GoPro, Inc. · NASDAQ:GPRO
GoPro — Q1 2022 Earnings Presentation
36 slides from GoPro's earnings presentation, May 5, 2022
Slide 1: Investor Presentation
Speaker/ Date/ Subtitle Investor Presentation May 5, 2022 Confidential information. Copyright © 2022. 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 © 2022 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 47M+ SOCIAL FOLLOWERS ACROSS HERO10 BLACK BEST-SELLING CAMERA IN THE U.S. CAMCORDER LIFETIME VIEWS2 ALL PLATFORMS3 MARKET1 10M+ 10M+ 22M+ YOUTUBE SUBSCRIBERS3 FACEBOOK
Slide 6: Executing on new strategy
Executing on new strategy < 2019 2020 2021 1Q22 Hardware Only Hardware + Subscription Hardware + Subscription + Hardware + Subscription + Service Service Retail > 90% Retail 68% / DTC 32% ~Retail 66% / DTC 34% ~Retail 59% / DTC 41% 33% – 35% Gross Margin2 36% Gross Margin 41% Gross Margin 42% Gross
Slide 7: Strategic metrics driving financial performance
Strategic metrics driving financial performance1 88% CAGR 12% CAGR 1 Unless otherwise noted, charts above are based on data as of full year for FY18-21 and Q1YTD FY22. 2Camera ASP mix based on sell-through units. 3GoPro.com subscribers, exclusive of Quik. 4"Street" ASP defined as revenue divided by
Slide 8: Subscription & service revenue value proposition
Subscription & service revenue value proposition 41M+ • Financial incentive focused today ~5% OF TOTAL REVENUE1 1.74M GOPRO CAMERAS SOLD2 • ACTIVE PAYING GOPRO SUBSCRIBERS3 Forward looking: SUBSCRIBERS2 o User financial incentive o Enhance value-add services ~95% 30-40% o o Increase stickiness Grow
Slide 9: Our Products
Our Products Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 10: A seamless ecosystem
A seamless ecosystem Capture 1 Hosted by AWS Product Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved. Cloud1 + Editing
Slide 11: 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 12: Versatile Storytelling Solutions, Immersive Sharing
WE MAKE WE ENABLE Versatile Storytelling Solutions Immersive Sharing Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 13: 2022 Product launches
2022 Product launches HERO10 BLACK HERO10 BLACK VOLTA BONES CREATOR EDITION (CE) FPV Drone Camera “Hollywood in Your Hand” Powered Control Grip Lightest GoPro Ever LED Light Mod & Powered >4 Hours of 5.3K Video Volta Grip Recording Innovation to super-serve our customers is at the heart of what we d
Slide 14: Best-in-class flagship cameras
Best-in-class flagship cameras 2 1Camera with 1 year subscription available only at GoPro.com. 2Battery temperature of 14F / -10C to improve cold performance . Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 15: Compelling GoPro.com subscription service offering
Compelling GoPro.com subscription service offering $49.99 / year ~1.74M 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 March 31, 2022
Slide 16: Versatile Quik mobile app subscription
Versatile Quik mobile app subscription $9.99 / year ~258k Paid subscribers1 ▪ Import photos and videos from your phone, GoPro, or other camera ▪ Unlimited cloud backup at original quality ▪ Mural automatic video creation Powerful, simple editing tools • Video speed • GoPro-exclusive filters • Premiu
Slide 17: Marketing & Distribution
Speaker/ Date/ Subtitle Marketing & Distribution Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 18: Multi-channel marketing strategy
Multi-channel marketing strategy GLOBAL CHANNEL ATHLETES & SOCIAL SOCIAL ONLINE ADS RESORTS MARKETING VLOG INFLUENCERS TOP TIER EVENTS Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 19: Robust global sales channel
Robust global sales channel GoPro.com: 41% of Retail: 59% of Q122 Revenue 1Q22 Revenue GOPRO.COM OTHER ONLINE BIG BOX MID MARKET DISTRIBUTOR 1 >90 Countries 1 ~25k Point of Purchase Displays 1 As of 3/31/22 Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 20: Recent ESG initiatives
Recent ESG initiatives1 • GoPro’s commitment to environmentally conscious, plastic-free packaging was reflected in its latest HERO10 BLACK camera launch, with “packaging” in the form of a high-quality, durable travel case that's designed to fit additional GoPro mounts and accessories. We have establ
