2022 Revenue of $1.09
Billion
2022 GAAP EPS of $0.18 and non-GAAP EPS of $0.47
2022 Direct-to-Consumer Revenue of
$411 million, up 5%
Year-over-Year
2022 Subscription and Service Revenue of
$82 million, up 52%
Year-over-Year
GoPro Subscribers Grew 43% Year-over-Year to
2.25 Million
SAN
MATEO, Calif., Feb. 2, 2023
/PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) today announced
financial results for its fourth quarter and year ended
December 31, 2022, and posted management commentary in the
investor relations section of its website at
https://investor.gopro.com.
"In 2022, GoPro achieved GAAP profitability in a very
challenging macroeconomic environment. We generated EBITDA of
$95 million, or 9% of revenue.
Additionally, we grew subscribers to 2.25 million, bringing our
subscription and service revenue to an annual run rate of
$100 million with 70-80% gross
margin," said Nicholas Woodman,
GoPro's founder and CEO.
"GoPro ended the year with solid balance sheet metrics and
$367 million in cash after repaying
debt of $125 million and repurchasing
$40 million in stock," said
Brian McGee, GoPro's CFO and
COO.
Q4 2022 Financial Results
- Revenue was $321 million, down
18% year-over-year and in-line with our guidance.
- GoPro.com revenue, including subscription and service revenue,
was flat year-over-year at $128
million, or 40% of total revenue.
- Subscription and service revenue increased 30% year-over-year
to $22 million.
- GAAP net income was $3 million,
or $0.02 per share, down from net
income of $53 million or $0.32 per share in the prior year period.
Non-GAAP net income was $21 million,
or $0.12 per share, down from
$66 million, or $0.41 per share, in the prior year period.
- GAAP and non-GAAP gross margin was 32.5% and 35.1%,
respectively, and as estimated on a constant currency basis was
36.5% and 39.0%, respectively. This compares to GAAP and non-GAAP
gross margin of 41.2% and 41.3%, respectively, in the prior year
period.
- Adjusted EBITDA was $22 million,
or 7% of revenue, and as estimated on a constant currency basis was
$42 million or 12% of revenue. This
compares to $72 million, or 18% of
revenue in the prior year period.
- Cameras with retail prices at or above $400 represented 90% of Q4 2022 camera
revenue.
- Q4 2022 Street ASP was $378, flat
year-over-year, and $401 as estimated
on a constant currency basis, up 6% year-over-year.
- Days' sales outstanding was 22 days, down from 26 days in the
prior year period.
2022 Financial Results
- Revenue was $1.09 billion, down
6% year-over-year. And, as estimated on a constant currency basis,
revenue would have been down 2%.
- GoPro.com revenue increased 5% year-over-year to $411 million, comprising 38% of total
revenue.
- Subscription and service revenue increased 52% year-over-year
to $82 million.
- GoPro subscriber count ended 2022 at approximately 2.25
million, up 43% year-over-year.
- GAAP and non-GAAP gross margin was 37.2% and 38.1%
respectively, and as estimated on a constant currency basis was
40.0% and 40.8%, respectively. This compares to GAAP and non-GAAP
gross margin of 41.1% and 41.4%, respectively, in the prior year
period.
- 2022 GAAP net income was $29
million, or $0.18 per share,
down year-over-year from net income of $371
million or $2.27 per share,
which included a tax benefit of $1.74
per share. Non-GAAP net income was $81
million, or $0.47 per share,
down from $146 million, or
$0.90 per share, in the prior year
period.
- 2022 adjusted EBITDA was $95
million, or 9% of revenue, and as estimated on a constant
currency basis was 13% of revenue. This compares to $168 million, or 14% of revenue in the prior year
period.
- Cameras with retail prices at or above $400 represented over 90% of 2022 camera
revenue.
- 2022 Street ASP was $389, up 5%
year-over-year, and $407 as estimated
on a constant currency basis, up 10% year-over-year.
