GoPro Inc. filed paperwork Monday with the Securities & Exchange Commission for a $100 million initial public offering.


 

 

The filling reports GoPro earned net income of $60.6 million on sales of $985.7 million in 2013, up 87.4 and 87.6 percent respectively from 2012. The company’s stock would be listed on the NASDAQ and trade under the symbol GPRO. The company's largest shareholders are Founder and CEO Nicholas Woodman and his Wife Jill Woodman and a trust they control, which own 55.1 million shares, or 48.8 percent of the company. The next largest shareholder is RW Camera Holdings at 16.3 percent and Foxteq Holdings with 10.4 percent. Foxteq is controlled by Taiwan-based Foxconn Far East Ltd., a Taiwanese company that provide GoPro and many other consumer electronics brands with contract manufacturing services. 
 

 

GoPro expects to use the net proceeds from the offering for general corporate purposes, including working capital, and to fully repay its term loan under a credit facility, which had an outstanding balance of $111.0 million as of March 31, 2014. It may also use a portion of the net proceeds to acquire or invest in complementary businesses, technologies or assets. The IPO is being underwritten by a syndicate of nine banks lead by J.P. Morgan, Citigroup and Barclays and includes: Allen & Company LLC; Stifel, Nicolaus & Company, Incorporated; Robert W. Baird & Co. Incorporated; MCS Capital Markets LLC; Piper Jaffray & Co.; and Raymond James & Associates, Inc., according to an S1 the company filed late Monday.

 

Since launching its first high-definition, or HD, capture device in July 2009, GoPro has sold more than 8.5 million HD cameras, including more than 3.8 million in 2013, according to the filing. Its video cameras are now sold in more than 100 countries and through more than 25,000 retail stores and it supplied the #1 selling camcorder (by dollars and units) in the United States in 2013. The company’s Hero cameras represented a 45 share of the U.S. camcorder market (by dollars) in 2013, up from an 11 percent share during December 2011, according to the filing.

 

While the brand got its start in independent action sports specialty shops, it is now widely distributed. Best Buy, accounted for 17 percent of revenue in 2013 and 13 percent in the three months ended March 31, 2014, respectively. An international distributor, X-treme Video, accounted for 10 percent of sales during that recent quarter.

 

 

“Since our first sale in 2004, our distribution strategy has focused on specialty retailers, including surf, ski and motorsports outlets, where we believe GoPro is often the only capture device sold in-store,” reads the filing. “Our early, first-mover relationships with these retailers and their customers helped us establish an authenticity that remains a cornerstone of our business. This focus on the specialty retail channel has also enabled us to develop a high-touch, differentiated sales network of more than 25,000 stores globally that we believe is difficult to replicate.”

 

 

 

 

Summary consolidated financial data

The following table summarize GoPro's consolidated financial data

 

 

 

 












































































































































































































































































































































































































































































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Consolidated statements of operations data:
Year ended December 31,

Three months ended
March 31,

(in thousands, except per share amounts)
2011

2012

2013

2013

2014






















Revenue


$ 234,238

$ 526,016

$ 985,737

$ 255,057

$ 235,716

Cost of revenue(1)



111,683


298,530


623,953


165,628


139,202


























Gross profit



122,555


227,486


361,874


89,429


96,514
































Operating expenses:






















Research and development(1)



8,644


36,115


73,737


12,012


28,739

Sales and marketing(1)



64,375


116,855


157,771


35,673


41,341

General and administrative(1)



10,757


20,899


31,573


6,988


9,878


























Total operating expenses



83,776


173,869


263,081


54,673


79,958


























Operating income



38,779


53,617


98,703


34,756


16,556

Other income (expense), net



12


(407 )

(7,374 )

(1,694 )

(1,625 )


























Income before income taxes



38,791


53,210


91,329


33,062


14,931

Income tax expense



14,179


20,948


30,751


10,027


3,882


























Net income


$ 24,612

$ 32,262

$ 60,578

$ 23,035

$ 11,049