Slide 21: Financial Highlights
Speaker/ Date/ Subtitle Financial Highlights Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 22: Improving profitability
Improving profitability TTM Revenue ($M) TTM Non-GAAP Net Income / (Loss) ($M) 1 200 1,161 1,174 1,128 156 1,071 1,062 1,092 146 150 141 976 913 892 117 100 67 54 50 13 0 (4) (38) (50) 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1 See reconciliation in A
Slide 23: Improving profitability
Improving profitability Revenue ($M) Adjusted EBITDA ($M) Quarterly Quarterly 1,180 1,195 168 1,148 1,161 892 72 43 22 21 11 204 217 (31) 2017 2018 2019 2020 2021 1Q21 1Q22 2017 2018 2019 2020 2021 1Q21 1Q22 Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 24: Higher ASP camera mix
Higher ASP camera mix1 Quarterly 40% 46% 59% 59% 56% 68% 64% 60% 54% 41% 41% 44% 32% 36% 2017 2018 2019 2020 2021 1Q 2021 1Q 2022 < $400 MSRP > - $400 MSRP 1Sell-through ASP/unit Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 25: Growing revenue and gross margins
Growing revenue and gross margins Revenue ($M) & GM% 45% Growing higher margin revenue streams 391 • Direct-to-consumer (DTC) 41% Q122 revenue 358 40% • Subscription, up 73% Q1 YoY, with 70%-80% 317 gross margins 281 250 35% • Mix favors higher ASP cameras 217 204 30% 134 119 25% 20% 1Q20 2Q20 3Q20
Slide 26: Robust subscriber growth
Robust subscriber growth GoPro.com subscribers / Subscription Revenue1 ($M) 1,800 85% YoY Subscriber Growth 20 • Subscription revenue up 73% Q1 YoY 1,600 18 • Subscriber count up 85% Q1 YoY • GoPro.com subs attach rate mid-90s 16 1,400 • Retail attach via mobile at 39%, up >2x 14 1,200 Q1 YoY $M Rev
Slide 27: Delivering strong cash flow
Delivering strong cash flow Cash & Investments, Net of Debt ($M) • Solid operational performance drives 270 growth • $153M TTM FCF, or 11% of revenue 181 • Board of Directors approved stock buy- 110 back up to $100M, with $90M remaining • 1H seasonally down 59 50 28 (28) (50) (95) 1Q20 2Q20 3Q20 4Q2
Slide 28: Appendix
Speaker/ Date/ Subtitle Appendix Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 29: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross margin, operating expenses, operating income (loss), net income (loss), diluted net inco
Slide 30: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ● adjusted EBITDA excludes the amortization of point of purchase (POP) display assets because it is a non-cash charge, and is treated similarly to depreciation of property and equipment and amortization of acquired intangible assets; ● adjusted EBITDA and n
Slide 31: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ● non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party tran
Slide 32: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ($ in thousands, except per share data) Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP net income (loss) - Basic $ 5,685 $ 52,626 $ 311,761 $ 16,952 $ (10,168) $ 44,413 $ 3,307 $ (50,975) $ (63,528) Stock-based compensation: Co
Slide 33: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ($ in thousands, except per share data) Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Numerator: GAAP net income (loss) - Basic $ 5,685 $ 52,626 $ 311,761 $ 16,952 $ (10,168) $ 44,413 $ 3,307 $ (50,975) $ (63,528) Add: Interest on
Slide 34: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ($ in thousands) Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP gross margin 41.8 % 41.2 % 43.6 % 39.8 % 38.6 % 38.0 % 35.4 % 30.3 % 32.2 % Stock-based compensation 0.2 0.1 0.2 0.2 0.2 0.1 0.2 0.2 0.4 Acquisition-related costs
Slide 35: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ($ in thousands) Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP net income (loss) $ 5,685 $ 52,626 $ 311,761 $ 16,952 $ (10,168) $ 44,413 $ 3,307 $ (50,975) $ (63,528) Income tax expense (benefit) (51) (392) (270,228) (11,670)
Slide 36: Thank you.
Thank you. Speaker/ Date/ Subtitle Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.