We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GoPro's Loss Narrower Than Expected in Q4, Revenues Down Y/Y
Read MoreHide Full Article
GoPro, Inc (GPRO - Free Report) reported the fourth quarter of 2024 non-GAAP loss per share of 9 cents, narrower than the Zacks Consensus Estimate of a loss of 11 cents. The company reported earnings per share of 3 cents in the year-ago quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
GPRO generated revenues of $201 million, down 32% year over year due to lower camera unit sales. The metric was within the company’s guidance of $200 million (+/- $5 million). The top line beat the consensus mark by 0.9%.
GPRO sold 581,000 camera units in the fourth quarter compared with 895,000 in the prior year quarter.
For 2024, GPRO reported non-GAAP loss per share of $2.42 comapred with non-GAAP net loss 13 cents in 2023. Revenues were $801 million, down 20% year over year, mainly due the delay in launch of MAX2, the new 360-camera. Subscription and service revenues jumped 10% year over year to $107 million in 2024.
However, management continues to expect units and revenue growth in 2025 to be down from 2024, primarily caused by macroeconomic and forex headwinds, competition and the delayed launch of its new 360-degree camera. GPRO continues to expect the launch of a new entry-level camera later in 2025.
Management envisions subscribers at 2025-end to be 2.4 million while subscription and service revenues are expected to be down slightly at $105 million.
Following the announcement, GPRO's shares are down 15.7% in the pre-market session today. . In the past year, shares have lost 58.2% against the Audio-Video Production industry’s growth of 17.2%.
Image Source: Zacks Investment Research
GPRO’s Q4 Results in Details
GoPro shipped 775,000 camera units in the reported quarter, down 16% year over year.
Based on channels, revenues from GoPro.com of $51.3 million (26%) plunged 24% year over year. Our estimate was pegged at $30 million.
In this channel, hardware revenues totaled $24.1 million compared with $42.3 million in the prior-year quarter. Subscription revenues amounted to $27.2 million, up 9% year over year. This uptick was driven by improving retention rates which led to an 8% increase in average revenue per user. Aggregate retention rates reached 69% in the fourth quarter compared with 67% in the year-ago period. GPRO recorded 2.52 million subscribers (including 70,000 Premium+ subscribers), marking 1% year-over-year growth at the end of the quarter under discussion.
Retail channel registered revenues of $150 million (74%), which fell 34% year over year. We estimated the metric to be $168.9 million.
Region-wise, revenues from the Americas totaled $104.3 million (51.9% of total revenues), down 18% from the prior-year levels. Revenues from Europe, the Middle East and Africa of $58.1 million (28.9%) were down 39% year over year. Asia Pacific region generated revenues of $38.5 million (19.2%), down 48% on a year-over-year basis. The company had $120.7 million in inventory compared with $106.3 million in the previous quarter.
GPRO’s Margin Performance
Non-GAAP gross margin was 35.1% compared with 34.4% in the year-ago quarter. Non-GAAP operating loss totaled $16 million compared with operating income of $2 million in the prior-year quarter.
Adjusted EBITDA loss was $14.4 million compared with adjusted EBITDA of $3.3 million a year ago.
Cameras with suggested retail prices at or above $400 contributed 84% to revenues in the reported quarter compared with 74% in the prior-year quarter. Street ASP was $346 compared with $330 reported in the prior year quarter.
GPRO’s Cash Flow & Liquidity
In the quarter under review, GoPro used $25 million of net cash from operating activities compared with $43.7 million of cash generated in the year-earlier quarter.
As of Sept. 30, the company had $103 million of cash and cash equivalents.
GPRO’s Guidance
For the first quarter of 2025, revenues are estimated to be $125 million (+/- $10 million). Non-GAAP adjusted loss is forecasted to be 13 cents per share (+/- 3 cents).
Gross margin is anticipated to be 35% (+/- 50 basis points). Street ASP is expected to be nearly $365, down from $395 in the prior year period.
