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Exhibit 99.1 Q4'14 Earnings Release


EXHIBIT 99.1

                                                                                                                                                    
    
GOPRO ANNOUNCES FOURTH QUARTER AND FULL YEAR 2014 RESULTS

Fourth Quarter Revenue of $634 Million Up 75% vs Q4 2013; Full Year Revenue of $1.4 Billion Up 41% vs. 2013
5.2 Million Capture Devices Shipped in 2014, Up 35% vs. 2013

SAN MATEO, Calif., February 5, 2015 - 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 fourth quarter and full year ended December 31, 2014.

“We're feeling good. GoPro was one of the best-selling products this holiday, selling-in an average of 1,000 units per hour for the entire quarter,” said GoPro Founder and CEO, Nicholas Woodman. “With this many new recruits to the GoPro movement, we’re sure to see some incredible content in 2015.”

Summary of Fourth Quarter 2014 GAAP Results:
Revenue of $633.9 million, compared to $361.5 million in the fourth quarter of 2013
Gross margin of 47.9%, compared to 41.9% in the fourth quarter of 2013
Operating income of $173.7 million, compared to $70.6 million in the fourth quarter of 2013
Net income attributable to common stockholders of $122.1 million or $0.83 per diluted share, compared to $33.3 million or $0.33 per diluted share in the fourth quarter of 2013
Cash, cash equivalents and marketable securities of $422.3 million, compared to $101.4 million at December 31, 2013

GoPro reports gross profit, operating expenses, operating income, net income and diluted net income per share in accordance with GAAP and additionally on a non-GAAP basis. Non-GAAP net income excludes, where applicable, the effect of stock-based compensation, amortization of acquired intangible assets and the tax impact of these excluded 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 in the calculation of non-GAAP financial measures including adjusted EBITDA, is presented in the financial statement portion of this release.

Summary of Fourth Quarter Non-GAAP Results:
Gross margin of 48.0%, compared to 42.0% in the fourth quarter of 2013
Operating income of $193.2 million, compared to $74.4 million in the fourth quarter of 2013
Adjusted EBITDA of $202.9, compared to $81.9 million in the fourth quarter of 2013
Net income of $144.9 million or $0.99 per diluted share, compared to $46.4 million or $0.33 per diluted share in the fourth quarter of 2013






Fourth Quarter, Full Year 2014 and Recent GoPro Highlights Include:
According to NPD data October through December, GoPro capture devices accounted for three of the top five products, including #1, by dollar share in the combined digital camera and camcorder category.
Internationally GoPro made significant progress in 2014, including establishing a European Sales and Marketing Headquarters in Munich, Germany, developing in-region product assembly in Brazil, and taking first steps into China by launching with the country’s two largest online retailers, Tmall and JD, as well as other select retailers; in Q4 EMEA and APAC combined revenue grew approximately 70% year-over-year.
GoPro shipped 2.4 million capture devices in Q4 and 5.2 million in the full year 2014. GoPro capture devices shipped in Q4 2014 exceeded that of the full year 2012.
GoPro App downloads exceeded 2.8 million in Q4 bringing the life to date total to more than 13 million downloads; installs of GoPro Studio exceeded 1.5 million in Q4 with average daily exports of over 30,000.
Google reports more than 3.9 years of content was uploaded to YouTube in 2014 with GoPro in the title, 40% above of the 2.8 years posted in 2013.
For the full year 2014, videos published on GoPro’s YouTube Channel were up 71%, views were up 84%, and video minutes watched were up more than 140% year-over-year.
GoPro released a firmware update enhancing HERO4 cameras with new features including Time Lapse Video, 30/6 Burst Photo and ultra high frame rates for slow-motion playback.
Marriott Hotels launched a program at select Caribbean and Latin American resorts offering GoPro HERO4 cameras for guests to use during their stay and to share their experiences.
GoPro announced a partnership with Vislink to bring affordable live-broadcast capability to GoPro devices. The new technology was showcased in the NHL All Star Weekend - GoPro’s first agreement with a Big 4 team sports league. Live Broadcast was also featured in ESPN’s coverage of the Winter X Games.
GoPro announced an agreement with Roku to bring GoPro content to millions of viewers this spring; GoPro also launched the GoPro Channel App for LG Smart TVs.

