GoPro reported a loss of $76.3 million, or 55 cents a share, in the first quarter, but after adjustments, a loss of 34 cents per share beat Wall Street estimates of a loss of 36 cents per share. The company’s Q1 sales of $202.3 million beat the expected $182.2 million.
“Our first quarter was driven by strong sell-through of HERO5 Black and HERO6 Black, along with the launch of our new $199 entry-level HERO. Initial demand for HERO is promising and we expect it to improve as large retail partners like Target and Walmart begin selling the product in the second quarter,” said Nicholas Woodman, GoPro CEO and founder. “Our first quarter performance makes it clear that there is significant demand for GoPro, at the right price. We began to step up marketing programs in March which, coupled with overall expense controls, solid channel management and second half new product launches, gives us confidence for a successful 2018 for GoPro.”
- Revenue was $202 million in the first quarter, down 7 percent year-over-year, while unit growth was up 3 percent year-over-year. GoPro reduced GAAP operating expenses by $37 million, or 24 percent, year-over-year. GoPro reduced non-GAAP operating expenses by $37 million, or 28 percent year-over-year. In 2018, GoPro is targeting non-GAAP operating expenses below $400 million—a cumulative reduction of more than $300 million since 2016.
- In the U.S., GoPro held 86 percent and 95 percent of the action camera category by unit and dollar volume, respectively, in Q1 2018 according to NPD.
- GoPro is the #1 selling camera in the overall digital imaging category for the 17th straight quarter in North America.
- In Europe, GoPro held 44 percent and 72 percent of the action camera category by unit and dollar volume, respectively, in Q1 2018, according to GfK.
- In APAC, GoPro market share of the action camera category increased in unit and dollar volume from 45 percent to 52 percent and from 63 percent to 65 percent quarter-over-quarter, respectively, according to GfK.
- In Korea and Japan, unit sell-through grew by 46 percent and 22 percent respectively quarter-over-quarter, according to GfK.
- Fusion captured 41 percent of the spherical camera market on a dollar basis, according to NPD. Fusion also won gold at the 2018 Edison Awards.
- $199 entry-level HERO launched on March 29. Distribution will expand to Target, Walmart and others in Q2.
- ‘Plus’ subscription service has 147,000 active paying subscribers, up 17 percent since December 31st.
- Eve Saltman was appointed General Counsel and Vice President, Corporate/Business Development.
- GoPro content was viewed 148 million times on social media, up more than 8 percent year-over-year. GoPro’s YouTube channel increased 4 percent in organic viewership year-over-year with 76 million views in Q1.
- On Instagram, GoPro added 245K new followers in Q1, reaching a total of 15 million. GoPro gained more than half a million new social media followers in Q1, growing its total following to 36 million across all platforms.
- GoPro won “Best Overall Brand on Instagram” at the coveted 2018 Shorty Awards.
- Instagram Stories Integration announced on May 1 at Facebook’s F8 conference. GoPro and Instagram partnered to enable GoPro users to share their content directly from the GoPro App to Instagram Stories.