Company Update (NASDAQ:GPRO): GoPro Inc Announces Second Quarter 2015 Results

GoPro Inc (NASDAQ:GPRO), maker of the world’s most versatile camera and enabler of some of today’s most immersive and engaging content, today announced financial results for its second quarter ended June 30, 2015.

Second Quarter Results Summary:
Three Months Ended
($ in thousands, except per share amounts) June 30,
June 30,
Revenue $ 419,919 $ 244,605 71.7 %
Gross margin
GAAP 46.3 % 42.1 % 420 bps
Non-GAAP 46.4 % 42.2 % 420 bps
Operating income (loss)
GAAP $ 46,138 $ (16,666) 376.8 %
Non-GAAP $ 65,845 $ 17,803 269.9 %
Net income (loss)
GAAP $ 35,031 $ (19,841) 276.6 %
Non-GAAP $ 50,715 $ 11,774 330.7 %
Diluted net income (loss) per share
GAAP $ 0.24 $ (0.24) 200.0 %
Non-GAAP $ 0.35 $ 0.08 337.5 %
Adjusted EBITDA $ 75,349 $ 25,724 192.9 %

“I couldn’t be more proud of our aggressive pace of innovation. With the introduction of HERO4 Session and HERO+ LCD, we’ve launched five new cameras in the past 10 months, exciting both new and existing customers and contributing to strong second quarter results,” said GoPro Founder and CEO, Nicholas Woodman. “Our core business is enjoying terrific momentum as we charge forward into attractive adjacent markets.”

GoPro reports gross profit, operating expenses, operating income (loss), net income (loss) and diluted net income (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis.  Non-GAAP net income excludes, where applicable, the effects of stock-based compensation, acquisition-related costs, and the tax impact of these items.  Additionally, GoPro reports non-GAAP adjusted EBITDA.  A reconciliation of preliminary GAAP financial measures to non-GAAP financial measures, as well as a description of items excluded from the calculation of non-GAAP financial measures is presented in the financial statement portion of this release.

Second Quarter 2015 and Recent GoPro Highlights Include:

  • Launched HERO4 Session featuring simple one-button control and an exciting new form factor 50% smaller and 40% lighter than other HERO4 cameras. Innovative, water-proof design eliminates the need for a separate housing, reducing complexity and vastly improving audio performance.
  • Introduced HERO+ LCD, adding touch screen convenience, in-camera video trimming and Wi-Fi/Bluetooth integration to the entry-level camera line-up.
  • Released new accessories including the Ball Joint Buckle and Floaty for HERO4 Session and The Strap, The Jam, and Casey to enhance the versatility of GoPro products.
  • GoPro products are now sold in more than 40,000 stores worldwide, reflecting the addition of new retail customers, increased store counts with existing customers, and international expansion.
  • According to NPD, GoPro accounted for 4 of the top 5 products on a unit basis in the combined digital camera and camcorder category, in the US for Q2. In the same category, on a dollar basis, GoPro capture devices accounted for 3 of the top 5 products. GoPro was also the leader in accessory unit sales with 8 of the top 10 selling accessories.
  • Increased shipments of Point-of-Purchase (POP) displays by over 40%; linear feet of new POP displays increased over 75% for the first six months of 2015, year-over-year.
  • International sales totaled more than 50% of Q2 revenue; combined EMEA and APAC revenue was up 126% year-over-year. China is now a top ten revenue-generating country for GoPro.
  • Announced a GoPro-branded quad-copter to debut in the first half of 2016. Also announced a Six-Camera Spherical Array for shooting virtual reality and Odyssey, a 16-Camera Array unveiled in partnership with Google’s Jump initiative.
  • GoPro is the official camera of the Tour de France. GoPros are mounted on riders and their bikes, providing never-before-seen perspectives on the world’s most prestigious cycling race.
  • GoPro Motorrad Grand Prix of Deutschland viewed live by more than 9 million people across Europe; millions more viewed the broadcast in other countries. Each GoPro Course Preview video generated more than a half million views each.
  • The GoPro Mobile App was downloaded 2.5 million times in Q2, totaling over 18 million cumulative downloads; Q2 installs of GoPro Studio exceeded 1.7 million, up over 100% year-over-year.
  • Unveiled GoPro Licensing, a content licensing portal that professionals can use to search, sort, and request a license to content from GoPro’s rapidly growing library. (Original Source)

Shares of GoPro are currently trading down 2.06% to $59.55 following the earnings announcement. GPRO has a 1-year high of $98.47 and a 1-year low of $37.13. The stock’s 50-day moving average is $55.95 and its 200-day moving average is $49.72.

On the ratings front, GoPro Inc has been the subject of a number of recent research reports. In a report issued on July 16, Wedbush analyst Michael Pachter reiterated a Buy rating on GPRO, with a price target of $70, which implies an upside of 14.4% from current levels. Separately, on the same day, Piper Jaffray’s Erinn Murphy reiterated a Buy rating on the stock and has a price target of $68.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Pachter and Erinn Murphy have a total average return of 0.0% and 5.4% respectively. Pachter has a success rate of 48.2% and is ranked #2712 out of 3711 analysts, while Murphy has a success rate of 65.2% and is ranked #896.

The street is mostly Bullish on GPRO stock. Out of 14 analysts who cover the stock, 9 suggest a Buy rating and 5 recommend to Hold the stock. The 12-month average price target assigned to the stock is $75.33, which represents a potential upside of 23.1% from where the stock is currently trading.

GoPro Inc develops hardware and software solutions to alleviate consumer pain points associated with capturing, managing, sharing and enjoying engaging content. It produces mountable and wearable cameras and accessories.

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