Gopro, Inc. · NASDAQ:GPRO
Gopro — Q4 2021 Earnings Presentation
33 slides from Gopro's earnings presentation, Feb 3, 2022
Slide 1: Investor Presentation
Speaker/ Date/ Subtitle Investor Presentation February 3, 2022 Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
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 © 2021. GoPro, Inc. All rights reserved.
Slide 5: We have created a well-established brand
We have created a well-established brand 41M+ GOPRO CAMERAS SOLD2 ACTIVE PAYING GOPRO # 1 3.6B+ GOPRO’S YOUTUBE CHANNEL SUBSCRIBERS3 46M+ SOCIAL FOLLOWERS ACROSS HERO10 BLACK BEST-SELLING CAMERA IN THE U.S. CAMCORDER LIFETIME VIEWS2 ALL PLATFORMS3 MARKET1 10M+ 10M+ 21M+ YOUTUBE SUBSCRIBERS3 FACEBOOK
Slide 6: Executing on new strategy
Executing on new strategy < 2019 GoPro 2020 GoPro 2021 GoPro Hardware + Subscriptions + Hardware Only Hardware + Subscription Services + App Monetization Retail > 90% Retail 68% / DTC 32% Retail 66% / DTC 34% 33% – 35% Gross Margin2 36% Gross Margin 41% Gross Margin ($46M) Avg. Cash Usage1,2 $91M Ca
Slide 7: Strategic metrics driving financial performance
Strategic metrics driving financial performance1 103% CAGR 12% CAGR 1All charts above: Data as of full year for FY18-21. 2Camera ASP mix based on sell-through units. 3GoPro.com subscribers, exclusive of Quik. 4"Street" ASP defined as revenue divided by camera units shipped. Confidential information.
Slide 8: Our Products
Our Products Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 9: A seamless ecosystem
A seamless ecosystem Capture 1 Hosted by AWS Product Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved. Cloud1 + Editing
Slide 10: A technology innovator
A technology innovator CAPTURE INNOVATION AUTOMATED GOPRO APP HYPERSMOOTH 4.0 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 11: Versatile Storytelling Solutions, Immersive Sharing
WE MAKE WE ENABLE Versatile Storytelling Solutions Immersive Sharing Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 12: Best-in-class cameras
Best-in-class cameras 2 1Camera with 1 year subscription available only at GoPro.com. 2Battery temperature of 14F / -10C to improve cold performance . Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 13: Compelling GoPro.com subscription service offering
Compelling GoPro.com subscription service offering $49.99 / year ~1.6M Subscribers1 2 • Up to $100 off a new GoPro • Unlimited cloud backup + auto 3 uploads • Up to 50% off @ GoPro.com • No questions asked damage 4 replacement 5 • Full access to the Quik app • Share on the go 1 as of December 31, 20
Slide 14: Versatile Quik mobile app subscription
Versatile Quik mobile app subscription $9.99 / year ~221k Paid subscribers1 ▪ Import photos and videos from your phone, GoPro, or other camera ▪ Unlimited cloud backup at original quality ▪ Mural automatic video creation Powerful, simple editing tools • Video speed • GoPro-exclusive filters • Premiu
Slide 15: Marketing & Distribution
Speaker/ Date/ Subtitle Marketing & Distribution Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 16: Multi-channel marketing strategy
Multi-channel marketing strategy GLOBAL CHANNEL ATHLETES & SOCIAL SOCIAL ONLINE ADS RESORTS MARKETING VLOG INFLUENCERS TOP TIER EVENTS Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 17: Robust global sales channel
Robust global sales channel GoPro.com: ~35% of Retail: ~65% of FY21 YTD Revenue FY21 YTD Revenue GOPRO.COM OTHER ONLINE BIG BOX MID MARKET DISTRIBUTOR 1 >90 Countries 1 ~23k Point of Purchase Displays 1 As of 12/31/21 Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 18: Recent ESG initiatives
Recent ESG initiatives1 • GoPro’s commitment to environmentally conscious, plastic-free packaging was reflected in its latest HERO10 BLACK camera launch, with “packaging” in the form of a high-quality, durable travel case that's designed to fit additional GoPro mounts and accessories. We have establ
