GoPro Announces Fourth Quarter and Full Year 2015 Results

| Source: GoPro, Inc.

Full Year Revenue of $1.6 billion, Up 16% from 2014
Second Highest Revenue Quarter in Company History
6.6 million Cameras Shipped in 2015, Up 27% from 2014

SAN MATEO, Calif., Feb. 03, 2016 (GLOBE NEWSWIRE) -- GoPro, Inc. (NASDAQ:GPRO), enabler of some of today's most engaging content, today announced financial results for its fourth quarter and full year ended December 31, 2015.

  Three Months Ended December 31, Year Ended December 31,
($ in thousands, except per share amounts) 2015 2014 % Change 2015 2014 % Change
Revenue $436,603  $633,913  (31.1)% $1,619,971  $1,394,205  16.2%
Gross margin            
GAAP 29.4% 47.9% (1,850) bps 41.6% 45.0% (340) bps
Non-GAAP 29.6% 48.0% (1,840) bps 41.7% 45.1% (340) bps
Operating income (loss)            
GAAP $(41,294) $173,688  (123.8)% $54,748  $187,035  (70.7)%
Non-GAAP $(21,629) $193,241  (111.2)% $140,798  $259,567  (45.8)%
Net income (loss)            
GAAP $(34,451) $122,260  (128.2)% $36,131  $128,088  (71.8)%
Non-GAAP $(11,396) $144,898  (107.9)% $111,564  $188,913  (40.9)%
Diluted net income (loss) per share            
GAAP $(0.25) $0.83  (130.1)% $0.25  $0.92  (72.8)%
Non-GAAP $(0.08) $0.99  (108.1)% $0.76  $1.32  (42.4)%
Adjusted EBITDA $(9,268) $202,854  (104.6)% $179,309  $293,380  (38.9)%

“In 2015, we recorded 16% year-over-year revenue growth and the fourth quarter represented the second highest revenue quarter in the company’s history,” said GoPro Founder and CEO, Nicholas Woodman. “However, growth slowed in the second half of the year and we recognize the need to develop software solutions that make it easier for our customers to offload, access and edit their GoPro content.”

Fourth quarter revenue includes a $21 million reduction for price protection related charges resulting from the HERO4 Session repricing in December. Full year revenue also reflected charges of approximately $40 million for price protection related charges issued in connection with reductions of the HERO4 Session selling price in September and December.

Fourth quarter and full year non-GAAP gross margin was impacted by a charge of approximately $57 million to cost of revenue for excess purchase order commitments, excess inventory and obsolete tooling resulting from the Company’s decision to discontinue production of the HERO cameras. This charge is greater than the $30 million to $35 million that was previously estimated in our announcement of preliminary fourth quarter results on January 13, 2016 due to our subsequent decision to simplify GoPro’s product offering to consist of HERO4 Black, HERO4 Silver, and HERO4 Session.

GoPro reports gross profit, operating expenses, operating income (loss), net income (loss) and diluted net income (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis.  Non-GAAP items exclude, where applicable, the effects of stock-based compensation, acquisition-related costs, and the tax impact of these 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 from the calculation of non-GAAP financial measures, is presented in the financial statement portion of this release. GoPro also provides future estimated ranges of gross margin, operating expense and earnings per share on a non-GAAP basis, and provides a description of the non-GAAP adjustments used in these projections.

Stock Repurchase Program and Cash, Cash Equivalents and Marketable Securities

Commencing in the fourth quarter of 2015, GoPro has acquired approximately 1.5 million shares of its Class A capital stock at an average price per share of approximately $23.05, representing a total share repurchase of approximately $35.6 million through December 31, 2015. The Company has a remaining share repurchase authorization of $264.4 million. GoPro ended 2015 with cash, cash equivalents & marketable securities totaling $474 million, an increase of approximately $52 million from year end 2014.

