GoPro’s Q4 Revenues and Margins Soar

GoPro, Inc. reported revenue soared 75.4 percent and gross margin 600 basis points in the fourth quarter ended Dec. 31, 2014 after shipping as many cameras as in all of 2012.

Summary of Fourth Quarter 2014 GAAP Results:

• Revenues reached $633.9 million, compared to $361.5 million in the fourth quarter of 2013
• Gross margin of 47.9 percent, compared to 41.9 percent in the fourth quarter of 2013
• Operating income of $173.7 million, compared to $70.6 million in the fourth quarter of 2013
• Net income attributable to common stockholders of $122.1 million, or $0.83 per diluted share, compared to $33.3 million or $0.33 per diluted share in the fourth quarter of 2013
• Cash, cash equivalents and marketable securities of $422.3 million, compared to $101.4 million at December 31, 2013fourth quarter and full year ended December 31, 2014.

“We're feeling good. GoPro was one of the best-selling products this holiday, selling-in an average of 1,000 units per hour for the entire quarter,” said GoPro Founder and CEO, Nicholas Woodman. “With this many new recruits to the GoPro movement, we're sure to see some incredible content in 2015.”

Summary of Fourth Quarter Non-GAAP* Results:
Gross margin of 48.0 percent, compared to 42.0 percent in the fourth quarter of 2013
Operating income of $193.2 million, compared to $74.4 million in the fourth quarter of 2013
Adjusted EBITDA of $202.9, compared to $81.9 million in the fourth quarter of 2013
Net income of $144.9 million or $0.99 per diluted share, compared to $46.4 million or $0.33 per diluted share in the fourth quarter of 2013

Fourth Quarter, Full Year 2014 and Recent GoPro Highlights Include:

• Internationally GoPro made significant progress in 2014, including establishing a European sales and marketing headquarters in Munich, Germany, developing in-region product assembly in Brazil, and taking first steps into China by launching with the country's two largest online retailers, Tmall and JD, as well as other select retailers; in Q4 EMEA and APAC combined revenue grew approximately 70 percent year-over-year.
• GoPro shipped 2.4 million capture devices in Q4 and 5.2 million in the full year 2014. GoPro capture devices shipped in Q4 2014 exceeded that of the full year 2012.
• GoPro App downloads exceeded 2.8 million in Q4 bringing the life-to-date total to more than 13 million downloads; installs of GoPro Studio exceeded 1.5 million in Q4 with average daily exports of over 30,000.
• Google reports more than 3.9 years of content was uploaded to YouTube in 2014 with GoPro in the title, 40 percent above of the 2.8 years posted in 2013.
• For the full year 2014, videos published on GoPro's YouTube Channel were up 71 percent, views were up 84 percent, and video minutes watched were up more than 140 percent year-over-year.
• GoPro released a firmware update enhancing Hero4 cameras with new features including Time Lapse Video, 30/6 Burst Photo and ultra high frame rates for slow-motion playback.
• Marriott Hotels launched a program at select Caribbean and Latin American resorts offering GoPro Hero4 cameras for guests to use during their stay and to share their experiences.
• GoPro announced a partnership with Vislink to bring affordable live-broadcast capability to GoPro devices. The new technology was showcased in the NHL All Star Weekend – GoPro's first agreement with a Big 4 team sports league. Live Broadcast was also featured in ESPN's coverage of the Winter X Games.
• GoPro announced an agreement with Roku to bring GoPro content to millions of viewers this spring; GoPro also launched the GoPro Channel App for LG Smart TVs.

Summary of 2014 GAAP Results:

• Revenue of $1,394.2 million, compared to $985.7 million in 2013
• Gross margin of 45.0 percent, compared to 36.7 percent in 2013
• Operating income of $187.0 million, or 13.4 percent of revenue, an increase of $88.3 million year-over-year
• Summary of 2014 Non-GAAP*Results:
• Gross margin of 45.1 percent, compared to 36.9 percent in 2013
• Operating income of $259.6 million, or 18.6 percent of revenue, an increase of $148.9 million year-over-year
• Adjusted EBITDA of $293.4 million, or 21.0 percent of revenue, up 119.4 percent year-over-year
• Earnings per diluted share of $1.32, up 164.0 percent from 2013

* 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. Additionally, GoPro reports non-GAAP adjusted EBITDA.  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 including adjusted EBITDA, is presented in the financial statement portion of this release.