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 $7B total addressable market by mid-2027 through entry into adjacent categories and markets.

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

• Retail presence rebuilt to 25,500 stores globally, aiming for up to 30,000 over time.

• 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.

• New products aim to recapture share in core markets and expand into the growing 360 camera segment.

• Adjacent market entry includes tech-enabled motorcycle helmets, leveraging the Forcite acquisition.

• Embedded camera opportunities in products like helmets seen as a significant long-term growth driver.

• Product and channel investments largely completed, supporting future launches without additional OPEX increases.

Financial performance and operational efficiency

• Q1 2025 revenue guidance at $125M with 425,000 units of sell-through; sell-through momentum building.

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

• Channel and internal inventory being reduced to prepare for new product launches and improve efficiency.

• Tariff mitigation through supply chain diversification has nearly eliminated related expenses.

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