GoPro, Inc.’s profits on an adjusted basis fell 68.2 percent in the fourth quarter as sales were down 18 percent.

“In 2022, GoPro achieved GAAP profitability in a very challenging macroeconomic environment. We generated EBITDA of $95 million, or 9 percent of revenue. Additionally, we grew subscribers to 2.25 million, bringing our subscription and service revenue to an annual run rate of $100 million with 70-80 percent gross margin,” said Nicholas Woodman, GoPro’s founder and CEO, in a press release.

“GoPro ended the year with solid balance sheet metrics and $367 million in cash after repaying debt of $125 million and repurchasing $40 million in stock,” said Brian McGee, GoPro’s CFO and COO.

Q4 2022 Financial Results

  • Revenue was $321 million, down 18 percent year-over-year and in line with our guidance.
  • GoPro.com revenue, including subscription and service revenue, was flat year-over-year at $128 million, or 40 percent of total revenue.
  • Subscription and service revenue increased 30 percent year-over-year to $22 million.
  • GAAP net income was $3 million, or $0.02 per share, down from net income of $53 million or $0.32 per share in the prior year period. Non-GAAP net income was $21 million, or $0.12 per share, down from $66 million, or $0.41 per share, in the prior year period.
  • GAAP and non-GAAP gross margin was 32.5 percent and 35.1 percent, respectively, and as estimated on a constant currency basis was 36.5 percent and 39.0 percent, respectively. This compares to GAAP and non-GAAP gross margin of 41.2 percent and 41.3 percent, respectively, in the prior year period.
  • Adjusted EBITDA was $22 million, or 7 percent of revenue, and as estimated on a constant currency basis was $42 million or 12 percent of revenue. This compares to $72 million, or 18 percent of revenue in the prior year period.
  • Cameras with retail prices at or above $400 represented 90 percent of Q4 2022 camera revenue.
  • Q4 2022 Street ASP was $378, flat year-over-year, and $401 as estimated on a constant currency basis, up 6 percent year-over-year.
  • Days’ sales outstanding was 22 days, down from 26 days in the prior year period.

2022 Financial Results

  • Revenue was $1.09 billion, down 6 percent year-over-year. And, as estimated on a constant currency basis, revenue would have been down 2 percent.
  • GoPro.com revenue increased 5 percent year-over-year to $411 million, comprising 38 percent of total revenue.
    Subscription and service revenue increased 52 percent year-over-year to $82 million.
  • GoPro subscriber count ended 2022 at approximately 2.25 million, up 43 percent year-over-year.
  • GAAP and non-GAAP gross margin was 37.2 percent and 38.1 percent respectively, and as estimated on a constant currency basis was 40.0 percent and 40.8 percent, respectively. This compares to GAAP and non-GAAP gross margin of 41.1 percent and 41.4 percent, respectively, in the prior year period.
  • 2022 GAAP net income was $29 million, or $0.18 per share, down year-over-year from net income of $371 million or $2.27 per share, which included a tax benefit of $1.74 per share. Non-GAAP net income was $81 million, or $0.47 per share, down from $146 million, or $0.90 per share, in the prior year period.
  • 2022 adjusted EBITDA was $95 million, or 9 percent of revenue, and as estimated on a constant currency basis was 13 percent of revenue. This compares to $168 million, or 14 percent of revenue in the prior year period.
  • Cameras with retail prices at or above $400 represented over 90 percent of 2022 camera revenue.
  • 2022 Street ASP was $389, up 5 percent year-over-year, and $407 as estimated on a constant currency basis, up 10 percent year-over-year.

Recent Business Highlights
In 2022, GoPro bought back $40 million in stock, which covered its stock-based compensation expense for the year wiht plans to continue to execute its stock repurchase plan in 2023; the company retired $125 million in debt in 2022; and in Q4 2022, celebrated its 20-year anniversary.