GoPro, Inc. reported lower profitability on a modest decline in sales in the third quarter ended September 30 but saw a strong uptick in subscriber count.

“In Q3 GoPro delivered revenue at the high-end of guidance and solid GAAP and non-GAAP earnings,” said Nicholas Woodman, GoPro’s founder and CEO. “GoPro’s resilience during this challenging economic environment is a testament to the meaningful role GoPro plays in the lives of the world’s most active and creative people.”

“GoPro continued to drive solid operating and financial results, including effective management of key balance sheet metrics,” said Brian McGee, GoPro’s CFO and COO. “Revenue of $305 million was down 4 percent on a dollar basis and up 2 percent year-over-year on a constant currency basis, while subscription and service revenue grew 48 percent year-over-year to $21 million for the quarter. Now that we have crossed the two million subscriber threshold, we are positioned to generate more than $100 million in annual recurring high-margin subscription revenue moving forward.”

Q3 2022 Financial Results And Recent Business Highlights

  • Revenue was $305 million, down 4 percent on a dollar basis, and up 2 percent in constant currency compared to the prior year period.
  • GoPro.com revenue, including subscription and service revenue, increased 4 percent year-over-year to $99 million, or 32 percent of total revenue. Subscription and service revenue increased 48 percent year-over-year to $21 million.
  • GoPro subscriber count increased 55 percent year-over-year to 2.1 million.
  • Third quarter cash net of debt was $205 million, nearly doubling from $110 million in Q321.
  • GAAP and non-GAAP gross margin was 38.0 percent and 38.2 percent respectively, down from the prior year period at 43.6 percent and 43.8 percent, respectively.
  • GAAP net income was $18 million, or $0.10 per share, down year-over-year from net income of $312 million or $1.92 per share, which was primarily driven by the release of a $263 million tax valuation allowance during the third quarter of 2021.
  • Non-GAAP net income was $32 million, or $0.19 per share, down 42 percent from $55 million, or $0.34 per share in the prior year period.
  • Adjusted EBITDA was $35 million, or 12 percent of revenue, compared to $60 million, or 19 percent of revenue in the prior year period.
  • Cameras with retail prices at or above $400 represented 87 percent of Q3 2022 camera revenue, down from 88 percent in Q3 2021.
  • Q3 2022 Street ASP increased 1 percent year-over-year to $383, or up 6 percent year-over-year in constant currency.
  • Days’ sales outstanding was 25 days, down from 28 days in Q321.
  • Announced three new cameras‚Hero11 Black, Hero11 Black Creator Edition and Hero11 Black Mini—and auto highlight videos for subscribers.
  • Revenue grew sequentially across all geographies led by Asia Pacific, which also delivered year-over-year revenue growth.

Photo courtesy GoPro