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• |
Revenue of $363.1 million increased 54.0% compared to $235.7 million in the first quarter of 2014
|
• |
Gross margin of 45.1% compared to 40.9% in the first quarter of 2014
|
• |
Operating income of $22.3 million increased 34.5% compared to $16.6 million in the first quarter of 2014
|
• |
Net income attributable to common stockholders of $16.8 million or $0.11 per diluted share increased 98.2% compared to $8.5 million or $0.08 per diluted share in the first quarter of 2014
|
• |
Cash, cash equivalents and marketable securities of $491.9 million compared to $422.3 million at December 31, 2014
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• |
Gross margin of 45.2% compared to 41.1% in the first quarter of 2014
|
• |
Operating income of $49.1 million increased 135.2% compared to $20.9 million in the first quarter of 2014
|
• |
Adjusted EBITDA of $56.5 million increased 97.4% compared to $28.6 million in the first quarter of 2014
|
• |
Net income of $35.6 million or $0.24 per diluted share increased 149.4% compared to $14.3 million or $0.10 per diluted share in the first quarter of 2014
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• |
International sales accounted for more than half of Q1 revenue; EMEA and APAC revenue was up 66% year-over-year.
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• |
According to NPD, GoPro’s five capture device models accounted for all five of the top five products in the combined digital camera and camcorder category, on a unit basis, in the US for Q1. In the same category, on a dollar share basis, GoPro capture devices accounted for 3 of the top 5 products, including the #1 spot. GoPro was also the leader in accessory unit sales with 7 of the top 10 selling accessories. |
• |
A study commissioned by GoPro and conducted by IPSOS, a global market research firm, showed a 70% year-over-year increase in aided awareness of the GoPro brand among consumers in nine countries across five continents. |
• |
GoPro unveiled HEROCast™, the smallest, lightest and most cost-effective wireless HD micro transmitter on the broadcast market, enabling consumers to experience live events like never before. |
• |
The GoPro Channel launched on premium video service Vessel, joining Roku, Xbox, LG Smart TVs, and Virgin America In-Flight entertainment. |
• |
In Q1, the GoPro Channel App reached over one million downloads on the Xbox platform, with users watching an average of 25 minutes of GoPro videos during each viewing session. |
• |
The GoPro Mobile App was downloaded 2.6 million times in Q1, totaling nearly 16 million cumulative downloads; Q1 installs of GoPro Studio exceeded 1.7 million with average daily exports of nearly 40,000, a 68% year-over-year increase. |
• |
In Q1, videos published on the GoPro Channel on YouTube were up 93% while views were up 46% year-over-year. |
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Content submissions to GoPro's Photo and Video of the Day program increased 50% quarter-over-quarter. |
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GoPro agreed to acquire Kolor, a leader in virtual reality and spherical media solutions. |
Three months ended |
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(in thousands, except per share data) |
March 31, 2015 |
March 31, 2014 |
|||||
Revenue |
$ |
363,109 |
$ |
235,716 |
|||
Cost of revenue |
199,376 |
139,202 |
|||||
Gross profit |
163,733 |
96,514 |
|||||
Operating expenses: |
|||||||
Research and development |
49,437 |
28,739 |
|||||
Sales and marketing |
56,369 |
41,341 |
|||||
General and administrative |
35,659 |
9,878 |
|||||
Total operating expenses |
141,465 |
79,958 |
|||||
Operating income |
22,268 |
16,556 |
