SAN MATEO, Calif., Feb. 3, 2022 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) today announced financial results for its fourth quarter ended December 31, 2021 and posted management commentary on the investor relations section of its website at https://investor.gopro.com.
"In 2021 GoPro navigated a challenging business environment – and thrived," said Nicholas Woodman, GoPro's founder and CEO. "We successfully launched innovative new hardware, software and subscription offerings and leveraged the first full year of our more direct-to-consumer, subscription-centric strategy to grow revenue, margin and profitability while generating a record year-end cash balance of $539 million."
"The strategic shift we made in mid-2020 is bearing fruit in the form of financial and operational improvements," said Brian McGee, GoPro's CFO and COO. "The result has been strong revenue growth with significant margin improvement, combined with controlled spending, and leading to growing profitability and record cash flow generation."
Q4 Financial Highlights
2021 Financial Highlights
Other Recent Business Highlights
Results Summary: | ||||||||||||
Three months ended December 31, | Year ended December 31, | |||||||||||
($ in thousands, except per share amounts) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||
Revenue | $ 391,149 | $ 357,772 | 9.3 % | $ 1,161,084 | $ 891,925 | 30.2 % | ||||||
Gross margin | ||||||||||||
GAAP | 41.2 % | 38.0 % | 320 bps | 41.1 % | 35.3 % | 580 bps | ||||||
Non-GAAP | 41.3 % | 38.3 % | 300 bps | 41.4 % | 36.1 % | 530 bps | ||||||
Operating income (loss) | ||||||||||||
GAAP | $ 58,625 | $ 55,355 | 5.9 % | $ 113,216 | $ (36,819) | 407.5 % | ||||||
Non-GAAP | $ 69,232 | $ 64,184 | 7.9 % | $ 155,667 | $ 24,313 | 540.3 % | ||||||
Net income (loss) | ||||||||||||
GAAP | $ 52,626 | $ 44,413 | 18.5 % | $ 371,171 | $ (66,783) | 655.8 % | ||||||
Non-GAAP | $ 66,147 | $ 61,064 | 8.3 % | $ 146,068 | $ 12,779 | 1,043.0 % | ||||||
Diluted net income (loss) per share | ||||||||||||
GAAP | $ 0.32 | $ 0.28 | 14.3 % | $ 2.27 | $ (0.45) | 604.4 % | ||||||
Non-GAAP | $ 0.41 | $ 0.39 | 5.1 % | $ 0.90 | $ 0.08 | 1,025.0 % | ||||||
Adjusted EBITDA | $ 71,571 | $ 67,744 | 5.6 % | $ 167,798 | $ 43,200 | 288.4 % |
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.
Prior to the start of the call, the Company will post Management Commentary on the "Events & Presentations" section of its investor relations website at https://investor.gopro.com. Management will make brief opening comments before taking questions.
To listen to the live conference call, please call +1 800-289-0720 (US) or +1 323-701-0160 (International) and enter access code 3025961, 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 https://investor.gopro.com. A recording of the webcast will be available on GoPro's website, https://investor.gopro.com from approximately two hours after the call through April 28, 2022.
About GoPro, Inc. (NASDAQ: GPRO)Celebrating its 20th anniversary in 2022, GoPro helps the world to capture and share itself in immersive and exciting ways.
For more information, visit GoPro.com. Open roles can be found on our careers page. Members of the press can access official logos and imagery on our press portal. GoPro customers can submit their photos and videos to GoPro Awards for an opportunity to be featured on GoPro's social channels and receive gear and cash awards. Connect with GoPro on Facebook, Instagram, LinkedIn, TikTok, Twitter, YouTube, and GoPro's blog The Current.
GoPro, HERO and their respective logos are trademarks or registered trademarks of GoPro, Inc. in the United States and other countries.
GoPro's Use of Social MediaGoPro 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 Facebook, Instagram, LinkedIn, TikTok, Twitter, YouTube, GoPro's investor relations website and blog, The Inside Line.
Note Regarding Use of Non-GAAP Financial MeasuresGoPro reports gross profit, gross margin, operating expenses, operating income (loss), other income (expense), tax expense, 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. Additionally, GoPro reports non-GAAP adjusted EBITDA. Non-GAAP items exclude, where applicable, the effects of stock-based compensation, acquisition-related costs, restructuring and other related costs, non-cash interest expense, gain on sale and license of intellectual property and the tax impact of these items. When planning, forecasting and analyzing gross margin, operating expenses, other income (expense), tax expense, net income (loss) and net income (loss) per share for future periods, GoPro does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for reconciling items which are inherently difficult to predict with reasonable accuracy.
