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GoPro (GPRO) Q2 Loss Narrower Than Expected, Revenues Beat
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GoPro, Inc (GPRO - Free Report) reported a second-quarter 2024 non-GAAP loss of 24 cents per share, narrower than the Zacks Consensus Estimate of a loss of 25 cents. The company incurred a loss of 5 cents per share in the year-ago quarter.
GPRO generated revenues of $186 million, down 23% year over year. The figure exceeded the company’s guidance of $170 million (+/- $5 million). The top line beat the consensus mark by 9.2%.
Higher demand for the HERO12 Black camera in Europe and North America cushioned the top-line performance.
GoPro shipped 576 million camera units in the reported quarter, down 18.2% year over year.
It recorded 2.53 million subscribers, marking 4% year-over-year growth. Management envisions subscribers at 2024-end to be 2.6 million.
Region-wise, revenues from the Americas totaled $88.7 million (47.6% of total revenues), down 27% from the prior-year levels. Revenues from Europe, the Middle East and Africa of $64.5 million (34.6%) declined 3% year over year. The Asia Pacific generated revenues of $33 million (17.8%), down 38% on a year-over-year basis. Sales from the Americas and Asia-Pacific regions were affected primarily by consumer-related macroeconomic troubles, especially in China.
Based on channels, revenues from GoPro.com of $49.1 million (26.4%) plunged 35.1% year over year. Our estimate was pegged at $30.6 million.
In this channel, hardware revenues totaled $22.8 million compared with $51.2 million in the prior-year quarter. Subscription revenues amounted to $26.3 million, up 8% year over year.
Retail channel registered revenues of $137.1 million (73.6%), which fell 17.1% year over year. We estimated the metric to be $139.6 million.
GPRO added 800 new retail doors across all regions, especially EMEA and Latin America. Management noted that GoPro added more than 5,000 new retail doors since the second quarter of 2023. It further added that the company remains on track to add another 3,000 to 6,000 new doors by the end of 2025 to boost its go-to-market capabilities for GPRO’s product roadmap.
The company also announced a distribution expansion collaboration in the second quarter with SoftBank Group's SB C&S Corporation in Japan. The new agreement should enable SB C&S to provide its customers with the entire range of GoPro cameras and accessories.
The company had $97.3 million in inventory compared with $135.4 million in the year-earlier quarter.
Other Details
Gross profit of $56.7 million decreased 25.2% year over year. Total operating expenses of $103.2 million rose 5% year over year. Operating loss totaled $46.5 million compared with $22.5 million in the prior-year quarter.
Non-GAAP gross margin came in at 30.7% compared with 31.6% in the year-ago quarter.
Adjusted EBITDA loss was $33.4 million compared with $10.3 million a year ago.
Cameras with suggested retail prices at or above $400 contributed 76% to revenues in the reported quarter compared with 75% in the prior-year quarter.
Cash Flow & Liquidity
In the quarter under review, GoPro generated $0.6 million of net cash from operating activities against $7.852 million of cash used in the year-earlier quarter.
As of Jun 30, the company had $133 million of cash and cash equivalents with $92.9 million of long-term debt.
Guidance
For the third quarter of 2024, revenues are estimated to be $255 million (+/- $5 million). Non-GAAP adjusted loss is forecasted to be 5 cents per share (+/- 2 cents).
Gross margin is anticipated to be 34% (+/- 50 basis points). Gross margin performance is expected to be driven by new product sales, increasing subscription and service revenues and improving product costs, partly offset by higher promotional activity.
Street ASP is projected to be $300.
GPRO expects a further delay in the launch of a new entry-level camera into 2025 instead of the fourth quarter of 2024. The delay in launch will have a negative impact of $20-$25 million in the fourth quarter of 2024 relative to earlier guidance. The cumulative effect of delayed product launches for 2024 revenues is projected to be $100 million.
As a result, GPRO now expects units to be between 2.6 million and 2.7 million compared with 2.85 million projected earlier. Revenues in 2024 are anticipated to be in the range of $850-$870 million compared with the earlier projection of slightly higher than $900 million.
