SAN MATEO, Calif., Nov. 7, 2019 /PRNewswire/ -- GoPro, Inc.
(NASDAQ: GPRO) today announced financial results for its third
quarter ended September 30, 2019.
"Third quarter results are above the guidance provided on
October 2nd. We are
reiterating our annual revenue outlook of six-to-nine percent
growth, and increasing our profitability outlook for the fourth
quarter and 2019," said GoPro founder and CEO Nicholas Woodman. "HERO8 Black and MAX are
generating the highest positive social sentiment metrics of any new
GoPro and are setting record unit sales for new cameras at
GoPro.com. Both products appear to be unquestionable hits with
consumers and we're optimistic about their impact on our business
going forward."
GoPro Q3 2019 Financial Results
- Revenue for Q3 2019 was $131
million. GAAP gross margin for Q3 2019 was 22%.
Non-GAAP gross margin for Q3 2019 was 23%. As discussed on
October 2, 2019, GoPro expected Q3
revenue and gross margin would be negatively impacted by a
late-stage production delay that shifted sales of HERO8 Black from
Q3 to Q4 of 2019.
- GoPro Q3 2019 GAAP and non-GAAP operating expenses of
$99.6 million and $90.3 million represent year-over-year reductions
of 11% and 8%, respectively. GAAP and non-GAAP operating
expenses were at their lowest levels since 2014.
- Q3 2019 GAAP net loss was $75
million, or a $0.51 loss per
share. Non-GAAP net loss was $61
million, or a $0.42 loss per
share.
- Cash and investments totaled $79
million at the end of Q3 2019.
Recent GoPro Highlights
- In October, GoPro launched HERO8 Black, MAX and new GoPro
app features, achieving record positive social sentiment.
- The first month of unit sales of HERO8 Black at GoPro.com
eclipsed every previous new GoPro, including 2018's HERO7 Black by
40%.
- The first month of unit sales of MAX at GoPro.com outpaced
its predecessor, Fusion's first month in 2017 by a factor of
four.
- Aggregated camera unit sales on GoPro.com in the month of
October were up 50% year-over-year.
- In the first month, viewership of HERO8 Black and MAX
launch-related marketing assets was 42% higher than the HERO7 Black
assets during the same period a year ago.
- The HERO8 Black launch video has become the most viral
launch video in GoPro history.
- GoPro's Plus subscription service surpassed 305,000 active
paying subscribers as of November 4,
2019, up 21% since our Q2 2019 Earnings Release dated
August 1, 2019, and up 66%
year-over-year.
- In the US, GoPro captured 93% dollar share of the action
camera category in Q3 2019, according to the NPD Group. HERO7
Black was the No. 1 selling camera in all of digital imaging by
unit volume, and GoPro's HERO7 line plus Fusion were the top-four
selling cameras in our category according to the NPD Group.
- In the US, for the $300 and
above price band, GoPro sell-through units increased by 38% in Q3
2019, year-over-year, according to NPD Group.
- In Europe, during Q3 2019,
GoPro had three of the top five cameras in our category, and in
the $200 and above price band of the
action camera category, GoPro held 80% market share in dollars,
according to GfK.
- In Japan, GoPro market
share of the action camera category in units increased from 58% to
60% in Q3 2019, year-over-year, according to GfK.
- Organic viewership of GoPro content across all channels
achieved an all-time high in Q3 2019 with 234 million organic,
non-paid views, a 35% increase over our previous record set in Q1
of 2019.
- GoPro's YouTube channel alone registered a record 178
million organic views in Q3 2019, an increase of 83%
year-over-year.
- Social followers across all channels increased by 1.2
million in Q3 2019 to more than 42 million.
- On July 31, 2019, GoPro merged
the GoPro and Quik Apps, enabling new features for photo and video
editing.
- Usage of the GoPro App's automated editing tools increased
73% and total edit sessions jumped 131% in the first month after
launching the revamped app.
