Gopro, Inc. · NASDAQ:GPRO
Gopro — Investor Presentation (March 2020)
36 slides from Gopro's investor presentation, March 2020
Slide 1: Investor Presentation March 2020
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation 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
Slide 3: GoPro at a Glance
GOPRO AT A GLANCE ESTABLISHED HQ IN 37M+ 44M+ 1 2 IN 2004 SAN MATEO CAMERAS FOLLOWERS ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • Revenue for Q1 2020 was $119 million, in-line with the preliminary results published on April 15, and down from $243 million for the same prior year
Slide 4: Q1 2020 Product Line-up
Q1 2020 PRODUCT LINE-UP MSRP: $499.99 MSRP: $399.99 MSRP: $329.99 MSRP: $199.99
Slide 5: HERO8 Black Detail
HERO8 BLACK DETAIL • Streamlined Design - The reimagined shape is more pocketable, and folding fingers at the base let you swap mounts quickly. A new side door makes changing batteries even faster, and the lens is now 2x more impact resistant. • Expandable Mods System - Vloggers, pro filmmakers and
Slide 6: MAX Detail
MAX DETAIL • Three Cameras in One - Maximize your creative freedom. With MAX you can shoot traditional HERO-style video and photos or capture immersive 360 footage. Vlog to the max with shotgun-mic performance and a front-facing screen. • Max HyperSmooth - MAX gives you unbreakable stabilization by
Slide 7: Q1 2020 Highlights
Q1 2020 HIGHLIGHTS # 1 2.5B+ 84% HERO8 BLACK BEST-SELLING GOPRO’S YOUTUBE OF THE ACTION CAMERA CAMERA IN THE CAMCORDER CHANNEL SURPASSED 2 CATEGORY3 AND DIGITAL STILL MARKET1 BILLION LIFETIME VIEWS2 243M 355K 44M+ ORGANIC, NON-PAID ACTIVE PAYING PLUS SOCIAL FOLLOWERS VIEWERSHIP4 SUBSCRIBERS, UP 69%
Slide 8: We Help the World Celebrate and Share Itself
WE HELP THE WORLD CELEBRATE AND SHARE ITSELF IN IMMERSIVE AND EXCITING WAYS
Slide 9: About Us
ABOUT US what weWHAT makeWE MAKE what WHAT WEweDO do Versatile Storytelling Solutions Enable Immersive Sharing
Slide 10: GoPro Ecosystem
GOPRO ECOSYSTEM CAPTURE APP CLOUD 37M+ CAMERAS SOLD SEAMLESS APP EXPERIENCE 355K PAYING SUBSCRIBERS
Slide 11: GoPro Model: A Virtuous Cycle
GOPRO MODEL: A VIRTUOUS CYCLE SHARED VIRAL EXPERIENCES AWARENESS + ADOPTION
Slide 12: Thriving Global Brand and Community
THRIVING GLOBAL BRAND AND COMMUNITY GROWING HIGHLY FOLLOWERS ENGAGED SUBSCRIBERS1 LIKES1 FOLLOWERS1 ~9.5M ~10.6M ~10.6M ~15.1M ~19.7M 243M 35 2.5MM B+ ~9.8M ~8.9M Video views of Lifetime views as ~4.2M ~6.1M ~1MM organic GoPro of March 2020 Q1 '16 Q1 '18 Q1 '20 Q1 '16 Q1 '18 Q1 '20 Q1 '16 Q1 '18 Q1
Slide 13: 2020 Priorities
2020 PRIORITIES Creating value for our customers, shareholders, ourselves Strengthen our core Maximize our direct Grow our digital Improve efficiency Empower our people business business service offerings and reliability Super-serve our target Aggressively scale Maximize experience Strengthen operat
Slide 14: Our Products
Our Products | GOES
Slide 15: Industry Leading Hardware
INDUSTRY LEADING HARDWARE MSRP: $399.99 MSRP: $329.99 MSRP: $199.99 MSRP: $499.99
Slide 16: Technology Innovator
TECHNOLOGY INNOVATOR CAPTURE COMPUTER VISION + INNOVATION GOPRO APP MACHINE LEARNING FACE SMILING FACE SMILING DOG Next Gen Capture Leads Mobile & Cloud Improved Capture & To Next Gen Sharing Automated Storytelling Storytelling Automation
Slide 17: PLUS Subscription Service
PLUS SUBSCRIPTION SERVICE $4.99 / Month $49.99 / Annual 355K Subscribers 1 • Damage Replacement2 • Auto Cloud Backup • Share on the Go • Save Unlimited Photos and Videos at Original Resolution to the Cloud • Up to 50% Off Accessories • VIP Support 1 2 17 355k as of 03/31/2020 Available Globally as o
Slide 18: Marketing & Distribution
: f Marketing & Distribution
Slide 19: Marketing
MARKETING GLOBAL CHANNEL GLOBAL ATHLETES & SOCIAL TOP TIER SOCIAL PRINT ADS RESORTS MARKETING TRADESHOWS OUTDOOR INFLUENCERS EVENTS
Slide 20: Global Footprint
STRONG GLOBAL NETWORK OF RETAIL DISTRIBUTION GLOBAL FOOTPRINT >30,000 RETAIL LOCATIONS; >100 COUNTRIES1 RETAIL DIRECT (54% OF Q1 2020 REVENUE) OUTSIDE THE U.S. (52% OF Q1 2020 REVENUE) BIG BOX RETAIL MID MARKET RETAIL SPECIALTY RETAIL ONLINE • In Europe, during Q1 2020, GoPro had four of the top fiv