Recent GoPro Highlights Include:

  • According to NPD, GoPro’s fourth quarter digital camera/camcorder unit share increased 180 basis points year-over-year to 21.3%.  GoPro accounted for 6 of the top 10 products, including the #1 spot, on a dollar basis in the digital camera/camcorder category. GoPro was also the leader in accessory unit sales with 6 of the top 10 selling accessories, including the #1 spot.
  • According to GfK, GoPro’s fourth quarter digital imaging unit share in Europe increased 400 basis points year-over-year to 12%. In the fourth quarter, GoPro accounted for 6 of the top 10 camcorders in Europe, including all of the top five spots in December, on a unit basis.
  • International sales totaled more than 50% of full year 2015 revenue; combined Europe and Asia revenue was up over 49% year-over-year. 
  • In the fourth quarter, China remained a top ten market for GoPro.
  • Launched the GoPro Channel on Amazon Fire TV and Fire TV Stick with a custom-designed streaming channel that will be a one-stop destination for delivering on-demand GoPro videos to millions of Amazon customers.
  • Launched the GoPro Channel on the PlayStation® Network. The custom designed GoPro Channel app allows PlayStation owners to stream GoPro content on-demand, browse GoPro cameras and accessories, and more. PlayStation joins GoPro's growing roster of distribution partners including Amazon Fire TV, Roku, Comcast Watchable, Sky, Vessel Entertainment, Xbox, LG and Virgin America.
  • The GoPro Channel will launch on SkyQ, the next-generation home entertainment system in early 2016. GoPro videos will be available on two of the largest TV platforms on the globe - Comcast in the U.S. and Sky, with 21 million customers in the UK, Ireland, Germany, Austria and Italy.
  • The GoPro Mobile App was downloaded 2.75 million times in the fourth quarter, totaling almost 24 million cumulative downloads; Q4 installs of GoPro Studio totaled nearly 1.7 million, totaling over 15 million cumulative installs, with average daily video exports of over 49,000 in the fourth quarter.
  • The GoPro creative community has submitted more than 86,000 content submissions and GoPro has awarded almost $240,000 for video and photo content.  Winning videos and pictures can be viewed at
  • The PGA Tour, SkratchTV and GoPro announced a partnership that will ‘GoPro’ the game of golf. GoPro will produce episodic videos that bring fans inside-the-ropes at PGA TOUR events, giving them unique access to the events and athletes, including recently signed GoPro athlete and PGA TOUR member, Justin Thomas.
  • Periscope users can now broadcast live directly from their GoPro HERO4 Black or Silver camera.  In the five days following the agreement signed in January, 2,700 people used a GoPro to broadcast live on periscope.
  • In 2015, GoPro tied with Apple on the Google Brand Leaderboard - a measure of the most popular brands on YouTube.
  • According to Google, more than 4.6 years of content was uploaded to YouTube in 2015 with GoPro in the title - up 22 percent from 2014.

Business Outlook:

GoPro is providing guidance for the first quarter and full year of 2016:

($ in millions) Q1 2016 Full Year 2016
Revenue $160 - $180 $1,350 - $1,500
Non-GAAP gross margin 36% +/- 100bps  
Non-GAAP operating expenses(1) $165 - $170  
Adjusted EBITDA $(95) +/- $2.5  

(1) Excluding estimated restructuring expenses for Q1 2016 of $5 million to $10 million

GoPro Names Brian McGee Chief Financial Officer – Effective March 11.

Brian McGee, a 30-year finance veteran who has served as CFO of two publicly-traded companies and who joined GoPro in 2015 from Qualcomm will succeed CFO Jack Lazar effective March 11. “The past two years have been incredibly rewarding and I am honored to have worked with Nick and the rest of the GoPro team. I will miss them all and I am excited that Brian is taking over the CFO role,” said Jack Lazar, who is retiring after two years at GoPro.  “Jack has been a great leader who helped GoPro navigate the path to becoming a publicly-traded company. While he will be missed, we are also grateful to have Brian and a strong bench of leaders running Finance at GoPro,” said Nick Woodman.

Upcoming Events

Management will participate in upcoming investor conferences on February 10th and March 2nd of 2016. GoPro will furnish a link to these events on its investor relations website, for both the live and archived webcasts.

Conference Call:

GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results.