Results Summary:
|
|
Three months ended
September 30,
|
($ in thousands,
except per share amounts)
|
|
2019
|
|
2018
|
|
%
Change
|
Revenue
|
|
$
|
131,169
|
|
|
$
|
285,936
|
|
|
(54.1)
|
%
|
Gross
margin
|
|
|
|
|
|
|
GAAP
|
|
21.7
|
%
|
|
31.8
|
%
|
|
(1,010)
|
bps
|
Non-GAAP
|
|
23.4
|
%
|
|
33.2
|
%
|
|
(980)
|
bps
|
Operating
loss
|
|
|
|
|
|
|
GAAP
|
|
$
|
(71,198)
|
|
|
$
|
(21,354)
|
|
|
(233.4)
|
%
|
Non-GAAP
|
|
$
|
(59,566)
|
|
|
$
|
(3,638)
|
|
|
(1,537.3)
|
%
|
Net
loss
|
|
|
|
|
|
|
GAAP
|
|
$
|
(74,810)
|
|
|
$
|
(27,089)
|
|
|
(176.2)
|
%
|
Non-GAAP
|
|
$
|
(61,265)
|
|
|
$
|
(6,058)
|
|
|
(911.3)
|
%
|
Diluted net loss
per share
|
|
|
|
|
|
|
GAAP
|
|
$
|
(0.51)
|
|
|
$
|
(0.19)
|
|
|
(168.4)
|
%
|
Non-GAAP
|
|
$
|
(0.42)
|
|
|
$
|
(0.04)
|
|
|
(950.0)
|
%
|
Adjusted
EBITDA
|
|
$
|
(52,715)
|
|
|
$
|
6,205
|
|
|
(949.6)
|
%
|
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.
To listen to the live conference call, please dial toll free
(800) 263-0877 or (720) 543-0197, access code 6170773,
approximately 5 minutes prior to the start of the call. A live
webcast of the conference call will be accessible on the "Events
& Presentations" section of the Company's website at
https://investor.gopro.com. A recording of the webcast will be
available on GoPro's website, https://investor.gopro.com,
approximately two hours after the call and for 90 days
thereafter.
About GoPro, Inc. (NASDAQ: GPRO)
GoPro helps the world capture and share itself in immersive
and exciting ways.
GoPro, HERO and their respective logos are trademarks or
registered trademarks of GoPro, Inc. in the United
States and other countries.
For more information, visit www.gopro.com. GoPro users can
submit their photos, raw clips and video edits to GoPro Awards for
social stoke, GoPro gear and cash prizes. Learn more
at www.gopro.com/awards. Connect with GoPro
on Facebook, Instagram, LinkedIn, Twitter, YouTube,
and GoPro's blog The Inside Line.
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
GoPro's pages on Facebook, Instagram, LinkedIn, Twitter,
YouTube, GoPro's investor relations website and 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.
Note on Forward-looking Statements
This press release may contain projections or other
forward-looking statements within the meaning Section 27A of the
Private Securities Litigation Reform Act. Words such as
"anticipate," "believe," "estimate," "expect," "intend," "should,"
"will" and variations of these terms or the negative of these
terms and similar expressions are intended to identify these
forward-looking statements. Forward-looking statements in this
presentation may include, but are not limited to planned growth and
increased profitability in 2019 and beyond. 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 are our ability to effectively manage
the Q3 2019 late stage production delay, the risk that our
reduction in operating expenses may impact our ability to meet our
business objectives and achieve our revenue targets, and may not
result in the expected improvement in our profitability; our
ability to continue to focus on expense management; the fact that
our future growth depends in part on further penetrating our
addressable market and growing internationally, and we may not be
successful in doing so; any inability to successfully manage
frequent product introductions (including roadmap for new hardware,
software and subscription products) and transitions, including
managing our sales channel and inventory, and accurately
forecasting future sales; our reliance on third party suppliers,
some of which are sole source suppliers, to provide components for
our products and our reliance on third party logistics partners to
deliver without interruption; our dependence on sales of our
cameras, mounts and accessories, and subscription services for
substantially all of our revenue (and the effects of changes in the
sales mix or decrease in demand for these products); the fact that
an economic downturn or economic uncertainty in our key U.S. and
international markets may adversely affect consumer discretionary
spending; any changes to trade policies, tariffs, and import/export
regulations; the effects of transferring most U.S.-bound production
out of China; the effects of the
highly competitive market in which we operate, including new market
entrants; the fact that we may not be able to achieve revenue
growth or profitability in the future; risks related to inventory,
purchase commitments and long-lived assets; difficulty in
accurately predicting our future customer demand; the importance of
maintaining the value and reputation of our brand; and other
factors detailed in the Risk Factors section of our Annual Report
on Form 10-K for the year ended December 31,
2018, and as updated in future filings with the SEC
including the Quarterly Report on Form 10-Q for the quarter ended
September 30, 2019, each of which are on file with the
Securities and Exchange Commission. These forward-looking
statements speak only as of the date hereof or as of the date
otherwise stated herein. GoPro disclaims any obligation
to update these forward-looking statements.
