GoPro's 2024 Results: A Mixed Bag of Challenges and Opportunities

GoPro, Inc. (NASDAQ: GPRO) recently announced its financial results for the fourth quarter and full year ended December 31, 2024, painting a mixed picture of challenges and opportunities. The company's revenue for the quarter was $201 million, down 32% year-over-year, while full-year revenue was $801 million, down 20% year-over-year. Despite these declines, GoPro's gross margin improved to 34.7% and 35.1% on a GAAP and non-GAAP basis, respectively, compared to 34.2% and 34.4% in the prior year period.

GoPro's subscription and service revenue increased 9% year-over-year to $27 million in the fourth quarter, primarily due to 8% ARPU growth from improving retention rates. The company's subscriber count ended the quarter at 2.52 million, up 1% year-over-year. However, revenue from the retail channel was down 34% year-over-year, and GoPro.com revenue, including subscription and service revenue, was down 24% year-over-year.

GoPro's GAAP net loss for the quarter was $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. Non-GAAP net loss was $14 million, or a $(0.09) loss per share, compared to non-GAAP net income of $4 million, or $0.03 per share, in the prior year period. The company's GAAP and non-GAAP gross margin was impacted by 80 basis points due to a stronger US dollar in the quarter.



GoPro's CFO and COO, Brian McGee, attributed the company's improved gross margin to reduced product costs, improved operational efficiencies, and continued diversification of its supply chain outside of China. However, the company's revenue decline and increased net loss raise questions about its ability to execute on its strategic initiatives.

GoPro's founder and CEO, Nicholas Woodman, acknowledged the challenges the company faced in 2024 and emphasized the importance of reducing operating expenses and refining product roadmaps to return to growth and profitability in 2026. The company's plan to reduce operating expenses for 2025 by nearly 30% and refine its roadmap to pursue improved product diversification and more efficient product design will be crucial in achieving this goal.



In conclusion, GoPro's 2024 results were a mixed bag of challenges and opportunities. While the company's gross margin improved, its revenue and net loss declined, raising questions about its ability to execute on its strategic initiatives. GoPro's plan to reduce operating expenses and refine its product roadmap will be critical in returning the company to growth and profitability in 2026. Investors should closely monitor GoPro's progress in implementing these initiatives and addressing the challenges it faces in the coming years.