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• |
Launched GoPro App 2.5 for iOS and Android in July, allowing users to stream playlists of GoPro content directly to their phones and identify favorite videos that will follow them across other platforms such as Xbox One and GoPro.com.
|
• |
According to June NPD data, GoPro products represented the top three camera/camcorder units and six of the top ten camera accessory units sold in the U.S. |
• |
Launched in new vertical markets with the Sportsman Mount for hunting and fishing and the Music Edition for instruments and microphones. |
• |
Released popular accessories including the highly versatile Gooseneck and 3-Way mounts. |
• |
Shipped more than 10,000 linear feet of new POP displays to retail outlets around the world. |
• |
Number of GoPro videos published on YouTube up over 160% Y/Y; views on YouTube up 200% Y/Y; video minutes watched on YouTube up over 270% vs. Q2 2013. |
• |
Launched the GoPro Channel on Pinterest, a social network with more than 60 million users. |
• |
Launched the GoPro Channel on Xbox 360 with Microsoft, generating more than a half million downloads and average engagement time in the U.S. of just under 30 minutes. In July, launched GoPro Channel on Xbox One with exclusive videos. |
• |
Hosted events at South by Southwest, the X Games, and the GoPro Mountain Games. |
• |
The GoPro Athlete Summit attracted 90 athletes and generated more than two million likes on Facebook. |
• |
Won four Webby Awards including Best Photography and Graphics, Best Use of Video, and Best Overall Social Presence. |
• |
GoPro CineForm Codec was standardized by the Society of Motion Picture and Television Engineers® (SMPTE®) as the SMPTE ST 2073 VC-5 video compression standard.
|
GoPro, Inc. | |||||||||||
Preliminary Condensed Consolidated Statements of Operations | |||||||||||
(in thousands, except per share amounts, unaudited) | |||||||||||
Three months ended |
|||||||||||
June 30, 2014 |
March 31, 2014 |
June 30, 2013 |
|||||||||
Revenue |
$ |
244,605 |
$ |
235,716 |
$ |
177,082 |
|||||
Cost of revenue |
141,736 |
139,202 |
120,242 |
||||||||
Gross profit |
102,869 |
96,514 |
56,840 |
||||||||
Operating expenses: |
|||||||||||
Research and development |
34,663 |
28,739 |
16,687 |
||||||||
Sales and marketing |
43,701 |
41,341 |
39,065 |
||||||||
General and administrative |
41,171 |
9,878 |
7,044 |
||||||||
Total operating expenses |
119,535 |
79,958 |
62,796 |
||||||||
Operating income (loss) |
(16,666 |
) |
16,556 |
(5,956 |
) |
||||||
Other income (expense), net |
(1,536 |
) |
(1,625 |
) |
(1,697 |
) |
|||||
Income (loss) before income taxes |
(18,202 |
) |
14,931 |
(7,653 |
) |
||||||
Income tax (benefit) expense |
1,639 |
3,882 |
(2,568 |
) |
|||||||
Net income (loss) |
$ |
(19,841 |
) |
$ |
11,049 |
$ |
(5,085 |
) |
|||
Net income (loss) attributable to common stockholders- basic |
$ |
(19,841 |
) |
$ |
8,009 |
$ |
(5,085 |
) |
|||
Net income (loss) attributable to common stockholders- diluted |
$ |
(19,841 |
) |
$ |
8,452 |
$ |
(5,085 |
) |
|||
Net income (loss) per share attributable to common stockholders: |
|||||||||||
Basic |
$ |
(0.24 |
) |
$ |
0.10 |
$ |
(0.06 |
) |
|||
Diluted |
$ |
(0.24 |
) |
$ |
0.08 |
$ |
(0.06 |
) |
|||