Summary of 2014 GAAP Results:
Revenue of $1,394.2 million, compared to $985.7 million in 2013
Gross margin of 45.0%, compared to 36.7% in 2013
Operating income of $187.0 million, or 13.4% of revenue, an increase of $88.3 million year-over-year

Summary of 2014 Non-GAAP Results:
Gross margin of 45.1%, compared to 36.9% in 2013
Operating income of $259.6 million, or 18.6% of revenue, an increase of $148.9 million year-over-year
Adjusted EBITDA of $293.4 million, or 21.0% of revenue, up 119.4% year-over-year
Earnings per diluted share of $1.32, up 164.0% from 2013

Conference Call
GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results.

To listen to the live conference call, please dial toll free (800) 776-9057 or (913) 312-1393, access code 5030065, approximately 15 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at http://investor.gopro.com. To access the live webcast, please log in 15 minutes prior to the start of the call to download and install any necessary audio software. The webcast will be recorded and the recording will be available on GoPro’s website, http://investor.gopro.com, approximately two hours after the call and for six months thereafter.

About GoPro, Inc. (NASDAQ: GPRO):
GoPro, Inc. is transforming the way consumers capture, manage, share and enjoy meaningful life experiences. We do this by enabling people to self-capture engaging, immersive photo and video content of themselves participating in their favorite activities. Our customers include some of the world's most active and passionate people. The quality





and volume of their shared GoPro content, coupled with their enthusiasm for our brand, virally drives awareness and demand for our products.

What began as an idea to help athletes document themselves engaged in their sport has become a widely adopted solution for people to document themselves engaged in their interests, whatever they may be. From extreme to mainstream, professional to consumer, GoPro has enabled the world to capture and share its passions. And in doing so the world, in turn, is helping GoPro become one of the most exciting and aspirational companies of our time.

For more information, visit www.gopro.com or connect with GoPro on YouTube, Twitter, Facebook, Pinterest or LinkedIn.

GOPRO® and HERO® are trademarks or registered trademarks of GoPro Inc. in the United States and other countries.

Note on Forward-looking Statements
This press release may contain projections or other forward-looking statements regarding future events. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the effects of the highly competitive market in which we operate; our dependence on sales of our capture devices for substantially all of our revenue; our reliance on third-party suppliers, some of which are sole-source suppliers, to provide components for our products; the fact that we do not expect to continue to grow in the future at the same rate as we have in the past, and profitability in recent periods might not be indicative of future performance;  difficulty in accurately predicting our future customer demand; the importance of maintaining the value and reputation of our brand; any inability to successfully manage frequent product introductions and transitions; the effects of international business uncertainties; our reliance on our Chief Executive Officer; and other factors detailed in the Risk Factors section of the final prospectus that we filed with the Securities and Exchange Commission in connection with our public offering.  These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein.  GoPro disclaims any obligation to update these forward-looking statements.

# # # # #

Investor Contact:
Peter Salkowski (855) GOPROHD or (855) 467-7643
investor@gopro.com

Media Contact:
Jeff Brown (650) 332-7600 x 9997



















GoPro, Inc.
Preliminary Condensed Consolidated Statements of Operations
(in thousands, except per share amounts, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
December 31, 2014
 
September 30, 2014
 
December 31, 2013
 
 
 
 
 
 
Revenue
$
633,913

 
$
279,971

 
$
361,452

Cost of revenue
330,100

 
155,932

 
209,948

Gross profit
303,813

 
124,039

 
151,504

Operating expenses:
 
 
 
 
 
   Research and development
46,074

 
42,376

 
25,451

   Sales and marketing
61,226

 
48,109

 
45,620

   General and administrative
22,825

 
20,097

 
9,858

Total operating expenses
130,125

 
110,582

 
80,929

Operating income
173,688

 
13,457

 
70,575

Other expense, net
(1,115
)
 
