GoPro, Inc. announced financial results for its third quarter ended September 30, 2017.
"GoPro has turned a corner, restoring growth and profitability to our business," said founder and CEO Nicholas Woodman.
"We are dedicated to growing as an innovative company, while being a vigilant steward of shareholder capital.
"During the quarter we generated $47 million in cash and gross margins were 40 percent. Year-over-year, we grew revenue by 37 percent and dramatically reduced operating costs without impacting our product roadmap.
"We launched our premium-priced HERO6 Black with global on-shelf availability and strong critical acclaim. We are now focused on driving consumer demand to reach our goal of full-year double-digit revenue growth and non-GAAP profitability."
Recent GoPro Highlights:
- In the third quarter, GoPro achieved strong revenue growth, gross margins and adjusted EBITDA. Revenue was $330 million, up 37% year-over-year, gross margins were approximately 40%, and adjusted EBITDA was $36 million, up $109 million year-over-year.
- GoPro strengthened its balance sheet, generating $47 million in cash, ending the third quarter with a cash balance of $197 million.
- GAAP net income for the third quarter was approximately $15 million, or $0.10 per share -- a sharp improvement over a GAAP net loss of $104 million in the third quarter of 2016. Non-GAAP net income for the third quarter was $21 million, or $0.15 per share.
- Average sales price (ASP) increased by 22% year-over-year and 3% sequentially. Increased ASP was a primary contributor to stronger margins in the quarter and driven by the strong performance of the premium-priced HERO6.
- Quarterly operating expenses reached a 3-year low. GAAP operating expenses were down 6% sequentially and down 7% on a non-GAAP basis. GoPro is tracking toward a non-GAAP operating expense goal of less than $490 million in 2017 (or approximately $570 million of GAAP operating expenses), down over 30% year-over-year.
- HERO6 Black launched on September 28. Powered by GoPro's custom-designed GP1 processor, HERO6 achieves an entirely new level of performance including stunning 4K60 and 1080p240 video and the most advanced video stabilization ever achieved in a GoPro. HERO6 Black launched globally with strong sales execution and a 93% channel fill rate at retail.
- Prior to the HERO6 launch, HERO5 Black was the best-selling digital image camera in the U.S. for four straight quarters -- holding that chart position since its launch in 2016, according to The NPD Group's Retail Tracking Service.
- Fusion will begin shipping in November. Fusion is a 5.2K spherical camera which captures a 360-degree perspective, so users never miss a shot. With the GoPro App, Fusion users can share footage as VR content or, using the app's OverCaptureTM feature, "punch out" a traditional fixed-perspective video or photo from any angle in the spherical shot. OverCapture is scheduled to launch in the GoPro App in January.
- GP1 processor maximizes GoPro's capabilities. The new chip enables twice the video frame rates, improved image quality, dynamic range, low-light performance and dramatically improved video stabilization over previous HERO camera generations. GP1 automatically enables vibrant videos and stunning photos without forcing users to manage complex image settings. GP1 also advances GoPro's capabilities in computer vision and machine learning, enabling HERO6 to analyze visual scenes and sensor data for improved image quality and automated QuikStories.
- GoPro achieved strong revenue growth across all key regions. Growth in the Americas was up 20% year-over-year. EMEA was up 26% year-over-year. APAC was up 153% year-over-year. More than 50% of GoPro's revenue was generated in markets outside of the U.S. in the third quarter.
- Strong momentum continues in key Asian markets. GoPro is seeing strong and sustained results in Asia. Sell-thru year-over-year unit growth in Japan was up over 99% and China was up 25%, according to GfK.
- GoPro's drone, Karma, was the #2 selling drone in the U.S. priced $1,000 and above during the six months ending September 2017, according to the NPD Group's Retail Tracking Service.
- The Quik Mobile Video Editing App was installed 18 million times year-to-date. Third quarter monthly active users was up 30% sequentially and 155% year-over-year.
- GoPro gained more than 900,000 new social media followers in the third quarter. Instagram followers were up 30% year-over-year to more than 14 million, with more than a 470,000 increase in international followers.
- GoPro content was viewed more than 550 million times in the first nine months of 2017, up more than 27% year-over-year. In the same period, GoPro content on YouTube saw an 85% increase in median organic viewership per video.
- GoPro added Golden State Warriors President and Chief Operating Officer Rick Welts to its Board of Directors.
Click here to read the full earnings release.