GoPro, Inc. announced sales that were essentially flat year-over-year in the second quarter ended June 30 but saw strong subscriber growth and said earnings topped expectations.
“GoPro shined in the second quarter, exceeding expectations on sell-through, revenue and earnings per share,” said Nicholas Woodman, GoPro’s founder and CEO. “We’re excited about our upcoming hardware and software launches in the second half of 2022, and we expect them to contribute to continued profitability and impressive subscription growth.”
“In the second quarter, Asia Pacific and Europe recovered with strong year-over-year revenue growth, which contributed to solid Q2 revenue and sell-through performance,” said Brian McGee, GoPro’s CFO and COO. “Subscribers grew 65 percent year-over-year with subscription and service revenue representing a powerful driver of profitability.”
Q2 2022 Financial Results And Recent Business Highlights
- Revenue was $251 million, up slightly year-over-year from $250 million, with a strong U.S. dollar unfavorably impacting Q2 revenue by approximately $8 million year-over-year;
- GoPro.com’s subscription and service revenue increased 9 percent year-over-year to $95 million, or 38 percent of total revenue. Subscription and service revenue increased 71 percent year-over-year to $20 million;
- GoPro subscriber count increased 65 percent year-over-year to 1.91 million;
- GAAP and non-GAAP gross margin was 38.3 percent and 38.5 percent, respectively, down from the prior year’s period at 39.8 percent and 40.1 percent, respectively;
- GAAP net income was $3 million, or $0.02 per share, down from net income of $17 million or $0.10 per share, which included a $12 million tax benefit in the prior year period. Non-GAAP net income was $13 million, or $0.08 per share, down 36 percent from $20 million, or $0.12 per share in the prior year period;
- Adjusted EBITDA was $17 million, or 7 percent of revenue, compared to $25 million, or 10 percent of revenue in the prior year period;
- Cameras, with retail prices at or above $400, represented 93 percent of Q2 2022 camera revenue, up from 77 percent in Q2 2021; and
- Q2 2022 Street ASP increased 13 percent year-over-year to $392.
Photo courtesy GoPro