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statement of Operations
|
(unaudited)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in thousands,
except per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue
|
$
|
131,169
|
|
|
$
|
285,936
|
|
|
$
|
666,306
|
|
|
$
|
770,959
|
|
Cost of
revenue
|
102,737
|
|
|
194,904
|
|
|
455,342
|
|
|
551,642
|
|
Gross
profit
|
28,432
|
|
|
91,032
|
|
|
210,964
|
|
|
219,317
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
34,940
|
|
|
41,157
|
|
|
111,215
|
|
|
130,361
|
|
Sales and
marketing
|
48,848
|
|
|
55,871
|
|
|
148,273
|
|
|
165,297
|
|
General and
administrative
|
15,842
|
|
|
15,358
|
|
|
49,909
|
|
|
50,588
|
|
Total operating
expenses
|
99,630
|
|
|
112,386
|
|
|
309,397
|
|
|
346,246
|
|
Operating
loss
|
(71,198)
|
|
|
(21,354)
|
|
|
(98,433)
|
|
|
(126,929)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(4,623)
|
|
|
(4,616)
|
|
|
(14,032)
|
|
|
(13,804)
|
|
Other income,
net
|
738
|
|
|
661
|
|
|
1,503
|
|
|
(268)
|
|
Total other expense,
net
|
(3,885)
|
|
|
(3,955)
|
|
|
(12,529)
|
|
|
(14,072)
|
|
Loss before income
taxes
|
(75,083)
|
|
|
(25,309)
|
|
|
(110,962)
|
|
|
(141,001)
|
|
Income tax (benefit)
expense
|
(273)
|
|
|
1,780
|
|
|
(500)
|
|
|
(296)
|
|
Net loss
|
$
|
(74,810)
|
|
|
$
|
(27,089)
|
|
|
$
|
(110,462)
|
|
|
$
|
(140,705)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
|
(0.51)
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.77)
|
|
|
$
|
(1.01)
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding, basic and diluted
|
145,617
|
|
|
140,072
|
|
|
144,306
|
|
|
139,028
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Balance Sheets
|
(unaudited)
|
|
(in
thousands)
|
September
30,2019
|
|
December
31,2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
43,016
|
|
|
$
|
152,095
|
|
Marketable
securities
|
35,960
|
|
|
45,417
|
|
Accounts receivable,
net
|
71,977
|
|
|
129,216
|
|
Inventory
|
250,032
|
|
|
116,458
|
|
Prepaid expenses and
other current assets
|
24,023
|
|
|
30,887
|
|
Total current
assets
|
425,008
|
|
|
474,073
|
|
Property and
equipment, net
|
39,727
|
|
|
46,567
|
|
Operating lease
right-of-use assets
|
52,512
|
|
|
—
|
|
Intangible assets,
net and goodwill
|
153,570
|
|
|
159,524
|
|
Other long-term
assets
|
16,528
|
|
|
18,195
|
|
Total
assets
|
$
|
687,345
|
|
|
$
|
698,359
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
140,271
|
|
|
$
|
148,478
|
|
Accrued expenses and
other current liabilities
|
159,475
|
|
|
135,892
|
|
Short-term operating
lease liabilities
|
8,890
|
|
|
—
|
|
Deferred
revenue
|
11,966
|
|
|
15,129
|
|
Total current
liabilities
|
320,602
|
|
|
299,499
|
|
Long-term
debt
|
146,249
|
|
|
138,992
|
|
Long-term operating
lease liabilities
|
62,554
|
|
|
—
|
|
Other long-term
liabilities
|
26,381
|
|
|
47,756
|
|
Total
liabilities
|
555,786
|
|
|
486,247
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
additional paid-in capital
|
924,725
|
|
|
894,755
|
|
Treasury stock, at
cost
|
(113,613)
|
|
|
(113,613)
|
|
Accumulated
deficit
|
(679,553)
|
|
|
(569,030)
|
|
Total stockholders'
equity
|
131,559
|
|
|
212,112
|
|
Total liabilities and
stockholders' equity
|
$
|
687,345
|
|
|
$
|
698,359
|
|
GoPro,
Inc.