Note on Forward-looking StatementsThis press release may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as "anticipate," "believe," "estimate," "expect," "intend," "should," "will" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements in this presentation may include but are not limited to our direct-to-consumer and subscription-centric strategy to grow revenue; our share repurchase plan; and overall consumer demand. 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 include our cumulative GAAP income from the past three years may not be sustainable in future periods, we may not be able to achieve our forecast, sustain revenue growth or profitability, and our operating results may fluctuate unpredictably; our ability to effectively grow our direct-to-consumer and subscription business; the impact of theCOVID-19 outbreak on the United States and global economies could have a material adverse impact on our business in particular; the risk that our sales fall below our forecasts, especially during the holiday season; the risk we fail to manage our operating expenses effectively, and may result in our financial performance suffering the fact that our plan to profitability depends in part on further penetrating our total addressable market, and we may not be successful in doing so; the fact that sales of our cameras, mounts and accessories for substantially all of our revenue, and any decrease in the sales or change in sales mix of these products could harm our business; the risk that growing our direct-to-consumer and subscription business while reducing our reliance on our other sales channels could impact profitability; any inability to successfully manage product introductions, product transitions, product pricing and marketing; the fact that a small number of retailers and distributors account for a substantial portion of our revenue and our level of business with them could be significantly reduced; our transition away from some distributors and retailers; our reliance on third party suppliers, some of which are sole source suppliers, to provide services and components for our products which may be impacted due to supply shortages, long lead times for components, and supply changes, any of which could disrupt our supply chain and may increase our costs such as increased freight rates or shipping delays; the fact that an economic downturn or economic uncertainty in our key U.S. and international markets, as well as fluctuations in interest rates or currency exchange rates, may adversely affect consumer discretionary spending; any changes to trade agreements, trade policies, tariffs, and import/export regulations; the effects of the highly competitive market in which we operate, including new market entrants; the fact that we may experience fluctuating revenue, expenses and profitability in the future; risks related to inventory, purchase commitments and long-lived assets; difficulty in attracting and retaining qualified personnel; the importance of maintaining the value and reputation of our brand; the risk that we will encounter problems with our distribution system; the threat of a security breach or other disruption including cyberattacks; the concern that our intellectual property and proprietary rights may not adequately protect our products and services; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2020, which is on file with the Securities and Exchange Commission (SEC), and as updated in future filings with the SEC. 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 | |||||||
(unaudited) | |||||||
Three months ended December 31, | Year ended December 31, | ||||||
(in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | |||
Revenue | $ 391,149 | $ 357,772 | $ 1,161,084 | $ 891,925 | |||
Cost of revenue | 230,075 | 221,689 | 683,979 | 577,411 | |||
Gross profit | 161,074 | 136,083 | 477,105 | 314,514 | |||
Operating expenses: | |||||||
Research and development | 34,806 | 27,515 | 141,494 | 131,589 | |||
Sales and marketing | 47,882 | 38,535 | 156,694 | 151,380 | |||
General and administrative | 19,761 | 14,678 | 65,701 | 68,364 | |||
Total operating expenses | 102,449 | 80,728 | 363,889 | 351,333 | |||
Operating income (loss) | 58,625 | 55,355 | 113,216 | (36,819) | |||
Other income (expense): | |||||||
Interest expense | (5,780) | (5,483) | (22,940) | (20,257) | |||
Other expense, net | (611) | (5,343) | (176) | (4,881) | |||
Total other expense, net | (6,391) | (10,826) | (23,116) | (25,138) | |||
Income (loss) before income taxes | 52,234 | 44,529 | 90,100 | (61,957) | |||
Income tax expense (benefit) | (392) | 116 | (281,071) | 4,826 | |||
Net income (loss) | $ 52,626 | $ 44,413 | $ 371,171 | $ (66,783) | |||
