currency
basis to show performance unaffected by fluctuations in currency
exchange rates. GoPro calculates constant currency amounts by
translating current period amounts at the prior period's average
exchange rate and compare that to current period performance.
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 statements
regarding our expectations for profitability and subscription
growth; and overall consumer demand for our products. 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 the inability to achieve our
revenue growth or profitability in the future, and if revenue
growth or profitability is achieved, we may not be able to sustain
it; 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
risk that growing our direct-to-consumer and subscription business
while reducing our reliance on our other sales channels could
impact profitability; 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 or our operations 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; 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; 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; the risk that we may not be able to maintain 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 September 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 September
30,
|
|
Nine months ended September 30,
|
|
|
|
|
(in thousands, except per share
data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
Revenue
|
$
305,130
|
|
$
316,669
|
|
$
772,520
|
|
$
769,935
|
|
|
|
|
Cost of
revenue
|
189,085
|
|
178,616
|
|
469,995
|
|
453,904
|
|
|
|
|
Gross
profit
|
116,045
|
|
138,053
|
|
302,525
|
|
316,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
36,043
|
|
36,458
|
|
103,859
|
|
106,688
|
|
|
|
|
Sales and
marketing
|
41,076
|
|
37,352
|
|
115,888
|
|
108,812
|
|
|
|
|
General and
administrative
|
14,495
|
|
15,642
|
|
45,530
|
|
45,940
|
|
|
|
|
Total operating
expenses
|
91,614
|
|
89,452
|
|
265,277
|
|
261,440
|
|
|
|
|
Operating
income
|
24,431
|
|
48,601
|
|
37,248
|
|
54,591
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(1,185)
|
|
(5,748)
|
|
(4,932)
|
|
(17,160)
|
|
|
|
|
Other income
(expense), net
|
284
|
|
(1,320)
|
|
(523)
|
|
435
|
|
|
|
|
Total other expense,
net
|
(901)
|
|
(7,068)
|
|
(5,455)
|
|
(16,725)
|
|
|
|
|
Income before income
taxes
|
23,530
|
|
41,533
|
|
31,793
|
|
37,866
|
|
|
|
|
Income tax expense
(benefit)
|
5,960
|
|
(270,228)
|
|
6,019
|
|
(280,679)
|
|
|
|
|
Net income
|
$
17,570
|
|
$
311,761
|
|
$
25,774
|
|
$
318,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.11
|
|
$
2.01
|
|
$
0.16
|
|
$
2.07
|
|
|
|
|
Diluted
|
$
0.10
|
|
$
1.92
|
|
$
0.16
|
|
$
1.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to compute
net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
155,819
|
|
155,009
|
|
156,464
|
|
153,618
|
|
|
|
|
Diluted
|
173,184
|
|
162,746
|
|
180,038
|
|
162,728
|
|
|
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Balance Sheets
|
(unaudited)
|
|
(in
thousands)
|
September
30,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
217,161
|
|
$
401,087
|
Marketable
securities
|
131,619
|
|
137,830
|
Accounts receivable,
net
|
85,022
|
|
114,221
|
Inventory
|
153,394
|
|
86,409
|
Prepaid expenses and
other current assets
|
36,078
|
|
42,311
|
Total current
assets
|
623,274
|
|
781,858
|
Property and equipment,
net
|
15,301
|
|
19,003
|
Operating lease
right-of-use assets
|
23,154
|
|
27,320
|
Goodwill
|
146,459
|
|
146,459
|
Other long-term
assets
|
286,524
|
|
285,239
|
Total
assets
|
$
1,094,712
|
|
$
1,259,879
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
138,789
|
|
$
171,545
|
Accrued expenses and
other current liabilities
|
99,115
|
|
128,572
|