|
Preliminary
Condensed Consolidated Statement of Cash Flows
|
(unaudited)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Operating
activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(74,810)
|
|
|
$
|
(27,089)
|
|
|
$
|
(110,462)
|
|
|
$
|
(140,705)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
6,421
|
|
|
9,693
|
|
|
19,823
|
|
|
27,773
|
|
Amortization of
leased assets
|
2,210
|
|
|
—
|
|
|
7,599
|
|
|
—
|
|
Stock-based
compensation
|
9,769
|
|
|
10,337
|
|
|
30,160
|
|
|
31,171
|
|
Deferred income
taxes
|
110
|
|
|
(362)
|
|
|
13
|
|
|
(987)
|
|
Non-cash
restructuring charges
|
—
|
|
|
2,532
|
|
|
(199)
|
|
|
5,788
|
|
Non-cash interest
expense
|
2,255
|
|
|
2,036
|
|
|
6,633
|
|
|
5,988
|
|
Other
|
(1,008)
|
|
|
266
|
|
|
(779)
|
|
|
(301)
|
|
Net changes in
operating assets and liabilities
|
8,378
|
|
|
12,350
|
|
|
(65,483)
|
|
|
(19,574)
|
|
Net cash provided by
(used in) operating activities
|
(46,675)
|
|
|
9,763
|
|
|
(112,695)
|
|
|
(90,847)
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(4,311)
|
|
|
(1,326)
|
|
|
(6,310)
|
|
|
(8,204)
|
|
Purchases of
marketable securities
|
(13,469)
|
|
|
—
|
|
|
(43,636)
|
|
|
(14,896)
|
|
Maturities of
marketable securities
|
16,460
|
|
|
20,000
|
|
|
51,738
|
|
|
55,000
|
|
Sale of marketable
securities
|
—
|
|
|
—
|
|
|
1,889
|
|
|
—
|
|
Net cash provided by
(used in) investing activities
|
(1,320)
|
|
|
18,674
|
|
|
3,681
|
|
|
31,900
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock
|
1,697
|
|
|
1,706
|
|
|
5,574
|
|
|
5,131
|
|
Taxes paid related to
net share settlement of equity awards
|
(1,801)
|
|
|
(1,636)
|
|
|
(5,798)
|
|
|
(5,388)
|
|
Net cash provided by
(used in) financing activities
|
(104)
|
|
|
70
|
|
|
(224)
|
|
|
(257)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(135)
|
|
|
(104)
|
|
|
159
|
|
|
(54)
|
|
Net change in cash
and cash equivalents
|
(48,234)
|
|
|
28,403
|
|
|
(109,079)
|
|
|
(59,258)
|
|
Cash and cash
equivalents at beginning of period
|
91,250
|
|
|
114,843
|
|
|
152,095
|
|
|
202,504
|
|
Cash and cash
equivalents at end of period
|
$
|
43,016
|
|
|
$
|
143,246
|
|
|
$
|
43,016
|
|
|
$
|
143,246
|
|
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 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 the
impairment of intangible assets because it is a non-cash charge
that is inconsistent in amount and frequency;
- 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 and first quarter of 2018, 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 are
inconsistent and vary significantly based on the timing and
magnitude of our acquisition transactions and the maturities of the
businesses being acquired;
- non-GAAP net income (loss) excludes non-cash interest expense.
In connection with the issuance of the Convertible Senior Notes in
April 2017, we are required to
recognize non-cash interest expense in accordance with the
authoritative accounting guidance for convertible debt that may be
settled in cash;
- non-GAAP net income (loss) excludes a gain on the sale and
license of intellectual property. This gain is not related to our
core operating performance or reflective of ongoing operating
results in the period, and the frequency and amount of such gains
are inconsistent;
- non-GAAP net income (loss) includes income tax
adjustments. We utilize a cash-based non-GAAP tax expense
approach (based upon expected annual cash payments for income
taxes) for evaluating operating performance as well as for planning
and forecasting purposes. This non-GAAP tax approach eliminates the
effects of period specific items, which can vary in size and
frequency and does not necessarily reflect our long-term
operations. Historically, we computed a non-GAAP tax rate based on
non-GAAP pre-tax income on a quarterly basis, which considered the
income tax effects of the adjustments above; and
- other companies may calculate these non-GAAP financial measures
differently than we do, limiting their usefulness as comparative
measures.
