GoPro (GPRO) investor relations material

Market overview and growth opportunities

• Action camera market estimated at 3 million units globally, with additional 2 million units in both 360 camera and prosumer low-light camera categories, representing significant TAM expansion opportunities in the coming years.

• Plans to launch Max 2 camera later this year to increase share in the 360 camera market and drive profitability in Q4; entry into the low-light prosumer camera segment expected next year.

• Technology-enabled motorcycle helmets identified as a $3 billion global SAM, with a partnership with AGV to accelerate entry and product authenticity.

• Product roadmap includes more launches beyond those publicly disclosed, aiming for top-line and profitability growth over the next few years.

• International growth will be supported by strategic partnerships to efficiently scale new product programs.

Software, subscription, and product strategy

• Software is increasingly integral, enhancing user experience and driving subscription growth, especially with features like cloud auto-offloading and editing.

• Subscription attach rates have risen from low 40% to 56%, with improved app quality, cloud features, and user engagement contributing to higher retention and usage.

• Hardware, software, and subscription are developed in tandem, with most hardware opportunities now tied to subscription services.

• Retention rates are strong across all camera tiers, with even entry-level models showing 25% attach rates and consistent retention.

• Future software updates in 2026 aim to drive subscriber growth independent of hardware sales, targeting new use cases and industries like real estate and construction.

Innovation, diversification, and AI opportunities

• Focus on building solutions with utility for both consumers and professionals, emphasizing tools over entertainment products.

• Diversification into new categories is balanced between data-driven market opportunities and venture-minded innovation, with rigorous research and partner validation.

• AI model training opportunity emerged from external demand for access to cloud video content, with an opt-in program for subscribers to monetize their content.

• AI training TAM estimated at $1.3 billion and growing 20% annually, with increased content generation expected from new product launches and software offerings.

• The AI initiative is expected to enhance subscriber retention by sharing revenue with users whose content is used for model training.