(1,784
)
 
(2,224
)
Income before income taxes
172,573

 
11,673

 
68,351

Income tax (benefit) expense
50,313

 
(2,947
)
 
24,622

Net income
$
122,260

 
$
14,620

 
$
43,729

 
 
 
 
 
 
Less: Net income attributable to participating securities - basic
152

 
36

 
12,094

Less: Net income attributable to participating securities - diluted
132

 
35

 
10,389

 
 
 
 
 
 
Net income attributable to common stockholders - basic
$
122,108

 
$
14,584

 
$
31,635

Net income attributable to common stockholders - diluted
$
122,128

 
$
14,585

 
$
33,340

 
 
 
 
 
 
Net income per share attributable to common stockholders:
 
 
 
 
 
   Basic
$
0.96

 
$
0.12

 
$
0.39

   Diluted
$
0.83

 
$
0.10

 
$
0.33

 
 
 
 
 
 
Shares used in computing net income per share attributable to common stockholders:
 
 
   Basic
126,849

 
125,713

 
81,197

   Diluted
146,723

 
145,186

 
99,621

















GoPro, Inc.
Preliminary Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended
 
December 31, 2014
 
December 31, 2013
 
(unaudited)
 
 
Revenue
$
1,394,205

 
$
985,737

Cost of revenue
766,970

 
623,953

Gross profit
627,235

 
361,784

Operating expenses:
 
 
 
   Research and development
151,852

 
73,737

   Sales and marketing
194,377

 
157,771

   General and administrative
93,971

 
31,573

Total operating expenses
440,200

 
263,081

Operating income
187,035

 
98,703

Other expense, net
(6,060
)
 
(7,374
)
Income before income taxes
180,975

 
91,329

Income tax expense
52,887

 
30,751

Net income
$
128,088

 
$
60,578

 
 
 
 
Less: Net income attributable to participating securities - basic
16,512

 
16,727

Less: Net income attributable to participating securities - diluted
14,235

 
14,418

 
 
 
 
Net income attributable to common stockholders - basic
$
111,576

 
$
43,851

Net income attributable to common stockholders - diluted
$
113,853

 
$
46,160

 
 

 
 

Net income per share attributable to common stockholders:
 
 
 
   Basic
$
1.07

 
$
0.54

   Diluted
$
0.92

 
$
0.47

 
 
 
 
Shares used in computing net income per share attributable to common stockholders:
 
 
   Basic
104,453

 
81,018

   Diluted
123,630

 
98,941















GoPro, Inc.
Preliminary Condensed Consolidated Balance Sheets
(in thousands)
 
 
 
 
 
 
 
 
 
December 31,
 
December 31,
2014
 
2013
 
(unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
319,929

 
$
101,410

Marketable securities
102,327

 

Accounts receivable, net
183,992

 
122,669

Inventory, net
153,026

 
111,994

Prepaid expenses and other current assets
63,769

 
21,967

Total current assets
823,043

 
358,040

Property and equipment, net
41,556

 
32,111

Intangible assets and goodwill
17,032

 
17,365

Other long-term assets
36,060

 
32,155

Total assets
$
917,691

 
$
439,671

 
  

 
  

LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
 
 
 

Current liabilities:
 
 
 

Accounts payable
$
126,240

 
$
126,423

Accrued liabilities
115,775

 
86,391

Other current liabilities
16,754

 
27,483

Current portion of long-term debt

 
60,297

Total current liabilities
258,769

 
300,594

Long-term debt, less current portion

 
53,315

Other long-term liabilities
17,718

 
13,930

Total liabilities
276,487

 
367,839

 
 
 
 

Redeemable convertible preferred stock

 
77,198

Total stockholders’ equity (deficit)
641,204

 
(5,366
)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)
$
917,691

 
$
439,671









GoPro, Inc.
Preliminary Condensed Consolidated Statement of Cash Flows
(in thousands, unaudited)
 
 
 
 
 
 
 
 
 
Three Months
 
Year Ended
 
December 31,
2014
 
December 31, 2013
 
December 31,
2014
 
December 31, 2013
 
 
 