Apart from the delays, muted consumer spending in the absence of promotional activity, declining camera sales at GoPro.com, global macroeconomic concerns, forex volatility (China and Japan) and increasing competition remain headwinds. The company is on track to launch two new cameras in September 2024, including the new $199 HERO camera.
GoPro currently has a Zacks Rank #4 (Sell). In the past year, shares of GPRO have lost 65.3% compared with the sub-industry’s decline of 8.4%.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS is pegged at $4.06, which increased 3% in the past 30 days. BMI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%.
BMI reported second-quarter earnings of $1.12 per share, which beat the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter. The figure also surpassed the consensus mark by 7.9%.
The Zacks Consensus Estimate for GNRC’s 2024 earnings is pegged at $6.44, which rose 4.5% in the past seven days. GNRC recently reported second-quarter 2024 results, wherein adjusted EPS of $1.35 beat the Zacks Consensus Estimate of $1.24. It reported adjusted EPS of $1.08 in the prior-year period. Net sales came in at $998 million compared with $1 billion in the prior-year quarter. The figure missed the consensus estimate by 0.5%.
GNRC’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average surprise being 9.75%. The long-term earnings growth rate is 12%.
The Zacks Consensus Estimate for SAP’s 2024 EPS is pegged at $4.75. SAP recently reported second-quarter 2024 results, wherein non-IFRS earnings of €1.10 ($1.18) per share increased 59% from the year-ago quarter’s levels. Total revenues on a non-IFRS basis totaled €8.288 billion ($8,921.3 million), which rose 10% year over year, both at nominal and constant-currencies (cc) basis.
SAP’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, the average surprise being 4%. The long-term earnings growth rate is 10.7%.
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GoPro (GPRO) Q2 Loss Narrower Than Expected, Revenues Beat
GoPro, Inc (GPRO - Free Report) reported a second-quarter 2024 non-GAAP loss of 24 cents per share, narrower than the Zacks Consensus Estimate of a loss of 25 cents. The company incurred a loss of 5 cents per share in the year-ago quarter.
GPRO generated revenues of $186 million, down 23% year over year. The figure exceeded the company’s guidance of $170 million (+/- $5 million). The top line beat the consensus mark by 9.2%.
Higher demand for the HERO12 Black camera in Europe and North America cushioned the top-line performance.
GoPro, Inc. Price, Consensus and EPS Surprise
GoPro, Inc. price-consensus-eps-surprise-chart | GoPro, Inc. Quote
Quarter in Details
GoPro shipped 576 million camera units in the reported quarter, down 18.2% year over year.
It recorded 2.53 million subscribers, marking 4% year-over-year growth. Management envisions subscribers at 2024-end to be 2.6 million.
Region-wise, revenues from the Americas totaled $88.7 million (47.6% of total revenues), down 27% from the prior-year levels. Revenues from Europe, the Middle East and Africa of $64.5 million (34.6%) declined 3% year over year. The Asia Pacific generated revenues of $33 million (17.8%), down 38% on a year-over-year basis. Sales from the Americas and Asia-Pacific regions were affected primarily by consumer-related macroeconomic troubles, especially in China.
Based on channels, revenues from GoPro.com of $49.1 million (26.4%) plunged 35.1% year over year. Our estimate was pegged at $30.6 million.
In this channel, hardware revenues totaled $22.8 million compared with $51.2 million in the prior-year quarter. Subscription revenues amounted to $26.3 million, up 8% year over year.
Retail channel registered revenues of $137.1 million (73.6%), which fell 17.1% year over year. We estimated the metric to be $139.6 million.
GPRO added 800 new retail doors across all regions, especially EMEA and Latin America. Management noted that GoPro added more than 5,000 new retail doors since the second quarter of 2023. It further added that the company remains on track to add another 3,000 to 6,000 new doors by the end of 2025 to boost its go-to-market capabilities for GPRO’s product roadmap.