Net income (loss) per share: | |||||||
Basic | $ 0.34 | $ 0.29 | $ 2.41 | $ (0.45) | |||
Diluted | $ 0.32 | $ 0.28 | $ 2.27 | $ (0.45) | |||
Shares used to compute net income (loss) per share: | |||||||
Basic | 156,221 | 150,663 | 154,274 | 149,037 | |||
Diluted | 162,742 | 156,464 | 163,178 | 149,037 |
GoPro, Inc. | |||
Preliminary Condensed Consolidated Balance Sheets | |||
(unaudited) | |||
(in thousands) | December 31,2021 | December 31,2020 | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 401,087 | $ 325,654 | |
Restricted cash | — | 2,000 | |
Marketable securities | 137,830 | — | |
Accounts receivable, net | 114,221 | 107,244 | |
Inventory | 86,409 | 97,914 | |
Prepaid expenses and other current assets | 42,311 | 23,872 | |
Total current assets | 781,858 | 556,684 | |
Property and equipment, net | 19,003 | 23,711 | |
Operating lease right-of-use assets | 27,320 | 31,560 | |
Intangible assets, net and goodwill | 146,521 | 147,673 | |
Other long-term assets | 285,177 | 11,771 | |
Total assets | $ 1,259,879 | $ 771,399 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 171,545 | $ 111,399 | |
Accrued expenses and other current liabilities | 128,572 | 113,776 | |
Short-term operating lease liabilities | 9,819 | 9,369 | |
Deferred revenue | 42,505 | 28,149 | |
Short-term debt | 122,391 | — | |
Total current liabilities | 474,832 | 262,693 | |
Long-term debt | 111,289 | 218,172 | |
Long-term operating lease liabilities | 43,025 | 51,986 | |
Other long-term liabilities | 14,819 | 22,530 | |
Total liabilities | 643,965 | 555,381 | |
Stockholders' equity: | |||
Common stock and additional paid-in capital | 1,008,872 | 980,147 | |
Treasury stock, at cost | (113,613) | (113,613) | |
Accumulated deficit | (279,345) | (650,516) | |
Total stockholders' equity | 615,914 | 216,018 | |
Total liabilities and stockholders' equity | $ 1,259,879 | $ 771,399 |
GoPro, Inc. | |||||||
Preliminary Condensed Consolidated Statement of Cash Flows | |||||||
(unaudited) | |||||||
Three months ended December 31, | Year ended December 31, | ||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||
Operating activities: | |||||||
Net income (loss) | $ 52,626 | $ 44,413 | $ 371,171 | $ (66,783) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 2,363 | 3,570 | 10,962 | 19,065 | |||
Non-cash operating lease cost | 442 | 1,658 | 4,240 | 6,565 | |||
Stock-based compensation | 10,423 | 8,037 | 38,650 | 29,963 | |||
Deferred income taxes | (3,619) | 1 | (273,541) | (50) | |||
Non-cash restructuring charges | — | — | (99) | 5,242 | |||
Impairment of right-of-use assets | — | — | — | 12,460 | |||
Non-cash interest expense | 3,673 | 3,018 | 14,208 | 10,366 | |||
Loss on extinguishment of debt | — | 5,389 | — | 5,389 | |||
Other | 1,370 | 334 | 2,243 | 1,072 | |||
Net changes in operating assets and liabilities | 96,570 | 39,833 | 61,319 | 70,493 | |||
Net cash provided by operating activities | 163,848 | 106,253 | 229,153 | 93,782 | |||
Investing activities: | |||||||
Purchases of property and equipment, net | (705) | (321) | (5,545) | (4,881) | |||
Purchases of marketable securities | (64,245) | — | (146,515) | — | |||
Maturities of marketable securities | 8,341 | — | 8,341 | 14,830 | |||
Asset acquisition | — | — | — | (438) | |||
Net cash provided by (used in) investing activities | (56,609) | (321) | (143,719) | 9,511 | |||
Financing activities: | |||||||
Proceeds from issuance of common stock | 265 | 1,927 | 7,490 | 5,435 | |||
Taxes paid related to net share settlement of equity awards | (2,366) | (1,494) | (17,379) | (6,207) | |||
Proceeds from issuance of 2025 convertible senior notes | — | 143,750 | — | 143,750 | |||
Payment of debt issuance costs | (4,752) | — | (4,752) | ||||
Purchase of capped calls related to 2025 convertible senior notes | — | (10,249) | — | (10,249) | |||
Payments for 2022 convertible senior notes partial repurchase | — | (56,000) | — | (56,000) | |||
Proceeds from borrowings | — | — | — | 30,000 | |||
Repayment of borrowings | — | — | — | (30,000) | |||
Net cash provided by (used in) financing activities | (2,101) | 73,182 | (9,889) | 71,977 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (408) | 1,669 | (2,112) | 2,083 | |||
Net change in cash, cash equivalents and restricted cash | 104,730 | 180,783 | 73,433 | 177,353 | |||
Cash, cash equivalents and restricted cash at beginning of period | 296,357 | 146,871 | 327,654 | 150,301 | |||
Cash, cash equivalents and restricted cash at end of period | $ 401,087 | $ 327,654 | $ 401,087 | $ 327,654 |