GoPro,
Inc.
|
Reconciliation of
Preliminary GAAP to Non-GAAP Financial Measures
|
(unaudited)
|
|
Reconciliations of
non-GAAP financial measures are set forth below:
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in thousands,
except per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
GAAP net
loss
|
$
|
(74,810)
|
|
|
$
|
(27,089)
|
|
|
$
|
(110,462)
|
|
|
$
|
(140,705)
|
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
Cost of
revenue
|
448
|
|
|
534
|
|
|
1,483
|
|
|
1,406
|
|
Research and
development
|
4,507
|
|
|
4,977
|
|
|
14,068
|
|
|
14,942
|
|
Sales and
marketing
|
2,084
|
|
|
2,429
|
|
|
6,518
|
|
|
7,489
|
|
General and
administrative
|
2,730
|
|
|
2,397
|
|
|
8,091
|
|
|
7,334
|
|
Total stock-based
compensation
|
9,769
|
|
|
10,337
|
|
|
30,160
|
|
|
31,171
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
1,863
|
|
|
3,363
|
|
|
5,954
|
|
|
9,352
|
|
General and
administrative
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
Total
acquisition-related costs
|
1,863
|
|
|
3,363
|
|
|
5,954
|
|
|
9,355
|
|
|
|
|
|
|
|
|
|
Restructuring and
other costs:
|
|
|
|
|
|
|
|
Cost of
revenue
|
—
|
|
|
115
|
|
|
87
|
|
|
1,357
|
|
Research and
development
|
—
|
|
|
2,288
|
|
|
881
|
|
|
12,032
|
|
Sales and
marketing
|
—
|
|
|
1,195
|
|
|
498
|
|
|
5,042
|
|
General and
administrative
|
—
|
|
|
418
|
|
|
701
|
|
|
3,095
|
|
Total restructuring
and other costs
|
—
|
|
|
4,016
|
|
|
2,167
|
|
|
21,526
|
|
|
|
|
|
|
|
|
|
Non-cash interest
expense
|
2,255
|
|
|
2,036
|
|
|
6,633
|
|
|
5,988
|
|
Income tax
adjustments
|
(342)
|
|
|
1,279
|
|
|
(1,695)
|
|
|
(1,600)
|
|
Non-GAAP net
loss
|
$
|
(61,265)
|
|
|
$
|
(6,058)
|
|
|
$
|
(67,243)
|
|
|
$
|
(74,265)
|
|
|
|
|
|
|
|
|
|
Shares for diluted
net loss per share
|
145,617
|
|
|
140,072
|
|
|
144,306
|
|
|
139,028
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
net loss per share
|
$
|
(0.42)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.47)
|
|
|
$
|
(0.53)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(dollars in
thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
GAAP gross profit
as a % of revenue
|
21.7
|
%
|
|
31.8
|
%
|
|
31.7
|
%
|
|
28.4
|
%
|
Stock-based
compensation
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
Acquisition-related
costs
|
1.4
|
|
|
1.2
|
|
|
0.9
|
|
|
1.2
|
|
Restructuring and
other costs
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Non-GAAP gross
profit as a % of revenue
|
23.4
|
%
|
|
33.2
|
%
|
|
32.8
|
%
|
|
30.0
|
%
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
99,630
|
|
|
$
|
112,386
|
|
|
$
|
309,397
|
|
|
$
|
346,246
|
|
Stock-based
compensation
|
(9,321)
|
|
|
(9,803)
|
|
|
(28,677)
|
|
|
(29,765)
|
|
Acquisition-related
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
Restructuring and
other costs
|
—
|
|
|
(3,901)
|
|
|
(2,080)
|
|
|
(20,169)
|
|
Non-GAAP operating
expenses
|
$
|
90,309
|
|
|
$
|
98,682
|
|
|
$
|
278,640
|
|
|
$
|
296,309
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss
|
$
|
(71,198)
|
|
|
$
|
(21,354)