Shares used in computing net income (loss) per share attributable to common stockholders: |
|||||||||||
Basic |
82,936 |
81,582 |
80,902 |
||||||||
Diluted |
82,936 |
100,783 |
80,902 |
GoPro, Inc. | |||||||
Preliminary Condensed Consolidated Statements of Operations | |||||||
(in thousands, except per share amounts, unaudited) | |||||||
Six months ended |
|||||||
June 30, 2014 |
June 30, 2013 |
||||||
Revenue |
$ |
480,321 |
$ |
432,139 |
|||
Cost of revenue |
280,938 |
285,870 |
|||||
Gross profit |
199,383 |
146,269 |
|||||
Operating expenses: |
|||||||
Research and development |
63,402 |
28,699 |
|||||
Sales and marketing |
85,042 |
74,738 |
|||||
General and administrative |
51,049 |
14,032 |
|||||
Total operating expenses |
199,493 |
117,469 |
|||||
Operating income (loss) |
(110 |
) |
28,800 |
||||
Other income (expense), net |
(3,161 |
) |
(3,391 |
) |
|||
Income (loss) before income taxes |
(3,271 |
) |
25,409 |
||||
Income tax expense |
5,521 |
7,459 |
|||||
Net income (loss) |
$ |
(8,792 |
) |
$ |
17,950 |
||
Net income (loss) attributable to common stockholders- basic |
$ |
(8,792 |
) |
$ |
12,986 |
||
Net income (loss) attributable to common stockholders- diluted |
$ |
(8,792 |
) |
$ |
13,666 |
||
Net income (loss) per share attributable to common stockholders: |
|||||||
Basic |
$ |
(0.11 |
) |
$ |
0.16 |
||
Diluted |
$ |
(0.11 |
) |
$ |
0.14 |
||
Shares used in computing net income (loss) per share attributable to common stockholders: |
|||||||
Basic |
82,263 |
80,836 |
|||||
Diluted |
82,263 |
98,577 |
GoPro, Inc. | |||||||
Preliminary Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
June 30, |
December 31, |
||||||
2014 |
2013 |
||||||
ASSETS |
(unaudited) |
||||||
Current assets: |
|||||||
Cash |
$ |
104,879 |
$ |
101,410 |
|||
Accounts receivable, net |
49,230 |
122,669 |
|||||
Inventory |
80,376 |
111,994 |
|||||
Prepaid expenses and other current assets |
65,409 |
21,967 |
|||||
Total current assets |
299,894 |
358,040 |
|||||
Property and equipment, net |
38,939 |
32,111 |
|||||
Intangible assets and goodwill |
16,805 |
17,365 |
|||||
Other long-term assets |
36,562 |
32,155 |
|||||
Total assets |
$ |
392,200 |
$ |
439,671 |
|||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
54,925 |
$ |
126,423 |
|||
Accrued liabilities |
78,819 |
86,391 |
|||||
Other current liabilities |
12,524 |
27,483 |
|||||
Current portion of long-term debt |
66,306 |
60,297 |
|||||
Total current liabilities |
212,574 |
300,594 |
|||||
Long-term debt, less current portion |
41,433 |
53,315 |
|||||
Other long-term liabilities |
13,719 |
13,930 |
|||||
Total liabilities |
267,726 |
367,839 |
|||||
Redeemable convertible preferred stock |
77,227 |
77,198 |
|||||
Total stockholders’ equity (deficit) |
47,247 |
(5,366 |
) |
||||
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) |
$ |
392,200 |
$ |
439,671 |
GoPro, Inc. | |||||||||||
Reconciliation of Preliminary Non-GAAP Adjustments | |||||||||||
(in thousands, except per share data, unaudited) | |||||||||||
Three months ended |
|||||||||||
June 30, 2014 |
March 31, 2014 |
June 30, 2013 |
|||||||||
GAAP NET INCOME (LOSS) |
$ |
(19,841 |
) |
$ |
11,049 |
$ |
(5,085 |
) |
|||
Stock-based compensation |
|||||||||||
Cost of revenue |
154 |
168 |
157 |
||||||||
Research and development |
1,657 |
1,401 |
556 |
||||||||
