GoPro reported sales in the first quarter rose 19.1 percent to $218.6 million from $183.5 million.

The net loss grew slightly to $111.2 million, or 78 cents a share, from $107.5 million, or also 78 cents a share. On an adjusted basis excluding non-recurring items, the loss was cut to $60.3 million, or 44 cents a share, from $96.8 million, or 63 cents, in the same period a year ago. The results were a penny better than Wall Street’s consensus target of 45 cents.

On an adjusted basis, EBITDA showed a loss of $45.7 million against a loss of 86.8 million a year ago.

GoPro also provided upbeat guidance for the second quarter, estimating sales would land between $260 million and $280 million. Wall Street’s consensus estimate had been $243 million

“GoPro is executing a turnaround,” said Nicholas Woodman, GoPro’s Founder and CEO. “We had a great first quarter and feel good about our outlook for the second quarter. We remain on track toward our goal of returning to full-year non-GAAP profitability in 2017.”

Recent GoPro Highlights:

  • According to The NPD Group’s Retail Tracking Service, in the U.S. in the first quarter GoPro accounted for 3 of the top 5 products, including the top 3 spots, on a unit basis in the digital image category. HERO5 Black was the best-selling digital image camera in the U.S. in the first quarter on a unit and dollar basis. According to NPD, in March GoPro’s drone, Karma with HERO5 camera, was the #2 best-selling drone priced over $1,000 in the U.S. on a unit basis. According to GfK, in the first quarter Japan unit and dollar sell-thru was up over 120 percent and nearly 140 percent year-over-year, respectively, and our category dollar share grew to 3.4 percent from 1.4 percent in the first quarter of 2016.
  • Launched Fusion 5.2K spherical camera pilot program. To optimize the Fusion user experience, we are working closely with technology and content partners like Adobe and Fox Sports as well as content platforms like Facebook. Professional content creators can apply to participate in the pilot program for Fusion, a 5.2K spherical camera, expected to roll-out during the summer of 2017. A limited commercial release is expected by the end of the year.
  • Non-U.S. markets generated 60 percent of first quarter revenue. Between 70 percent and 90 percent of the HERO5 camera users in China, Germany, Spain, Italy, France, and Japan are using their cameras in their local language.
    Launched GoPro trade-up program. GoPro owners receive $100 off a HERO5 Black or $50 off a HERO5 Session when they trade-in any previous generation GoPro camera, working or not.
  • HERO Session price change. The MSRP for the entry-level HERO Session camera, launched in 2015, will be $149 effective April 30, 2017.
  • Quik mobile video editing app to be pre-installed on Huawei’s new smartphones, starting with the Huawei P10 and Honor 8 flagship models. Quik is integrated into the gallery and is able to automatically select photos and videos. With the tap of a button, Quik generates a video synchronized to the beat of the selected music. Quik App installed 5.2 million times in the first quarter, a year-over-year increase of over 200 percent. First quarter monthly active users were up nearly 160 percent year-over-year. Capture App total monthly shares in the first quarter were up 43 percent year-over-year. GoPro Plus made available in select European and Asian markets.
  • Appointed Susan Lyne to Board of Directors. Ms. Lyne, founder and President of BBG Ventures – a venture fund investing in women-led startups – brings decades of experience in media, ecommerce, technology, and consumer products.
  • Sold $175 million of 3.50 percent convertible senior notes. The company simultaneously entered into a prepaid forward transaction to purchase approximately $78 million of Class A common stock, or 9.2 million shares, and improved the company’s liquidity position by adding $92 million to its balance sheet.
  • Opened engineering office in Bucharest to support our software engineering initiatives.
  • GoPro ranked #6 coolest brand out of 122 companies in teen study commissioned by Google.
  • Instagram followers were up 44 percent year-over-year to 12.7 million followers in the first quarter, driven by a 160 percent year-over-year increase in international followers. Facebook video views of GoPro content reached approximately 35 million in the first quarter, up 22 percent year-over-year. According to Google, YouTube videos attributed to GoPro are up 67 percent year over year in the first quarter.

GoPro is providing the following guidance:

Second Quarter 2017

  • Revenue of $270 million +/- $10 million
  • GAAP and non-GAAP gross margin to be 33.5% +/- 1%
  • GAAP operating expenses of between $142 million and $146 million
  • Non-GAAP operating expenses of between $122 million and $126 million
  • Adjusted EBITDA to be $(15) million +/- $5 million

2017

  • GAAP operating expenses below $580 million
  • Non-GAAP operating expenses below $495 million

Photo courtesy GoPro