GoPro Inc. estimated its first-quarter revenue at the top end of its forecast of $190 million-$210 million while also repeating its target of full-year non-GAAP profitability.
The company also announced a restructuring that reduces full-year GAAP operating expenses to below $585 million and non-GAAP operating expenses to below $495 million without impacting the company’s roadmap for new hardware and software products.
“We’re determined that GoPro’s financial performance match the strength of our products and brand. Importantly, expense reductions preserve our product roadmap and we are tracking to full-year non-GAAP profitability in 2017,” said GoPro Founder and CEO, Nicholas Woodman.
The reduction in operating expenses is achieved with a combination of cuts to program costs, headcount and open positions, totaling the elimination of approximately 270 positions. GoPro estimates that it will incur total aggregate charges of up to $10 million for the restructuring, which are primarily cash expenditures related to severance costs. The Company expects to recognize the restructuring charges in the first quarter of 2017.
“Today we are updating revenue guidance for the first quarter of 2017. We now expect to deliver revenue in the upper end of our guidance range of between $190 million and $210 million,” said GoPro Chief Financial Officer, Brian McGee. “We currently have no need to draw on our credit facility and we expect to be EBITDA positive for full-year 2017.”
On November 29, GoPro said it expected to incur total aggregate charges of approximately $24 million to $33 million for the restructuring. The charges include approximately $13 million to $18 million of cash expenditures as a result of the workforce restructuring, substantially all of which are severance costs to cover the elimination of more than 200 full-time positions, or about 15 percent of its work force. On December 21, GoPro said its board approved an increase of approximately $7 million to the company’s estimated total aggregate charges to cover its third-quarter restructuring activities.
The company had 1,552 employees as of Dec. 31.