GoPro (GPRO) Morgan Stanley Technology, Media & Telecom Conference summary

Strategic transformation and growth outlook

• Focus on a lower-cost operating model to drive profitability and leverage new product launches in 2025 and 2026.

• Targeting expansion from a $1.5B to a $7B total addressable market by mid-2027 through adjacent categories and embedded camera opportunities.

• Platform-based approach and joint development with manufacturing partners to enable sustainable cost reductions.

• Retail presence rebuilt to 25,500 stores globally, aiming for 30,000 over time, supporting broader product launches.

• Commitment to maintaining a lean operating model for ongoing efficiency and growth.

Product innovation and market expansion

• Recent launches include HERO13 Black, a cost-effective HERO, and a refreshed MAX 360 camera, with MAX 2 expected later this year.

• MAX 2 aims to reset the bar in the growing 360 camera market, with strong retailer anticipation.

• Expansion into adjacent markets, such as tech-enabled motorcycle helmets, leverages brand strength and embedded camera technology.

• Product roadmap focuses on leveraging existing platforms for new categories, driving TAM growth.

• Software and subscription enhancements drive engagement and retention, with over 12 million hours of customer content in the cloud.

Financial discipline and operational efficiency

• OPEX to be reduced by about $100M year-over-year, mainly from sales, marketing, and G&A, while maintaining R&D investment.

• Channel and internal inventory reductions are underway to prepare for new product cycles and improve efficiency.

• Supply chain diversification has nearly eliminated tariff expenses, supporting margin improvement.

• Gross margin expected to rise from 34% in 2024 to 35% in 2025, driven by cost reductions and higher-margin subscription revenue.

• Capital structure strengthened by reducing debt to $90M, with plans to pay off remaining convertibles and maintain $50M cash by year-end.