Gopro, Inc. · NASDAQ:GPRO

Gopro — Q3 2020 Earnings Presentation

13 slides from Gopro's earnings presentation, Nov 5, 2020

1. Slide 1: Q3 2020 Preliminary Earnings Results Summary

   Q3 2020 Preliminary Earnings Results Summary November 5, 2020 Confidential information. Copyright © 2019. GoPro, Inc. All rights reserved.

2. 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,” “plan” and variations of these

3. Slide 3: Use of Non-GAAP Metrics

   USE OF NON-GAAP METRICS We report gross margin, operating expenses, operating income (loss), net income (loss) and diluted net income (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis. Additionally, we report non-GAAP adjusted EBITDA. We

4. Slide 4: Quarterly Non-GAAP Income Statement Summary

   QUARTERLY NON-GAAP INCOME STATEMENT SUMMARY ($ in millions, except per share data) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Revenue $ 280.5 $ 134.2 $ 119.4 $ 528.3 $ 131.2 $ 292.4 $ 242.7 $ 377.4 $ 285.9 Camera units shipped (in thousands) 923 448 341 1,857 479 1,082 8

5. Slide 5: Quarterly Revenue Metrics

   QUARTERLY REVENUE METRICS ($ in millions) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Revenue by Channel: $ % of Rev $ % of Rev $ % of Rev $ % of Rev $ % of Rev Gopro.com* $ 81.3 29.0 % $ 59.5 44.3 % $ 25.3 21.2 % $ 61.1 11.6 % $ 23.4 17.8 % Retail 199.2 71.0 74.7 55.7 94.1 78.8 467.2 88.4 107.8 82.2 To

6. Slide 6: Select Balance Sheet Metrics

   SELECT BALANCE SHEET METRICS ($ in millions) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Cash, cash equivalents and marketable securities $ 146.9 $ 79.7 $ 124.9 $ 165.1 $ 79.0 $ 130.1 $ 133.3 $ 197.5 $ 148.2 Days sales outstanding 34 46 38 34 49 45 44 31 47 Inventory $ 13

7. Slide 7: Appendix

   Appendix Speaker/ Date/ Subtitle APPENDIX Confidential information. Copyright © 2019. GoPro, Inc. All rights reserved. Confidential information. Copyright © 2019. GoPro, Inc. All rights reserved.

8. Slide 8: 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

9. Slide 9: 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

10. Slide 10: Appendix: GAAP to Non-GAAP Reconciliations

    APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS ● non-GAAP net income (loss) excludes non-cash interest expense. In connection with the issuance of the Convertible Senior Notes in April 2017, we are required to recognize non-cash interest expense in accordance with the authoritative accounting guidance f

11. Slide 11: Appendix: GAAP to Non-GAAP Reconciliations

    APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS ($ in thousands, except per share data) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 GAAP net income (loss) $ 3,307 $ (50,975) $ (63,528) $ 95,820 $ (74,810) $ (11,287) $ (24,365) $ 31,671 $ (27,089) Stock-based compensation: Cost

12. Slide 12: Appendix: GAAP to Non-GAAP Reconciliations

    APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS ($ in thousands) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 GAAP gross margin 35.4 % 30.3 % 32.2 % 38.2 % 21.7 % 34.9% 33.1% 37.7% 31.8% Stock-based compensation 0.2 0.2 0.4 0.1 0.3 0.2 0.2 0.1 0.2 Acquisition-related costs 0.3

13. Slide 13: Appendix: GAAP to Non-GAAP Reconciliations

    APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS ($ in thousands) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 GAAP net income (loss) $ 3,307 $ (50,975) $ (63,528) $ 95,820 $ (74,810) $ (11,287) $ (24,365) $ 31,671 $ (27,089) Income tax expense (benefit) 1,242 1,069 2,399 (3,928

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