GoPro (GPRO) Oppenheimer 27th Virtual Annual Technology, Internet & Communications Conference summary

Strategic initiatives and product roadmap

• Expanded retail presence to over 24,000 doors globally, with plans to reach 27,000-29,000 by end of 2025.

• Strong retailer reception and increased sell-through, especially in Europe, offsetting macroeconomic headwinds.

• Focus on diversifying product lineup, including upcoming launches of HERO13 Black, a new $199 entry-level HERO, and MAX 2 360 camera in 2025.

• Multi-year plan to broaden product portfolio, inspired by Garmin’s specialization and diversification strategy.

• Commitment to profitability through OpEx reduction while expanding product offerings.

Market and financial outlook

• 2024 outlook impacted by delayed product launches, macroeconomic challenges in China, and currency headwinds.

• 360 camera market expected to grow to 1 million units in 2025; MAX 2 launch anticipated to recoup significant market share.

• Margin improvement expected from re-engineered entry-level HERO, moving from near-zero to above-average margins.

• Subscription business remains a key profit driver, with over 2.5 million subscribers and $125 million in annual recurring revenue.

• Gross margin forecast raised to 35%-36% for the second half of 2024, up from 30%.

Subscription and attach rate trends

• Subscription revenue up 8% year-over-year, with strong retention rates and ARPU growth.

• Attach rates stabilized at 40%-45% across both retail and direct channels; higher attach rates for premium products.

• Premium Plus subscription tier gaining traction, contributing to ARPU growth.

• No subscription price increases planned for 2025; focus remains on value and subscriber growth.

• Entry-level products see 25% attach rate, while higher-end products drive higher subscription uptake.