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GoPro Inc (GPRO)
:GPRO
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GoPro
(NASDAQ:GPRO)39Underperform
Positive Factors
Profitability Strategy
GoPro is committed to being profitable in 2025, assuming decent product launches, improved gross margin, and lower operating expenses.
Subscription Revenue Growth
Subscription revenue grew 11% YoY to $28 million, despite a deceleration in net subscription additions as more subscribers signed on a second or third year at a higher price.
Negative Factors
Revenue Guidance
Initial Q4:24 guidance is for revenue of $190 - 210 million, sell-through of 775,000, street ASP of $330, gross margin of 36 – 37%, and non-GAAP EPS of $(0.13) – (0.09), which came in well below Street expectations.
GoPro (GPRO) vs. S&P 500 (SPY)
Market Cap
$115.89M
Dividend YieldN/A
Average Volume (3M)3.69M
Price to Earnings (P/E)―
Beta (1Y)1.82
Revenue Growth-20.29%
EPS Growth-729.53%
CountryUS
Employees930
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-2.85
Shares Outstanding128,502,520
10 Day Avg. Volume2,837,398
30 Day Avg. Volume3,690,702
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.13
Price to Cash Flow (P/CF)-12.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.35Price Target Upside82.43% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering0
GoPro Business Overview & Revenue Model
Company DescriptionGoPro, Inc. (GPRO) is a technology company that specializes in designing and manufacturing high-definition cameras, accessories, and software solutions. The company is best known for its action cameras, which are widely used in extreme-action videography and photography. GoPro's product lineup includes cameras like the HERO series, as well as a range of accessories and mounts that enhance the camera's usability in various environments. Additionally, GoPro offers software and mobile apps that facilitate video editing and sharing, catering to both professional and recreational users.
How the Company Makes MoneyGoPro generates revenue primarily through the sale of its cameras and accessories. The HERO line of action cameras is the main contributor to its revenue, with various models appealing to different customer segments. Beyond hardware sales, GoPro also earns income from its subscription services, which offer cloud storage, camera replacement, and discount benefits to users. These subscriptions provide a recurring revenue stream that complements its hardware sales. The company also explores partnerships and licensing agreements, which help to diversify its income sources. Additionally, GoPro leverages its brand for merchandising opportunities, further contributing to its revenue.
GoPro Financial Statement Overview
Summary
GoPro is facing significant financial challenges, with declining revenue and profitability impacting its income and cash flow statements. The balance sheet shows moderate leverage but insufficient equity to cushion against losses. The company must focus on improving operational efficiency and cash flow management to regain financial stability and growth potential.Income Statement
GoPro's income statement shows a challenging financial year, with significant declines in revenue and profitability. The TTM results indicate a gross profit margin of 34.1%, but a concerning net profit margin of -53.9%. Revenue has decreased significantly from the previous annual period, indicating a decline in demand or competitive pressures. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies or cost pressures. Growth trajectory is negative, posing potential risks.45
Neutral
Balance Sheet
The balance sheet indicates a moderate financial position with a debt-to-equity ratio of 0.81, reflecting a balanced leverage situation. However, the equity ratio is only 27.9%, suggesting potential risks if liabilities grow. Return on Equity is negative, indicating profitability challenges. Overall, the company maintains a level of financial stability but faces risks if profitability does not improve.50
Neutral
Cash Flow
GoPro's cash flow statement reveals negative operating cash flow, highlighting liquidity challenges. The free cash flow growth rate is negative, and both the operating cash flow to net income and free cash flow to net income ratios are unfavorable, indicating struggles in converting revenue into cash. The company needs to address its cash flow issues to sustain operations and growth.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 801.47M | 1.01B | 1.09B | 1.16B | 891.92M | 1.19B | Gross Profit |
| 273.27M | 323.57M | 406.83M | 477.11M | 314.51M | 412.79M | EBIT |
| -128.37M | -75.46M | 38.95M | 113.22M | -36.82M | 159.00K | EBITDA |
| -125.61M | -56.73M | 54.77M | 128.24M | -16.07M | 33.42M | Net Income Common Stockholders |
| -432.31M | -53.18M | 28.85M | 371.17M | -66.78M | -14.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 133.66M | 246.57M | 367.34M | 538.92M | 325.65M | 165.15M | Total Assets |
| 575.75M | 967.95M | 1.08B | 1.26B | 771.40M | 792.80M | Total Debt |
| 126.24M | 128.66M | 184.02M | 286.52M | 279.53M | 220.87M | Net Debt |
| -7.42M | -94.05M | -39.72M | -114.56M | -46.13M | 70.57M | Total Liabilities |
| 350.84M | 412.11M | 465.37M | 643.97M | 555.38M | 559.27M | Stockholders Equity |
| 224.91M | 555.85M | 611.56M | 615.91M | 216.02M | 233.53M |
| Cash Flow | Free Cash Flow | ||||
| -129.18M | -34.38M | 2.30M | 223.61M | 88.90M | -32.79M | Operating Cash Flow |
| -125.14M | -32.86M | 5.75M | 229.15M | 93.78M | -24.44M | Investing Cash Flow |
| 7.65M | 121.90M | -8.39M | -143.72M | 9.51M | 22.77M | Financing Cash Flow |
| -929.00K | -90.38M | -173.27M | -9.89M | 71.98M | -1.04M |
GoPro Technical Analysis
Negative
0.74
Price Trends
0.96
Negative
1.12
Negative
1.26
Negative
Market Momentum
-0.07
Negative
35.79
Neutral
33.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPRO, the sentiment is Negative. The current price of 0.74 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.96, and below the 200-day MA of 1.26, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 35.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GPRO.
