SAFE HARBOR STATEMENT This presentation may contain projections or other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this presentation include, but are not limited to, our planned 2018 priorities, expectations regarding our business outlook for the calendar year 2018. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the risk that our reduction in operating expenses may impact our ability to meet our business objectives and achieve our revenue targets and may not result in the expected improvement in our profitability; the fact that our future growth depends in part on further penetrating our addressable market and growing internationally, and we may not be successful in doing so; any inability to successfully manage frequent product introductions (including our 2018 roadmap for new hardware and software products and major new software features) and transitions, including managing our sales channel and inventory and accurately forecasting future sales; our reliance on third party suppliers, some of which are sole source suppliers, to provide components for our products; our dependence on sales of our cameras, mounts and accessories for substantially all of our revenue; the effect of a decrease in the sales or change in sales mix of these products; the effect of a decrease in sales during the holiday season; the fact that an economic downturn or economic uncertainty in our key U.S. and international markets may adversely affect consumer discretionary spending and demand for our products; any inability to anticipate consumer preferences and successfully develop and market desirable products; the effects of the highly competitive market in which we operate; the fact that we may not be able to achieve revenue growth or profitability in the future; risks related to inventory, purchase commitments and long-lived assets; the importance of maintaining the value and reputation of our brand; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2016, which is on file with the Securities and Exchange Commission and as supplemented by Item 1A Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2017. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2017, which will be filed with the Securities and Exchange Commission (the “SEC”) and may be obtained for free by visiting EDGAR on the SEC web site at www.sec.gov. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. GoPro disclaims any obligation to update these forward- looking statements. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures, including non-GAAP gross margin, operating expenses, operating income (loss), net income (loss), earnings (loss) per share and adjusted EBITDA. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The non-GAAP financial measures used by GoPro may differ from the non-GAAP financial measures used by other companies. A reconciliation of these measures to the most directly comparable U.S. GAAP measure is included in the Appendix to these slides. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of GoPro.
GOPRO AT A GLANCE ESTABLISHED HQ IN ~29M IPO IN 1 IN 2004 SAN MATEO CAMERAS JUNE 2014 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 2017 Revenue: $1.2 Billion • 2 Sales in >100 Countries; >30,000 Retail Locations • PLUS Subscription Service Had 130,000 Paying Subscribers Worldwide as of Jan. 2018 • Expanded Subscription Benefits of PLUS – At the Same $4.99 Monthly Price – in Jan. 2018 • Fusion, a Waterproof, Mountable 5.2K Spherical Camera, Shipped in Nov. 2017 • Released the Fusion Mobile OverCapture TM Editing Experience for iOS devices in Jan. 2018 • Launched HERO6 Black, the Most Powerful and Convenient GoPro, in Sep. 2017 • HERO6 Black is Powered by GoPro’s Custom-Designed GP1 Processor • Launched QuikStories, a New GoPro App Feature that Automatically Pulls Footage from a HERO5 or HERO6 Camera and Creates a QuikStory on Your Smartphone, in Jul. 2017 • 3 #1 Consumer Electronics Brand on Instagram • 4 Best-Selling Camera in the U.S. for 16 Straight Quarters 1 Cumulative HERO cameras shipped from 2009 through Q4 2017 2 As of 12/31/17 3 As ranked by Instagram followers, as of January 2017 4 Among Digital Image Cameras on a unit basis through Q4 2017, according to NPD