To listen to the live conference call, please dial toll free (888) 806-6221 or (913) 981-5588, access code 4243159, approximately 15 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at To access the live webcast, please log in 15 minutes prior to the start of the call to download and install any necessary audio software. The webcast will be recorded and the recording will be available on GoPro's website,, approximately two hours after the call and for six months thereafter.

About GoPro, Inc. (NASDAQ:GPRO):

GoPro, Inc. is transforming the way people visually capture and share their lives.  What began as an idea to help athletes self-document themselves engaged in their sport, GoPro has become a standard for how people capture themselves engaged in their interests, whatever they may be.  From extreme to mainstream, professional to consumer, GoPro enables the world to capture and share its passion in the form of immersive and engaging content.

GOPRO® and HERO® are trademarks or registered trademarks of GoPro Inc. in the United States and other countries.

For more information, visit or connect with GoPro on YouTubeTwitterFacebookPinterest, Instagram, or LinkedIn.

GoPro’s Use of Social Media

GoPro announces material financial information using the Company’s investor relations website, SEC filings, press releases, public conference calls and webcasts.  GoPro may also use social media channels to communicate about the Company, its brand and other matters; these communications could be deemed material information. Investors and others are encouraged to review posts on GoPro's investor relations and The Inside Line website, and GoPro’s pages on YouTube, Twitter, Facebook, Pinterest, Instagram, and LinkedIn.

Note on Forward-looking Statements

This press release may contain projections or other forward-looking statements regarding future events, including but not limited to, those regarding our business outlook for the first quarter and full year of 2016. These statements involve risks and uncertainties, and actual events or results may differ materially.  Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the effects of the highly competitive market in which we operate; our dependence on sales of our capture devices for substantially all of our revenue; our reliance on third-party suppliers, some of which are sole-source suppliers, to provide components for our products; the fact that we do not expect to continue to grow in the future at the same rate as we have in the past, and profitability in recent periods might not be indicative of future performance; difficulty in accurately predicting our future customer demand; the importance of maintaining the value and reputation of our brand; any inability to successfully manage frequent product introductions and transitions; the effects of international business uncertainties; our reliance on our Chief Executive Officer; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2014, which is on file with the Securities and Exchange Commission.  These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein.  GoPro disclaims any obligation to update these forward-looking statements.

GoPro, Inc.
Preliminary Condensed Consolidated Statement of Operations
 Three months ended Year ended
(in thousands, except per share data)December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
Revenue$436,603  $633,913  $1,619,971  $1,394,205 
Cost of revenue308,092  330,100  946,757  766,970 
Gross profit128,511  303,813  673,214  627,235 
Operating expenses:       
Research and development66,432  46,074  241,694  151,852 
Sales and marketing82,649  61,226  268,939  194,377 
General and administrative20,724  22,825  107,833  93,971 
Total operating expenses169,805  130,125  618,466  440,200 
Operating income (loss)(41,294) 173,688  54,748  187,035 
Other income (expense), net322  (1,115) (2,163) (6,060)
Income (loss) before income taxes(40,972) 172,573  52,585  180,975 
Income tax expense (benefit)(6,521) 50,313  16,454  52,887 
Net income (loss)$(34,451) $122,260  $36,131  $128,088 
Less: net income allocable to participating securities  (152)   (16,512)
Net income attributable to common stockholders—basic$(34,451) $122,108  $36,131  $111,576 
Add: net income allocable to dilutive participating securities  20    2,277 
Net income attributable to common stockholders—diluted$(34,451) $122,128  $36,131  $113,853 
Net income (loss) per share attributable to common stockholders:       
Basic$(0.25) $0.96  $0.27  $1.07 
Diluted$(0.25) $0.83  $0.25  $0.92 
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:       
Basic137,086  126,849  134,595  104,453 
Diluted137,086  146,723  146,486  123,630 

