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• |
Introduced HERO4 Black, offering twice the performance of the previous Black edition; HERO4 Silver, featuring GoPro's first built-in touch display; and HERO, the perfect, entry-level GoPro. |
• |
Executed the most successful product launch in company history, measured by sales, media impressions, and efficient inventory management. |
• |
Announced several updates to GoPro Studio and the GoPro App, including HiLight Tag and Flux™. |
• |
The Share the Stoke campaign encouraged GoPro’s community of 130 sponsored athletes to post their HERO4 content; in just 25 days, athletes such as Kelly Slater and Julia Mancuso posted more than 3,000 photos and videos, reaching more than 50 million fans and generating close to eight million interactions.
|
• |
Released new accessories including The Handler, Smart Remote and Fetch, the first mount for pets. |
• |
With the launch of HERO4, monthly content submissions to GoPro’s Video of the Day and Photo of the Day site jumped approximately 160 percent from September to October. |
• |
GoPro content published on YouTube in Q3 was up 92% year over year; views on GoPro’s YouTube channel were up 99%; video minutes watched on GoPro’s YouTube channel were up more than 133% year over year. |
▪ |
According to September NPD data, GoPro products represented the top three products in the digital camera and camcorder category, by units sold, and seven of the top ten camera accessory products, by units sold, in the U.S. |
▪ |
Expanded Best Buy in-store retail presence with 12-foot displays and 40” monitors, rolling out in many stores nationwide this holiday season. |
GoPro, Inc. | |||||||||||
Preliminary Condensed Consolidated Statements of Operations | |||||||||||
(in thousands, except per share amounts, unaudited) | |||||||||||
Three months ended |
|||||||||||
September 30, 2014 |
June 30,
2014
|
September 30, 2013 |
|||||||||
Revenue |
$ |
279,971 |
$ |
244,605 |
$ |
192,146 |
|||||
Cost of revenue |
155,932 |
141,736 |
128,135 |
||||||||
Gross profit |
124,039 |
102,869 |
64,011 |
||||||||
Operating expenses: |
|||||||||||
Research and development |
42,376 |
34,663 |
19,587 |
||||||||
Sales and marketing |
48,109 |
43,701 |
37,413 |
||||||||
General and administrative |
20,097 |
41,171 |
7,683 |
||||||||
Total operating expenses |
110,582 |
119,535 |
64,683 |
||||||||
Operating income (loss) |
13,457 |
(16,666 |
) |
(672 |
) |
||||||
Other income (expense), net |
(1,784 |
) |
(1,536 |
) |
(1,759 |
) |
|||||
Income (loss) before income taxes |
11,673 |
(18,202 |
) |
(2,431 |
) |
||||||
Income tax (benefit) expense |
(2,947 |
) |
1,639 |
(1,330 |
) |
||||||
Net income (loss) |
$ |
14,620 |
$ |
(19,841 |
) |
$ |
(1,101 |
) |
|||
Less: Net income attributable to participating securities - basic |
36 |
— |
— |
||||||||
Less: Net income attributable to participating securities - diluted |
35 |
— |
— |
||||||||
Net income (loss) attributable to common stockholders - basic |
$ |
14,584 |
$ |
(19,841 |
) |
$ |
(1,101 |
) |
|||
Net income (loss) attributable to common stockholders - diluted |
$ |
14,585 |
$ |
(19,841 |
) |
$ |
(1,101 |
) |
|||
Net income (loss) per share attributable to common stockholders: |
|||||||||||
Basic |
$ |
0.12 |
$ |
(0.24 |
) |
$ |
(0.01 |
) |
|||
Diluted |
$ |
0.10 |
$ |
(0.24 |
) |
$ |
(0.01 |
) |
|||
Shares used in computing net income (loss) per share attributable to common stockholders: |
|||||||||||
Basic |
125,713 |
82,936 |
81,070 |
||||||||
Diluted |
145,186 |
82,936 |
81,070 |
GoPro, Inc. | |||||||
Preliminary Condensed Consolidated Statements of Operations | |||||||
(in thousands, except per share amounts, unaudited) | |||||||
Nine months ended |
|||||||
September 30, 2014 |
September 30, 2013 |
