SAN MATEO, Calif., March 15, 2017 /PRNewswire/ --
- Cuts 2017 Operating Expenses By More Than $200 Million Year over Year
- On Track For New Hardware, Software and International Growth
in 2017
GoPro, Inc. (NASDAQ: GPRO) announced that it affirms 2017 first
quarter revenue to be in the upper end of its previously announced
$190-210 million range and repeated
its target of full-year non-GAAP profitability. The Company
also announced a restructuring that reduces full-year GAAP
operating expenses to below $585
million and non-GAAP operating expenses to below
$495 million without impacting the
Company's roadmap for new hardware and software products.
GoPro will host a conference call with analysts at
2:30 p.m. Pacific Time (5:30 p.m. Eastern Time) today to discuss the
Company's announcements. Webcast details are listed below.
GoPro will release its financial results for its first quarter,
ended March 31, 2017, after the
market closes on April 27, 2017.
"We're determined that GoPro's financial performance match the
strength of our products and brand. Importantly, expense reductions
preserve our product roadmap and we are tracking to full-year
non-GAAP profitability in 2017," said GoPro Founder and CEO,
Nicholas Woodman.
The reduction in operating expenses is achieved with a
combination of cuts to program costs, headcount and open positions,
totaling the elimination of approximately 270 positions.
GoPro estimates that it will incur total aggregate charges of
up to $10 million for the
restructuring, which are primarily cash expenditures related to
severance costs. The Company expects to recognize the restructuring
charges in the first quarter of 2017.
"Today we are updating revenue guidance for the first quarter of
2017. We now expect to deliver revenue in the upper end of our
guidance range of between $190 million and
$210 million," said GoPro Chief Financial Officer,
Brian McGee. "We currently
have no need to draw on our credit facility and we expect to be
EBITDA positive for full-year 2017."
GoPro to Host Analyst Call Today
GoPro management will host a 30-minute Q&A session to
discuss the Company's restructuring activity today, March 15, 2017, at 2:30
p.m. Pacific Time (5:30 p.m. Eastern
Time). A live webcast of the conference call will be
accessible on the "Events & Presentations" section of the
Company's website at http://investor.gopro.com. The webcast will be
recorded and available on GoPro's website,
http://investor.gopro.com, approximately two hours after the call
and for 90 days thereafter.
About GoPro, Inc. (NASDAQ: GPRO)
GoPro, Inc. is transforming the way people capture and share
their lives. What began as an idea to help athletes self-document
themselves engaged in sport, GoPro has become a mobile storytelling
solution that helps the world share itself through immersive
content.
GoPro, HERO, Karma and their respective logos are trademarks or
registered trademarks of GoPro, Inc. in the United States and other countries. All
other trademarks are the property of their respective owners.
For more information, visit www.gopro.com or connect
with GoPro on Facebook, Instagram, LinkedIn,
Pinterest, Twitter, YouTube, and GoPro's The Inside
Line.
Note Regarding Use of Non-GAAP Financial Measures
GoPro provides estimates of future operating expenses, in
accordance with U.S. generally accepted accounting
principles (GAAP) and on a non-GAAP basis. The Company uses
non-GAAP financial measures, including non-GAAP operating expenses,
to evaluate the core operating performance of its business, for
comparison with forecasts and strategic plans and for calculating
return on investment. Non-GAAP financial measures are not in
accordance with, nor serve as an alternative for GAAP. Since
the Company finds non-GAAP financial measures to be useful, it
believes that investors benefit from seeing results reviewed by
management in addition to seeing GAAP results. The Company believes
that non-GAAP financial measures, when read in conjunction with its
GAAP financials, provide useful information to investors by
facilitating:
- the comparability of its on-going operating results over the
periods presented;
- the ability to identify trends in its underlying business;
and
- the comparison of its operating results against analyst
financial models and operating results of other public companies
that supplement their GAAP results with non-GAAP financial
measures.
Explanations of each type of adjustment that the Company
incorporates into non-GAAP operating expenses are presented in our
Annual Report on Form 10-K for the year ended December 31,
2016, which is on file with the Securities and Exchange
Commission. A reconciliation of estimated full-year 2017 GAAP
operating expenses to non-GAAP operating expenses are presented in
the following table:
Reconciliations of non-GAAP financial measures for business
outlook are set forth below:
(in $
thousands)
|
Full-year
2017
|
GAAP Operating
Expenses
|
$582,000
|
Estimated adjustments
for:
|
|
Stock-based
compensation
|
70,000
|
Acquisition-related
costs
|
4,000
|
Restructuring-related
costs (1)
|
13,000
|
Non-GAAP Operating
Expenses
|
$495,000
|
(1)
Includes ~$3 million related to the 4Q 2016
restructuring
|
Note on Forward-looking Statements
This press release may contain projections or other
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements in this press release
include, but are not limited to, expectations regarding our
business outlook for the first quarter of 2017 and calendar year
2017, reduction of operating expenses, our product roadmap,
expected profitability, aggregate charges for employee termination
and the timing to recognize these charges and other costs
associated with the restructuring, including the estimates of
related cash expenditures by the Company in connection with the
restructuring, and the number of employees impacted by the
reduction in workforce. 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 also growing
internationally, and we may not be successful in doing so; any
inability to successfully manage frequent product introductions
(including our 2017 roadmap for new hardware and software products)
and transitions, including managing our sales channel and inventory
and accurately forecasting future sales; 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 would harm our business; 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 risks associated with the entrance into the consumer
drone market and the re-launch of our drone this quarter; 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; difficulty in accurately
predicting our future customer demand; 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. 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.
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SOURCE GoPro, Inc.