Recent Business Highlights
- In 2022, GoPro bought back $40
million in stock, which covered our stock-based compensation
expense for the year, and we plan to continue to execute on our
stock repurchase plan in 2023. GoPro also retired $125 million in debt in 2022.
- In Q4 2022, we celebrated GoPro's 20-year anniversary with a
retrospective video covering two-decades of pioneering innovation,
customer-driven inspiration, and many moments that made the world
stop and say "WOW."
- In November 2022, GoPro was
recognized for the second consecutive year by Outside Magazine as
one of the 50 Best Places to Work – the only company with more than
200 employees to make the list.
- In November 2022, GoPro published
its inaugural Sustainability Report, which outlines our efforts to
be a better global corporate citizen, sharing our progress toward
inclusivity, environmental impact reductions and governance best
practices.
Results Summary:
|
|
Three months ended
December 31,
|
|
Year ended December
31,
|
($ in thousands,
except per share amounts)
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
Revenue
|
|
$
321,021
|
|
$
391,149
|
|
(17.9) %
|
|
$
1,093,541
|
|
$
1,161,084
|
|
(5.8) %
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
32.5 %
|
|
41.2 %
|
|
(870) bps
|
|
37.2 %
|
|
41.1 %
|
|
(390) bps
|
Non-GAAP
|
|
35.1 %
|
|
41.3 %
|
|
(620) bps
|
|
38.1 %
|
|
41.4 %
|
|
(330) bps
|
Operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$ 1,707
|
|
$
58,625
|
|
(97.1) %
|
|
$
38,955
|
|
$
113,216
|
|
(65.6) %
|
Non-GAAP
|
|
$
19,077
|
|
$
69,232
|
|
(72.4) %
|
|
$
85,547
|
|
$
155,667
|
|
(45.0) %
|
Net
income
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$ 3,073
|
|
$
52,626
|
|
(94.2) %
|
|
$
28,847
|
|
$
371,171
|
|
(92.2) %
|
Non-GAAP
|
|
$
21,090
|
|
$
66,147
|
|
(68.1) %
|
|
$
80,923
|
|
$
146,068
|
|
(44.6) %
|
Diluted net income
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
0.02
|
|
$
0.32
|
|
(93.8) %
|
|
$
0.18
|
|
$
2.27
|
|
(92.1) %
|
Non-GAAP
|
|
$
0.12
|
|
$
0.41
|
|
(70.7) %
|
|
$
0.47
|
|
$
0.90
|
|
(47.8) %
|
Adjusted
EBITDA
|
|
$
22,014
|
|
$
71,571
|
|
(69.2) %
|
|
$
94,754
|
|
$
167,798
|
|
(43.5) %
|
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 900334, 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 27, 2023.
About GoPro, Inc. (NASDAQ: GPRO)
Founded in 2002, 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 percentage, 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,
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 margin percentage,
adjusted EBITDA in dollars and 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
fact that our goal to grow revenue and be profitable relies upon
our ability to grow sales from our direct-to-consumer business and
our retail partners and distributors; our ability to acquire and
retain subscribers; 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 or other service disruptions and may increase costs
due to the impact of the COVID-19 pandemic and the war in
Ukraine, inflation or the negative