Operating expenses in the first quarter are forecasted to be $63 million (+/- $2 million), a 24% reduction year over year, due to lower spending on wages, reduced marketing spend and lower non-recurring engineering expenses related to the completion of GP3.
Operating expenses in 2025 are expected to be $250 million to $260 million, down $100 million from 2024, due to a 26% reduction in headcount and other expenses undertaken in 2024. This is likely to boost profitability.
Gross margin is anticipated to improve by more than 100 bps in 2025, due to introduction of new 360-camera, focus on operational efficiencies and expansion of supply chain outside of China.
Dolby Laboratories, Inc (DLB - Free Report) reported first-quarter fiscal 2025 results, with non-GAAP earnings per share (EPS) of $1.14 compared with $1.01 reported in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 6.5%. Strong revenues and higher gross margins were primary growth drivers. Total revenues were $357 million, up from $315.6 million in the year-ago quarter and beat the Zacks Consensus Estimate by 3.1%. This uptick was driven by higher revenues across business segments.
Sonos Inc (SONO - Free Report) reported first-quarter fiscal 2025 non-GAAP earnings per share of 64 cents. It had registered earnings of 84 cents in the prior-year quarter. On a GAAP basis, the company reported earnings of 40 cents per share compared with 64 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at 36 cents per share. Quarterly revenues fell 10.1% year over year to $550.9 million. The figure was within the company’s guided range of $480 million to $560 million. The decline was due to weaker demand caused by market conditions and challenges from its 2024 app rollout. The top line surpassed the Zacks Consensus Estimate by 4.9%.
Skechers U.S.A., Inc. (SKX - Free Report) reported earnings of 65 cents per share, missing the Zacks Consensus Estimate by 12.2%. The company reported earnings of 56 cents in the prior-year quarter. SKX posted revenues of $2.21 billion, up 12.8% year over year. The figure was in line with the Zacks Consensus Estimate.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
GoPro's Loss Narrower Than Expected in Q4, Revenues Down Y/Y
GoPro, Inc (GPRO - Free Report) reported the fourth quarter of 2024 non-GAAP loss per share of 9 cents, narrower than the Zacks Consensus Estimate of a loss of 11 cents. The company reported earnings per share of 3 cents in the year-ago quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
GPRO generated revenues of $201 million, down 32% year over year due to lower camera unit sales. The metric was within the company’s guidance of $200 million (+/- $5 million). The top line beat the consensus mark by 0.9%.
GPRO sold 581,000 camera units in the fourth quarter compared with 895,000 in the prior year quarter.
GoPro, Inc. Price, Consensus and EPS Surprise
GoPro, Inc. price-consensus-eps-surprise-chart | GoPro, Inc. Quote
For 2024, GPRO reported non-GAAP loss per share of $2.42 comapred with non-GAAP net loss 13 cents in 2023. Revenues were $801 million, down 20% year over year, mainly due the delay in launch of MAX2, the new 360-camera. Subscription and service revenues jumped 10% year over year to $107 million in 2024.
However, management continues to expect units and revenue growth in 2025 to be down from 2024, primarily caused by macroeconomic and forex headwinds, competition and the delayed launch of its new 360-degree camera. GPRO continues to expect the launch of a new entry-level camera later in 2025.
Management envisions subscribers at 2025-end to be 2.4 million while subscription and service revenues are expected to be down slightly at $105 million.
Following the announcement, GPRO's shares are down 15.7% in the pre-market session today. . In the past year, shares have lost 58.2% against the Audio-Video Production industry’s growth of 17.2%.
Image Source: Zacks Investment Research
GPRO’s Q4 Results in Details
GoPro shipped 775,000 camera units in the reported quarter, down 16% year over year.
Based on channels, revenues from GoPro.com of $51.3 million (26%) plunged 24% year over year. Our estimate was pegged at $30 million.
