GoPro

Performance indicators

2023: Losses - $53.18 million

GoPro faced a decline in product sales and losses. At the end of 2023, the company's revenue amounted to approximately $1 billion, which is 8.1% less than in the previous year, when the figure was $1.09 billion. At the same time, GoPro suffered net losses of $53.18 million, while in 2022 net profit was demonstrated at $28.85 million. Against this background, the company is forced to take measures to improve its financial situation.

2021: GoPro ceased to be a loss-making company

At the end of 2021, GoPro's revenue amounted to $1.16 billion, which is 30% more than in 2020, when the figure reached $892 million.

GoPro's net annual profit reached $371 million, equivalent to $2.27 per security. In 2020, the company recorded a net loss of $67 million, or $0.45 per share.

GoPro.com income, including subscription income, increased in 2021 by 10% compared to 2020 and amounted to $128 million, or 33% of total income. GoPro and Quik subscription revenues totaled $16.8 million, up 118% from 2020.

GoPro ceased to be a loss-making company in 2021

Cameras with a suggested retail price above $300 accounted for 97% of revenue for 2021. Cameras with a suggested retail price of $400 or higher accounted for 85% of total camera revenue, up from 74% in 2020.

In 2021, sales growth compared to 2020 was 40% for EMEA, 31% for APAC and 26% for America.

In 2021, the company's Street ASP increased 17% to $369. Street ASP is defined as total reported revenue divided by the number of cameras shipped.

In 2021, the GoPro.com increased revenue from direct sales by 39% compared to 2020 to a record $392 million, which is 34% of revenue compared to 32% in 2020.

GoPro attracted 815,000 new subscribers in 2021, bringing the total number of GoPro subscribers to approximately 1.6 million at the end of 2021, an increase of 107% compared to 2020.

Subscribers to the Quik mobile application grew to about 221 thousand in 2021, which is 32% more than in 2020.

The revenue growth comes as GoPro has changed its approach to product development to ensure more products are launched at a faster pace as the company looks to increase the overall available market (TAM). The company has upgraded its e-commerce infrastructure to more actively pursue opportunities to increase revenue from direct sales and subscriptions.^[1]

History

2024: Downsizing

At the end of March 2024, the American company GoPro, which produces action cameras and accessories for them, announced a reorganization aimed at reducing operating costs and increasing operational efficiency. The initiative involves a reduction in headcount by approximately 4% globally.

It is reported that the restructuring will lead to a total cost of $7.5 million. Of these, about $2 million will be expenses associated with the dismissal of employees in the first quarter of 2024. Reduced workers will receive monetary compensation and other payments due. In addition, the reorganization program provides for a decrease in office space. All these measures should help GoPro reduce costs amid a difficult macroeconomic environment, high inflation and falling purchasing power.

Unsplash

At the same time, GoPro highlights a number of positive aspects. In particular, by the end of 2023, the total number of subscribers reached 2.5 million, an increase of about 12% on an annualized basis. At the same time, revenue from subscriptions and services increased by 13% compared to 2022, amounting to about $25 million. To increase demand during 2024, GoPro intends to implement new marketing initiatives. In addition, next-generation products are being prepared.^[2]

2020

Decrease in revenue by 25.3%, to $891.9 million

At the end of 2020, GoPro earned $891.9 million in revenue, which is 25.3% less than a year earlier. Net losses during this time increased from $14.6 million to $66.8 million. The company has remained unprofitable for several years in a row.

The GoPro.com website in 2020 brought the company $283 million in revenue, which is twice the revenue in 2019. The supply of action cameras from the American manufacturer decreased from 4.26 million to 3.6 million units. About 90% of camera sales came from models worth up to $300. In 2020, the average sales value of GoPro equipment was $316.

It also follows from GoPro's financial statements that about half of the company's revenue is in the Americas (mainly the United States). The share of EMEA countries in the turnover of the vendor is 25%, of the Asia-Pacific region - 23%.

GoPro has been unprofitable for several years

More and more sales from GoPro come from its own site, not retail. Thus, by the end of 2019, the share of gopro.com in the company's turnover was 11.6%, and a year later the figure increased to 32.5%. Accordingly, the share of sales through third-party stores decreased from 88.4% to 67.5%.

