GoPro, Inc. reported sales declined 23 percent in the second quarter, ending June 30, to $186 million, although results exceeded guidance and subscribers saw growth.

“In Q2, revenue of $186 million exceeded guidance, and our subscriber base grew 4 percent to 2.53 million,” said GoPro’s CFO and COO Brian McGee. “Cash was flat sequentially as we reduced inventory ahead of launching two exciting new products in September.”

“Our rollout of new products starts next month with the launch of our new, significantly enhanced flagship camera, Hero13 Black, along with our new entry-level Hero camera that features an entirely new design that we fully expect to wow both new and existing customers,” said Nicholas Woodman, GoPro’s founder and CEO.

Q2 2024 Financial Results

  • Revenue was $186 million, down 23 percent year-over-year;
  • Subscription and service revenue increased 8 percent year-over-year to $26 million, primarily due to improved retention rates, which resulted in 4 percent ARPU growth. GoPro’s subscriber count ended Q2 at 2.53 million, up 4 percent year-over-year;
  • Revenue from the retail channel was $137 million, or 74 percent of total revenue, down 17 percent year-over-year. GoPro.com revenue, including subscription and service revenue, was $49 million, or 26 percent of total revenue, down 35 percent year-over-year;
  • GAAP net loss was $48 million, or a $0.31 loss per share, compared to a net loss of $17 million, or 11 cents per share, in the prior year period. Non-GAAP net loss was $36 million, or 24 cents per share, compared to a non-GAAP net loss of $8 million, or 5 cents, in the prior year period;
  • GAAP and non-GAAP gross margins were 30.5 percent and 30.7 percent, respectively. This compares to GAAP and non-GAAP gross margins of 31.4 percent and 31.6 percent, respectively, in the prior year period;
  • Adjusted EBITDA was negative $33 million, compared to negative $10 million in the prior year period;
  • Cameras with MSRPs at or above $400 represented 76 percent of Q2 2024 camera revenue. The Q2 2024 Street ASP was $323, a 6 percent decrease year over year; and
  • Cash and marketable securities were flat sequentially at $133 million.

Recent Business Highlights

  • In July, GoPro announced a partnership with SoftBank Group’s SB C&S Corporation for additional distribution in Japan;
  • In Q2, GoPro announced a large-scale merchandising rollout and sales program at Best Buy, combining the installation of redesigned product displays with an assisted sales program and enhancements in-store and in digital marketing; and
  • In June, GoPro surpassed 50 million cameras sold since the 2009 launch of the original HD Hero camera.

Image courtesy GoPro