DHOT60

[dude iligence]

GRPO $13s +$1.45 +12% on financials

GoPro Announces Second Quarter 2016 Results
Date : 07/27/2016 @ 4:10PM

Today : Friday 29 July 2016

Click Here for more GOPRO, INC. Charts.
SAN MATEO, Calif., July 27, 2016 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) announced financial results for its second quarter ended June 30, 2016.

"GoPro is well-positioned for the second half of the year. We now have a simple product line, a clean retail channel and clear indications of strong consumer demand," said GoPro Founder and CEO, Nicholas Woodman. "HERO5 and Karma will contribute to the largest introduction of products in our history, all in time for what we believe will be GoPro's most exciting fourth quarter, ever -- a quarter where we expect to return to profitability."

Recent GoPro Highlights Include

Since the May rebranding of Quik and Splice, these mobile apps have doubled their combined monthly active users to 3.7 million and doubled the amount of shared content each month. Combined, these apps have 37 million cumulative downloads.
The GoPro Mobile App was downloaded 2.6 million times in the second quarter, totaling over 30 million cumulative downloads; Q2 installs of GoPro Studio was 1.5 million, totaling over 17.7 million cumulative installs, with average daily video exports up 15.3% year-over-year to over 43,500.
According to The NPD Group's Retail Tracking Service, GoPro accounted for 6 of the top 10 products, including the top 3 spots, on a unit basis in the digital camera/camcorder category in the U.S. in the second quarter. HERO4 Silver remains the best-selling digital image camera on a unit and dollar basis for the seventh consecutive quarter. By our estimate, Session continues to be the #2 best-selling camera on a unit basis.
According to NPD, GoPro's second quarter combined digital camera/camcorder unit share increased 110 basis points year-over-year to 21.3% in the U.S.
According to GfK, GoPro's second quarter digital imaging unit share in Europe increased 110 basis points year-over-year to 9.4%. GoPro accounted for 4 of the top 5 camcorders in Europe on a unit basis.
Revenue was up 20% to $221 million sequentially, driven by an 8% increase in units shipped to 759,000 and an 11% increase in average selling price. On a year-over-year basis, average selling price increased 14%.
Unit sell-thru was up approximately 10% sequentially and was more than 50% higher than sell-in for the second quarter in a row, resulting in an estimated 35% sequential reduction in channel inventory.
Inventory declined $50 million, or 36%, from the first quarter to $90 million, our lowest inventory level since the second quarter of 2014.
GoPro announced an exclusive partnership with Reliance Digital, India's largest Consumer Electronics retailer, that will put GoPro's cameras, mounts and accessories, on the shelves of up to 1,800 Reliance Digital across India.
GoPro is an official partner of MotoGP, a global race series with a TV audience of 280 million homes and a social following of 15 million. GoPro now sponsors nine-time world-champion MotoGP racer, Valentino Rossi.
GoPro has signed content partnerships to create episodic content with some of the world's most recognized brands including Ford, Wimbledon, and Real Madrid. The first series, produced with Ford Motor Company titled "Unstoppable Life," profiles GoPro athletes who demonstrate the perseverance and determination on their respective life journeys.
GoPro's professional VR camera Odyssey, designed for Google's Jump platform, is being used to capture the Democratic and Republican National Conventions. News organizations including Bloomberg, TIME, The Washington Post, are using Odyssey to shoot the conventions in 360-degree, stereoscopic video.
Launched GoPro Care to U.S. consumers, a fee-based service offering a range of support options, including extended warranty and accidental damage coverage.
Lauren Zalaznick was appointed to GoPro's Board of Directors. A 12-year executive at NBCUniversal, Ms. Zalaznick has devoted her career to transforming the cultural landscape in media, and has been named one of Time's 100 Most Influential People and Fortune's 50 Most Powerful Women.
GoPro entered into a multi-year, global agreement with Red Bull that includes content production, distribution, and cross-promotion through which GoPro will become Red Bull's exclusive provider of point-of-view imaging technology. Content will be distributed across both Red Bull and GoPro's digital distribution networks, including The GoPro Channel, Red Bull TV, RedBull.com and in the Red Bull Content Pool, Red Bull's media service platform.




Three Months Ended June 30,

($ in thousands, except per share amounts)


2016


2015


% Change










Revenue


$

220,755


$

419,919


(47.4)%

Gross margin







GAAP


42.1%


46.3%


(420) bps

Non-GAAP


42.4%


46.4%


(400) bps

Operating income (loss)







GAAP


$

(109,377)


$

46,138


(337.1)%

Non-GAAP


$

(89,298)


$

65,845


(235.6)%

Net income (loss)







GAAP


$

(91,767)


$

35,031


(362.0)%

Non-GAAP


$

(72,595)


$

50,715


(243.1)%

Diluted net income (loss) per share







GAAP


$

(0.66)


$

0.24


(375.0)%

Non-GAAP


$

(0.52)


$

0.35


(248.6)%

Adjusted EBITDA


$

(76,757)


$

75,349


(201.9)%

Business Outlook

GoPro is providing the following guidance:

Revenue between $1.35 billion and $1.5 billion for 2016
GAAP and non-GAAP gross margin of 40% +/- 1% for the second half of 2016
GAAP and non-GAAP net income profitable for the fourth quarter of 2016
Upcoming Events

Management will participate in an investor conference on August 9, 2016. GoPro will furnish a link to the webcast of this event on its investor relations website, http://investor.gopro.com.

Conference Call

GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results.

To listen to the live conference call, please dial toll free [phone] or [phone], access code 4241073, approximately 5 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at http://investor.gopro.com. The webcast will be recorded and the recording will be available on GoPro's website, http://investor.gopro.com, approximately two hours after the call and for 90 days thereafter.