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GoPro's (GPRO) Q4 Earnings & Revenues Miss Estimates
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GoPro, Inc. (GPRO - Free Report) reported fourth-quarter 2023 non-GAAP earnings of 2 cents per share, which missed the Zacks Consensus Estimate by 33.3%. The company reported earnings of 12 cents in the year-ago quarter.
GoPro generated revenues of $295.4 million, down 8% year over year. The top line also missed the consensus mark by 9.7%.
GPRO added that consumers were looking for discounts irrespective of already low prices in the holiday season. This led to lower-than-expected sell-through of its HERO10 Black product (priced at $249), which was not sold at a discount.
For 2023, revenues came in at $1 billion, down 8% year over year. Non-GAAP loss per share was 20 cents for the year. The company reported earnings of 47 cents in 2022.
Shares lost 14.1% in the pre-market trading on Feb 8. In the past year, shares of GPRO have declined 48.4% of their value against the sub-industry’s growth of 6%.
Image Source: Zacks Investment Research
Quarter in Details
GoPro shipped 895 million camera units during the reported quarter, up 5.3% year over year.
It recorded 2.5 million subscribers, marking 12% year-over-year growth at the end of the quarter under discussion.
Management envisions subscribers at 2024-end to be between 2.5 million and 2.6 million.
Region-wise, revenues from the Americas totaled $126.9 million (43% of total revenues), down 17% from the prior-year levels. Revenues from Europe, the Middle East and Africa were $94.8 million (32.1%), improving 15% year over year. The Asia Pacific generated revenues of $73.7 million (24.9%), down 14% on a year-over-year basis.
Based on channels, revenues from GoPro.com of $67.4 million (22.8%) plunged 47% year over year. Our estimate was pegged at $82.6 million.
In this channel, hardware revenues totaled $42.3 million compared with $106 million in the previous-year quarter. Subscription revenues amounted to $25.1 million, climbing 13% year over year.
Retail channel registered revenues of $228 million (77%), which improved 18% year over year. The uptick was driven by strategic pricing action, increasing retail doors and retail efforts including merchandising. We suggested the metric to be $243.8 million.
Management noted that it added more than 3,200 new retail doors since May 2023, which was ahead of its target for the year by 17%. It intends to continue driving door growth with a target of 7,000 additional new doors over the next two years, powered by the launch of new products. GPRO is also planning to upgrade its point-of-purchase merchandisers, augment in-store brand presence and boost account management throughout the retail channel.
The company had $106.3 million in inventory compared with $127.1 million in the year-earlier quarter.
Other Details
Gross profit of $101.1 million decreased 3.1% year over year. Total operating expenses of $110.5 million rose 7.7% year over year. Operating loss totaled $9.4 million against operating income of $1.7 million in the prior-year quarter.
Non-GAAP gross margin came in at 34.4% compared with 35.1% in the year-ago quarter. Entry-level products accounted for 14% of camera revenues in the fourth quarter.
Adjusted EBITDA was $3.267 million compared with $22 million a year ago.
Cameras with suggested retail prices at or above $400 contributed 74% to revenues in the reported quarter compared with 90% in the prior-year quarter.
Cash Flow & Liquidity
In the quarter under review, GoPro generated $43.7 million of net cash from operating activities compared with $25.6 million in the year-ago period.
As of Dec 31, the company had $222.7 million of cash and cash equivalents with $92.6 million of long-term debt.
GPRO repurchased 2.8 million shares worth $10 million.
Guidance
For the first quarter of 2024, revenues are estimated to be $145 million (+/- $5 million). Non-GAAP adjusted loss is forecasted to be 25 cents per share (+/- 2 cents).
Gross margin is anticipated to be 32.5% (+/- 50 basis points). Street ASP is projected to be nearly $375.
GoPro currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Watts Water Technologies (WTS - Free Report) , Manhattan Associates (MANH - Free Report) and Microsoft (MSFT - Free Report) . While Manhattan Associates currently sports a Zacks Rank #1 (Strong Buy), Watts Water and Microsoft carry a Zacks Rank of 2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Watts Water Technologies’ 2023 EPS has improved 1.1% in the past 60 days to $8.09.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have gained 23% in the past year.
The Zacks Consensus Estimate for MANH 2024 EPS has increased 3.6% in the past 60 days to $3.76.
Manhattan Associates’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 27.6%. Shares of MANH have surged 70.2% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 earnings is pegged at $11.60 per share, indicating growth of 18.3% from the year-ago levels. Microsoft’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. The long-term earnings growth rate is pegged at 16.2%. MSFT has gained 55.2% in the past year.
