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 in Q2 2024 from $17.2M in Q2 2023; adjusted EBITDA was negative $33.4M versus negative $10.3M a year ago.

• Cash and marketable securities remained flat sequentially at $133M as inventory was reduced ahead of new product launches.

• Announced upcoming launches of HERO13 Black and a new $199 entry-level HERO camera in September 2024.

Financial highlights

• Q2 2024 revenue: $186.2M (down 23% YoY), 9% above guidance midpoint, driven by HERO12 Black demand in Europe and North America.

• Gross margin (non-GAAP) for Q2 2024 was 30.7%, down from 31.6% in Q2 2023.

• 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 6% year-over-year.

• GAAP net loss was $48M ($0.31 per share); non-GAAP net loss was $36M ($0.24 per share).

Outlook and guidance

• 2024 unit sales expected at 2.6–2.7M, revenue at $850–$870M, down 15% and 13% year-over-year, respectively.

• Two new cameras launching in September 2024: HERO13 Black and a new $199 entry-level HERO.

• New 360-degree camera launch delayed to 2025, expected to represent 5–10% of 2025 revenue.

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

• Gross margin expected to improve in H2 2024 and into 2025.