Sales and marketing |
1,654 |
1,414 |
1,454 |
||||||||
General and administrative |
30,728 |
1,054 |
365 |
||||||||
Total stock-based compensation |
34,193 |
4,037 |
2,532 |
||||||||
Amortization of acquisition-related intangible assets |
|||||||||||
Cost of revenue |
222 |
222 |
222 |
||||||||
Research and development |
20 |
20 |
— |
||||||||
Sales and marketing |
34 |
42 |
47 |
||||||||
Total amortization of acquisition-related intangible assets |
276 |
284 |
269 |
||||||||
Tax related items |
|||||||||||
Income tax adjustments |
(2,854 |
) |
(1,088 |
) |
(875 |
) |
|||||
Non-GAAP NET INCOME (LOSS) |
$ |
11,774 |
$ |
14,282 |
$ |
(3,159 |
) |
||||
GAAP SHARES FOR DILUTED NET INCOME (LOSS) PER SHARE |
82,936 |
100,783 |
80,902 |
||||||||
Add: dilutive shares |
17,345 |
— |
— |
||||||||
Add: preferred shares conversion |
30,523 |
30,523 |
30,523 |
||||||||
Add: initial public offering shares |
8,900 |
8,900 |
8,900 |
||||||||
Non-GAAP SHARES FOR DILUTED NET INCOME (LOSS) PER SHARE |
139,704 |
140,206 |
120,325 |
||||||||
Non-GAAP diluted net income (loss) per share |
$ |
0.08 |
$ |
0.10 |
$ |
(0.03 |
) |
GoPro, Inc. | |||||||
Reconciliation of Preliminary Non-GAAP Adjustments | |||||||
(in thousands, except per share data, unaudited) | |||||||
Six months ended |
|||||||
June 30, 2014 |
June 30, 2013 |
||||||
GAAP NET INCOME (LOSS) |
$ |
(8,792 |
) |
$ |
17,950 |
||
Stock-based compensation |
|||||||
Cost of revenue |
322 |
377 |
|||||
Research and development |
3,058 |
997 |
|||||
Sales and marketing |
3,068 |
2,658 |
|||||
General and administrative |
31,782 |
595 |
|||||
Total stock-based compensation |
38,230 |
4,627 |
|||||
Amortization of acquisition-related intangible assets |
|||||||
Cost of revenue |
444 |
444 |
|||||
Research and development |
40 |
13 |
|||||
Sales and marketing |
76 |
94 |
|||||
Total amortization of acquisition-related intangible assets |
560 |
551 |
|||||
Tax related items |
|||||||
Income tax adjustments |
(3,942 |
) |
(1,617 |
) |
|||
Non-GAAP NET INCOME |
$ |
26,056 |
$ |
21,511 |
|||
GAAP SHARES FOR DILUTED EARNINGS PER SHARE |
82,263 |
98,577 |
|||||
Add: dilutive shares |
18,273 |
— |
|||||
Add: preferred shares conversion |
30,523 |
30,523 |
|||||
Add: initial public offering shares |
8,900 |
8,900 |
|||||
Non-GAAP SHARES FOR DILUTED EARNINGS PER SHARE |
139,959 |
138,000 |
|||||
Non-GAAP diluted net income per share |
$ |
0.19 |
$ |
0.16 |
• |
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. |
• |
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, the initial public offering shares issued July 2014, as if they had been outstanding since the beginning of the period, and the addition of all dilutive awards outstanding that were excluded from the GAAP diluted earnings per share calculation because they were anti-dilutive as a result of our net loss position. |
Three months ended |
|||||||||||
June 30, 2014 |
March 31, 2014 |
June 30, 2013 |
|||||||||
GAAP gross profit |
$ |
102,869 |
$ |
96,514 |
$ |
56,840 |
|||||
Stock-based compensation |
154 |
168 |
157 |
||||||||
Amortization of acquisition-related intangible assets |
222 |
222 |
222 |
||||||||
Non-GAAP gross profit |
$ |
103,245 |
$ |
96,904 |
$ |
57,219 |
|||||
GAAP gross profit as a % of revenue |
42.1% |
40.9% |
32.1% |
||||||||
