GoPro announced a return to profitability in the third quarter ended September 30 as sales year-over-year jumped 114 percent.

“Thanks to consistent momentum throughout the quarter and the strong launch of HERO9 Black coupled with our GoPro subscription service, in Q3 GoPro achieved GAAP and non-GAAP profitability, generated $100 million of operating cash flow and surpassed 500,000 subscribers,” said GoPro Founder and CEO, Nicholas Woodman.

“In Q3 2020, our direct-to-consumer and subscription-centric strategy expanded margin, increased subscribers, and significantly lowered our operating expenses, resulting in GAAP and non-GAAP profitability. This approach is also enabling efficient working capital management as we drove DSO’s down 25 percent sequentially, lowered channel inventories and reduced our own investments in inventory,” said Brian McGee, GoPro CFO and COO.

GoPro Q3 2020 Financial Results

  • Revenue for Q3 2020 was $281 million, a 109 percent sequential improvement from $134 million in Q2 2020. Sales year-over-year were up 113.9 percent from $131.2 million in the 2019 third quarter;
  • GAAP gross margin for Q3 2020 was 35.4 percent, up from 21.7 percent year-over-year. Non-GAAP gross margin for Q3 2020 was 36.2 percent, up from 23.4 percent year-over-year;
  • Q3 2020 GAAP net income was $3 million, or $0.02 per share. Q3 2020 non-GAAP net income was $31 million, or $0.20 per share;
  • Q3 2020 GAAP operating expenses of $90 million decreased 9 percent year-over-year. Q3 2020 non-GAAP operating expenses were $68 million, down 25 percent year-over-year;
  • Adjusted EBITDA for Q3 2020 was $39 million, compared to negative ($53) million in Q3 2019; and
  • Cash and investments totaled $147 million at the end of Q3 2020 compared to $79 million in Q3 2019.

GoPro Q3 2020 Highlights

  • In September, GoPro launched HERO9 Black to widespread global appeal;
  • GoPro ended Q3 2020 with 501,000 subscribers, up 35 percent sequentially, and 65 percent year-over-year;
  • GoPro.com achieved a record $81 million in revenue in Q3 2020, up 37 percent sequentially;
  • Camera sell-through was more than 950,000 units in Q3 2020;
  • Channel inventory reduced by approximately 10 percent sequentially and 45 percent since the beginning of 2020;
  • Cameras, with retail prices above $300, represented 83 percent of Q3 2020 revenue; and
  • Street ASPs increased 11 percent year-over-year to $304.

Photo courtesy GoPro/HERO9 Black