impact on exchange rates; 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 we rely on 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 we may not 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; 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; 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 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 Statements of Operations
(unaudited)
|
|
|
Three months ended
December 31,
|
|
Year ended December
31,
|
(in thousands,
except per share data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue
|
$
321,021
|
|
$
391,149
|
|
$
1,093,541
|
|
$
1,161,084
|
Cost of
revenue
|
216,718
|
|
230,075
|
|
686,713
|
|
683,979
|
Gross
profit
|
104,303
|
|
161,074
|
|
406,828
|
|
477,105
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
36,026
|
|
34,806
|
|
139,885
|
|
141,494
|
Sales and
marketing
|
51,079
|
|
47,882
|
|
166,967
|
|
156,694
|
General and
administrative
|
15,491
|
|
19,761
|
|
61,021
|
|
65,701
|
Total operating
expenses
|
102,596
|
|
102,449
|
|
367,873
|
|
363,889
|
Operating
income
|
1,707
|
|
58,625
|
|
38,955
|
|
113,216
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(1,310)
|
|
(5,780)
|
|
(6,242)
|
|
(22,940)
|
Other income
(expense), net
|
2,263
|
|
(611)
|
|
1,740
|
|
(176)
|
Total other expense,
net
|
953
|
|
(6,391)
|
|
(4,502)
|
|
(23,116)
|
Income before income
taxes
|
2,660
|
|
52,234
|
|
34,453
|
|
90,100
|
Income tax expense
(benefit)
|
(413)
|
|
(392)
|
|
5,606
|
|
(281,071)
|
Net income
|
$
3,073
|
|
$
52,626
|
|
$
28,847
|
|
$
371,171
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.02
|
|
$
0.34
|
|
$
0.18
|
|
$
2.41
|
Diluted
|
$
0.02
|
|
$
0.32
|
|
$
0.18
|
|
$
2.27
|
|
|
|
|
|
|
|
|
Shares used to compute
net income per share:
|
|
|
|
|
|
|
|
Basic
|
155,340
|
|
156,221
|
|
156,181
|
|
154,274
|
Diluted
|
172,124
|
|
162,742
|
|
178,279
|
|
163,178
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Balance Sheets
(unaudited)
|
|
(in
thousands)
|
December 31,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
223,735
|
|
$
401,087
|
Marketable
securities
|
143,602
|
|
137,830
|
Accounts receivable,
net
|
77,008
|
|
114,221
|
Inventory
|
127,131
|
|
86,409
|
Prepaid expenses and
other current assets
|
34,551
|
|
42,311
|
Total current
assets
|
606,027
|
|
781,858
|
Property and equipment,
net
|
13,327
|
|
19,003
|
Operating lease
right-of-use assets
|
21,819
|
|
27,320
|
Goodwill
|
146,459
|
|
146,459
|
Other long-term
assets
|
289,293
|
|
285,239
|
Total
assets
|
$
1,076,925
|
|
$
1,259,879
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
91,648
|
|
$
171,545
|
Accrued expenses and
other current liabilities
|
118,877
|
|
128,572
|
Short-term operating
lease liabilities
|
9,553
|
|
9,819
|
Deferred
revenue
|
55,850
|
|
42,505
|
Short-term
debt
|
—
|
|
122,391
|
Total current
liabilities
|
275,928
|
|
474,832
|
Long-term taxes
payable
|
9,536
|
|
7,319
|
Long-term
debt
|
141,017
|
|
111,289
|
Long-term operating
lease liabilities
|
33,446
|
|
43,025
|
Other long-term
liabilities
|
5,439
|
|
7,500
|
Total
liabilities
|
465,366
|
|
643,965
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
960,903
|
|
1,008,872
|
Treasury stock, at
cost
|
(153,231)
|
|
(113,613)
|
Accumulated
deficit
|
(196,113)
|
|
(279,345)
|
Total stockholders'
equity
|
611,559
|
|
615,914
|
Total liabilities and
stockholders' equity
|
$
1,076,925
|
|
$
1,259,879
|
GoPro,
Inc.
