How did GPRO's Q4 earnings surprise investors?

GoPro's Q4 earnings report reflected strategic adjustments and resilience amid challenging market conditions, leading to mixed outcomes for investors.

1. **Revenue and Subscription Growth**: GoPro reported revenue of $201 million for Q4 2024, in line with guidance, and a 9% year-over-year growth in subscription and service revenue. This indicates a stable business segment, which is positive for investors looking for consistent revenue streams.
2. **Earnings Performance**: The company reported a GAAP net loss per share of $0.24 and a non-GAAP net loss per share of $0.09 for Q4 2024. The non-GAAP loss exceeded guidance, which might have disappointed investors expecting better profitability. However, the GAAP net loss was higher than expected, indicating operational challenges.

3. **Retention Rate and Product Focus**: GoPro achieved a record aggregate retention rate of 59% in Q4 2024, suggesting strong customer loyalty and potential for recurring revenue. The company's strategic focus on product launches, such as the MAX2, and cost reductions for 2025 may signal a forward-looking positive trajectory.
4. **Market Reaction and Outlook**: The mixed outlook from the earnings call, where CEO Nicholas Woodman highlighted in-line or better-than-guidance Q4 results, proactive supply chain strategies, and a focus on a broader product offering provides some optimism for future performance. However, the wider-than-expected loss per share may lead to concerns among investors.

In conclusion, while GoPro's Q4 earnings showed resilience in revenue growth and strategic adjustments, the negative surprise in earnings per share and the wider-than-expected net loss may have overshadowed the positive aspects for investors. The company's strategic initiatives and stable revenue segments offer hope for future performance, but the immediate reaction to the earnings report is likely to be tempered by the financial losses.