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GoPro's (GPRO) Q4 Earnings & Revenues Miss Estimates
GoPro, Inc. (GPRO - Free Report) reported fourth-quarter 2023 non-GAAP earnings of 2 cents per share, which missed the Zacks Consensus Estimate by 33.3%. The company reported earnings of 12 cents in the year-ago quarter.
GoPro generated revenues of $295.4 million, down 8% year over year. The top line also missed the consensus mark by 9.7%.
GPRO added that consumers were looking for discounts irrespective of already low prices in the holiday season. This led to lower-than-expected sell-through of its HERO10 Black product (priced at $249), which was not sold at a discount.
For 2023, revenues came in at $1 billion, down 8% year over year. Non-GAAP loss per share was 20 cents for the year. The company reported earnings of 47 cents in 2022.
Shares lost 14.1% in the pre-market trading on Feb 8. In the past year, shares of GPRO have declined 48.4% of their value against the sub-industry’s growth of 6%.
Image Source: Zacks Investment Research
Quarter in Details
GoPro shipped 895 million camera units during the reported quarter, up 5.3% year over year.
It recorded 2.5 million subscribers, marking 12% year-over-year growth at the end of the quarter under discussion.
Management envisions subscribers at 2024-end to be between 2.5 million and 2.6 million.
Region-wise, revenues from the Americas totaled $126.9 million (43% of total revenues), down 17% from the prior-year levels. Revenues from Europe, the Middle East and Africa were $94.8 million (32.1%), improving 15% year over year. The Asia Pacific generated revenues of $73.7 million (24.9%), down 14% on a year-over-year basis.
Based on channels, revenues from GoPro.com of $67.4 million (22.8%) plunged 47% year over year. Our estimate was pegged at $82.6 million.
In this channel, hardware revenues totaled $42.3 million compared with $106 million in the previous-year quarter. Subscription revenues amounted to $25.1 million, climbing 13% year over year.
Retail channel registered revenues of $228 million (77%), which improved 18% year over year. The uptick was driven by strategic pricing action, increasing retail doors and retail efforts including merchandising. We suggested the metric to be $243.8 million.
GoPro, Inc. Price, Consensus and EPS Surprise
GoPro, Inc. price-consensus-eps-surprise-chart | GoPro, Inc. Quote
Management noted that it added more than 3,200 new retail doors since May 2023, which was ahead of its target for the year by 17%. It intends to continue driving door growth with a target of 7,000 additional new doors over the next two years, powered by the launch of new products. GPRO is also planning to upgrade its point-of-purchase merchandisers, augment in-store brand presence and boost account management throughout the retail channel.
The company had $106.3 million in inventory compared with $127.1 million in the year-earlier quarter.
Other Details
Gross profit of $101.1 million decreased 3.1% year over year. Total operating expenses of $110.5 million rose 7.7% year over year. Operating loss totaled $9.4 million against operating income of $1.7 million in the prior-year quarter.
Non-GAAP gross margin came in at 34.4% compared with 35.1% in the year-ago quarter. Entry-level products accounted for 14% of camera revenues in the fourth quarter.
Adjusted EBITDA was $3.267 million compared with $22 million a year ago.
Cameras with suggested retail prices at or above $400 contributed 74% to revenues in the reported quarter compared with 90% in the prior-year quarter.
Cash Flow & Liquidity
In the quarter under review, GoPro generated $43.7 million of net cash from operating activities compared with $25.6 million in the year-ago period.
As of Dec 31, the company had $222.7 million of cash and cash equivalents with $92.6 million of long-term debt.
GPRO repurchased 2.8 million shares worth $10 million.
Guidance
For the first quarter of 2024, revenues are estimated to be $145 million (+/- $5 million). Non-GAAP adjusted loss is forecasted to be 25 cents per share (+/- 2 cents).
Gross margin is anticipated to be 32.5% (+/- 50 basis points). Street ASP is projected to be nearly $375.
GoPro currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Watts Water Technologies (WTS - Free Report) , Manhattan Associates (MANH - Free Report) and Microsoft (MSFT - Free Report) . While Manhattan Associates currently sports a Zacks Rank #1 (Strong Buy), Watts Water and Microsoft carry a Zacks Rank of 2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Watts Water Technologies’ 2023 EPS has improved 1.1% in the past 60 days to $8.09.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have gained 23% in the past year.
The Zacks Consensus Estimate for MANH 2024 EPS has increased 3.6% in the past 60 days to $3.76.
Manhattan Associates’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 27.6%. Shares of MANH have surged 70.2% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 earnings is pegged at $11.60 per share, indicating growth of 18.3% from the year-ago levels. Microsoft’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. The long-term earnings growth rate is pegged at 16.2%. MSFT has gained 55.2% in the past year.