GoPro swung to a quarterly loss of $91.7 million, or 66 cents per share, compared to a profit of $35 million, or 24 cents, in the same period a year earlier. However, adjusting for certain items, the company’s loss of 52 cents was better than the 58 cents Wall Street analysts were looking for.
Revenue fell 47 percent to $220.7 million, but still topped analyst estimates of $194.3 million.
“GoPro is well-positioned for the second half of the year. We now have a simple product line, a clean retail channel and clear indications of strong consumer demand,” said GoPro Founder and CEO, Nicholas Woodman. “HERO5 and Karma will contribute to the largest introduction of products in our history, all in time for what we believe will be GoPro’s most exciting fourth quarter, ever — a quarter where we expect to return to profitability.”
Recent GoPro Highlights Include
- Since the May rebranding of Quik and Splice, these mobile apps have doubled their combined monthly active users to 3.7 million and doubled the amount of shared content each month. Combined, these apps have 37 million cumulative downloads.
- The GoPro Mobile App was downloaded 2.6 million times in the second quarter, totaling over 30 million cumulative downloads; Q2 installs of GoPro Studio was 1.5 million, totaling over 17.7 million cumulative installs, with average daily video exports up 15.3 percent year-over-year to over 43,500.
- According to The NPD Group’s Retail Tracking Service, GoPro accounted for 6 of the top 10 products, including the top 3 spots, on a unit basis in the digital camera/camcorder category in the U.S. in the second quarter. HERO4 Silver remains the best-selling digital image camera on a unit and dollar basis for the seventh consecutive quarter. By our estimate, Session continues to be the #2 best-selling camera on a unit basis.
- According to NPD, GoPro’s second quarter combined digital camera/camcorder unit share increased 110 basis points year-over-year to 21.3 percent in the U.S.
- According to GfK, GoPro’s second quarter digital imaging unit share in Europe increased 110 basis points year-over-year to 9.4 percent. GoPro accounted for 4 of the top 5 camcorders in Europe on a unit basis.
- Revenue was up 20 percent to $221 million sequentially, driven by an 8 percent increase in units shipped to 759,000 and an 11 percent increase in average selling price. On a year-over-year basis, average selling price increased 14 percent.
- Unit sell-thru was up approximately 10 percent sequentially and was more than 50 percent higher than sell-in for the second quarter in a row, resulting in an estimated 35 percent sequential reduction in channel inventory.
- Inventory declined $50 million, or 36 percent, from the first quarter to $90 million, our lowest inventory level since the second quarter of 2014.
- GoPro announced an exclusive partnership with Reliance Digital, India’s largest Consumer Electronics retailer, that will put GoPro’s cameras, mounts and accessories, on the shelves of up to 1,800 Reliance Digital across India.
- GoPro is an official partner of MotoGP, a global race series with a TV audience of 280 million homes and a social following of 15 million. GoPro now sponsors nine-time world-champion MotoGP racer, Valentino Rossi.
- GoPro has signed content partnerships to create episodic content with some of the world’s most recognized brands including Ford, Wimbledon and Real Madrid. The first series, produced with Ford Motor Company and titled “Unstoppable Life,” profiles GoPro athletes who demonstrate the perseverance and determination on their respective life journeys.
GoPro’s professional VR camera, Odyssey was designed for Google’s Jump platform, is being used to capture the Democratic and Republican National Conventions. News organizations including Bloomberg, TIME and The Washington Post, are using Odyssey to shoot the conventions in 360-degree, stereoscopic video. - Launched GoPro Care to U.S. consumers, a fee-based service offering a range of support options, including extended warranty and accidental damage coverage.
- Lauren Zalaznick was appointed to GoPro’s Board of Directors. A 12-year executive at NBCUniversal, Ms. Zalaznick has devoted her career to transforming the cultural landscape in media, and has been named one of Time’s 100 Most Influential People and Fortune’s 50 Most Powerful Women.
- GoPro entered into a multi-year, global agreement with Red Bull that includes content production, distribution and cross-promotion through which GoPro will become Red Bull’s exclusive provider of point-of-view imaging technology. Content will be distributed across both Red Bull and GoPro’s digital distribution networks, including The GoPro Channel, Red Bull TV, RedBull.com and in the Red Bull Content Pool, Red Bull’s media service platform.
