GoPro, Inc. · NASDAQ:GPRO
GoPro — Q3 2021 Earnings Presentation
32 slides from GoPro's earnings presentation, Nov 4, 2021
Slide 1: Investor Presentation
Speaker/ Date/ Subtitle Investor Presentation November 4, 2021 Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 2: Safe harbor statement
Safe harbor statement This presentation may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “should,” “will” and variations of these terms or
Slide 3: Our values define and align us
Our values define and align us Make friends Collaborate and include. Strength in numbers. Obsessively serve Put consumer interest first. Harness the power of WOW Exceed expectations. Stay agile Be willing to adapt and commit. Be a HERO Take responsibility. Integrity, always. Confidential information
Slide 4: We help the world capture and share itself in immersive and exciting ways
We help the world capture and share itself in immersive and exciting ways Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 5: We have created a well-established brand
We have created a well-established brand 41M+ GOPRO CAMERAS SOLD2 ACTIVE PAYING GOPRO # 1 3.5B+ GOPRO’S YOUTUBE CHANNEL SUBSCRIBERS3 47M+ SOCIAL FOLLOWERS ACROSS HERO9 BLACK BEST-SELLING CAMERA IN THE U.S. CAMCORDER LIFETIME VIEWS2 ALL PLATFORMS3 MARKET1 10M+ 10M+ 21M+ YOUTUBE SUBSCRIBERS3 FACEBOOK
Slide 6: Executing on new strategy
Executing on new strategy < 2019 GoPro 2020 GoPro GoPro 2021+ Hardware Only Hardware + Subscription Hardware + Subscription + App Monetization Retail >90% Retail 68% / DTC 32% DTC >40% and Growing as a Percentage of Mix Low 30% Gross Margin1 36% Gross Margin 40% to 43% Gross Margin Target 1 As of 20
Slide 7: Our Products
Our Products Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 8: A seamless product ecosystem + virtual cloud infrastructure
A seamless product ecosystem + virtual cloud infrastructure1 1 Hosted by AWS Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 9: A technology innovator
A technology innovator CAPTURE INNOVATION AUTOMATED GOPRO APP HYPERSMOOTH 4.0 STORYTELLING Next Gen Capture Leads Quik, Mobile & Cloud Visual & Audio Syncing To Next Gen Sharing Storage Capabilities Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 10: Versatile Storytelling Solutions Immersive Sharing
WE MAKE WE ENABLE Versatile Storytelling Solutions Immersive Sharing Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 11: Best-in-class cameras
Best-in-class cameras 2 1Camera with 1 year subscription available only at GoPro.com. 2Battery temperature of 14F / -10C to improve cold performance . Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 12: Compelling GoPro.com subscription service offering
Compelling GoPro.com subscription service offering $49.99 / year >1.34M Subscribers1 2 • Up to $100 off a new GoPro • Unlimited cloud backup + auto 3 uploads • Up to 50% off @ GoPro.com • No questions asked damage 4 replacement 5 • Full access to the Quik app • Share on the Go 1 as of September 30,
Slide 13: Versatile Quik mobile app subscription
Versatile Quik mobile app subscription $9.99 / year >168k Paid subscribers1 ▪ Import photos and videos from your phone, GoPro, or other camera ▪ Unlimited cloud backup at original quality ▪ Mural automatic video creation Powerful, simple editing tools • Video speed • GoPro-exclusive filters • Premiu
Slide 14: Marketing & Distribution
Speaker/ Date/ Subtitle Marketing & Distribution Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 15: Multi-channel marketing strategy
Multi-channel marketing strategy GLOBAL CHANNEL ATHLETES & SOCIAL SOCIAL ONLINE ADS RESORTS MARKETING VLOG INFLUENCERS TOP TIER EVENTS Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 16: Robust global sales channel
Robust global sales channel GoPro.com: ~35% of Retail: ~65% of 3Q21 YTD Revenue 3Q21 YTD Revenue GOPRO.COM OTHER ONLINE BIG BOX MID MARKET DISTRIBUTOR 1 >100 Countries 1 ~22k Point of Purchase Displays 1 As of 9/30/21 Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 17: Recent ESG initiatives
Recent ESG initiatives1 • Signed the “In Solidarity Project’s Outdoor CEO Diversity Pledge” expressing GoPro’s commitment to creating a more inclusive and diverse GoPro and to increase our positive social impact. The Pledge provides a framework to help us establish meaningful goals and hold ourselve
Slide 18: Financial Highlights
Speaker/ Date/ Subtitle Financial Highlights Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 19: Improving profitability
Improving profitability TTM Revenue ($M) TTM Non-GAAP Net Income / (Loss) ($M) 1 160 141 1,195 140 1,128 117 1,071 1,062 1,092 120 1,044 976 100 913 892 80 67 60 54 40 35 20 13 0 (4) (20) (25) (40) (38) (60) 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 1
Slide 20: Improving profitability
Improving profitability Revenue ($M) Adjusted EBITDA ($M) Quarterly Quarterly 72 1,195 60 1,185 1,180 1,148 43 39 22 892 (31) 317 281 (193) 2016 2017 2018 2019 2020 3Q20 3Q21 2016 2017 2018 2019 2020 3Q20 3Q21 Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 21: Higher ASP camera mix
Higher ASP camera mix Quarterly 42% 57% 70% 67% 74% 90% 58% 43% 30% 33% 26% 10% 2017 2018 2019 2020 3Q 2020 3Q 2021 < $300 MSRP > $300 MSRP 1Sell-through ASP/unit Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 22: Growing revenue and gross margins
Growing revenue and gross margins Revenue ($M) & GM% 45% Growing higher margin revenue streams 358 • Direct-to-consumer (DTC), up 16% YoY 317 40% • Subscription, up 134% YoY, with 70%-80% 281 gross margins 250 35% • Mix favors higher ASP cameras 204 30% 134 25% 20% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Reta
Slide 23: Robust subscriber growth
Robust subscriber growth GoPro.com subscribers / Revenue1 ($M) 1,400 168% YoY Subscriber Growth 16 • Subscription revenue up 142% YoY 14 • Subscriber count up 168% YoY 1,200 • GoPro.com subs attach rate >90% 12 1,000 10 $M Revenue 800 8 Count 600 6 400 4 200 2 0 0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Slide 24: Delivering strong cash flow
Delivering strong cash flow Cash & Investments, Net of Debt ($M) 110 • Solid operational performance drives growth 59 • Up $138M, net of debt YoY 50 • Expect cash available to settle $125M 28 convert due Q222 • $166M TTM FCF, or 15% of revenue (10) (28) (50) (96) (95) 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1
Slide 25: Appendix
Speaker/ Date/ Subtitle Appendix Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 26: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross margin, operating expenses, operating income (loss), net income (loss), diluted net inco
Slide 27: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ● adjusted EBITDA excludes the amortization of point of purchase (POP) display assets because it is a non-cash charge, and is treated similarly to depreciation of property and equipment and amortization of acquired intangible assets; ● adjusted EBITDA and n
Slide 28: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ● non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party tran
Slide 29: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 30: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
Slide 31: Appendix: GAAP to non-GAAP reconciliations
Appendix: GAAP to non-GAAP reconciliations ($ in thousands) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 GAAP net income (loss) $ 311,761 $ 16,952 $ (10,168) $ 44,413 $ 3,307 $ (50,975) $ (63,528) $ 95,820 $ (74,810) Income tax expense (benefit) (270,228) (11,670) 1,219 11
Slide 32: Thank you.
Thank you. Speaker/ Date/ Subtitle Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.