GoPro (GPRO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $186.2M, exceeding guidance but down 23% year-over-year, with gross margin at 30.7% and non-GAAP EPS loss of $0.24.

• Subscription and service revenue grew 8% year-over-year to $26.3M, with subscribers up 4% to 2.53M and ARPU up 4%.

• Net loss widened to $47.8M GAAP and $36.2M non-GAAP, with adjusted EBITDA at negative $33.4M.

• Over 800 new retail doors were added in Q2, supporting global retail expansion and partnerships.

• 2024 is a transitional year, with lower consumer confidence, increased competition, and executional challenges impacting results.

Financial highlights

• Q2 2024 revenue: $186.2M (down 23% YoY); gross margin: 30.7% non-GAAP, 30.5% GAAP (down from 31.6%/31.4% YoY).

• Subscription and service revenue: $26.3M, up 8% YoY; subscriber base at 2.53M.

• Retail revenue was $137M (74% of total), down 17% YoY; GoPro.com revenue was $49M (26% of total), down 35% YoY.

• Street ASP was $323, down from $342 in Q2 2023; camera units shipped: 576K, down 18% YoY.

• Cash and equivalents at quarter-end: $133M, flat sequentially but down from $271.7M a year ago.

Outlook and guidance

• 2024 revenue expected at $850M–$870M, down 13% YoY; unit sales projected at 2.6–2.7M, down 15%.

• HERO13 Black and a new $199 entry-level HERO camera launching in September 2024; new 360-degree camera launch delayed to 2025.

• 2025 operating expenses targeted at $320M ± $5M, nearly $50M lower than 2024.

• Gross margin expected to improve in H2 2024 and into 2025, supporting return to profitability.

• Management expects sufficient liquidity for at least 12 months, with $133M cash and $44.8M available under credit facility.