GoPro, Inc. reported a profit against a loss in the first quarter as sales grew 6 percent. GoPro subscribers increased by 85 percent year-over-year to 1.74 million.

“We hit the ground running in 2022, successfully growing year-over-year revenue and profitability while launching exciting new products,” said Nicholas Woodman, GoPro’s founder and CEO. “With several additional products slated for launch later this year, we expect to continue this TAM-expanding trend.”

“The first quarter of 2022 represents another quarter of GAAP profitability, coinciding with GoPro’s strategic shift to becoming a more direct-to-consumer, subscription-centric business back in the second quarter of 2020,” said Brian McGee, GoPro’s CFO and COO. “Over that period, we’ve steadily grown revenue, gross margin, and, importantly, GAAP profitability as well as cash.”

Q1 2022 Financial Results

  • Revenue was $217 million, up 6 percent year-over-year from $204 million;
  • revenue, including subscription revenue, increased 8 percent year-over-year to $89 million, or 41 percent of total revenue. Subscription and service revenues totaled $19 million, up 73 percent year-over-year;
  • GAAP and non-GAAP gross margin was 41.8 percent and 42.0 percent respectively, up from the prior-year period at 38.6 percent and 39.2 percent, respectively;
  • GAAP net income was $6 million, or $0.04 per share, up from a net loss of $10 million or $0.07 per share in the prior-year period. Non-GAAP net income was $15 million, or $0.09 per share, up 214 percent from $5 million, or $0.03 per share in the prior-year period;
  • Adjusted EBITDA was $21 million, or 10 percent of revenue, compared to $11 million, or 5 percent of revenue in the prior-year period;
  • Cameras with retail prices at or above $400 represented 92 percent of Q1 2022 camera revenue, up from 79 percent in Q1 2021; and
  • Q1 2022 Street ASP was $414, up 13 percent year-over-year.

Recent Business Highlights

  • Launched Volta, a standalone battery and remote-control grip that provides more than four hours of recording at 4K 30 frames per second;
  • Launched Creator Edition for vlogging, filmmaking and live streaming that combines the power of Hero10 Black with GoPro Mods and GoPro’s latest accessory, Volta;
  • Launched GoPro Player + ReelSteady desktop app with professional-level stabilization and 360 content tools for creators;
  • Launched Hero 10 Black Bones, an FPV (First Person View) drone camera; and
  • Expanded remote work options to two in Bucharest and Paris as part of its strategy to attract and retain top talent.

Photo courtesy GoPro