GoPro Risk Analysis
GoPro disclosed 47 risk factors in its most recent earnings report. GoPro reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GoPro Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $42.20B | 30.04 | 19.00% | 1.36% | 20.44% | 9.05% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
54 Neutral | $524.06M | ― | -8.57% | ― | -6.49% | -205.13% | |
51 Neutral | $1.53B | ― | -12.95% | ― | -8.74% | -2452.05% | |
48 Neutral | $2.21B | ― | -20.89% | ― | 25.78% | 32.95% | |
39 Underperform | $115.89M | ― | -122.20% | ― | -20.29% | -729.53% |
* Technology Sector Average
Performance Comparison
GPRO
GoPro
0.74
-1.60
-68.38%
GRMN
Garmin
219.34
75.84
52.85%
AMBA
Ambarella
53.07
-2.39
-4.31%
VREX
Varex Imaging
12.81
-4.70
-26.84%
SONO
Sonos
12.88
-6.08
-32.07%
GoPro Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -31.48% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong subscription service performance and successful cost reduction strategies that provide some optimism for future profitability. However, significant challenges remain, including declining unit sales, operating losses, and delays in new product launches, which cast a negative shadow over immediate prospects.Highlights
Record Subscription Retention and ARPU Growth
Subscription and service revenue grew 9% year over year, with ARPU improving 8% year over year. Aggregate subscription retention in Q4 was 69%, up from 67% both sequentially and year over year.
Successful Cost Reduction Initiatives
Operating expenses are expected to be reduced by nearly 30% from 2024, reflecting significant cost-saving measures including lower spending on wages due to reduced headcount and other operational efficiencies.
Expansion in 360-Degree Camera Market
Introduction of a new 360-degree editing experience in the Quick app and the planned launch of Max 2 360 camera later in 2025, positioning GoPro, Inc. as a leader in this growing market.
Lowlights
Decline in Unit Sales and Revenue
Revenue for Q4 2024 was $201 million, and total sell-through was 2.5 million units, down 32% year over year. The outlook for 2025 is a further decline in units and revenue due to macroeconomic headwinds and competition.
Continued Operating Loss
Reported an operating loss of $80 million for 2024, compared to an operating loss of $34 million in 2023.
Challenges with New Product Launches
Delay in the launch of the new Max 2 360 camera, contributing to lower revenue expectations in 2025 and necessitating the reintroduction of the older Max 1 model.
Company Guidance
During the GoPro, Inc. fourth quarter 2024 earnings call, the company provided guidance indicating that they expect revenue in 2025 to be lower than in 2024 due to macroeconomic headwinds, competition, and the delay of their new Max 2 360 camera. Despite these challenges, they anticipate improving gross margins by more than 100 basis points over 2024, driven by product cost efficiencies and supply chain diversification. Operating expenses are projected to decrease nearly 30% from 2024, ranging between $250 million to $260 million. Subscription and service revenue is expected to be approximately $105 million in 2025, with a subscriber count of around 2.4 million. The company aims to maintain a cash position of approximately $50 million by the end of the year, sufficient to fund their plans and repay convertible debt. In the first quarter of 2025, GoPro anticipates revenue of $125 million, a gross margin of 35%, and operating expenses around $63 million. They project a non-GAAP loss per share of $0.15 and expect to reduce channel inventory by 60,000 units sequentially. The company is focused on launching new products and preserving cash to restore growth and profitability by 2026.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.