GPRO Earning Date, Transcript Summary & Report

Product Launch Success: We hit our marks for revenue, launching new hardware and software products, and are on track to launch exciting new products later this year.

Product Launch and Market Positioning: We launched several new hardware and software products, including an updated 360-degree camera app experience and a refreshed MAX camera, positioning us to recapture share in the 360 market.

Subscription Retention Success: The GoPro subscription continues to be a highlight, with strong aggregate retention numbers above 67% over the past six quarters, and aggregate subscription retention in Q1 set a record at 70%.

Cost Management Success: Operating expenses were down 26% to $62 million from $83 million in Q1 2024, demonstrating effective cost management.

Retail Sales Growth: Revenue from our retail channel was $94 million or 70% of Q1 2025 revenue, compared to 68% of Q1 2024 revenue, indicating growth in retail sales.

Subscription Revenue Growth: Subscription and service revenue grew 4% year-over-year to $27 million, primarily from 5% ARPU growth due to improving aggregate retention rates.

EBITDA Loss Reduction: Adjusted EBITDA loss was reduced by nearly 50% year-over-year to negative $16 million, showing improvement in financial performance.

Inventory Management Success: We ended the quarter with inventory of $96 million, a 27% decrease year-over-year, reflecting effective inventory management.

Positive Revenue Outlook: We expect revenue to be $145 million at the mid-point of guidance for Q2 2025, indicating positive outlook for the next quarter.

Gross Margin Improvement: We expect gross margin in the second quarter to be 35.5%, up nearly 500 basis points versus the prior-year quarter, reflecting improved profitability.

Revenue Decline Analysis: First quarter revenue was $134 million, which was at the high-end of guidance but still represents a decline of 22% year-over-year, indicating a challenging market environment.

Decline in Sell-Through Units: Sell-through was approximately 440,000 units, down from 530,000 units in the prior-year period, primarily due to macroeconomic issues and competition in Asia-Pacific, particularly in China, Japan, and South Korea.

Gross Margin Analysis: Reported gross margin was 32.3% in Q1 2025, which is lower than the expected 35.5% due to a one-time sale that impacted gross margin negatively.

Financial Loss Analysis: GAAP and non-GAAP loss per share was $0.30 and $0.12, respectively, indicating ongoing financial challenges despite some operational improvements.

Revenue Decline Forecast: The company expects revenue in Q2 2025 to be down 22% year-over-year, reflecting continued uncertainty in the macro environment and competitive pressures.

Workforce Reduction Impact: The headcount was down 30% from the prior year, indicating significant workforce reductions that may impact operational capacity and morale.

Tariff Impact on Financials: The expected tariff impact for 2025 is approximately $8 million, which could further strain financial performance despite plans to offset it with price increases.

Future Growth Concerns: The company anticipates that units and revenue in 2025 will be lower than in 2024, primarily due to an uncertain macro environment and competition, which raises concerns about future growth.