|||||
Other expense, net |
(2,244 |
) |
(1,625 |
) |
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Income before income taxes |
20,024 |
14,931 |
|||||
Income tax expense |
3,272 |
3,882 |
|||||
Net income |
$ |
16,752 |
$ |
11,049 |
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Less: net income allocable to participating securities |
— |
3,040 |
|||||
Net income attributable to common stockholders—basic |
$ |
16,752 |
$ |
8,009 |
|||
Add: net income allocable to dilutive participating securities |
— |
443 |
|||||
Net income attributable to common stockholders—diluted |
$ |
16,752 |
$ |
8,452 |
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Net income per share attributable to common stockholders: |
|||||||
Basic |
$ |
0.13 |
$ |
0.10 |
|||
Diluted |
$ |
0.11 |
$ |
0.08 |
|||
Weighted-average shares used to compute net income per share attributable to common stockholders: |
|||||||
Basic |
132,278 |
81,582 |
|||||
Diluted |
148,573 |
100,783 |
(in thousands) |
March 31, 2015 |
December 31, 2014 |
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Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
323,165 |
$ |
319,929 |
|||
Marketable securities |
168,741 |
102,327 |
|||||
Accounts receivable, net |
105,970 |
183,992 |
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Inventory |
164,044 |
153,026 |
|||||
Prepaid expenses and other current assets |
60,334 |
63,769 |
|||||
Total current assets |
822,254 |
823,043 |
|||||
Property and equipment, net |
43,890 |
41,556 |
|||||
Intangible assets and goodwill |
24,874 |
17,032 |
|||||
Other long-term assets |
39,616 |
36,060 |
|||||
Total assets |
$ |
930,634 |
$ |
917,691 |
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Liabilities and Stockholders' Equity |
|||||||
Current liabilities: |
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Accounts payable |
$ |
91,919 |
$ |
126,240 |
|||
Accrued liabilities |
103,350 |
115,775 |
|||||
Deferred revenue |
12,327 |
14,022 |
|||||
Income taxes payable |
2,940 |
2,732 |
|||||
Total current liabilities |
210,536 |
258,769 |
|||||
Other long-term liabilities |
18,378 |
17,718 |
|||||
Total liabilities |
228,914 |
276,487 |
|||||
Stockholders’ equity: |
|||||||
Common stock and additional paid-in capital |
576,764 |
533,000 |
|||||
Retained earnings |
124,956 |
108,204 |
|||||
Total stockholders’ equity |
701,720 |
641,204 |
|||||
Total liabilities and stockholders’ equity |
$ |
930,634 |
$ |
917,691 |
|||
Three months ended |
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(in thousands) |
March 31, 2015 |
March 31, 2014 |
|||||
Operating activities: |
|||||||
Net income |
$ |
16,752 |
$ |
11,049 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
5,369 |
3,811 |
|||||
Stock-based compensation |
26,501 |
4,037 |
|||||
Foreign currency remeasurement and transaction losses |
2,190 |
— |
|||||
Deferred taxes |
(1,590 |
) |
(330 |
) |
|||
Other |
639 |
247 |
|||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable, net |
77,684 |
75,359 |
|||||
Inventory |
(11,017 |
) |
21,807 |
||||
Prepaids and other assets |
1,451 |
1,068 |
|||||
Accounts payable and other liabilities |
(50,017 |
) |
(97,042 |
) |
|||
Deferred revenue |
(1,695 |
) |
908 |
||||
Net cash provided by operating activities |
66,267 |
20,914 |
|||||
Investing activities: |
|||||||
Purchases of property and equipment |
(5,207 |
) |
(4,701 |
) |
|||
Purchases of marketable securities |
(79,368 |
) |
— |
||||
Sales and maturities of marketable securities |
12,503 |
— |
|||||
Business acquisitions |
(5,100 |
) |
(3,200 |
) |
|||
Net cash used in investing activities |
(77,172 |
) |
(7,901 |
) |
|||
Financing activities: |
|||||||
Proceeds from issuance of common stock, net of repurchases |
12,325 |
