GoPro, Inc. said it exceeded its revenue target in the first quarter and is making progress on its multi-year TAM expansion strategy, but it is taking more time than than anticipated.

“We believe our investments to grow our brand, retail presence and broader product line will restore growth and profitability over the long term,” said GoPro Founder and CEO Nicholas Woodman in a press release announcing first quarter results. “Patience is required, but our progress and product roadmap give us confidence,” he suggested.

Revenue was reportedly $155 million for the first quarter, down 11 percent year-over-year.

  • Subscription and service revenue increased 12 percent year-over-year to $26 million.
  • Revenue from the retail channel was $106 million, or 68 percent of total revenue and up 33 percent year-over-year.
  • revenue, including subscription and service revenue, was $49 million, or 32 percent of total revenue and down 48 percent year-over-year.

Q1 High Notes

  • GoPro subscriber count ended Q1 at 2.5 million, up 6 percent year-over-year.
  • Cameras with MSRPs at or above $400 represented 70 percent of Q1 2024 camera revenue. Entry-level products accounted for 20 percent of camera revenue.
  • First quarter 2024 Street ASP was $395, a 5 percent increase year-over-year.

“Subscription and service revenue continues to grow and our Q1 aggregate annual subscriber retention rate of 69 percent was an all-time high,” said Brian McGee, CFO & COO, GoPro. “Entering Q2, our annual recurring revenue from subscription is approximately $125 million.”

Financial Results
GAAP and non-GAAP gross margin was 34.1 percent and 34.4 percent, respectively. This compares to GAAP and non-GAAP gross margin of 30.0 percent and 30.3 percent, respectively, in the prior-year Q1 period.

The company’s GAAP net loss was $339 million, or a $2.24 loss per share, compared to a net loss of $30 million or 19 cents loss per share, in the prior-year Q1 period, due to the recording of a $295 million tax valuation allowance.

  • Non-GAAP net loss was $32 million, or 21 cents loss per share, compared to a non-GAAP net loss of $25 million, or 16 cents loss per share, in the prior-year Q1 period. For non-GAAP purposes, GoPro excluded the tax valuation allowance charge just as it was excluded the tax valuation benefit in Q3 of 2021.

Adjusted EBITDA was negative $29 million, compared to negative $28 million in the prior-year period.

Balance Sheet
Cash and marketable securities were $134 million at the end of the first quarter.

Recent Business Highlights
In February 2024, GoPro completed its acquisition of Australian maker of tech-enabled motorcycle helmets, Forcite Helmet Systems.

In February 2024, GoPro released Quik Desktop App for macOS and introduced a new $99.99 Premium+ subscription tier.

Image courtesy GoPro (Quik Desktop App for macOS)