 
 
 
Operating activities:
 
 
 
 
 
 
 
Net income
$
122,260

 
$
43,729

 
$
128,088

 
$
60,578

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
5,176

 
3,526

 
17,945

 
12,034

Deferred taxes
(13,112
)
 
(7,055
)
 
(16,920
)
 
(8,129
)
Excess tax benefit from stock-based compensation
(53,542
)
 
578

 
(77,134
)
 
(323
)
Stock-based compensation
19,256

 
3,540

 
71,399

 
10,887

Provision for doubtful accounts and inventory obsolescence
1,786

 
332

 
5,046

 
4,745

Other adjustments
257

 
230

 
1,865

 
1,224

Changes in assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable
(89,989
)
 
(66,579
)
 
(62,294
)
 
(43,117
)
Inventories
(37,239
)
 
(7,950
)
 
(45,108
)
 
(55,664
)
Prepaid expenses and other assets
(4,475
)
 
(270
)
 
(30,317
)
 
(15,355
)
Accounts payable and accrued liabilities
87,029

 
110,003

 
98,354

 
135,197

Deferred revenue
5,783

 
2,246

 
5,998

 
400

Net cash provided by operating activities
$
43,190

 
$
82,330

 
$
96,922

 
$
102,477

Investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(4,644
)
 
(3,747
)
 
(27,498
)
 
(18,325
)
Purchases of marketable securities, net of maturities
(102,744
)
 

 
(102,744
)
 

Proceeds from sale of property and equipment

 

 
288

 

Net cash used in acquisitions
(750
)
 
(2,912
)
 
(3,950
)
 
(2,912
)
Net cash used in investing activities
$
(108,138
)
 
$
(6,659
)
 
$
(133,904
)
 
$
(21,237
)
Financing activities:
 
 
 
 
 
 
 
Net proceeds from issuance of common stock
97,429

 
327

 
301,577

 
527

Payment of debt issuance costs and deferred public offering costs
(1,283
)
 
(139
)
 
(5,730
)
 
(1,165
)
Repayments of debt, net of issuances

 
(21,500
)
 
(114,000
)
 
(16,000
)
Excess tax benefit from stock-based compensation
53,542

 
(578
)
 
77,134

 
323

Other financing activities
(2,560
)
 

 
(3,480
)
 

Net cash provided by (used in) financing activities
$
147,128

 
$
(21,890
)
 
$
255,501

 
$
(16,315
)
Net increase in cash and cash equivalents
$
82,180

 
$
53,781

 
$
218,519

 
$
64,925

Cash and cash equivalents:
 
 
 
 
 
 
 
Beginning of period
$
237,749

 
$
47,629

 
$
101,410

 
$
36,485

End of period
$
319,929

 
$
101,410

 
$
319,929

 
$
101,410
















GoPro, Inc.
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures
(in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
December 31,
2014
 
September 30, 2014
 
December 31,
2013
 
 
 
 
 
 
GAAP NET INCOME
$
122,260

 
$
14,620

 
$
43,729

Stock-based compensation
 
 
 
 
 
Cost of revenue
280

 
233

 
160

Research and development
6,154

 
2,428

 
1,266

Sales and marketing
4,135

 
3,225

 
1,593

General and administrative
8,687

 
8,027

 
521

Total stock-based compensation
19,256

 
13,913

 
3,540

 
 

 
 

 
 

Amortization of acquisition-related intangible assets
 

 
 

 
 

Cost of revenue
221

 
223

 
222

Research and development
43

 
20

 
16

Sales and marketing
33

 
33

 
48

Total amortization of acquisition-related intangible assets
297

 
276

 
286

Income tax adjustments
3,085

 
(10,850
)
 
(1,194
)
Non-GAAP NET INCOME
$
144,898

 
$
17,959

 
$
46,361

 
 
 
 
 
 
 
 
 
 
 
 
GAAP SHARES FOR DILUTED NET INCOME PER SHARE
146,723

 
145,186

 
99,621

    Add: preferred shares conversion

 

