GoPro, Inc. widened its losses in both the fourth quarter and the year ended December 31 as sales fell 32 percent in the quarter and 20 percent in the year. The maker of action cameras said it’s making progress in its turnaround efforts.

“In 2024, we undertook several initiatives to put us back on a path to return to growth and profitability in 2026. This includes our plan to reduce operating expenses for 2025 by nearly 30 percent and refining our roadmap to pursue improved product diversification and how efficiently we design our products,” said Founder and CEO Nicholas Woodman,

“Our continued focus to streamline our business has yielded reduced product costs and improved operational efficiencies as well as continued diversification of our supply chain outside of China, all of which has contributed to improving gross margin,” said Brian McGee, GoPro’s CFO and COO.

Q4 2024 Financial Results

  • Revenue was $201 million, down 32 percent year-over-year.
  • Sell-through was approximately 775,000 camera units, down 16 percent year-over-year.
  • Subscription and service revenue increased 9 percent year-over-year to $27 million, primarily due to 8 percent ARPU growth from improving retention rates. GoPro subscriber count ended Q4 at 2.52 million, up 1 percent year-over-year.
  • Revenue from the retail channel was $150 million, or 74 percent of total revenue and down 34 percent year-over-year. GoPro.com revenue, including subscription and service revenue, was $51 million, or 26 percent of total revenue and down 24 percent year-over-year.
  • GAAP net loss was $37 million, or a $(0.24) loss per share, compared to a net loss of $2 million or $(0.02) loss per share, in the prior year period.
  • Non-GAAP net loss was $14 million, or a $(0.09) loss per share, compared to non-GAAP net income of $4 million, or $0.03 per share, in the prior year period.
  • GAAP and non-GAAP gross margin was 34.7 percent and 35.1 percent, respectively. This compares to GAAP and non-GAAP gross margins of 34.2 percent and 34.4 percent, respectively, in the prior year period. Compared to guidance, gross margin was impacted by 80bps due to a stronger U.S. dollar in the quarter.
  • Adjusted EBITDA was negative $14 million compared to a positive $3 million in the prior year period.
  • Cameras with a manufacturer’s suggested retail price (MSRP) of at or above $400 represented 84 percent of the company’s Q4 2024 camera revenue. Q4 2024 Street ASP was $346, a 5 percent increase year-over-year.
  • Cash and marketable securities were $103 million at the end of the fourth quarter.

2024 Financial Results

  • Revenue was $801 million, down 20 percent year-over-year.
  • Subscription and service revenue increased 10 percent year-over-year to $107 million.
  • GAAP net loss was $432 million, or a $(2.82) loss per share, compared to a net loss of $53 million or $(0.35) loss per share, in the prior year period. Non-GAAP net loss was $370 million, or a $(2.42) loss per share, compared to non-GAAP net loss of $20 million, or $(0.13) loss per share, in the prior year period. GAAP and non-GAAP net loss per share for 2024 were impacted by establishing a $295 million valuation allowance on the company’s U.S. deferred tax assets recorded in the first quarter of 2024.
  • GAAP and non-GAAP gross margins were 33.8 percent and 34.1 percent, respectively, compared to GAAP and non-GAAP gross margins of 32.2 percent and 32.4 percent, respectively, in the prior year period.
  • 2024 Adjusted EBITDA was negative $72 million, compared to negative $27 million in the prior year period.

Image courtesy GoPro