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Sep 30, 2024

GoPro Q3 2024 Earnings Report

Revenue exceeded guidance midpoint, subscriber base grew, and restructuring plan was updated.

Key Takeaways

GoPro reported Q3 2024 revenue of $259 million, exceeding the midpoint of its guidance, and a subscriber base growth of 2% year-over-year to 2.56 million. The company updated its restructuring plan to substantially reduce operating expenses and position GoPro for profitability in 2025.

Revenue was $259 million, a 12% decrease year-over-year.

Subscription and service revenue increased 11% year-over-year to $27.5 million.

GoPro subscriber count ended Q3 at 2.56 million, up 2% year-over-year.

GAAP net loss was $8 million, or a $(0.05) loss per share.

Total Revenue
$259M
Previous year: $294M
-12.0%
EPS
-$0.04
Previous year: $0.04
-200.0%
Gross Profit
$91.8M
Previous year: $94.2M
-2.5%
Cash and Equivalents
$130M
Previous year: $221M
-41.1%
Free Cash Flow
-$4.19M
Previous year: -$1.66M
+151.9%
Total Assets
$662M
Previous year: $1.05B
-36.7%

GoPro

GoPro

GoPro Revenue by Segment

Forward Guidance

GoPro is focused on reducing operating expenses and believes its product roadmap will enable growth in the consumer digital imaging market.

Positive Outlook

  • Significantly reduced 2025 operating expenses will position the company to pursue growth opportunities as a profitable company.
  • The consumer digital imaging market is growing.
  • New products launched, including HERO13 Black and the 4K HERO.
  • Updated restructuring plan for Q4 2024 to significantly reduce operating expenses and position GoPro for profitability in 2025.
  • Adjusted EBITDA was $5 million, a $39 million sequential improvement.

Challenges Ahead

  • 2024 has been a challenging year for GoPro.
  • Revenue was down 12% year-over-year.
  • GoPro.com revenue, including subscription and service revenue, was down 19% year-over-year.
  • GAAP net loss was $8 million, compared to a net loss of $4 million in the prior year period.
  • Non-GAAP net loss was $0.5 million, compared to non-GAAP net income of $9 million in the prior year period.

Revenue & Expenses

Visualization of income flow from segment revenue to net income