GoPro Inc. reported sales rose 40 percent in the fourth quarter along with strong earnings gains, although both were short of Wall Street’s targets.

“GoPro achieved both revenue growth and full-year non-GAAP profitability in 2019 due to strong sell-through throughout the year and the Fall launch of our two new flagships, HERO8 Black and MAX,” said GoPro Founder and CEO Nicholas Woodman. “We believe we are well-positioned to meaningfully expand both margin and EPS in 2020 thanks to the strength of our entire product line, high-margin Plus subscription service and app monetization strategy.”

Additionally, Brian McGee, who has served as GoPro’s chief financial officer since March 2016, has been appointed to chief operating officer in addition to his ongoing role as chief financial officer, effective February 3, 2020.

“Brian has proven himself to be a tremendously important leader at GoPro with a deep understanding of our business. All of us at GoPro are excited to work with Brian in his new, expanded role,” added Woodman.

Recent GoPro Highlights

  • Revenue for the full year 2019 was $1.195 billion, up 4 percent year-over-year. Excluding aerial business, revenue would have increased 7 percent year-over-year.
  • Revenue for Q4 2019 was $528 million, up 40 percent year-over-year. Wall Street’s consensus estimate had been $565.95 million.
  • GAAP gross margin for Q4 2019 was 38.2 percent, up from 37.7 percent year-over-year. Non-GAAP gross margin for Q4 2019 was 38.6 percent, up from 38.4 percent in the prior year.
  • Q4 2019 GAAP net income was $96 million, or 65 cents per share. Non-GAAP net income was $102 million, or 70 cents per share. Wall Street’s consensus estimate on a non-GAAP basis had been 79 cents. On a year-over-year basis, GAAP net income increased by $64 million. 2019 GAAP net loss was $15 million, or $0.10 per share. 2019 non-GAAP net income was $35 million. On a year-over-year basis, non-GAAP net income increased $67 million.
  • Q4 2019 GAAP operating expenses of $106 million decreased 3 percent year-over-year. Q4 2019 non-GAAP operating expenses remained flat year-over-year at $99 million.
  • Cash and investments totaled $165 million at the end of Q4 2019.
  • Adjusted EBITDA for the full year 2019 was $72 million, a 230 percent increase year-over-year.
  • GoPro.com represented more than 10 percent of revenue in 2019, growing more than 40 percent year-over-year.
  • In the U.S., HERO8 Black was the No. 1 selling camera in all of digital imaging by unit volume in Q4 2019, according to the NPD Group.
  • In the U.S., GoPro captured 93 percent dollar share of the action camera category in Q4 2019, according to the NPD Group.
  • In 2019, 90 percent of GoPro’s revenue came from the $300 and above price band, up from 62 percent in 2018.
  • In Q4 2019, MAX captured 54 percent and 66 percent unit and dollar share, respectively, of the spherical camera market in the U.S., according to NPD Group. Collectively, MAX and Fusion captured 62 percent unit and 72 percent dollar share of the spherical camera market in the U.S. in Q4 2019, up from 14 percent and 38 percent respectively, year-over-year, according to NPD Group.
  • GoPro’s Plus subscription service surpassed 334,000 active paying subscribers as of January 31, 2020, up 10 percent since Q3 2019 Earnings Release dated November 7, 2019, and up 69 percent year-over-year.
  • In Europe, during Q4 2019, GoPro had four of the top five cameras in the action camera category and in the $200 and above price band of the action camera category, GoPro held 83 percent dollar share and 82 percent market share in units, according to GfK.
  • In China, GoPro sell-through increased by 42 percent and 21 percent, by units and dollars, respectively in Q4 2019, year-over-year, according to GfK.
  • In Japan, GoPro market share of the action camera category increased from 57 percent to 61 percent and 68 percent to 73 percent in units and dollars respectively in Q4 2019, year-over-year, according to GfK.
  • In Korea, GoPro market share of the action camera category increased from 36 percent to 44 percent and 53 percent to 59 percent in units and dollars respectively in Q4 2019, year-over-year, according to GfK.
  • In Thailand, GoPro market share of the action camera category increased from 57 percent to 66 percent and 87 percent to 91 percent in units and dollars respectively in Q4 2019, year-over-year, according to GfK.
  • Organic viewership of GoPro content across all channels achieved an all-time high in 2019, with more than 2 million organic views per day across all channels in 2019, 737 million organic non-paid views in total, a 29 percent increase year-over-year.
  • GoPro’s Million Dollar Challenge Campaign generated a record 42,000 customer content submissions, a 68 percent increase year-over-year, and in the first week, the highlight reel garnered more than five times the views, year-over-year.
  • Social followers across all channels increased by 4.2 million in 2019, up 29 percent year-over-year.
  • In Q4 2019, usage of the GoPro App’s automatic editing tools grew 400 percent year-over-year.

Photo courtesy Wirecutter