WE HELP THE WORLD SHARE ITSELF IN IMMERSIVE AND EXCITING WAYS 4
GOPRO ECOSYSTEM CAPTURE EDIT + SHARE CLOUD + ACCESS Auto cloud backup and access Versatile capture solutions. Tell your story in one tap. anytime, anywhere. 38M QUIK INSTALLS ~29M CAMERAS SOLD 130K PAYING SUBSCRIBERS SINCE LAUNCH
GOPRO MODEL: A VIRTUOUS CYCLE VIRAL SHARED EXPERIENCES AWARENESS + ADOPTION
ABOUT US what we make WHAT WE MAKE WHAT WE DO what we do Versatile Storytelling Solutions Enable Immersive Sharing
THRIVING GLOBAL BRAND AND COMMUNITY HIGHLY GROWING FOLLOWERS ENGAGED FOLLOWERS 1 LIKES 1 SUBSCRIBERS 1 ~15MM ~11MM 700 MM 93 % ~9MM 35 MM ~8MM ~6MM ~6MM Views of GoPro Increase in median ~4MM content on social organic viewership ~1MM ~1MM ~1MM media in 2017 2 per video in 2017 2013 2015 2017 2013 2015 2017 2013 2015 2017 ~80% CAGR ~15% CAGR ~40% CAGR ~25% YoY Growth ~5% YoY Growth ~ 30% YoY Growth 1 Social media numbers are as of Q4 of each respective year 2 Content published by GoPro
2018 PRIORITIES Strengthen our analytics and understanding of customer behavior to enable 1 better business planning Increase our investment in marketing to grow our brand and attract new 2 customers globally Launch products that broaden GoPro’s appeal at all price points, with 3 greater emphasis on new customers 4 Focus on our ecosystem of camera, app and cloud experiences Expand the value proposition of our subscription offerings to attract new 5 customers and engage our global user base 6 Attract, engage and retain top talent
INDUSTRY LEADING HARDWARE MSRP: $199.99 MSRP: $299.99 MSRP: $399.99
INDUSTRY LEADING HARDWARE 1 : $999.99 MSRP: $699.99 HERO6 Bundle 1,2 : $599.99 MSRP AERIAL. HANDHELD. MOUNTABLE. 360-DEGREE SPHERICAL CAPTURE. MORE THAN A DRONE. 1 US MSRP 2 Camera sold separately
TECHNOLOGY INNOVATOR ROBOTICS + NEW SPHERICAL + SEAMLESS APPS CAMERA TYPES OVERCAPTURE ECOSYSTEM Enabling New Use Next Gen Capture Mobile & Cloud Improved Capture & Cases, Appealing To Leads To Next Gen Automated Storytelling Storytelling New Customers Storytelling TECHNOLOGY FOUNDATION GP1 CUSTOM PROCESSOR ADVANCED IMAGE SCIENCE COMPUTER VISION MACHINE LEARNING AERIAL SPHERICAL VIDEO MOBILE DEVELOPMENT ROBOTICS AUTOMATED STORYTELLING
PLUS SUBSCRIPTION SERVICE Launched Enhanced Experience At Same $4.99 Monthly Price in Jan. 2018 • Camera Replacement • Auto Cloud Backup • Share on the Go • Unlimited Photo Storage • 35 Hours of Video • 20% Off Accessories • VIP Support 14
MARKETING GLOBAL CHANNEL GLOBAL ATHLETES & SOCIAL TOP TIER SOCIAL PRINT ADS RESORTS MARKETING TRADESHOWS OUTDOOR INFLUENCERS EVENTS
STRONG GLOBAL NETWORK OF RETAIL DISTRIBUTION GLOBAL FOOTPRINT 1 >30,000 RETAIL LOCATIONS; >100 COUNTRIES • In Europe, GoPro held 69% and 44% of the BIG BOX MID MARKET SPECIALTY ONLINE RETAIL RETAIL RETAIL Action Camera category by dollar and unit 2 volume, respectively, in 2017 • 2017 unit sales were up 28% YoY in China 2 • 2017 unit sales were up 96% YoY in Japan 2 • GoPro sell-through in Japan has doubled 2 every year since 2015 1 As of 12/31/17 2 According to GfK
GLOBAL POINT OF PURCHASE POINT OF ~29K PURCHASE DISPLAYS GLOBALLY As of 12/31/17
REVENUE & UNITS SHIPPED REVENUE CAMERA UNITS SHIPPED $ in millions Units in millions Annual Quarterly Annual Quarterly 6.6 $1,620 $1,394 5.2 $1,185 4.8 $1,180 4.3 2.28 $541 $335 1.36 2014 2015 2016 2017 4Q16 4Q17 2014 2015 2016 2017 4Q16 4Q17
QUARTERLY TRENDS QUARTERLY REVENUE QUARTERLY NON-GAAP GROSS MARGIN* $ in millions 42% $541 41% 40% 40% 36% $437 33% 32% 30% $335 $330 25% $297 $241 $221 $219 $184 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 * See reconciliation in Appendix.
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