Gopro, Inc. · NASDAQ:GPRO

Gopro — Q4 2022 Earnings Presentation

34 slides from Gopro's earnings presentation, Feb 21, 2023

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: Our values define and align us
Our values define and align us Make friends Collaborate and include. Strength in numbers. Obsessively serve Put consumer interest first. Harness the power of WOW Exceed expectations. Stay agile Be willing to adapt and commit. Be a HERO Take responsibility. Integrity, always. Confidential information
Slide 4: We help the world capture and share itself in immersive and exciting ways
We help the world capture and share itself in immersive and exciting ways Confidential information. Copyright © 2023. GoPro, Inc. All rights reserved.
Slide 5: We have created a well-established brand
We have created a well-established brand GOPRO CAMERAS SOLD2 ACTIVE PAYING GOPRO # 1 3.7B+ GOPRO’S YOUTUBE CHANNEL 49M SUBSCRIBERS3 SOCIAL FOLLOWERS ACROSS HERO11 BLACK BEST-SELLING CAMERA IN THE U.S. CAMCORDER LIFETIME VIEWS2 ALL PLATFORMS2 MARKET1 10M+ 10M+ 23M+ YOUTUBE SUBSCRIBERS2 FACEBOOK LIKES
Slide 6: Executing on our strategy
Executing on our strategy < 2019 2020 2021 2022 Hardware Only Hardware + Subscription Hardware + Subscription + Hardware + Subscription + Service Service Retail > 90% Retail 68% / DTC 32% ~Retail 66% / DTC 34% ~Retail 62% / DTC 38% 38% Gross Margin, or ~41% 33% – 35% Gross Margin2 36% Gross Margin 4
Slide 7: Strategic metrics driving financial performance
Strategic metrics driving financial performance1 Camera Mix, ASPs ≥ $4002 Subscribers3 (k) 90% 2,500 86% CAGR 80% 2,000 70% 60% 1,500 50% 1,000 40% 500 30% 20% - 2018 2019 2020 2021 2022 4Q18 4Q19 4Q20 4Q21 4Q22 "Street" ASPs4 ($) Gross Margin % 450 45% 400 40% 350 35% 300 30% 250 2022 ASP of $389,
Slide 8: Subscription & Service value proposition
Subscription & Service value proposition 41M+ ~8% 2.2M+ • Financial incentive focused today GOPRO CAMERAS SOLD2 ACTIVE PAYING GOPRO • SUBSCRIBERS3 Forward looking: OF TOTAL REVENUE1 SUBSCRIBERS2 o User financial incentive >90% ~35% o Enhance value-add services o Increase stickiness GOPRO.COM ATTACH2
Slide 11: A technology innovator
A technology innovator CAPTURE INNOVATION AUTOMATED GOPRO APP HYPERSMOOTH 5.0 STORYTELLING Next Gen Capture Leads Quik, Mobile & Cloud Visual & Audio Syncing To Next Gen Sharing Storage Capabilities In Q122, GoPro was honored with its second Emmy® Award in the category of “In Camera Sensor and Softw
Slide 12: Versatile Storytelling Solutions, Immersive Sharing
WE MAKE WE ENABLE Versatile Storytelling Solutions Immersive Sharing Confidential information. Copyright © 2023. GoPro, Inc. All rights reserved.
Slide 13: 2022 Derivative product launches
2022 Derivative product launches HERO10 BLACK CREATOR VOLTA HERO11 BLACK BONES EDITION (CE) MINI FPV Drone Camera “Hollywood in Your Powered Control Grip The power of HERO11 Lightest GoPro Ever Hand” >4 Hours of 5.3K Black. Only smaller, Video Recording lighter + simpler. Innovation to super-serve o
Slide 14: Compelling GoPro.com subscription service offering
Compelling GoPro.com subscription service offering $49.99 / year ~2.25M Subscribers 1 • Up to $100 off a new GoPro • Unlimited cloud backup + auto upload to cloud • Auto-highlight video • Up to 50% off accessories @ GoPro.com • No questions asked damage replacement • Quik mobile app editing tool • S
Slide 15: Versatile Quik mobile app subscription
Versatile Quik mobile app subscription $9.99 / year ~279k Paid subscribers1 • Import photos and videos from your phone, GoPro, or other camera • Unlimited cloud backup at original quality • Mural automatic video creation Powerful, simple mobile editing tool  Video speed  GoPro-exclusive filters 
Slide 17: Multi-channel marketing strategy
Multi-channel marketing strategy CHANNEL CONNECTED TV GLOBAL MARKETING & ONLINE ADS OWNED SOCIAL SOCIAL INFLUENCERS ATHLETES RESORTS TOP TIER EVENTS Confidential information. Copyright © 2023. GoPro, Inc. All rights reserved.
Slide 18: Robust global sales channel
Robust global sales channel GoPro.com: 40%* of Retail: 60% of 4Q22 Revenue 4Q22 Revenue GOPRO.COM OTHER ONLINE BIG BOX MID MARKET DISTRIBUTOR 1 >80 Countries 1 ~26k Point of Purchase Displays 1 As of December 31, 2022. Confidential information. Copyright © 2023. GoPro, Inc. All rights reserved.
Slide 19: Recent ESG initiatives
Recent ESG initiatives1 • Through our GoPro for a Cause program, we directly support organizations on the leading edge of climate change and conservation and amplify their stories and showcase the people and organizations making an impact. • We champion The Ocean Cleanup, a non-profit organization f
Slide 21: Improving profitability
Improving profitability TTM Revenue ($M) TTM Non-GAAP Net Income ($M) 1 ~$1.14B 4Q22 TTM Revenue ~$130M 4Q22 TTM Net in constant currency Income in constant currency 180 156 1,161 1,174 1,175 1,164 160 149 1,128 141 146 1,092 1,094 140 976 126 892 117 120 100 81 80 67 60 40 20 13 0 4Q20 1Q21 2Q21 3Q
Slide 22: Improving profitability
Improving profitability Revenue ($M) Adjusted EBITDA ($M) Quarterly Quarterly 168 1,195 1,148 1,161 1,094 892 95 72 72 391 321 341 43 42 22 22 2018 2019 2020 2021 2022 4Q21 4Q22 4Q22* 2018 2019 2020 2021 2022 4Q21 4Q22 4Q22* 1 Revenue includes GoPro.com and Quik. *$20M Constant currency adjustment t
Slide 23: Higher ASP camera mix
Higher ASP camera mix1 Quarterly 40% 59% 59% 68% 80% 87% 92% 60% 41% 41% 32% 20% 13% 8% 2018 2019 2020 2021 2022 4Q21 4Q22 < $400 MSRP _ > $400 MSRP 1Sell-through ASP/unit Confidential information. Copyright © 2023. GoPro, Inc. All rights reserved.
Slide 24: Robust subscriber growth
Robust subscriber growth GoPro subscribers / Subscription & Service revenue1 ($M) 2,500 43% 23 • Subscribers up 43% 4Q YoY YoY Subscriber Growth • Subscription revenue up 30% 4Q YoY • GoPro.com subs attach rate mid-90s 2,000 18 • Retail attach via mobile ~35%, up >50% in 2022 vs prior year $M Revenu
Slide 25: Delivering positive cash flow
Delivering positive cash flow Cash & Investments, Net of Debt ($M) 270 • Board of Directors approved stock buy- back up to $100M 224 • Repurchased $40M in 2022 205 181 • Repaid $125M of convertible debt in Q2 179 2022 110 57 50 28 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1 As of December 31st, 2
Slide 27: 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 28: 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 29: APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS ● non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party tran

