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Sep 30, 2023

GoPro Q3 2023 Earnings Report

GoPro's Q3 2023 financial results were announced, revealing a slight revenue decrease year-over-year but exceeding the midpoint of guidance, driven by strong entry-level product sales and subscriber growth.

Key Takeaways

GoPro reported Q3 2023 revenue of $294 million, a 4% decrease year-over-year but above the midpoint of guidance. The company achieved a subscriber count of 2.5 million, a 20% increase year-over-year. However, GAAP net loss was $4 million, a decrease from the prior year's net income of $18 million.

Revenue reached $294 million, exceeding the midpoint of guidance by 5%.

Subscriber count grew to 2.5 million, marking a 20% increase year-over-year.

Retail channel revenue increased by 12% year-over-year, accounting for 78% of total revenue.

GAAP net loss was $4 million, a decrease compared to the previous year's net income of $18 million.

Total Revenue
$294M
Previous year: $305M
-3.5%
EPS
$0.04
Previous year: $0.19
-78.9%
Subscription and service revenue
$25M
Gross Profit
$94.2M
Previous year: $116M
-18.8%
Cash and Equivalents
$221M
Previous year: $217M
+1.8%
Free Cash Flow
-$1.66M
Previous year: $38.8M
-104.3%
Total Assets
$1.05B
Previous year: $1.09B
-4.5%

GoPro

GoPro

GoPro Revenue by Segment

Forward Guidance

GoPro anticipates that its growth strategy will serve as a catalyst for considerable revenue, subscriber, and earnings expansion in 2024. However, forward-looking statements are subject to risks and uncertainties.

Positive Outlook

  • Expectations for profitability and subscription growth.
  • Product pricing strategy
  • Expanded distribution
  • Overall consumer demand for products
  • Stock repurchase plan in 2023 and 2024.

Challenges Ahead

  • Inability to achieve revenue growth or profitability.
  • Economic downturn or uncertainty in key markets.
  • Reliance on third-party suppliers and potential supply shortages.
  • Risk of sales falling below forecasts, especially during the holiday season.
  • Potential problems with the distribution system.

Revenue & Expenses

Visualization of income flow from segment revenue to net income