GoPro, Inc.
Preliminary Condensed Consolidated Balance Sheets
(in thousands)December 31,
 December 31,
Current assets:   
Cash and cash equivalents$279,672  $319,929 
Marketable securities194,386  102,327 
Accounts receivable, net145,692  183,992 
Inventory188,232  153,026 
Prepaid expenses and other current assets25,261  63,769 
Total current assets833,243  823,043 
Property and equipment, net70,050  41,556 
Intangible assets, net and goodwill88,122  17,032 
Other long-term assets111,561  36,060 
Total assets$1,102,976  $917,691 
Liabilities and Stockholders' Equity   
Current liabilities:   
Accounts payable$89,989  $126,240 
Accrued liabilities184,910  115,775 
Deferred revenue12,742  14,022 
Income taxes payable7,536  2,732 
Total current liabilities295,177  258,769 
Other long-term liabilities35,766  17,718 
Total liabilities330,943  276,487 
Stockholders’ equity:   
Common stock and additional paid-in capital663,311  533,000 
Treasury stock, at cost(35,613)  
Retained earnings144,335  108,204 
Total stockholders’ equity772,033  641,204 
Total liabilities and stockholders’ equity$1,102,976  $917,691 

GoPro, Inc.
Preliminary Condensed Consolidated Statement of Cash Flows
 Year ended
(in thousands)December 31,
 December 31,
Operating activities:   
Net income (loss)$36,131  $128,088 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:   
Depreciation and amortization28,981  17,945 
Stock-based compensation80,680  71,399 
Excess tax benefit from stock-based compensation(29,348) (77,134)
Foreign currency remeasurement1,792   
Deferred income taxes(11,468) (16,920)
Accretion and unrealized loss on investments3,001   
Other634  1,865 
Net changes in operating assets and liabilities47,208  (28,321)
Net cash provided by operating activities157,611  96,922 
Investing activities:   
Purchases of property and equipment, net(51,245) (27,210)
Purchases of marketable securities(220,055) (103,827)
Maturities of marketable securities94,680  1,083 
Sales of marketable securities30,048   
Acquisitions, net of cash acquired(65,405) (3,950)
Net cash provided by (used in) investing activities(211,977) (133,904)
Financing activities:   
Proceeds from issuance of common stock36,776  300,657 
Taxes paid related to net share settlement of equity awards(13,943) (560)
Repurchases of outstanding common stock(35,613)  
Excess tax benefit from stock-based compensation29,348  77,134 
Payment of indemnification holdback on acquired company  (2,000)
Payment of debt issuance costs and deferred public offering costs(903) (5,730)
Repayment of debt  (114,000)
Net cash provided by (used in) financing activities15,665  255,501 
Effect of exchange rate changes on cash and cash equivalents(1,556)  
Net increase (decrease) in cash and cash equivalents(40,257) 218,519 
Cash and cash equivalents at beginning of period319,929  101,410 
Cash and cash equivalents at end of period$279,672  $319,929 


GoPro, Inc.
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures
 Three months ended Year ended
(in thousands, except per share data)December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
GAAP net income (loss)(34,451) 122,260  36,131  128,088 
Stock-based compensation:       
Cost of revenue449  280  1,492  835 
Research and development5,907  6,154  18,024  11,640 
Sales and marketing4,248  4,135  13,762  10,428 
General and administrative7,516  8,687  47,402  48,496 
Total stock-based compensation18,120  19,256  80,680  71,399 
Acquisition-related costs:       
Cost of revenue222  221  961  888 
Research and development1,257  43  3,154  103 
Sales and marketing33  33  132  142 
General and administrative33    1,123   
Total acquisition-related costs1,545  297  5,370  1,133 
Income tax adjustments3,390  3,085  (10,617) (11,707)
Non-GAAP net income (loss)$(11,396) $144,898  $111,564  $188,913 
GAAP shares for diluted net income (loss) per share137,086  146,723  146,486  123,630 
Add: preferred shares conversion      15,136 
Add: initial public offering shares      4,414 
Non-GAAP shares for diluted net income (loss) per share137,086  146,723  146,486  143,180 
Non-GAAP diluted net income (loss) per share$(0.08) $0.99  $0.76  $1.32 

GoPro, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross profit, gross margin, operating expenses, operating income (loss), net income (loss), earnings (loss) per share and adjusted EBITDA.  We also provides forecasts of non-GAAP gross margin, operating expenses and adjusted EBITDA. These non-GAAP measures are not in accordance with, nor serve as an alternative for GAAP.  We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our GAAP results of operations.  These non-GAAP measures should only be viewed in conjunction with corresponding GAAP measures.