By December 31, 2020, GoPro had 761 thousand users of the GoPro Subscription program, which is 145% higher than the audience a year ago. Participants of this program can change the damaged camera for free, upload photo and video content to a special cloud, use the functions of automatic backup of materials, receive discounts on the purchase of GoPro devices and accessories, etc.

GoPro's shift to a direct consumer engagement model focused on subscriptions leads to a simpler, more profitable business with more significant cash generation, "said GoPro CEO Nick Woodman.

On the day of reporting for 2020, GoPro shares fell 7%. ^[3]

Reduction of 20% of the state

On April 15, 2020, GoPro announced a more than 20% reduction in headcount as part of its cost optimization program. The company is taking these measures amid falling sales of electronics, including digital cameras, due to the spread of a new type of coronavirus.

The global distribution network GoPro has faced the negative impact of the pandemic, COVID-19 which forced us to move to a more efficient and profitable direct-to-consumer business during this year, says the founder and CEO of GoPro]. Nicholas Woodman- We are very upset that we have to let go of many talented members of our team. We will always be grateful to them for their contribution.

GoPro Announces More Than 20% Reduction in Headcount as Part of Cost Optimization Program

The company is going to cut cooperation with retail chains in order to sell more devices to people on their own. However, this does not apply to "leading retailers in key regions where consumers prefer to make purchases offline or not directly from the manufacturer," GoPro said in a statement quoted by MarketWatch.

According to its own data, in 2019, more than 20% of sales in Europe and about 20% of GoPro's revenue in the American market came from the company's website.

GoPro expects to reduce operating costs by $100 million in 2020, including by eliminating work positions. And in 2021, the goal was set to reduce costs by another $250 million, but without taking into account layoffs.

In the first quarter, GoPro sold 700,000 cameras and expects the company's 2020 product and service plans to be unaffected by the announced operational cuts.

By the end of 2019, GoPro had 926 employees. Taking into account the announced wave of job cuts, about 200 people may lose their jobs.^[4]

2019: 86.6% decrease in losses to $14.6 million; revenue growth of 4% to $1.2 billion

In 2019, GoPro raised $1.2 billion, which is 4% more than a year ago. The American company remained unprofitable, but cash losses in their pure form decreased by 86.6%, to $14.6 million. GoPro hopes to make a profit in 2020.

According to MarketWatch, after GoPro went public in 2014, the revenue of the manufacturer of action cameras reached its maximum value in 2015, amounting to $1.6 billion. Since that moment, sales have never returned to this level, and the company's quotes sank 88% compared to the IPO level by the time the financial statements for 2019 were published.

GoPro financials

In 2019, GoPro earned about $359.2 million in revenue in the EMEA region (Europe, Middle East, Africa). Most of the sales still fall on the countries of the Americas - $523.8 million in 2019. Asia-Pacific revenues equal to $311.4 million

At the end of 2019, GoPro delivered a total of 4.26 million digital cameras, which is less than the volume of shipments in 2018 (4.34 million units). The company sells approximately 48% of its products independently, and partners distribute the rest.

As of the end of 2019, there were officially 926 people on the GoPro staff.

It follows from the financial report that USA GoPro controls 93% of the sales of action cameras in terms of revenue. In the European market, the company has 83% and 82% of sales of such cameras in pieces and dollars, respectively (data). GfK

The number of users of paid subscriptions to the GoPro Plus service exceeded 334 thousand people by January 31, 2019, which is 69% more than a year earlier. The GoPro.com website brought the company more than 10% of revenue at the end of 2019, on an annualized basis, the portal's revenue increased by 40%.^[5]

2018: 2.7% drop in revenue to $1.15 billion; losses - $109 million

In 2018, GoPro's revenue amounted to $1.15 billion, down 2.7% compared to 2017. Sales fell for the third year in a row. If you do not take into account the performance of the drone business, which the company curtailed, then annual revenue increased by 3%.

GoPro has stopped disclosing piece sales of its digital cameras. The company only said that in 2018 they diverged in number, which is 9% more than a year ago.