Short-term operating
lease liabilities
|
9,509
|
|
9,819
|
Deferred
revenue
|
48,592
|
|
42,505
|
Short-term
debt
|
—
|
|
122,391
|
Total current
liabilities
|
296,005
|
|
474,832
|
Long-term taxes
payable
|
8,526
|
|
7,319
|
Long-term
debt
|
140,780
|
|
111,289
|
Long-term operating
lease liabilities
|
35,522
|
|
43,025
|
Other long-term
liabilities
|
6,144
|
|
7,500
|
Total
liabilities
|
486,977
|
|
643,965
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
952,152
|
|
1,008,872
|
Treasury stock, at
cost
|
(145,231)
|
|
(113,613)
|
Accumulated
deficit
|
(199,186)
|
|
(279,345)
|
Total stockholders'
equity
|
607,735
|
|
615,914
|
Total liabilities and
stockholders' equity
|
$
1,094,712
|
|
$
1,259,879
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statements of Cash Flows
|
(unaudited)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
|
$
17,570
|
|
$
311,761
|
|
$
25,774
|
|
$
318,545
|
Adjustments to
reconcile net income to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,035
|
|
2,370
|
|
6,590
|
|
8,598
|
Non-cash operating
lease cost
|
1,858
|
|
1,352
|
|
4,166
|
|
3,798
|
Stock-based
compensation
|
9,339
|
|
9,329
|
|
29,426
|
|
28,227
|
Deferred income
taxes
|
3,750
|
|
(269,913)
|
|
6,147
|
|
(269,922)
|
Non-cash restructuring
charges
|
—
|
|
—
|
|
—
|
|
(99)
|
Non-cash interest
expense
|
—
|
|
3,590
|
|
—
|
|
10,535
|
Other
|
367
|
|
1,705
|
|
2,383
|
|
874
|
Net changes in
operating assets and liabilities
|
5,817
|
|
7,429
|
|
(94,301)
|
|
(35,251)
|
Net cash provided by
(used in) operating activities
|
40,736
|
|
67,623
|
|
(19,815)
|
|
65,305
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(1,911)
|
|
(2,822)
|
|
(3,205)
|
|
(4,840)
|
Purchases of marketable
securities
|
(56,656)
|
|
(49,380)
|
|
(103,733)
|
|
(82,270)
|
Maturities of
marketable securities
|
44,500
|
|
—
|
|
109,649
|
|
—
|
Net cash provided by
(used in) investing activities
|
(14,067)
|
|
(52,202)
|
|
2,711
|
|
(87,110)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock
|
2,000
|
|
3,025
|
|
4,686
|
|
7,225
|
Taxes paid related to
net share settlement of
equity awards
|
(3,839)
|
|
(7,038)
|
|
(12,327)
|
|
(15,013)
|
Repurchase of
outstanding common stock
|
(9,856)
|
|
—
|
|
(31,618)
|
|
—
|
Repayment of
borrowings
|
—
|
|
—
|
|
(125,000)
|
|
—
|
Net cash used in
financing activities
|
(11,695)
|
|
(4,013)
|
|
(164,259)
|
|
(7,788)
|
Effect of exchange rate
changes on cash,
cash equivalents and restricted cash
|
(1,092)
|
|
(857)
|
|
(2,563)
|
|
(1,704)
|
Net change in cash,
cash equivalents
and restricted cash
|
13,882
|
|
10,551
|
|
(183,926)
|
|
(31,297)
|
Cash, cash equivalents
and restricted cash
at beginning of period
|
203,279
|
|
285,806
|
|
401,087
|
|
327,654
|
Cash, cash equivalents
and restricted cash
at end of period
|
$
217,161
|
|
$
296,357
|
|
$
217,161
|
|
$
296,357
|
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. Additionally, we present
revenue, gross profit, gross profit percentage, adjusted EBITDA as
a percentage of revenue, and street average selling price on a
constant currency basis to show performance unaffected by
fluctuations in currency exchange rates. We calculate constant
currency amounts by translating current period amounts at the prior
period's average exchange rate and compare that to current period
performance. 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
September 30,
|
|
Nine months ended
September 30,
|
(in thousands,
except per share data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
GAAP net
income
|
$
17,570
|
|
$
311,761
|
|
$
25,774
|
|
$
318,545
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
441
|
|
483
|
|
1,371
|
|
1,420
|
Research and
development
|