||||||
Revenue |
$ |
760,292 |
$ |
624,285 |
|||
Cost of revenue |
436,870 |
414,005 |
|||||
Gross profit |
323,422 |
210,280 |
|||||
Operating expenses: |
|||||||
Research and development |
105,778 |
48,286 |
|||||
Sales and marketing |
133,151 |
112,151 |
|||||
General and administrative |
71,146 |
21,715 |
|||||
Total operating expenses |
310,075 |
182,152 |
|||||
Operating income |
13,347 |
28,128 |
|||||
Other income (expense), net |
(4,945 |
) |
(5,150 |
) |
|||
Income before income taxes |
8,402 |
22,978 |
|||||
Income tax expense |
2,574 |
6,129 |
|||||
Net income |
$ |
5,828 |
$ |
16,849 |
|||
Less: Net income attributable to participating securities - basic |
1,022 |
4,653 |
|||||
Less: Net income attributable to participating securities - diluted |
1,012 |
4,015 |
|||||
Net income attributable to common stockholders - basic |
$ |
4,806 |
$ |
12,196 |
|||
Net income attributable to common stockholders - diluted |
$ |
4,816 |
$ |
12,834 |
|||
Net income per share attributable to common stockholders: |
|||||||
Basic |
$ |
0.05 |
$ |
0.15 |
|||
Diluted |
$ |
0.04 |
$ |
0.13 |
|||
Shares used in computing net income per share attributable to common stockholders: |
|||||||
Basic |
96,905 |
80,914 |
|||||
Diluted |
115,578 |
98,671 |
GoPro, Inc. | |||||||
Preliminary Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
September 30, |
December 31, |
||||||
2014 |
2013 |
||||||
ASSETS |
(unaudited) |
||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
237,749 |
$ |
101,410 |
|||
Accounts receivable, net |
94,563 |
122,669 |
|||||
Inventory, net |
117,014 |
111,994 |
|||||
Prepaid expenses and other current assets |
49,057 |
21,967 |
|||||
Total current assets |
498,383 |
358,040 |
|||||
Property and equipment, net |
40,339 |
32,111 |
|||||
Intangible assets and goodwill |
16,529 |
17,365 |
|||||
Other long-term assets |
33,807 |
32,155 |
|||||
Total assets |
$ |
589,058 |
$ |
439,671 |
|||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
112,270 |
$ |
126,423 |
|||
Accrued liabilities |
99,928 |
86,391 |
|||||
Other current liabilities |
12,791 |
27,483 |
|||||
Current portion of long-term debt |
— |
60,297 |
|||||
Total current liabilities |
224,989 |
300,594 |
|||||
Long-term debt, less current portion |
— |
53,315 |
|||||
Other long-term liabilities |
13,408 |
13,930 |
|||||
Total liabilities |
238,397 |
367,839 |
|||||
Redeemable convertible preferred stock |
— |
77,198 |
|||||
Total stockholders’ equity (deficit) |
350,661 |
(5,366 |
) |
||||
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) |
$ |
589,058 |
$ |
439,671 |
GoPro, Inc. | |||||||||||
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures | |||||||||||
(in thousands, except per share data, unaudited) | |||||||||||
Three months ended |
|||||||||||
September 30, 2014 |
June 30,
2014
|
September 30, 2013 |
|||||||||
GAAP NET INCOME (LOSS) |
$ |
14,620 |
$ |
(19,841 |
) |
$ |
(1,101 |
) |
|||
Stock-based compensation |
|||||||||||
Cost of revenue |
233 |
154 |
153 |
||||||||
Research and development |
2,428 |
1,657 |
740 |
||||||||
Sales and marketing |
3,225 |
1,654 |
1,419 |
||||||||
General and administrative |
8,027 |
30,728 |
408 |
||||||||
Total stock-based compensation |
13,913 |
34,193 |
2,720 |
||||||||
Amortization of acquisition-related intangible assets |
|||||||||||
Cost of revenue |
223 |
222 |
222 |
||||||||
Research and development |
20 |
20 |
— |
||||||||
Sales and marketing |
33 |
34 |
47 |
||||||||
Total amortization of acquisition-related intangible assets |
276 |
276 |
269 |
||||||||
Income tax adjustments |
(10,850 |
) |
(2,854 |
) |
(934 |
) |
|||||
Non-GAAP NET INCOME |
$ |
17,959 |
$ |
11,774 |
$ |
954 |
|||||
GAAP SHARES FOR DILUTED NET INCOME (LOSS) PER SHARE |
145,186 |
82,936 |