GoPro financials

GoPro remains unprofitable: net losses reached $109 million at the end of 2018, while a year earlier they were measured at $182.9 million.

The number of active subscribers of the GoPro Plus service who use paid functions by December 31, 2018 amounted to 199 thousand, which is 50% more than a year earlier. GoPro took 87% of the American action camera market and increased its shares in the markets of Japan, South Korea, China and Thailand.

After the publication of the financial results, GoPro quotes jumped 10%, but by the time the electronic trading ended, the share price was only 2% higher than the previous exchange session. The company's securities rose as earnings exceeded Wall Street expectations.

2018 was a memorable year for GoPro. The company released cheap cameras to stimulate demand, left the unmanned aerial vehicle market and optimized operations by reducing headcount. As a result, the manufacturer managed to improve the profitability of the business, but selling action cameras is becoming more difficult, as the quality of shooting cameras built into smartphones continues to improve.

By the end of 2018, GoPro's staff included 841 against 1,273 and 1,552 years and two years earlier, respectively. From January to February 6, 2019, GoPro's share price increased by 21.5%.

2017

The company remains unprofitable

In 2017, GoPro's revenue amounted to almost $1.18 billion, which is 0.5% less than in 2016. Losses of the American company more than halved - from 419 to 182.9 million dollars.

In 2017, 4.3 million action cameras under the GoPro brand were sold against 4.76 million a year earlier. The company also cites data from GfK analysts, according to which GoPro has been controlling more than 80% of the American market in physical terms for four years.

GoPro's share in sales of cameras for shooting in extreme conditions in Europe was 69% in dollars and 44% in units in 2017. In China and Japan, the company increased sales by 28% and 96%, respectively, according to GfK.

GoPro financials

In 2017, the number of subscribers to GoPro groups and channels on social networks increased by more than 4.8 million people and reached 35 million. The company's content was viewed more than 700 million times, which is 25% more than in 2016. Views on YouTube increased by 93%, and the number of subscribers Instagram in increased by 26% to 15 million.

GoPro founder and CEO Nicholas Woodman claims there remains "undisputed demand" for the company's products, which are offered at the "right prices." During a conference on reporting, he also lamented the lack of serious GoPro competitors, which makes it difficult for the company to understand the market and pricing dynamics on it.

In early 2018, GoPro slashed prices on its cameras, which Woodman said contributed to an "instant boost" in sales. However, cheaper will deprive the company, according to its own estimates, about $80 million in revenue.

A 2017 report suggests that countries in the Americas generate more than half of GoPro's revenue. Europe and Asia-Pacific accounted for just over a quarter and a fifth of sales, respectively. On distributors and direct sales, the company earns almost the same.^[6]

Leaving the Drone Market

In January 2018, GoPro announced its withdrawal from the unmanned aerial vehicle (UAV) market, which the company considers "extremely competitive."

GoPro began selling Karma quadcopters in September 2016, but after a couple of weeks all devices sold (about 2.5 thousand units) were recalled due to an unexpected power outage during the flight. The cost of the drone reached $1100. In February 2017, GoPro resumed sales of Karma, and in January 2018 it was announced that the American manufacturer was leaving this market.

Karma Drone

The product faced a marginality problem in an extremely competitive market. In addition, the hostile legislative framework in Europe and the United States is likely to negatively affect the overall state of the market in the coming years. These factors make the drone market untenable, GoPro said in a statement.

The company adds that after selling the remaining stocks of drones, GoPro will finally leave the market. At the same time, the manufacturer will continue to provide technical and other support to existing Karma users.

Folding the UAV business will not do without staff cuts. In 2018, GoPro is going to lay off more than 250 people, as a result of which the company's headcount will fall below 1,000 employees.

GoPro will focus on the main business - the development and production of action cameras. However, in this market, the company's affairs are not going the best. Due to falling demand, Hero 6 cameras fell in price from $500 to $400 in early January 2018. Lowering prices will deprive the vendor of about $80 million in quarterly revenue.

Meanwhile, in early 2018, several reputable publications reported that GoPro was hiring financial advisers to J.P. Morgan to find a potential investor. According to rumors, they want to sell the company.^[7]

Notes