 
30,523

    Add: initial public offering shares

 

 
8,900

Non-GAAP SHARES FOR DILUTED NET INCOME PER SHARE
146,723

 
145,186

 
139,044

 
 
 
 
 
 
Non-GAAP diluted net income per share
$
0.99

 
$
0.12

 
$
0.33












GoPro, Inc.
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures
(in thousands, except per share data, unaudited)
 
 
 
 
 
 
 
 
 
Year ended
 
December 31, 2014
 
December 31, 2013
 
 
 
 
GAAP NET INCOME
$
128,088

 
$
60,578

Stock-based compensation
 
 
 
Cost of revenue
835

 
690

Research and development
11,640

 
3,003

Sales and marketing
10,428

 
5,670

General and administrative
48,496

 
1,524

Total stock-based compensation
71,399

 
10,887

 
 

 
 

Amortization of acquisition-related intangible assets
 

 
 

Cost of revenue
888

 
888

Research and development
103

 
29

Sales and marketing
142

 
189

Total amortization of acquisition-related intangible assets
1,133

 
1,106

Income tax adjustments
(11,707
)
 
(3,745
)
Non-GAAP NET INCOME
$
188,913

 
$
68,826

 
 
 
 
GAAP SHARES FOR DILUTED EARNINGS PER SHARE
123,630

 
98,941

    Add: preferred shares conversion
15,136

 
30,523

    Add: initial public offering shares
4,414

 
8,900

Non-GAAP SHARES FOR DILUTED EARNINGS PER SHARE
143,180

 
138,364

 
 
 
 
Non-GAAP diluted net income per share
$
1.32

 
$
0.50










GoPro, Inc.
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures

To supplement our unaudited selected financial data presented on a basis consistent with Generally Accepted Accounting Principles, or GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross profit, operating expenses, operating income, net income, earnings per share and adjusted EBITDA. These non-GAAP measures are not in accordance with, nor serve as an alternative for GAAP. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our GAAP results of operations. These non-GAAP measures should only be viewed in conjunction with corresponding GAAP measures.
In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis. The excluded items represent stock-based compensation and charges that are primarily driven by discrete events that we do not consider to be directly related to core operating performance. We use non-GAAP measures to evaluate the core operating performance of our business, for comparison with forecasts and strategic plans and for calculating return on investment. In addition, management’s incentive compensation is determined using non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating:

the comparability of our on-going operating results over the periods presented;

the ability to identify trends in our underlying business; and

the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures.

 
 The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:

Stock-based compensation expense relates to equity awards granted primarily to our workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These non-cash charges are not factored into our internal evaluation of net income as we believe their inclusion would hinder our ability to assess core operational performance. We believe that excluding this expense provides greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry.

Acquisition-related charges include the amortization of acquired intangible assets primarily consisting of acquired technology, customer relationships, tradenames and covenants not to compete related to our acquisitions. These charges are not factored into our evaluation of potential acquisitions, or of our performance after completion of acquisitions, because they are not related to our core operating performance, and the frequency and amount of such charges vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses being acquired.

Adjustment for taxes relates to the tax effect of the adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure of non-GAAP net income. We believe that these adjustments provide us with the ability to more clearly view trends in our core operating performance.

Adjustment to shares includes the conversion of the redeemable convertible preferred stock into shares of common stock as though the conversion had occurred at the beginning of the period and the initial public offering shares issued July 2014, as if they had been outstanding since the beginning of the period.