|
|
|
$
|
(98,433)
|
|
|
$
|
(126,929)
|
|
Stock-based
compensation
|
9,769
|
|
|
10,337
|
|
|
30,160
|
|
|
31,171
|
|
Acquisition-related
costs
|
1,863
|
|
|
3,363
|
|
|
5,954
|
|
|
9,355
|
|
Restructuring and
other costs
|
—
|
|
|
4,016
|
|
|
2,167
|
|
|
21,526
|
|
Non-GAAP operating
loss
|
$
|
(59,566)
|
|
|
$
|
(3,638)
|
|
|
$
|
(60,152)
|
|
|
$
|
(64,877)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
GAAP net
loss
|
$
|
(74,810)
|
|
|
$
|
(27,089)
|
|
|
$
|
(110,462)
|
|
|
$
|
(140,705)
|
|
Income tax (benefit)
expense
|
(273)
|
|
|
1,780
|
|
|
(500)
|
|
|
(296)
|
|
Interest expense,
net
|
4,278
|
|
|
4,297
|
|
|
12,840
|
|
|
12,808
|
|
Depreciation and
amortization
|
6,421
|
|
|
9,693
|
|
|
19,823
|
|
|
27,773
|
|
POP display
amortization
|
1,900
|
|
|
3,171
|
|
|
5,838
|
|
|
10,694
|
|
Stock-based
compensation
|
9,769
|
|
|
10,337
|
|
|
30,160
|
|
|
31,171
|
|
Restructuring and
other costs
|
—
|
|
|
4,016
|
|
|
2,167
|
|
|
21,526
|
|
Adjusted
EBITDA
|
$
|
(52,715)
|
|
|
$
|
6,205
|
|
|
$
|
(40,134)
|
|
|
$
|
(37,029)
|
|
Reconciliations of non-GAAP financial measures are set forth
below:
|
Fourth quarter of
2019
|
|
Second half of
2019
|
GAAP gross
margin
|
39.0% -
40.0%
|
|
|
35.8% -
36.8%
|
|
Stock-based
compensation
|
0.1
|
|
|
0.2
|
|
Acquisition-related
costs
|
0.4
|
|
|
0.5
|
|
Non-GAAP gross
margin
|
39.5% -
40.5%
|
|
|
36.5% -
37.5%
|
|
|
|
(in
thousands)
|
Fourth quarter of
2019
|
|
Second half of
2019
|
GAAP operating
expenses
|
$112,100 -
$116,100
|
|
|
$
|
218,500
|
|
Stock-based
compensation
|
(9,100)
|
|
|
(18,500)
|
|
Non-GAAP operating
expenses
|
$103,000 -
$107,000
|
|
|
$
|
200,000
|
|
|
|
(in
thousands)
|
Fourth quarter of
2019
|
|
2019
|
GAAP tax
expense
|
$
|
1,000
|
|
|
$
|
500
|
|
Income tax
adjustments
|
(300)
|
|
|
1,400
|
|
Non-GAAP tax
expense
|
$
|
700
|
|
|
$
|
1,900
|
|
|
|
(in
thousands)
|
Fourth quarter of
2019
|
GAAP other income
(expense), net
|
$
|
4,900
|
|
Non-cash interest
expense
|
(2,400)
|
|
Non-GAAP other
income (expense), net
|
$
|
2,500
|
|
|
|
(in
thousands)
|
Fourth quarter of
2019
|
|
Second half of
2019
|
|
2019
|
GAAP net income
(loss) per share
|
$0.65 -
$0.75
|
|
|
$0.15 -
$0.25
|
|
|
$(0.10) -
$0.00
|
|
Stock-based
compensation
|
0.07
|
|
|
0.13 -
0.14
|
|
|
0.28
|
|
Acquisition-related
costs
|
0.01
|
|
|
0.03
|
|
|
0.05
|
|
Restructuring and
other costs
|
—
|
|
|
—
|
|
|
0.02
|
|
Non-cash interest
expense
|
0.02
|
|
|
0.03
|
|
|
0.06
|
|
Income tax
adjustments
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.01)
|
|
Non-GAAP net
income per share
|
$0.74 -
$0.84
|
|
|
$0.33 -
$0.44
|
|
|
$0.30 -
$0.40
|
|
|
|
(in
thousands)
|
2019
|
GAAP net income
(loss)
|
$(9,000) -
$1,000
|
|
Income tax
expense
|
500
|
|
Interest (income)
expense, net
|
17,700
|
|
Depreciation and
amortization
|
26,300
|
|
POP display
amortization
|
7,500
|
|
Stock-based
compensation
|
39,800
|
|
Restructuring and
other costs
|
2,200
|
|
Adjusted
EBITDA
|
$85,000 -
$95,000
|
|
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SOURCE GoPro, Inc.