GoPro — Q4 2022 Earnings Presentation on 6ix

Gopro — Q4 2022 Earnings Presentation

Slide 1: Investor Presentation

Slide 2: Safe harbor statement

Slide 3: Our values define and align us

Slide 4: We help the world capture and share itself in immersive and exciting ways

Slide 5: We have created a well-established brand

Slide 6: Executing on our strategy

Slide 7: Strategic metrics driving financial performance

Slide 8: Subscription & Service value proposition

Slide 9: Our Products

Slide 10: A seamless ecosystem

Slide 11: A technology innovator

Slide 12: Versatile Storytelling Solutions, Immersive Sharing

Slide 13: 2022 Derivative product launches

Slide 14: Compelling GoPro.com subscription service offering

Slide 15: Versatile Quik mobile app subscription

Slide 16: Marketing & Distribution

Slide 17: Multi-channel marketing strategy

Slide 18: Robust global sales channel

Slide 19: Recent ESG initiatives

Slide 20: Financial Highlights

Slide 21: Improving profitability

Slide 22: Improving profitability

Slide 23: Higher ASP camera mix

Slide 24: Robust subscriber growth

Slide 25: Delivering positive cash flow

Slide 26: Appendix

Slide 27: APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS

Slide 28: APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS

Slide 29: APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS

Slide 30: APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS

Slide 31: APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS

Slide 32: APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS

Slide 33: APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS

Slide 34: Thank you