GoPro's 2024 Earnings: A Miss, But Not a Total Loss
Generated by AI AgentWesley Park
Saturday, Feb 8, 2025 7:35 am ET1min read
GPRO--
GoPro, Inc. (NASDAQ: GPRO) reported its full-year 2024 earnings on February 6, 2025, with EPS missing expectations. The company's stock price reacted negatively, but is this a cause for concern or an opportunity for investors? Let's dive into the numbers and analyze the situation.
GoPro's 2024 revenue was $801 million, down 20% year-over-year, while its GAAP net loss was $432 million, or $(2.82) per share. The company's subscription and service revenue increased 10% year-over-year to $107 million, driven by an 8% increase in Average Revenue Per User (ARPU) due to improving retention rates. However, the company's GAAP and non-GAAP gross margin improved to 33.8% and 34.1%, respectively, compared to 32.2% and 32.4% in the prior year period.
GoPro's EPS miss can be attributed to several factors, including macroeconomic headwinds, competition, and a delay in the launch of the MAX 2 360 camera. However, the company's focus on operational efficiencies, supply chain diversification, and product roadmap refinement has contributed to improved gross margin and subscription growth. Additionally, GoPro's cash and marketable securities were $103 million at the end of the fourth quarter, indicating a solid financial position.
In conclusion, while GoPro's 2024 earnings missed expectations, the company's focus on operational efficiencies, supply chain diversification, and product roadmap refinement has contributed to improved gross margin and subscription growth. The company's solid financial position and strategic initiatives provide reasons for optimism. Investors should consider the broader context and not be swayed by short-term market fluctuations. As GoPro continues to execute on its strategic plan, it may present an attractive opportunity for long-term investors.
GoPro, Inc. (NASDAQ: GPRO) reported its full-year 2024 earnings on February 6, 2025, with EPS missing expectations. The company's stock price reacted negatively, but is this a cause for concern or an opportunity for investors? Let's dive into the numbers and analyze the situation.
GoPro's 2024 revenue was $801 million, down 20% year-over-year, while its GAAP net loss was $432 million, or $(2.82) per share. The company's subscription and service revenue increased 10% year-over-year to $107 million, driven by an 8% increase in Average Revenue Per User (ARPU) due to improving retention rates. However, the company's GAAP and non-GAAP gross margin improved to 33.8% and 34.1%, respectively, compared to 32.2% and 32.4% in the prior year period.
GoPro's EPS miss can be attributed to several factors, including macroeconomic headwinds, competition, and a delay in the launch of the MAX 2 360 camera. However, the company's focus on operational efficiencies, supply chain diversification, and product roadmap refinement has contributed to improved gross margin and subscription growth. Additionally, GoPro's cash and marketable securities were $103 million at the end of the fourth quarter, indicating a solid financial position.
In conclusion, while GoPro's 2024 earnings missed expectations, the company's focus on operational efficiencies, supply chain diversification, and product roadmap refinement has contributed to improved gross margin and subscription growth. The company's solid financial position and strategic initiatives provide reasons for optimism. Investors should consider the broader context and not be swayed by short-term market fluctuations. As GoPro continues to execute on its strategic plan, it may present an attractive opportunity for long-term investors.
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