81,070 |
||||||||
Add: dilutive shares |
— |
17,345 |
17,788 |
||||||||
Add: preferred shares conversion |
— |
30,523 |
30,523 |
||||||||
Add: initial public offering shares |
— |
8,900 |
8,900 |
||||||||
Non-GAAP SHARES FOR DILUTED NET INCOME PER SHARE |
145,186 |
139,704 |
138,281 |
||||||||
Non-GAAP diluted net income per share |
$ |
0.12 |
$ |
0.08 |
$ |
0.01 |
GoPro, Inc. | |||||||
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures | |||||||
(in thousands, except per share data, unaudited) | |||||||
Nine months ended |
|||||||
September 30, 2014 |
September 30, 2013 |
||||||
GAAP NET INCOME |
$ |
5,828 |
$ |
16,849 |
|||
Stock-based compensation |
|||||||
Cost of revenue |
555 |
530 |
|||||
Research and development |
5,486 |
1,737 |
|||||
Sales and marketing |
6,293 |
4,077 |
|||||
General and administrative |
39,809 |
1,003 |
|||||
Total stock-based compensation |
52,143 |
7,347 |
|||||
Amortization of acquisition-related intangible assets |
|||||||
Cost of revenue |
667 |
666 |
|||||
Research and development |
60 |
13 |
|||||
Sales and marketing |
109 |
141 |
|||||
Total amortization of acquisition-related intangible assets |
836 |
820 |
|||||
Income tax adjustments |
(14,792 |
) |
(2,551 |
) |
|||
Non-GAAP NET INCOME |
$ |
44,015 |
$ |
22,465 |
|||
GAAP SHARES FOR DILUTED EARNINGS PER SHARE |
115,578 |
98,671 |
|||||
Add: preferred shares conversion |
20,237 |
30,523 |
|||||
Add: initial public offering shares |
5,901 |
8,900 |
|||||
Non-GAAP SHARES FOR DILUTED EARNINGS PER SHARE |
141,716 |
138,094 |
|||||
Non-GAAP diluted net income per share |
$ |
0.31 |
$ |
0.16 |
• |
the comparability of our on-going operating results over the periods presented; |
• |
the ability to identify trends in our underlying business; and |
• |
the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures. |
• |
Stock-based compensation expense relates to equity awards granted primarily to our workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These non-cash charges are not factored into our internal evaluation of net income as we believe their inclusion would hinder our ability to assess core operational performance. We believe that excluding this expense provides greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry. |
• |
Acquisition-related charges include the amortization of acquired intangible assets primarily consisting of acquired technology, customer relationships, tradenames and covenants not to compete related to our acquisitions. These charges are not factored into our evaluation of potential acquisitions, or of our performance after completion of acquisitions, because they are not related to our core operating performance, and the frequency and amount of such charges vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses being acquired. |
• |
Adjustment for taxes relates to the tax effect of the adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure of non-GAAP net income. We believe that these adjustments provide us with the ability to more clearly view trends in our core operating performance. |
• |
Adjustment to shares includes the conversion of the redeemable convertible preferred stock into shares of common stock as though the conversion had occurred at the beginning of the period, the initial public offering shares issued July 2014, as if they had been outstanding since the beginning of the period, and the addition of all dilutive awards outstanding that were excluded from the GAAP diluted earnings per share calculation because they were anti-dilutive as a result of our net loss position. |
Three months ended |
|||||||||||
September 30, 2014 |
June 30,
2014
|
September 30, 2013 |
|||||||||
GAAP gross profit |
$ |
124,039 |
$ |
102,869 |
$ |
64,011 |
|||||