In this channel, hardware revenues totaled $24.1 million compared with $42.3 million in the prior-year quarter. Subscription revenues amounted to $27.2 million, up 9% year over year. This uptick was driven by improving retention rates which led to an 8% increase in average revenue per user. Aggregate retention rates reached 69% in the fourth quarter compared with 67% in the year-ago period. GPRO recorded 2.52 million subscribers (including 70,000 Premium+ subscribers), marking 1% year-over-year growth at the end of the quarter under discussion.
Retail channel registered revenues of $150 million (74%), which fell 34% year over year. We estimated the metric to be $168.9 million.
Region-wise, revenues from the Americas totaled $104.3 million (51.9% of total revenues), down 18% from the prior-year levels. Revenues from Europe, the Middle East and Africa of $58.1 million (28.9%) were down 39% year over year. Asia Pacific region generated revenues of $38.5 million (19.2%), down 48% on a year-over-year basis. The company had $120.7 million in inventory compared with $106.3 million in the previous quarter.
GPRO’s Margin Performance
Non-GAAP gross margin was 35.1% compared with 34.4% in the year-ago quarter. Non-GAAP operating loss totaled $16 million compared with operating income of $2 million in the prior-year quarter.
Adjusted EBITDA loss was $14.4 million compared with adjusted EBITDA of $3.3 million a year ago.
Cameras with suggested retail prices at or above $400 contributed 84% to revenues in the reported quarter compared with 74% in the prior-year quarter. Street ASP was $346 compared with $330 reported in the prior year quarter.
GPRO’s Cash Flow & Liquidity
In the quarter under review, GoPro used $25 million of net cash from operating activities compared with $43.7 million of cash generated in the year-earlier quarter.
As of Sept. 30, the company had $103 million of cash and cash equivalents.
GPRO’s Guidance
For the first quarter of 2025, revenues are estimated to be $125 million (+/- $10 million). Non-GAAP adjusted loss is forecasted to be 13 cents per share (+/- 3 cents).
Gross margin is anticipated to be 35% (+/- 50 basis points). Street ASP is expected to be nearly $365, down from $395 in the prior year period.
Operating expenses in the first quarter are forecasted to be $63 million (+/- $2 million), a 24% reduction year over year, due to lower spending on wages, reduced marketing spend and lower non-recurring engineering expenses related to the completion of GP3.
Operating expenses in 2025 are expected to be $250 million to $260 million, down $100 million from 2024, due to a 26% reduction in headcount and other expenses undertaken in 2024. This is likely to boost profitability.
Gross margin is anticipated to improve by more than 100 bps in 2025, due to introduction of new 360-camera, focus on operational efficiencies and expansion of supply chain outside of China.
GPRO’s Zacks Rank
GoPro currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies in Broader Space
Dolby Laboratories, Inc (DLB - Free Report) reported first-quarter fiscal 2025 results, with non-GAAP earnings per share (EPS) of $1.14 compared with $1.01 reported in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 6.5%. Strong revenues and higher gross margins were primary growth drivers. Total revenues were $357 million, up from $315.6 million in the year-ago quarter and beat the Zacks Consensus Estimate by 3.1%. This uptick was driven by higher revenues across business segments.
Sonos Inc (SONO - Free Report) reported first-quarter fiscal 2025 non-GAAP earnings per share of 64 cents. It had registered earnings of 84 cents in the prior-year quarter. On a GAAP basis, the company reported earnings of 40 cents per share compared with 64 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at 36 cents per share. Quarterly revenues fell 10.1% year over year to $550.9 million. The figure was within the company’s guided range of $480 million to $560 million. The decline was due to weaker demand caused by market conditions and challenges from its 2024 app rollout. The top line surpassed the Zacks Consensus Estimate by 4.9%.
Skechers U.S.A., Inc. (SKX - Free Report) reported earnings of 65 cents per share, missing the Zacks Consensus Estimate by 12.2%. The company reported earnings of 56 cents in the prior-year quarter. SKX posted revenues of $2.21 billion, up 12.8% year over year. The figure was in line with the Zacks Consensus Estimate.