GoPro Inc. reported revenue for the second quarter was $244.6 million, up 38.1 percent compared to the $177.1 million reported in the second quarter of 2013.
Second quarter 2014 revenue increased 3.8 percent compared to $235.7 million reported in the first quarter of 2014.
“We delivered a strong quarter of operating results driven by increased demand for our Hero 3+ Black Edition and demand for our accessory products,” said Nicholas Woodman, CEO of GoPro. “We are seeing a tremendous volume of quality content generated by our users and a 200 percent year over year increase in video views on YouTube, which is fueling our virtuous cycle whereby viewership of GoPro content drives sales. Our second quarter performance demonstrates our users' continued passion for GoPro's products, content and brand.”
GoPro reports gross profit, operating expenses, operating income (loss), net income (loss) and diluted net income (loss) per share in accordance with GAAP and additionally on a non-GAAP basis. Non-GAAP net income excludes, where applicable, the effect of stock-based compensation, amortization of acquired intangible assets and the tax impact of these excluded items. A reconciliation of preliminary GAAP financial measures to non-GAAP financial measures, as well as a description of items excluded in the calculation of non-GAAP financial measures, is presented in the financial statement portion of this release.
Non-GAAP gross margin in the second quarter of 2014 was 42.2 percent, compared to 32.3 percent in the second quarter of 2013 and 41.1 percent in the first quarter of 2014. Non-GAAP operating income in the second quarter of 2014 was $17.8 million, compared to an operating loss of ($3.2) million in the second quarter of 2013 and operating income of $20.9 million in the first quarter of 2014.
Non-GAAP net income in the second quarter of 2014 was $11.8 million or $0.08 per diluted share, compared to a net loss of ($3.2) million or ($0.03) per diluted share in the second quarter of 2013 and net income of $14.3 million or $0.10 per diluted share in the first quarter of 2014.
In accordance with U.S. generally accepted accounting principles (GAAP), GoPro recorded a net loss attributable to common stockholders in the second quarter of 2014 of $(19.8) million or $(0.24) per diluted share. This compares to a GAAP net loss attributable to common stockholders of $(5.1) million or $(0.06) per diluted share in the second quarter of 2013 and GAAP net income attributable to common stockholders in the first quarter of 2014 of $8.5 million or $0.08 per diluted share.
Second quarter GAAP gross margin was 42.1 percent, compared to gross margin of 32.1 percent in the second quarter of 2013 and 40.9 percent in the first quarter of 2014. Second quarter GAAP operating loss was ($16.7) million, compared to an operating loss of ($6.0) million in the second quarter of 2013 and operating income of $16.6 million in the first quarter of 2014.
Cash was $104.9 million at June 30, 2014, up $77.6 million from June 30, 2013 and down $6.3 million from March 31, 2014. Net cash proceeds of $200.8 million from closing of the company's initial public offering were received on July 1, 2014 and are therefore not included in the June 30, 2014 cash balance.
Second Quarter and Recent GoPro Highlights Include:
- Launched GoPro App 2.5 for iOS and Android in July, allowing users to stream playlists of GoPro content directly to their phones and identify favorite videos that will follow them across other platforms such as Xbox One and GoPro.com.
- According to June NPD data, GoPro products represented the top three camera/camcorder units and six of the top ten camera accessory units sold in the U.S.
- Launched in new vertical markets with the Sportsman Mount for hunting and fishing and the Music Edition for instruments and microphones.
- Released popular accessories including the highly versatile Gooseneck and 3-Way mounts.
- Shipped more than 10,000 linear feet of new POP displays to retail outlets around the world.
- Number of GoPro videos published on YouTube up over 160 percent Y/Y; views on YouTube up 200 percent Y/Y; video minutes watched on YouTube up over 270 percent vs. Q2 2013.
- Launched the GoPro Channel on Pinterest, a social network with more than 60 million users.
- Launched the GoPro Channel on Xbox 360 with Microsoft, generating more than a half million downloads and average engagement time in the U.S. of just under 30 minutes. In July, launched GoPro Channel on Xbox One with exclusive videos.
- Hosted events at South by Southwest, the X Games, and the GoPro Mountain Games.
- The GoPro Athlete Summit attracted 90 athletes and generated more than two million likes on Facebook.
- Won four Webby Awards including Best Photography and Graphics, Best Use of Video, and Best Overall Social Presence.
- GoPro CineForm Codec was standardized by the Society of Motion Picture and Television Engineers® (SMPTE®) as the SMPTE ST 2073 VC-5 video compression standard.