GoPro, Inc. · NASDAQ:GPRO
GoPro — Q3 2015 Earnings Presentation
15 slides from GoPro's earnings presentation, Oct 28, 2015
Slide 1: Q3 2015 Preliminary Earnings Results Summary
October 28, 2015 Q3 2015 Preliminary Earnings Results Summary
Slide 2: Safe Harbor Statement
Safe Harbor Statement Some of the information in this presentation may contain projections or other forward-looking statements regarding future events. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause a
Slide 3: Q3 2015 Selected Highlights
Q3 2015 Selected Highlights • Revenue increased 43.0% year-over-year to $400.3 million • Combined EMEA and APAC sales up over 175% year-over-year • Shipped 1.6 million capture devices in Q3'15, up 46% year-over-year; 17.9 million cumulative devices shipped • Gross margin of 46.8% increased 230 bps y
Slide 4: Use of Non-GAAP Metrics
Use of Non-GAAP Metrics We report gross profit, operating expenses, operating income, net income and diluted net income per share in accordance with U.S. generally accepted accounting principles (GAAP) and additionally on a non-GAAP basis. Non-GAAP net income excludes, where applicable, the effects
Slide 5: Q3 2015 Actuals vs. Guidance
Q3 2015 Actuals vs. Guidance Actuals Guidance Actuals vs. ($ in millions, except EPS) Q3 2015 Q3 2015 Guidance Comments Revenue $400.3 $430.0 - $445.0 Below range Sales of new capture devices lighter than anticipated; reflects $19M charge for HERO4 Session price protection and MDF accruals Gross mar
Slide 6: Quarterly Non-GAAP Income Statement Summary
Quarterly Non-GAAP Income Statement Summary Q3 2015 vs. Q2 2015 Q3 2015 vs. Q3 2014 ($ in millions, except EPS) Q3 2015 Q2 2015 Q3 2014 $ Change % Change $ Change % Change Revenue $ 400.3 $ 419.9 $ 280.0 $ (19.6) (4.7)% $ 120.3 43.0% Gross margin* 46.8% 46.4% 44.5% 40 bps 230 bps Operating expenses*
Slide 7: Year-to-Date Non-GAAP Income Statement Summary
Year-to-Date Non-GAAP Income Statement Summary YTD 2015 vs. YTD 2014 ($ in millions, except EPS) YTD 2015 YTD 2014 $ Change % Change Revenue $ 1,183.4 $ 760.3 $ 423.1 55.6% Gross margin* 46.2% 42.7% 350 bps Operating expenses* $ 384.1 $ 258.3 $ 125.8 48.7% Operating income* $ 162.4 $ 66.3 $ 96.1 144
Slide 8: Quarterly Revenue Metrics
Quarterly Revenue Metrics ($ in millions) Q3 2015 Q2 2015 Q3 2014 Revenue by Channel: $ % of Rev $ % of Rev $ % of Rev Direct $ 190.8 47.7% $ 197.8 47.1% $ 187.2 66.9% Distribution 209.5 52.3 222.1 52.9% 92.8 33.1 Total Revenue $ 400.3 100.0% $ 419.9 100.0% $ 280.0 100.0% Revenue by Geography: $ % o
Slide 9: Other Quarterly Metrics
Other Quarterly Metrics Q3 2015 vs. Q2 2015 Q3 2015 vs. Q3 2014 ($ in millions, units shipped in thousands) Q3 2015 Q2 2015 Q3 2014 Change % Change Change % Change Units shipped (1) 1,593 1,647 1,089 (54) (3.3)% 504 46.3% Adjusted EBITDA (2) $ 56.7 $ 75.3 $ 36.2 (18.6) (24.7)% 20.5 56.8% Headcount 1
Slide 10: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics Q3 2015 vs. Q2 2015 Q3 2015 vs. Q3 2014 ($ in millions) Q3 2015 Q2 2015 Q3 2014 Change % Change Change % Change Cash, cash equivalents and marketable securities $ 513.1 $ 517.0 $ 237.7 $ (3.9) (0.8)% $ 275.4 115.8% Cash flow from operations $ 4.6 $ 65.9 $ 47.0 $ (61.3)
Slide 11: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation 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 profit, operating expenses, operating income, net income, earnings per share and adjusted
Slide 12: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures: ● Stock-based compensation expense relates to equity awards granted primarily to our workforce. We exclude stock-based compensation expense becaus
Slide 13: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation Three months ended Nine months ended September 30, September 30, September 30, September 30, (in thousands, except per share data) 2015 2014 2015 2014 GAAP net income $ 18,799 $ 14,620 $ 70,582 $ 5,828 Stock-based compensation: Cost of revenue 410 233 1,043
Slide 14: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation Three months ended Nine months ended September 30, June 30, September 30, September 30, September 30, ($ in thousands) 2015 2015 2014 2015 2014 GAAP gross profit $ 186,630 $ 194,340 $ 124,039 $ 544,703 $ 323,422 Stock-based compensation 410 350 233 1,043 555
Slide 15: Appendix: Adjusted EBITDA Reconciliation
Appendix: Adjusted EBITDA Reconciliation Three months ended Nine months ended September 30, September 30, September 30, September 30, (in thousands) 2015 2014 2015 2014 GAAP net income $ 18,799 $ 14,620 $ 70,582 $ 5,828 Income tax expense (benefit) 8,474 (2,947) 22,975 2,574 Interest expense, net 14