Preliminary
Condensed Consolidated Statements of Cash Flows
(unaudited)
|
|
|
Three months ended
December 31,
|
|
Year ended December
31,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
activities:
|
|
|
|
|
|
|
|
Net income
|
$
3,073
|
|
$
52,626
|
|
$
28,847
|
|
$
371,171
|
Adjustments to
reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,980
|
|
2,363
|
|
8,570
|
|
10,962
|
Non-cash operating
lease cost
|
1,335
|
|
442
|
|
5,501
|
|
4,240
|
Stock-based
compensation
|
9,565
|
|
10,423
|
|
38,991
|
|
38,650
|
Deferred income
taxes
|
(3,437)
|
|
(3,619)
|
|
2,710
|
|
(273,541)
|
Non-cash restructuring
charges
|
228
|
|
—
|
|
228
|
|
(99)
|
Non-cash interest
expense
|
—
|
|
3,673
|
|
—
|
|
14,208
|
Other
|
(1,361)
|
|
1,370
|
|
1,022
|
|
2,243
|
Net changes in
operating assets and liabilities
|
14,179
|
|
96,570
|
|
(80,122)
|
|
61,319
|
Net cash provided by
operating activities
|
25,562
|
|
163,848
|
|
5,747
|
|
229,153
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(242)
|
|
(705)
|
|
(3,447)
|
|
(5,545)
|
Purchases of marketable
securities
|
(61,857)
|
|
(64,245)
|
|
(165,590)
|
|
(146,515)
|
Maturities of
marketable securities
|
51,000
|
|
8,341
|
|
160,649
|
|
8,341
|
Net cash used in
investing activities
|
(11,099)
|
|
(56,609)
|
|
(8,388)
|
|
(143,719)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock
|
74
|
|
265
|
|
4,760
|
|
7,490
|
Taxes paid related to
net share settlement
of equity awards
|
(1,083)
|
|
(2,366)
|
|
(13,410)
|
|
(17,379)
|
Repurchase of
outstanding common stock
|
(8,001)
|
|
—
|
|
(39,619)
|
|
—
|
Repayment of
borrowings
|
—
|
|
—
|
|
(125,000)
|
|
—
|
Net cash used in
financing activities
|
(9,010)
|
|
(2,101)
|
|
(173,269)
|
|
(9,889)
|
Effect of exchange rate
changes on cash, cash
equivalents and restricted cash
|
1,121
|
|
(408)
|
|
(1,442)
|
|
(2,112)
|
Net change in cash,
cash equivalents and
restricted cash
|
6,574
|
|
104,730
|
|
(177,352)
|
|
73,433
|
Cash, cash equivalents
and restricted cash at
beginning of period
|
217,161
|
|
296,357
|
|
401,087
|
|
327,654
|
Cash, cash equivalents
and restricted cash at
end of period
|
$
223,735
|
|
$
401,087
|
|
$
223,735
|
|
$
401,087
|
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 margin percentage, adjusted EBITDA in
dollars and 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,
manufacturing consolidation charges, 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 ASC
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;
- 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
December 31,
|
|
Year ended December
31,
|
(in thousands,
except per share data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
GAAP net
income
|
$
3,073
|
|
$
52,626
|
|
$
28,847
|
|
$
371,171
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
434
|
|
374
|
|
1,805
|
|
1,794
|
Research and
development
|
4,263
|
|
4,132
|
|
17,221
|
|
17,263
|
Sales and
marketing
|
2,002
|
|
2,077
|
|
8,173
|
|
8,045
|
General and
administrative
|
2,866
|
|
3,840
|
|
11,792
|
|
11,548
|
Total stock-based
compensation
|
9,565
|
|
10,423
|
|
38,991
|
|
38,650
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
—
|
|
71
|
|
47
|
|
1,152
|
Total
acquisition-related costs
|
—
|
|
71
|
|
47
|
|
1,152
|
|
|
|
|
|
|
|
|
Restructuring and other