4,395
|
|
4,380
|
|
12,958
|
|
13,131
|
Sales and
marketing
|
1,819
|
|
1,950
|
|
6,171
|
|
5,968
|
General and
administrative
|
2,684
|
|
2,516
|
|
8,926
|
|
7,708
|
Total stock-based
compensation
|
9,339
|
|
9,329
|
|
29,426
|
|
28,227
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
—
|
|
70
|
|
47
|
|
1,081
|
Total
acquisition-related costs
|
—
|
|
70
|
|
47
|
|
1,081
|
|
|
|
|
|
|
|
|
Restructuring and other
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
(21)
|
|
51
|
|
(12)
|
|
150
|
Research and
development
|
(216)
|
|
417
|
|
(134)
|
|
1,290
|
Sales and
marketing
|
(116)
|
|
199
|
|
(70)
|
|
677
|
General and
administrative
|
(61)
|
|
131
|
|
(35)
|
|
419
|
Total restructuring
and other costs
|
(414)
|
|
798
|
|
(251)
|
|
2,536
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
—
|
|
3,590
|
|
—
|
|
10,535
|
Income tax
adjustments
|
5,352
|
|
(270,324)
|
|
4,837
|
|
(281,003)
|
Non-GAAP net
income
|
$
31,847
|
|
$
55,224
|
|
$
59,833
|
|
$
79,921
|
|
|
|
|
|
|
|
|
GAAP net income -
basic
|
$
17,570
|
|
$
311,761
|
|
$
25,774
|
|
$
318,545
|
Add: Interest on
convertible notes, tax
effected*
|
485
|
|
—
|
|
2,721
|
|
—
|
GAAP net income -
diluted
|
$
18,055
|
|
$
311,761
|
|
$
28,495
|
|
$
318,545
|
|
|
|
|
|
|
|
|
Non-GAAP net income -
basic
|
$
31,847
|
|
$
55,224
|
|
$
59,833
|
|
$
79,921
|
Add: Interest on
convertible notes, tax
effected*
|
485
|
|
—
|
|
2,721
|
|
—
|
Non-GAAP net income -
diluted
|
$
32,332
|
|
$
55,224
|
|
$
62,554
|
|
$
79,921
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP
shares for diluted
net income per share
|
173,184
|
|
162,746
|
|
180,038
|
|
162,728
|
|
|
|
|
|
|
|
|
GAAP diluted net
income per share
|
$
0.10
|
|
$
1.92
|
|
$
0.16
|
|
$
1.96
|
Non-GAAP diluted net
income per share
|
$
0.19
|
|
$
0.34
|
|
$
0.35
|
|
$
0.49
|
|
|
|
|
|
|
|
|
* 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
September 30,
|
|
Nine months ended
September 30,
|
(dollars in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
GAAP gross profit as
a % of revenue
|
38.0 %
|
|
43.6 %
|
|
39.2 %
|
|
41.0 %
|
Stock-based
compensation
|
0.2
|
|
0.2
|
|
0.1
|
|
0.2
|
Acquisition-related
costs
|
—
|
|
—
|
|
—
|
|
0.2
|
Non-GAAP gross
profit as a % of revenue
|
38.2 %
|
|
43.8 %
|
|
39.3 %
|
|
41.4 %
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
91,614
|
|
$
89,452
|
|
$
265,277
|
|
$
261,440
|
Stock-based
compensation
|
(8,898)
|
|
(8,846)
|
|
(28,055)
|
|
(26,807)
|
Restructuring and
other costs
|
393
|
|
(747)
|
|
239
|
|
(2,386)
|
Non-GAAP operating
expenses
|
$
83,109
|
|
$
79,859
|
|
$
237,461
|
|
$
232,247
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
24,431
|
|
$
48,601
|
|
$
37,248
|
|
$
54,591
|
Stock-based
compensation
|
9,339
|
|
9,329
|
|
29,426
|
|
28,227
|
Acquisition-related
costs
|
—
|
|
70
|
|
47
|
|
1,081
|
Restructuring and
other costs
|
(414)
|
|
798
|
|
(251)
|
|
2,536
|
Non-GAAP operating
income
|
$
33,356
|
|
$
58,798
|
|
$
66,470
|
|
$
86,435
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
GAAP net
income
|
$
17,570
|
|
$
311,761
|
|
$
25,774
|
|
$
318,545
|
Income tax expense
(benefit)
|
5,960
|
|
(270,228)
|
|
6,019
|
|
(280,679)
|
Interest expense,
net
|
262
|
|
5,697
|
|
3,617
|
|
16,977
|
Depreciation and
amortization
|
2,035
|
|
2,371
|
|
6,590
|
|
8,599
|
POP display
amortization
|
448
|
|
714
|
|
1,565
|
|
2,022
|
Stock-based
compensation
|
9,339
|
|
9,329
|
|
29,426
|
|
28,227
|
Restructuring and
other costs
|
(414)
|
|
798
|
|
(251)
|
|
2,536
|
Adjusted
EBITDA
|
$
35,200
|
|
$
60,442
|
|
$
72,740
|
|
$
96,227
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/gopro-announces-third-quarter-2022-results-301668298.html
SOURCE GoPro, Inc.