522 |
|||||
Taxes paid related to net share settlement of equity awards |
(1,321 |
) |
— |
||||
Excess tax benefit from stock-based compensation |
6,067 |
69 |
|||||
Payment of deferred public offering costs |
(903 |
) |
(799 |
) |
|||
Repayment of debt |
— |
(3,000 |
) |
||||
Net cash provided by (used in) financing activities |
16,168 |
(3,208 |
) |
||||
Effect of exchange rate changes on cash and cash equivalents |
(2,027 |
) |
— |
||||
Net increase in cash and cash equivalents |
3,236 |
9,805 |
|||||
Cash and cash equivalents at beginning of period |
319,929 |
101,410 |
|||||
Cash and cash equivalents at end of period |
$ |
323,165 |
$ |
111,215 |
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Three months ended |
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(in thousands, except per share data) |
March 31, 2015 |
March 31, 2014 |
|||||
GAAP net income |
$ |
16,752 |
$ |
11,049 |
|||
Stock-based compensation: |
|||||||
Cost of revenue |
283 |
168 |
|||||
Research and development |
3,535 |
1,401 |
|||||
Sales and marketing |
3,066 |
1,414 |
|||||
General and administrative |
19,617 |
1,054 |
|||||
Total stock-based compensation |
26,501 |
4,037 |
|||||
Amortization of acquisition-related intangible assets: |
|||||||
Cost of revenue |
222 |
222 |
|||||
Research and development |
87 |
20 |
|||||
Sales and marketing |
33 |
42 |
|||||
Total amortization of acquisition-related intangible assets |
342 |
284 |
|||||
Income tax adjustments |
(7,976 |
) |
(1,088 |
) |
|||
Non-GAAP net income |
$ |
35,619 |
$ |
14,282 |
|||
GAAP shares for diluted net income per share |
148,573 |
100,783 |
|||||
Add: preferred shares conversion |
— |
30,523 |
|||||
Add: initial public offering shares |
— |
8,900 |
|||||
Non-GAAP shares for diluted net income per share |
148,573 |
140,206 |
|||||
Non-GAAP diluted net income per share |
$ |
0.24 |
$ |
0.10 |
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• |
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, trade names, 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. |
Three months ended |
|||||||
March 31, 2015 |
March 31, 2014 |
||||||
GAAP gross profit |
$ |
163,733 |
$ |
96,514 |
|||
Stock-based compensation |
283 |
168 |
|||||
Amortization of acquisition-related intangible assets |
222 |
222 |
|||||
Non-GAAP gross profit |
$ |
164,238 |
$ |
96,904 |
|||
GAAP gross profit as a % of revenue |
45.1 |
% |
40.9 |
% |
|||
Stock-based compensation |
0.1 |
0.1 |
|||||
Amortization of acquisition-related intangible assets |
— |
0.1 |
|||||
Non-GAAP gross profit as a % of revenue |
45.2 |
% |
41.1 |
% |
|||
GAAP operating expenses |
$ |
141,465 |
$ |
79,958 |
|||
Stock-based compensation |
(26,218 |
) |
(3,869 |
) |
|||
Amortization of acquisition-related intangible assets |
(120 |
) |
(62 |
) |
|||
Non-GAAP operating expenses |
$ |
115,127 |
$ |
76,027 |
|||
GAAP operating income |
$ |
22,268 |
$ |
16,556 |
|||
Stock-based compensation |
26,501 |
4,037 |
|||||
Amortization of acquisition-related intangible assets |
342 |
284 |
|||||
Non-GAAP operating income |
$ |
49,111 |
$ |
20,877 |
|||
GAAP operating income as a % of revenue |
6.1 |
% |
7.0 |
% |
|||
Stock-based compensation |
7.3 |
1.7 |
|||||
Amortization of acquisition-related intangible assets |
0.1 |
0.2 |
|||||
Non-GAAP operating income as a % of revenue |
13.5 |
% |
8.9 |
% |
|||
Three months ended |
|||||||
March 31, 2015 |
March 31, 2014 |
||||||
GAAP net income |
$ |
16,752 |
$ |
11,049 |
|||
Income tax expense |
3,272 |
3,882 |
|||||
Interest expense, net |
65 |
1,335 |
|||||
Depreciation and amortization |
5,369 |
3,811 |
|||||
POP display amortization |
4,548 |
4,513 |
|||||
Stock-based compensation |
26,501 |
4,037 |
|||||
Adjusted EBITDA |
$ |
56,507 |
$ |
28,627 |
|||