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
8,047
|
|
7
|
|
8,035
|
|
157
|
Research and
development
|
(132)
|
|
53
|
|
(266)
|
|
1,343
|
Sales and
marketing
|
(74)
|
|
35
|
|
(144)
|
|
712
|
General and
administrative
|
(36)
|
|
18
|
|
(71)
|
|
437
|
Total restructuring
and other costs
|
7,805
|
|
113
|
|
7,554
|
|
2,649
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
—
|
|
3,673
|
|
—
|
|
14,208
|
Income tax
adjustments
|
647
|
|
(759)
|
|
5,484
|
|
(281,762)
|
Non-GAAP net
income
|
$
21,090
|
|
$
66,147
|
|
$
80,923
|
|
$
146,068
|
|
|
|
|
|
|
|
|
GAAP net income -
basic
|
$
3,073
|
|
$
52,626
|
|
$
28,847
|
|
$
371,171
|
Add: Interest on
convertible notes, tax
effected*
|
334
|
|
—
|
|
3,055
|
|
—
|
GAAP net income -
diluted
|
$
3,407
|
|
$
52,626
|
|
$
31,902
|
|
$
371,171
|
|
|
|
|
|
|
|
|
Non-GAAP net income -
basic
|
$
21,090
|
|
$
66,147
|
|
$
80,923
|
|
$
146,068
|
Add: Interest on
convertible notes, tax
effected*
|
334
|
|
—
|
|
3,055
|
|
—
|
Non-GAAP net income -
diluted
|
$
21,424
|
|
$
66,147
|
|
$
83,978
|
|
$
146,068
|
|
|
|
|
|
|
|
|
GAAP and non-GAAP
shares for diluted
net income per share
|
172,124
|
|
162,742
|
|
178,279
|
|
163,178
|
|
|
|
|
|
|
|
|
GAAP diluted net
income per share
|
$
0.02
|
|
$
0.32
|
|
$
0.18
|
|
$
2.27
|
Non-GAAP diluted net
income per share
|
$
0.12
|
|
$
0.41
|
|
$
0.47
|
|
$
0.90
|
|
|
|
|
|
|
|
|
* 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
December 31,
|
|
Year ended December
31,
|
(dollars in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
GAAP gross profit as
a % of revenue
|
32.5 %
|
|
41.2 %
|
|
37.2 %
|
|
41.1 %
|
Stock-based
compensation
|
0.1
|
|
0.1
|
|
0.2
|
|
0.2
|
Acquisition-related
costs
|
—
|
|
—
|
|
—
|
|
0.1
|
Restructuring and
other costs
|
2.5
|
|
—
|
|
0.7
|
|
—
|
Non-GAAP gross
profit as a %
of revenue
|
35.1 %
|
|
41.3 %
|
|
38.1 %
|
|
41.4 %
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
102,596
|
|
$
102,449
|
|
$
367,873
|
|
$
363,889
|
Stock-based
compensation
|
(9,131)
|
|
(10,049)
|
|
(37,186)
|
|
(36,856)
|
Restructuring and
other costs
|
242
|
|
(106)
|
|
481
|
|
(2,492)
|
Non-GAAP operating
expenses
|
$
93,707
|
|
$
92,294
|
|
$
331,168
|
|
$
324,541
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
1,707
|
|
$
58,625
|
|
$
38,955
|
|
$
113,216
|
Stock-based
compensation
|
9,565
|
|
10,423
|
|
38,991
|
|
38,650
|
Acquisition-related
costs
|
—
|
|
71
|
|
47
|
|
1,152
|
Restructuring and
other costs
|
7,805
|
|
113
|
|
7,554
|
|
2,649
|
Non-GAAP operating
income
|
$
19,077
|
|
$
69,232
|
|
$
85,547
|
|
$
155,667
|
|
Three months ended
December 31,
|
|
Year ended December
31,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
GAAP net
income
|
$
3,073
|
|
$
52,626
|
|
$
28,847
|
|
$
371,171
|
Income tax expense
(benefit)
|
(413)
|
|
(392)
|
|
5,606
|
|
(281,071)
|
Interest expense,
net
|
(486)
|
|
5,701
|
|
3,131
|
|
22,678
|
Depreciation and
amortization
|
1,980
|
|
2,363
|
|
8,570
|
|
10,962
|
POP display
amortization
|
490
|
|
737
|
|
2,055
|
|
2,759
|
Stock-based
compensation
|
9,565
|
|
10,423
|
|
38,991
|
|
38,650
|
Restructuring and
other costs
|
7,805
|
|
113
|
|
7,554
|
|
2,649
|
Adjusted
EBITDA
|
$
22,014
|
|
$
71,571
|
|
$
94,754
|
|
$
167,798
|
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SOURCE GoPro, Inc.