GoPro (GPRO) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $201 million, down 32% year-over-year, and results were in line or slightly better than guidance due to proactive supply chain management.

• Subscription and service revenue grew 10% to $107 million for 2024, with ARPU up 8% year-over-year and aggregate retention at 69% in Q4.

• GAAP net loss for 2024 was $432 million, or $(2.82) per share, impacted by a $295 million deferred tax asset valuation allowance; non-GAAP net loss was $370 million, or $(2.42) per share.

• Initiatives are underway to reduce 2025 operating expenses by nearly 30% and focus on product diversification, cost efficiency, and profitable returns.

• New entry-level HERO camera, enhanced 360-degree camera offerings, and validation of next-gen GP3 SoC are key product highlights.

Financial highlights

• Q4 2024 revenue was $201 million, with a GAAP net loss of $37 million ($(0.24) per share) and non-GAAP net loss of $14 million ($(0.09) per share).

• 2024 adjusted EBITDA was negative $72 million, compared to negative $27 million in 2023.

• Subscription and service revenue grew 9% year-over-year in Q4, driven by 8% ARPU growth and record 59% aggregate retention.

• Retail revenue was $601 million (75% of total), down 15% year-over-year; GoPro.com revenue was $94 million, down 54%.

• Cash and marketable securities at year-end totaled $103 million, down from $246.6 million at Q4 2023.

Outlook and guidance

• 2025 units and revenue are expected to be lower than 2024 due to macroeconomic headwinds, FX, competition, and MAX 2 delay.

• Q1 2025 revenue guidance is $125 million ± $10 million, down 20% year-over-year, with gross margin expected at 35%.

• Full year 2025 operating expenses expected at $250–$260 million, down nearly 30% year-over-year.

• Subscription and service revenue for 2025 expected at ~$105 million; subscriber count to decline to ~2.4 million.

• Management expects to return to growth and profitability in 2026, focusing on cost reductions and product efficiency.