GoPro reported sales fell 54.1 percent in the second quarter ended June 30 to $134.2 million from $292.4 million a year ago. However, the camera maker said revenues improved on a sequential basis and its shift to a more direct-to-consumer business is starting to pay off.

On a GAAP basis, the net loss was $29.7 million against net earnings of $4.2 million a year ago. The non-GAAP loss came to $51.0 million against a loss of $11.3 million.

“Our strategic shift to a more direct-to-consumer business with lower operating costs is working. Camera sellthrough during Q2 demonstrates resilient consumer demand for GoPro and an increasing shift to online shopping. We believe GoPro has proven to be a part of global consumers’ ‘new normal’ during the pandemic and we feel well-positioned for the remainder of the year,” said GoPro founder and CEO, Nicholas Woodman.

GoPro Q2 2020 Financial Results

  • Revenue for Q2 2020 was $134 million, a 12 percent sequential improvement from $119 million in Q1 2020.
  • GAAP gross margin for Q2 2020 was 30.3 percent, down from 34.9 percent year-over-year. Non-GAAP gross margin for Q2 2020 was 31.6 percent, down from 35.8 percent year-over-year.
  • Q2 2020 GAAP net loss was $51 million, or $0.34 per share. Non-GAAP net loss was $30 million, or $0.20 per share.
  • Q2 2020 GAAP operating expenses of $86 million decreased 22 percent year-over-year. Q2 2020 non-GAAP operating expenses were $69 million, down 29 percent year-over-year. GAAP and non-GAAP operating expenses were at their lowest levels since Q1 2014 and Q3 2013, respectively.
  • Adjusted EBITDA for Q2 2020 was negative $22 million, compared to $14 million in the same period a year ago.
  • Cash and investments totaled $80 million at the end of Q2 2020.

Recent GoPro Highlights

  • Camera sell-through of nearly 750,000 in Q2 2020.
  • Channel inventory reduction of 25 percent sequentially and 45 percent since Q4 2019.
  • GoPro.com represented a record percentage of revenue in Q2 2020 at 44 percent, up from slightly below 10 percent of revenue in Q2 2019.
  • GoPro’s Plus subscription service ended Q2 2020 with 372,000 paid subscribers, up 5 percent sequentially and up 57 percent year-over-year.
  • Cameras with retail prices above $300 represented 95 percent of Q2 2020 revenue, reacting consumer preference for GoPro’s premium products.
  • Street ASPs increased 11 percent year-over-year to $300.
  • GoPro ended Q2 2020 with 741 employees, the lowest headcount since 2014.
  • Launched diversified products including Zeus Mini, The World’s Most Versatile Light, and Lifestyle Gear including bags, apparel and accessories.
  • HERO8 Black updated to work as a webcam.

“In Q2 2020, we saw steadily increasing demand and better-than-expected sell-through across all geographies,” said Brian McGee, GoPro CFO and COO. “Our direct-to-consumer model is gaining momentum and we’re seeing a faster-than-expected rebound at retail. These factors, along with our strong hardware, software and subscription roadmap give us confidence going into the second half of the year.”

Photo courtesy GoPro