Stock-based compensation |
0.0% |
0.1% |
0.1% |
||||||||
Amortization of acquisition-related intangible assets |
0.1% |
0.1% |
0.1% |
||||||||
Non-GAAP gross profit as a % of revenue |
42.2% |
41.1% |
32.3% |
||||||||
GAAP operating expenses |
$ |
119,535 |
$ |
79,958 |
$ |
62,796 |
|||||
Stock-based compensation |
(34,039 |
) |
(3,869 |
) |
(2,375 |
) |
|||||
Amortization of acquisition-related intangible assets |
(54 |
) |
(62 |
) |
(47 |
) |
|||||
Non-GAAP operating expenses |
$ |
85,442 |
$ |
76,027 |
$ |
60,374 |
|||||
GAAP operating income (loss) |
$ |
(16,666 |
) |
$ |
16,556 |
$ |
(5,956 |
) |
|||
Stock-based compensation |
34,193 |
4,037 |
2,532 |
||||||||
Amortization of acquisition-related intangible assets |
276 |
284 |
269 |
||||||||
Non-GAAP operating income (loss) |
$ |
17,803 |
$ |
20,877 |
$ |
(3,155 |
) |
||||
GAAP operating income (loss) as a % of revenue |
(6.8%) |
7.0% |
(3.4%) |
||||||||
Stock-based compensation |
14.0% |
1.7% |
1.4% |
||||||||
Amortization of acquisition-related intangible assets |
0.1% |
0.2% |
0.2% |
||||||||
Non-GAAP operating income (loss) as a % of revenue |
7.3% |
8.9% |
(1.8%) |
Six months ended |
|||||||
June 30, 2014 |
June 30, 2013 |
||||||
GAAP gross profit |
$ |
199,383 |
$ |
146,269 |
|||
Stock-based compensation |
322 |
377 |
|||||
Amortization of acquisition-related intangible assets |
444 |
444 |
|||||
Non-GAAP gross profit |
$ |
200,149 |
$ |
147,090 |
|||
GAAP gross profit as a % of revenue |
41.5% |
33.8% |
|||||
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 |
41.7% |
34.0% |
|||||
GAAP operating expenses |
$ |
199,493 |
$ |
117,469 |
|||
Stock-based compensation |
(37,908 |
) |
(4,250 |
) |
|||
Amortization of acquisition-related intangible assets |
(116 |
) |
(107 |
) |
|||
Non-GAAP operating expenses |
$ |
161,469 |
$ |
113,112 |
|||
GAAP operating income (loss) |
$ |
(110 |
) |
$ |
28,800 |
||
Stock-based compensation |
38,230 |
4,627 |
|||||
Amortization of acquisition-related intangible assets |
560 |
551 |
|||||
Non-GAAP operating income |
$ |
38,680 |
$ |
33,978 |
|||
GAAP operating income (loss) as a % of revenue |
0.0% |
6.7% |
|||||
Stock-based compensation |
8.0% |
1.1% |
|||||
Amortization of acquisition-related intangible assets |
0.1% |
0.1% |
|||||
Non-GAAP operating income as a % of revenue |
8.1% |
7.9% |
Three months ended |
||||||||||||
June 30, 2014 |
March 31, 2014 |
June 30, 2013 |
||||||||||
GAAP net income (loss) |
$ |
(19,841 |
) |
$ |
11,049 |
$ |
(5,085 |
) |
||||
Income tax (benefit) expense |
1,639 |
3,882 |
(2,568 |
) |
||||||||
Interest income and expense |
1,390 |
1,335 |
1,369 |
|||||||||
Depreciation and amortization |
4,177 |
3,811 |
3,207 |
|||||||||
POP display amortization |
4,166 |
4,513 |
2,886 |
|||||||||
Stock-based compensation |
34,193 |
4,037 |
2,532 |
|||||||||
Adjusted EBITDA |
$ |
25,724 |
$ |
28,627 |
$ |
2,341 |
Six months ended |
||||||||
June 30, 2014 |
June 30, 2013 |
|||||||
GAAP net income (loss) |
$ |
(8,792 |
) |
$ |
17,950 |
|||
Income tax expense |
5,521 |
7,459 |
||||||
Interest income and expense |
2,725 |
2,701 |
||||||
Depreciation and amortization |
7,988 |
5,416 |
||||||
POP display amortization |
8,679 |
5,111 |
||||||
Stock-based compensation |
38,230 |
4,627 |
||||||
Adjusted EBITDA
|
$ |
54,351 |
$ |
43,264 |