GoPro reported second quarter revenue was $297 million, up 34 percent year-over-year and 36 percent quarter-over-quarter.

Adjusted EBITDA was a positive $5.21 million against a loss of $76.8 million a year ago.

Results came in above GoPro’s guidance. Revenue was expected to come in between $260 million and $280 million. Adjusted EBITDA was expected to be a loss ranging from $10 million to $20 million.

The net loss on a non-GAAP basis was reduced to $12.9 million, or 9 cents a share, from a loss of $72.6 million, or 52 cents, in the same period a year ago. Analysts were expecting a loss of 25 cents. The net loss on a reported basis was reduced to $30.5 million, or 22 cents, from $91.8 million, or 66 cents, a year ago.

“GoPro is building momentum,” said Founder and CEO Nicholas Woodman. “Strong demand combined with our cost management and margin initiatives contributed to GoPro’s EBITDA positive performance in the second quarter. HERO6 and Fusion, our 5.2K spherical camera, are on course to launch later this year and we continue to track toward our goal of full-year, non-GAAP profitability in 2017.”

Recent GoPro Highlights:

  • QuikStories launched on July 27. The new GoPro app feature automatically pulls footage from a HERO5 camera and creates ready-to-share videos on your phone. QuikStories are polished, shareable videos featuring customizable music, filters, and effects. “We believe QuikStories is a game changer – it represents our biggest leap forward in ease-of-use since the invention of the GoPro, itself,” said Founder and CEO Nicholas Woodman.
  • Sharp focus on inventory and channel management resulted in a 39 percent reduction in inventory quarter-over-quarter; forward weeks of supply in the channel is down 25 percent. Both position us well for upcoming product launches.
  • Global sell-thru of cameras increased 18 percent sequentially. Additionally, camera sell-thru above $300 was up 13 percent year-over-year, including 7 percent in EMEA and 194 percent in Japan. According to GfK, camera unit sales in Japan are up 164 percent and dollar sales are up 147 percent year-over-year in the second quarter.
  • HERO5 Black was the best-selling digital image camera in the U.S. in the second quarter, according to The NPD Group’s Retail Tracking Service.
  • More than 50 percent of GoPro’s revenue was generated in markets outside of the U.S. in the second quarter.
    Demand for GoPro was high on Amazon Prime Day (July 11). A HERO Session bundle sold more than ten-times the weekly run-rate; HERO5 Black was offered with no discount and moved the equivalent of a full week of normal sell-thru in just one day.
  • The Quik mobile video editing app was installed 5.6 million times in the second quarter, a year-over-year increase of 84 percent. Second quarter monthly active users were up 112 percent year-over-year. China represents Quik’s second largest user base globally. Capture App (now the GoPro App) total monthly shares in the second quarter were up over 30 percent year-over-year.
  • GoPro gained 1.6 million new social media followers in the second quarter. Instagram followers were up 39 percent year-over-year to 13.7 million in the second quarter, with a 94 percent increase in international followers. Facebook video views of GoPro content reached 58.3 million in the first half of 2017, up almost 60 percent year-over-year. YouTube videos of GoPro content in the first half of 2017 have seen a 65 percent increase in median organic viewership per video year-over-year.
  • GoPro was honored with the prestigious Red Dot design award, taking Best-of-the-Best in Product Design for both Karma and HERO5 Black.
  • GoPro’s drone, Karma, was the #2 selling drone brand in the U.S. in the second quarter, according to the NPD Group’s Retail Tracking Service.

GoPro is providing the following guidance:

Third Quarter 2017

  • Revenue of $300 million +/- $10 million
  • GAAP and non-GAAP gross margin to be 37 percent +/- 1 percent
  • GAAP operating expenses of between $131 million and $133 million
  • Non-GAAP operating expenses of between $115 million and $117 million
  • GAAP EPS to be $(0.24) +/- $0.05
  • Non-GAAP EPS to be $(0.06) +/- $0.05

2017

  • GAAP operating expenses below $570 million
  • Non-GAAP operating expenses below $495 million