Stock-based compensation |
233 |
154 |
153 |
||||||||
Amortization of acquisition-related intangible assets |
223 |
222 |
222 |
||||||||
Non-GAAP gross profit |
$ |
124,495 |
$ |
103,245 |
$ |
64,386 |
|||||
GAAP gross profit as a % of revenue |
44.3 |
% |
42.1 |
% |
33.3 |
% |
|||||
Stock-based compensation |
0.1 |
% |
0.0 |
% |
0.1 |
% |
|||||
Amortization of acquisition-related intangible assets |
0.1 |
% |
0.1 |
% |
0.1 |
% |
|||||
Non-GAAP gross profit as a % of revenue |
44.5 |
% |
42.2 |
% |
33.5 |
% |
|||||
GAAP operating expenses |
$ |
110,582 |
$ |
119,535 |
$ |
64,683 |
|||||
Stock-based compensation |
(13,680 |
) |
(34,039 |
) |
(2,567 |
) |
|||||
Amortization of acquisition-related intangible assets |
(53 |
) |
(54 |
) |
(47 |
) |
|||||
Non-GAAP operating expenses |
$ |
96,849 |
$ |
85,442 |
$ |
62,069 |
|||||
GAAP operating income (loss) |
$ |
13,457 |
$ |
(16,666 |
) |
$ |
(672 |
) |
|||
Stock-based compensation |
13,913 |
34,193 |
2,720 |
||||||||
Amortization of acquisition-related intangible assets |
276 |
276 |
269 |
||||||||
Non-GAAP operating income |
$ |
27,646 |
$ |
17,803 |
$ |
2,317 |
|||||
GAAP operating income (loss) as a % of revenue |
4.8 |
% |
(6.8 |
)% |
(0.3 |
)% |
|||||
Stock-based compensation |
5.0 |
% |
14.0 |
% |
1.4 |
% |
|||||
Amortization of acquisition-related intangible assets |
0.1 |
% |
0.1 |
% |
0.1 |
% |
|||||
Non-GAAP operating income as a % of revenue |
9.9 |
% |
7.3 |
% |
1.2 |
% |
Nine months ended |
|||||||
September 30, 2014 |
September 30, 2013 |
||||||
GAAP gross profit |
$ |
323,422 |
$ |
210,280 |
|||
Stock-based compensation |
555 |
530 |
|||||
Amortization of acquisition-related intangible assets |
667 |
666 |
|||||
Non-GAAP gross profit |
$ |
324,644 |
$ |
211,476 |
|||
GAAP gross profit as a % of revenue |
42.5 |
% |
33.7 |
% |
|||
Stock-based compensation |
0.1 |
% |
0.1 |
% |
|||
Amortization of acquisition-related intangible assets |
0.1 |
% |
0.1 |
% |
|||
Non-GAAP gross profit as a % of revenue |
42.7 |
% |
33.9 |
% |
|||
GAAP operating expenses |
$ |
310,075 |
$ |
182,152 |
|||
Stock-based compensation |
(51,588 |
) |
(6,817 |
) |
|||
Amortization of acquisition-related intangible assets |
(169 |
) |
(154 |
) |
|||
Non-GAAP operating expenses |
$ |
258,318 |
$ |
175,181 |
|||
GAAP operating income |
$ |
13,347 |
$ |
28,128 |
|||
Stock-based compensation |
52,143 |
7,347 |
|||||
Amortization of acquisition-related intangible assets |
836 |
820 |
|||||
Non-GAAP operating income |
$ |
66,326 |
$ |
36,295 |
|||
GAAP operating income as a % of revenue |
1.8 |
% |
4.5 |
% |
|||
Stock-based compensation |
6.8 |
% |
1.2 |
% |
|||
Amortization of acquisition-related intangible assets |
0.1 |
% |
0.1 |
% |
|||
Non-GAAP operating income as a % of revenue |
8.7 |
% |
5.8 |
% |
Three months ended |
||||||||||||
September 30, 2014 |
June 30, 2014 |
September 30, 2013 |
||||||||||
GAAP net income (loss) |
$ |
14,620 |
$ |
(19,841 |
) |
$ |
(1,101 |
) |
||||
Income tax (benefit) expense |
(2,947 |
) |
1,639 |
(1,330 |
) |
|||||||
Interest income and expense |
1,284 |
1,390 |
1,428 |
|||||||||
Depreciation and amortization |
4,781 |
4,177 |
3,092 |
|||||||||
POP display amortization |
4,524 |
4,166 |
3,797 |
|||||||||
Stock-based compensation |
13,913 |
34,193 |
2,720 |
|||||||||
Adjusted EBITDA |
$ |
36,175 |
$ |
25,724 |
$ |
8,606 |
Nine months ended |
||||||||
September 30, 2014 |
September 30, 2013 |
|||||||
GAAP net income |
$ |
5,828 |
$ |
16,849 |
||||
Income tax expense |
2,574 |
6,129 |
||||||
Interest income and expense |
4,009 |
4,129 |
||||||
Depreciation and amortization |
12,769 |
8,508 |
||||||
POP display amortization |
13,203 |
8,908 |
||||||
Stock-based compensation |
52,143 |
7,347 |
||||||
Adjusted EBITDA
|
$ |
90,526 |
$ |
51,870 |