The company also announced a distribution expansion collaboration in the second quarter with SoftBank Group's SB C&S Corporation in Japan. The new agreement should enable SB C&S to provide its customers with the entire range of GoPro cameras and accessories.
The company had $97.3 million in inventory compared with $135.4 million in the year-earlier quarter.
Other Details
Gross profit of $56.7 million decreased 25.2% year over year. Total operating expenses of $103.2 million rose 5% year over year. Operating loss totaled $46.5 million compared with $22.5 million in the prior-year quarter.
Non-GAAP gross margin came in at 30.7% compared with 31.6% in the year-ago quarter.
Adjusted EBITDA loss was $33.4 million compared with $10.3 million a year ago.
Cameras with suggested retail prices at or above $400 contributed 76% to revenues in the reported quarter compared with 75% in the prior-year quarter.
Cash Flow & Liquidity
In the quarter under review, GoPro generated $0.6 million of net cash from operating activities against $7.852 million of cash used in the year-earlier quarter.
As of Jun 30, the company had $133 million of cash and cash equivalents with $92.9 million of long-term debt.
Guidance
For the third quarter of 2024, revenues are estimated to be $255 million (+/- $5 million). Non-GAAP adjusted loss is forecasted to be 5 cents per share (+/- 2 cents).
Gross margin is anticipated to be 34% (+/- 50 basis points). Gross margin performance is expected to be driven by new product sales, increasing subscription and service revenues and improving product costs, partly offset by higher promotional activity.
Street ASP is projected to be $300.
GPRO expects a further delay in the launch of a new entry-level camera into 2025 instead of the fourth quarter of 2024. The delay in launch will have a negative impact of $20-$25 million in the fourth quarter of 2024 relative to earlier guidance. The cumulative effect of delayed product launches for 2024 revenues is projected to be $100 million.
As a result, GPRO now expects units to be between 2.6 million and 2.7 million compared with 2.85 million projected earlier. Revenues in 2024 are anticipated to be in the range of $850-$870 million compared with the earlier projection of slightly higher than $900 million.
Apart from the delays, muted consumer spending in the absence of promotional activity, declining camera sales at GoPro.com, global macroeconomic concerns, forex volatility (China and Japan) and increasing competition remain headwinds. The company is on track to launch two new cameras in September 2024, including the new $199 HERO camera.
GoPro currently has a Zacks Rank #4 (Sell). In the past year, shares of GPRO have lost 65.3% compared with the sub-industry’s decline of 8.4%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , SAP SE (SAP - Free Report) and Generac Holdings (GNRC - Free Report) . Badger Meter sports a Zacks Rank #1 (Strong Buy), while SAP and GNRC carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS is pegged at $4.06, which increased 3% in the past 30 days. BMI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%.
BMI reported second-quarter earnings of $1.12 per share, which beat the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter. The figure also surpassed the consensus mark by 7.9%.
The Zacks Consensus Estimate for GNRC’s 2024 earnings is pegged at $6.44, which rose 4.5% in the past seven days. GNRC recently reported second-quarter 2024 results, wherein adjusted EPS of $1.35 beat the Zacks Consensus Estimate of $1.24. It reported adjusted EPS of $1.08 in the prior-year period. Net sales came in at $998 million compared with $1 billion in the prior-year quarter. The figure missed the consensus estimate by 0.5%.
GNRC’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average surprise being 9.75%. The long-term earnings growth rate is 12%.
The Zacks Consensus Estimate for SAP’s 2024 EPS is pegged at $4.75. SAP recently reported second-quarter 2024 results, wherein non-IFRS earnings of €1.10 ($1.18) per share increased 59% from the year-ago quarter’s levels. Total revenues on a non-IFRS basis totaled €8.288 billion ($8,921.3 million), which rose 10% year over year, both at nominal and constant-currencies (cc) basis.
SAP’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, the average surprise being 4%. The long-term earnings growth rate is 10.7%.