Reconciliations of non-GAAP financial measures are set forth below ($ in thousands):


 
Three months ended
 
December 31, 2014
 
September 30, 2014
 
December 31, 2013
GAAP gross profit
$
303,813

 
$
124,039

 
$
151,504

  Stock-based compensation
280

 
233

 
160

  Amortization of acquisition-related intangible assets
221

 
223

 
222

Non-GAAP gross profit
$
304,314

 
$
124,495

 
$
151,886

 
 
 
 
 
 
GAAP gross profit as a % of revenue
47.9
%
 
44.3
%
 
41.9
%
  Stock-based compensation
0.1

 
0.1

 

  Amortization of acquisition-related intangible assets

 
0.1

 
0.1

Non-GAAP gross profit as a % of revenue
48.0
%
 
44.5
%
 
42.0
%
 
 
 
 
 
 
GAAP operating expenses
$
130,125

 
$
110,582

 
$
80,929

  Stock-based compensation
(18,976
)
 
(13,680
)
 
(3,380
)
  Amortization of acquisition-related intangible assets
(76
)
 
(53
)
 
(64
)
Non-GAAP operating expenses
$
111,073

 
$
96,849

 
$
77,485

 
 
 
 
 
 
GAAP operating income
$
173,688

 
$
13,457

 
$
70,575

  Stock-based compensation
19,256

 
13,913

 
3,540

  Amortization of acquisition-related intangible assets
297

 
276

 
286

Non-GAAP operating income
$
193,241

 
$
27,646

 
$
74,401

 
 
 
 
 
 
GAAP operating income as a % of revenue
27.4
%
 
4.8
%
 
19.5
%
  Stock-based compensation
3.1

 
5.0

 
1.0

  Amortization of acquisition-related intangible assets

 
0.1

 
0.1

Non-GAAP operating income as a % of revenue
30.5
%
 
9.9
%
 
20.6
%











Reconciliations of non-GAAP financial measures are set forth below ($ in thousands):


 
Year ended
 
December 31, 2014
 
December 31, 2013
GAAP gross profit
$
627,235

 
$
361,784

  Stock-based compensation
835

 
690

  Amortization of acquisition-related intangible assets
888

 
888

Non-GAAP gross profit
$
628,958

 
$
363,362

 
 
 
 
GAAP gross profit as a % of revenue
45.0
%
 
36.7
%
  Stock-based compensation

 
0.1

  Amortization of acquisition-related intangible assets
0.1

 
0.1

Non-GAAP gross profit as a % of revenue
45.1
%
 
36.9
%
 
 
 
 
GAAP operating expenses
$
440,200

 
$
263,081

  Stock-based compensation
(70,564
)
 
(10,197
)
  Amortization of acquisition-related intangible assets
(245
)
 
(218
)
Non-GAAP operating expenses
$
369,391

 
$
252,666

 
 
 
 
GAAP operating income
$
187,035

 
$
98,703

  Stock-based compensation
71,399

 
10,887

  Amortization of acquisition-related intangible assets
1,133

 
1,106

Non-GAAP operating income
$
259,567

 
$
110,696

 
 
 
 
GAAP operating income as a % of revenue
13.4
%
 
10.0
%
  Stock-based compensation
5.1

 
1.1

  Amortization of acquisition-related intangible assets
0.1

 
0.1

Non-GAAP operating income as a % of revenue
18.6
%
 
11.2
%





Reconciliations of non-GAAP financial measures are set forth below ($ in thousands):

 
 
Three months ended
 
 
December 31, 2014
 
September 30, 2014
 
December 31, 2013
    GAAP net income
 
$
122,260

 
$
14,620

 
$
43,729

    Income tax (benefit) expense
 
50,313

 
(2,947
)
 
24,622

    Interest income and expense
 
1,029

 
1,284

 
1,889

    Depreciation and amortization
 
5,176

 
4,781

 
3,526

    POP display amortization
 
4,820

 
4,524

 
4,550

    Stock-based compensation
 
19,256

 
13,913

 
3,540

    Adjusted EBITDA
 
$
202,854

 
$
36,175

 
$
81,856



 
 
Year ended
 
 
December 31, 2014
 
December 31, 2013
    GAAP net income
 
$
128,088

 
$
60,578

    Income tax expense
 
52,887

 
30,751

    Interest income and expense
 
5,038

 
6,018

    Depreciation and amortization
 
17,945

 
12,034

    POP display amortization
 
18,023

 
13,458

    Stock-based compensation
 
71,399

 
10,887

    Adjusted EBITDA
 
$
293,380

 
$
133,726




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