Slide 19: Financial Highlights
Speaker/ Date/ Subtitle Financial Highlights Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 20: Improving profitability
Improving profitability TTM Revenue ($M) TTM Non-GAAP Net Income / (Loss) ($M) 1 200 1,195 1,161 1,128 1,071 1,062 1,092 146 150 141 976 913 892 117 100 67 54 50 35 13 0 (4) (50) (38) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1 See reconciliation in Ap
Slide 21: Improving profitability
Improving profitability Revenue ($M) Adjusted EBITDA ($M) Quarterly Quarterly 1,180 1,195 168 1,148 1,161 892 72 72 68 43 391 22 358 (31) 2017 2018 2019 2020 2021 4Q20 4Q21 2017 2018 2019 2020 2021 4Q20 4Q21 Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 22: Higher ASP camera mix
Higher ASP camera mix1 Quarterly 42% 71% 74% 72% 87% 94% 58% 29% 26% 28% 13% 6% 2018 2019 2020 2021 4Q 2020 4Q 2021 < $300 MSRP > - $300 MSRP 1Sell-through ASP/unit Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 23: Growing revenue and gross margins
Growing revenue and gross margins Revenue ($M) & GM% 45% Growing higher margin revenue streams 528 • Direct-to-consumer (DTC), up 39% FY21 YoY 40% • Subscription, up 131% FY21 YoY, with 70%- 391 80% gross margins 358 35% • Mix favors higher ASP cameras 317 281 250 204 30% 134 119 25% 20% 4Q19 1Q20 2
Slide 24: Robust subscriber growth
Robust subscriber growth GoPro.com subscribers / Subscription Revenue1 ($M) 1,800 107% YoY Subscriber Growth 18 • Subscription revenue up 118% Q4 YoY 1,600 16 • Subscriber count up 107% Q4 YoY • GoPro.com subs attach rate >90% 1,400 14 • Retail attach via mobile at 25%, up ~3x 1,200 12 Q4 YoY $M Rev
Slide 25: Delivering strong cash flow
Delivering strong cash flow Cash & Investments, Net of Debt ($M) • Solid operational performance drives 270 growth • $211M TTM FCF, or 18% of revenue • Board of Directors approved stock buy- 110 back up to $100M 59 50 28 (10) (28) (50) (95) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Confidential i
Slide 26: Appendix
Speaker/ Date/ Subtitle Appendix Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 27: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross margin, operating expenses, operating income (loss), net income (loss), diluted net inco
Slide 28: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ● adjusted EBITDA excludes the amortization of point of purchase (POP) display assets because it is a non-cash charge, and is treated similarly to depreciation of property and equipment and amortization of acquired intangible assets; ● adjusted EBITDA and n
Slide 29: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ● non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party tran
Slide 30: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ($ in thousands, except per share data) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 GAAP net income (loss) $ 52,626 $ 311,761 $ 16,952 $ (10,168) $ 44,413 $ 3,307 $ (50,975) $ (63,528) $ 95,820 Stock-based compensation: Cost of r
Slide 31: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ($ in thousands) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 GAAP gross margin 41.2 % 43.6 % 39.8 % 38.6 % 38.0 % 35.4 % 30.3 % 32.2 % 38.2 % Stock-based compensation 0.1 0.2 0.2 0.2 0.1 0.2 0.2 0.4 0.1 Acquisition-related costs
Slide 32: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ($ in thousands) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 GAAP net income (loss) $ 52,626 $ 311,761 $ 16,952 $ (10,168) $ 44,413 $ 3,307 $ (50,975) $ (63,528) $ 95,820 Income tax expense (benefit) (392) (270,228) (11,670) 1,21
Slide 33: Thank you.
Thank you. Speaker/ Date/ Subtitle Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.