GoPro, Inc.Reconciliation of Preliminary 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), other income (expense), tax expense, net income (loss), diluted net income (loss) per share and adjusted EBITDA. We also provide forecasts of non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income (expense), non-GAAP tax expense, non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share. We use these non-GAAP financial measures to help us understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short-term and long-term operational plans. Our management uses, and believes that investors benefit from referring to these non-GAAP financial measures in assessing our operating results. These non-GAAP financial measures should not be considered in isolation from, or as an alternative to, the measures prepared in accordance with GAAP, and are not based on any comprehensive set of accounting rules or principles. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating:
These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Some of these limitations are:
GoPro, Inc. | |||||||
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures | |||||||
(unaudited) | |||||||
Reconciliations of non-GAAP financial measures are set forth below: | |||||||
Three months ended December 31, | Year ended December 31, | ||||||
(in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | |||
GAAP net income (loss) | $ 52,626 | $ 44,413 | $ 371,171 | $ (66,783) | |||
Stock-based compensation: | |||||||
Cost of revenue | 374 | 373 | 1,794 | 1,548 | |||
Research and development | 4,132 | 3,733 | 17,263 | 13,415 | |||
Sales and marketing | 2,077 | 1,672 | 8,045 | 5,779 | |||
General and administrative | 3,840 | 2,259 | 11,548 | 9,221 | |||
Total stock-based compensation | 10,423 | 8,037 | 38,650 | 29,963 | |||
Acquisition-related costs: | |||||||
Cost of revenue | 71 | 723 | 1,152 | 4,598 | |||
Total acquisition-related costs | 71 | 723 | 1,152 | 4,598 | |||
Restructuring and other costs: | |||||||
Cost of revenue | 7 | 11 | 157 | 1,281 | |||
Research and development | 53 | 159 | 1,343 | 8,542 | |||
Sales and marketing | 35 | (264) | 712 | 10,925 | |||
General and administrative | 18 | 163 | 437 | 5,823 | |||
Total restructuring and other costs | 113 | 69 | 2,649 | 26,571 | |||
Non-cash interest expense | 3,673 | 3,018 | 14,208 | 10,366 | |||
Loss on extinguishment of debt | — | 5,389 | — | 5,389 | |||
Income tax adjustments | (759) | (585) | (281,762) | 2,675 | |||
Non-GAAP net income | $ 66,147 | $ 61,064 | $ 146,068 | $ 12,779 | |||
GAAP shares for diluted net income (loss) per share | 162,742 | 156,464 | 163,178 | 149,037 | |||
Add: dilutive shares | — | — | — | 3,096 | |||
Non-GAAP shares for diluted net income per share | 162,742 | 156,464 | 163,178 | 152,133 | |||
GAAP diluted net income (loss) per share | $ 0.32 | $ 0.28 | $ 2.27 | $ (0.45) | |||
Non-GAAP diluted net income per share | $ 0.41 | $ 0.39 | $ 0.90 | $ 0.08 | |||
Three months ended December 31, | Year ended December 31, | ||||||
(dollars in thousands) | 2021 | 2020 | 2021 | 2020 | |||
GAAP gross profit as a % of revenue | 41.2 % | 38.0 % | 41.1 % | 35.3 % | |||
Stock-based compensation | 0.1 | 0.1 | 0.2 | 0.2 | |||
Acquisition-related costs | — | 0.2 | 0.1 | 0.5 | |||
Restructuring and other costs | — | — | — | 0.1 | |||
Non-GAAP gross profit as a % of revenue | 41.3 % | 38.3 % | 41.4 % | 36.1 % | |||
GAAP operating expenses | $ 102,449 | $ 80,728 | $ 363,889 | $ 351,333 | |||
Stock-based compensation | (10,049) | (7,664) | (36,856) | (28,415) | |||
Restructuring and other costs | (106) | (58) | (2,492) | (25,290) | |||
Non-GAAP operating expenses | $ 92,294 | $ 73,006 | $ 324,541 | $ 297,628 | |||
GAAP operating income (loss) | $ 58,625 | $ 55,355 | $ 113,216 | $ (36,819) | |||
Stock-based compensation | 10,423 | 8,037 | 38,650 | 29,963 | |||
Acquisition-related costs | 71 | 723 | 1,152 | 4,598 | |||
Restructuring and other costs | 113 | 69 | 2,649 | 26,571 | |||
Non-GAAP operating income | $ 69,232 | $ 64,184 | $ 155,667 | $ 24,313 | |||
Three months ended December 31, | Year ended December 31, | ||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||
GAAP net income (loss) | $ 52,626 | $ 44,413 | $ 371,171 | $ (66,783) | |||
Income tax expense | (392) | 116 | (281,071) | 4,826 | |||
Interest expense, net | 5,701 | 5,442 | 22,678 | 19,993 | |||
Depreciation and amortization | 2,363 | 3,570 | 10,962 | 19,065 | |||
POP display amortization | 737 | 708 | 2,759 | 4,176 | |||
Stock-based compensation | 10,423 | 8,037 | 38,650 | 29,963 | |||
Loss on extinguishment of debt | — | 5,389 | — | 5,389 | |||
Restructuring and other costs | 113 | 69 | 2,649 | 26,571 | |||
Adjusted EBITDA | $ 71,571 | $ 67,744 | $ 167,798 | $ 43,200 |
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SOURCE GoPro, Inc.