Slide 21: Global Point of Purchase
GLOBAL POINT OF PURCHASE POINT OF PURCHASE DISPLAYS GLOBALLY ~30K As of 11/01/2019
Slide 22: Financial Overview
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Slide 23: Camera Units Sell-Through Mix
SELL-THROUGH UNITS PRICE BAND TREND CAMERA UNITS SELL-THROUGH MIX Annual Quarterly > $300 MSRP < $300 MSRP 42% 54% 57% 72% 71% 76% 58% 46% 43% 28% 29% 24% 2016 2017 2018 2019 1Q 2019 1Q 2020
Slide 24: Revenue & EBITDA
REVENUE & EBITDA REVENUE EBITDA $ in millions $ in millions Annual Quarterly Annual Quarterly $72 $1,185 $1,180 $1,148 $1,195 $22 ($1) ($31) ($41) $243 $119 ($193) 2016 2017 2018 2019 1Q19 1Q20 2016 2017 2018 2019 1Q19 1Q20
Slide 25: Quarterly Trends
QUARTERLY TRENDS QUARTERLY REVENUE & STREET ASP QUARTERLY NON-GAAP GROSS MARGIN1 $600M $400 Street ASP ~18% CAGR $528 $350 $500M 38% 39% 36% $300 34% 34% 33% $400M 31% $377 $250 24% $286 $292 23% $300M $283 $200 $243 $202 $150 $200M $131 $100 $119 $100M $50 $0M $0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Slide 26: Quarterly Non-GAAP Income Statement Summary
QUARTERLY NON-GAAP INCOME STATEMENT SUMMARY ($ in millions, except per share data) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Revenue $ 119.4 $ 528.3 $ 131.2 $ 292.4 $ 242.7 $ 377.4 $ 285.9 $ 282.7 $ 202.3 Camera units shipped (in thousands) 341 1,857 479 1,082 842 1,413
Slide 27: Quarterly Revenue Metrics
QUARTERLY REVENUE METRICS ($ in millions) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Revenue by Channel: $ % of Rev $ % of Rev $ % of Rev $ % of Rev $ % of Rev Direct * $ 64.9 54.3% $ 230.3 43.6% $ 71.7 54.7% $ 135.3 46.3% $ 110.9 45.7% Distribution 54.5 45.7 298.0 56.4 59.5 45.3 157.1 53.7 131.8 54.3
Slide 28: Select Balance Sheet Metrics
SELECT BALANCE SHEET METRICS ($ in millions) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Cash, cash equivalents and marketable securities $ 124.9 $ 165.1 $ 79.0 $ 130.1 $ 133.3 $ 197.5 $ 148.2 $ 139.8 $ 144.8 Days sales outstanding 38 34 49 45 44 31 47 37 36 Inventory $ 1
Slide 29: Appendix
Slide 30: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS 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 margin, operating expenses, operating income (loss), net income (loss), diluted net inco
Slide 31: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS ● adjusted EBITDA excludes the amortization of point of purchase (POP) display assets because it is a non-cash charge, and is treated similarly to depreciation of property and equipment and amortization of acquired intangible assets; ● adjusted EBITDA and n
Slide 32: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS ● non-GAAP net income (loss) excludes non-cash interest expense. In connection with the issuance of the Convertible Senior Notes in April 2017, we are required to recognize non-cash interest expense in accordance with the authoritative accounting guidance f
Slide 33: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS ($ in thousands, except per share data) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 GAAP net income (loss) $ (63,528) $ 95,820 $ (74,810) $ (11,287) $ (24,365) $ 31,671 $ (27,089) $ (37,269) $ (76,347) Stock-based compensation: C
Slide 34: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS ($ in thousands) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 GAAP gross margin 32.2% 38.2% 21.7% 34.9% 33.1% 37.7% 31.8% 29.5% 22.2% Stock-based compensation 0.4 0.1 0.3 0.2 0.2 0.1 0.2 0.2 0.2 Acquisition-related costs 1.6 0.3 1
Slide 35: Appendix: GAAP to Non-GAAP Reconciliations
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS ($ in thousands) Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 GAAP net income (loss) $ (63,528) $ 95,820 $ (74,810) $ (11,287) $ (24,365) $ 31,671 $ (27,089) $ (37,269) $ (76,347) Income tax expense (benefit) 2,399 (3,928) (273) (
Slide 36: Thank You
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