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis.  The excluded items represent stock-based compensation and charges that are primarily driven by discrete events that we do not consider to be directly related to core operating performance.  We use non-GAAP measures to evaluate the core operating performance of our business, for comparison with forecasts and strategic plans and for calculating return on investment. In addition, management’s incentive compensation is determined using non-GAAP measures.  Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results.  We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating:

  • the comparability of our on-going operating results over the periods presented;
  • the ability to identify trends in our underlying business; and
  • the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures.

  The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:

  • Stock-based compensation expense relates to equity awards granted primarily to our workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These non-cash charges are not factored into our internal evaluation of net income as we believe their inclusion would hinder our ability to assess core operational performance. We believe that excluding this expense provides greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry.
  • Acquisition-related costs include the amortization of acquired intangible assets (primarily consisting of acquired technology), as well as third-party transaction costs incurred for legal and other professional services.  These costs are not factored into our evaluation of potential acquisitions, or of our performance after completion of the acquisitions, because they are not related to our core operating performance, and the frequency and amount of such costs vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses being acquired.
  • Adjustment for taxes relates to the tax effect of the adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure of non-GAAP net income (loss). We believe that these adjustments provide us with the ability to more clearly view trends in our core operating performance.
  • Adjustment to shares includes the conversion of the redeemable convertible preferred stock into shares of common stock as though the conversion had occurred at the beginning of the period and the initial public offering shares issued July 2014, as if they had been outstanding since the beginning of the period.

Reconciliations of non-GAAP financial measures are set forth below:

 Three months ended Year ended
(dollars in thousands)December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
GAAP gross profit$128,511  $303,813  $673,214  $627,235 
Stock-based compensation449  280  1,492  835 
Acquisition-related costs222  221  961  888 
Non-GAAP gross profit$129,182  $304,314  $675,667  $628,958 
GAAP gross profit as a % of revenue29.4% 47.9% 41.6% 45.0%
Stock-based compensation0.1  0.1  0.1   
Acquisition-related costs0.1      0.1 
Non-GAAP gross profit as a % of revenue29.6% 48.0% 41.7% 45.1%
GAAP operating expenses$169,805  $130,125  $618,466  $440,200 
Stock-based compensation(17,671) (18,976) (79,188) (70,564)
Acquisition-related costs(1,323) (76) (4,409) (245)
Non-GAAP operating expenses$150,811  $111,073  $534,869  $369,391 
GAAP operating income (loss)$(41,294) $173,688  $54,748  $187,035 
Stock-based compensation18,120  19,256  80,680  71,399 
Acquisition-related costs1,545  297  5,370  1,133 
Non-GAAP operating income (loss)$(21,629) $193,241  $140,798  $259,567 
GAAP operating income (loss) as a % of revenue(9.5)% 27.4% 3.4% 13.4%
Stock-based compensation4.1  3.0  5.0  5.1 
Acquisition-related costs0.4  0.1  0.3  0.1 
Non-GAAP operating income (loss) as a % of revenue(5.0)% 30.5% 8.7% 18.6%

 Three months ended Year ended
(in thousands)December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
GAAP net income (loss)$(34,451) $122,260  $36,131  $128,088 
Income tax expense (benefit)(6,521) 50,313  16,454  52,887 
Interest (income) expense, net(126) 1,029  234  5,038 
Depreciation and amortization9,596  5,176  28,981  17,945 
POP display amortization4,114  4,820  16,829  18,023 
Stock-based compensation18,120  19,256  80,680  71,399 
Adjusted EBITDA$(9,268) $202,854  $179,309  $293,380 


Investor Contact:
Peter Salkowski (855) GOPROHD or (855) 467-7643

Media Contact:
Jeff Brown (650) 332-7600 x 9997