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Dec 31, 2019

GoPro Q4 2019 Earnings Report

GoPro's Q4 2019 earnings were released, showing revenue growth and GAAP profitability.

Key Takeaways

GoPro reported a strong Q4 2019 with a 40% increase in revenue year-over-year, driven by the launch of HERO8 Black and MAX. The company achieved GAAP net income of $96 million, or $0.65 per share, and non-GAAP net income of $102 million, or $0.70 per share. GoPro.com represented more than 10% of revenue in 2019, growing more than 40% year-over-year.

Q4 2019 revenue increased by 40% year-over-year to $528 million.

GAAP net income for Q4 2019 was $96 million, or $0.65 per share.

Non-GAAP net income for Q4 2019 was $102 million, or $0.70 per share.

GoPro Plus subscription service surpassed 334,000 active paying subscribers as of January 31, 2020, up 69% year-over-year.

Total Revenue
$528M
Previous year: $377M
+40.0%
EPS
$0.7
Previous year: $0.3
+133.3%
$112M
GoPro Subscribers
334K
Gross Profit
$202M
Cash and Equivalents
$150M
Free Cash Flow
$86.2M
Total Assets
$793M

GoPro

GoPro

Forward Guidance

GoPro provided forward guidance for 2020, including non-GAAP gross margin and non-GAAP net income per share.

Positive Outlook

  • Full year GAAP net income between $2 million and $17 million
  • Full year stock-based compensation of $38.4 million
  • Full year depreciation and amortization of $22.8 million
  • Full year interest (income) expense, net of $19.8 million
  • Full year POP display amortization of $5.8 million

Challenges Ahead

  • First quarter GAAP net income loss between $54.8 million and $64.8 million
  • First quarter stock-based compensation of $9.6 million
  • First quarter acquisition-related costs of $1.9 million
  • First quarter non-cash interest expense of $2.4 million
  • First quarter income tax adjustments of $900 thousand