On February 6, 2025, GoPro Inc (GPRO, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year ending December 31, 2024. The company, known for its innovative cameras and accessories, reported a challenging year with significant declines in revenue and earnings, yet outlined strategic initiatives aimed at returning to growth and profitability by 2026.
Company Overview
GoPro Inc is a U.S.-based company engaged in designing and providing cameras, mounts, drones, and appliances. The company outsources part of its manufacturing to third parties in China and sells its products globally through direct and indirect sales channels. The Americas contribute over half of the company's total revenue.
Performance and Challenges
For the fourth quarter of 2024, GoPro Inc reported revenue of $201 million, a 32% decrease year-over-year, exceeding the analyst estimate of $196.50 million. The company also reported a GAAP net loss of $37 million, or a $(0.24) loss per share, compared to a net loss of $2 million, or $(0.02) loss per share, in the prior year period. This was below the estimated earnings per share of -$0.13. The decline in revenue was attributed to a 16% decrease in camera unit sell-through and a 34% drop in retail channel revenue.
Financial Achievements
Despite the challenges, GoPro Inc achieved a 10% year-over-year increase in subscription and service revenue, reaching $107 million for 2024. This growth is significant for the hardware industry as it indicates a successful shift towards a more sustainable revenue model through services and subscriptions.
Key Financial Metrics
GoPro Inc's GAAP gross margin improved slightly to 34.7% in Q4 2024 from 34.2% in the prior year period. The non-GAAP gross margin also saw a modest increase to 35.1% from 34.4%. The company's cash and marketable securities stood at $103 million at the end of the fourth quarter, reflecting a decrease from the previous year.
| Metric | Q4 2024 | Q4 2023 | % Change |
|---|---|---|---|
| Revenue | $201 million | $295 million | -32% |
| GAAP Net Loss | $(37) million | $(2) million | 1,438.1% |
| Non-GAAP Net Loss | $(14) million | $4 million | -446.8% |
| GAAP Gross Margin | 34.7% | 34.2% | 50 bps |
| Non-GAAP Gross Margin | 35.1% | 34.4% | 70 bps |
Analysis and Strategic Initiatives
GoPro Inc's performance in 2024 highlights significant challenges, including declining sales and increased losses. However, the company is undertaking strategic initiatives to address these issues. According to Nicholas Woodman, GoPro’s founder and CEO, "In 2024 we undertook several initiatives to put us back on a path to return to growth and profitability in 2026." These initiatives include reducing operating expenses by nearly 30% in 2025 and refining product diversification strategies.
“Our continued focus to streamline our business has yielded reduced product costs and improved operational efficiencies as well as continued diversification of our supply chain outside of China, all of which has contributed to improving gross margin,” said Brian McGee, GoPro’s CFO and COO.
GoPro Inc's efforts to streamline operations and diversify its supply chain are crucial steps towards stabilizing its financial performance and positioning the company for future growth. The focus on subscription and service revenue growth is also a positive indicator of the company's adaptability in a competitive hardware market.
Explore the complete 8-K earnings release (here) from GoPro Inc for further details.
