GoPro, Inc. - FORM 8-K - EX-99..1 - EXHIBIT 99..1 - August 3, 2017

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EXHIBIT 99.1

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GoPro Announces Second Quarter 2017 Results
Revenue Up 34% YoY; Positive Adjusted EBITDA
Camera Sell-Thru Up 18% Sequentially
HERO6 and Fusion Cameras On Track for 2017
Karma #2 Selling Drone Brand in U.S.
QuikStories Positions GoPro as a Powerful Extension of the Smartphone

SAN MATEO, Calif., Aug. 3, 2017

GoPro, Inc. (NASDAQ: GPRO) announced financial results for its second quarter ended June 30, 2017.
"GoPro is building momentum,” said Founder and CEO Nicholas Woodman. “Strong demand combined with our cost management and margin initiatives contributed to GoPro’s EBITDA positive performance in the second quarter. HERO6 and Fusion, our 5.2K spherical camera, are on course to launch later this year and we continue to track toward our goal of full-year, non-GAAP profitability in 2017.”

Recent GoPro Highlights:
•
QuikStories launched on July 27. The new GoPro app feature automatically pulls footage from a HERO5 camera and creates ready-to-share videos on your phone. QuikStories are polished, shareable videos featuring customizable music, filters, and effects. “We believe QuikStories is a game changer - it represents our biggest leap forward in ease-of-use since the invention of the GoPro, itself,” said Founder and CEO Nicholas Woodman.
•
Second Quarter revenue was $297 million, up 34% year-over-year and 36% quarter-over-quarter. Adjusted EBITDA was $5.1 million.
•
Sharp focus on inventory and channel management resulted in a 39% reduction in inventory quarter-over-quarter; forward weeks of supply in the channel is down 25%. Both position us well for upcoming product launches.
•
Global sell-thru of cameras increased 18% sequentially. Additionally, camera sell-thru above $300 was up 13% year-over-year, including 7% in EMEA and 194% in Japan. According to GfK, camera unit sales in Japan are up 164% and dollar sales are up 147% year-over-year in the second quarter.
•
HERO5 Black was the best-selling digital image camera in the U.S. in the second quarter, according to The NPD Group’s Retail Tracking Service.
•
More than 50% of GoPro’s revenue was generated in markets outside of the U.S. in the second quarter.
•
Demand for GoPro was high on Amazon Prime Day (July 11). A HERO Session bundle sold more than ten-times the weekly run-rate; HERO5 Black was offered with no discount and moved the equivalent of a full week of normal sell-thru in just one day.
•
The Quik mobile video editing app was installed 5.6 million times in the second quarter, a year-over-year increase of 84%.  Second quarter monthly active users were up 112% year-over-year.  China represents Quik’s second largest user base globally.  Capture App (now the GoPro App) total monthly shares in the second quarter were up over 30% year-over-year. 




•
GoPro gained 1.6 million new social media followers in the second quarter.  Instagram followers were up 39% year-over-year to 13.7 million in the second quarter, with a 94% increase in international followers.  Facebook video views of GoPro content reached 58.3 million in the first half of 2017, up almost 60% year-over-year. YouTube videos of GoPro content in the first half of 2017 have seen a 65% increase in median organic viewership per video year-over-year.
•
GoPro was honored with the prestigious Red Dot design award, taking Best-of-the-Best in Product Design for both Karma and HERO5 Black.
•
GoPro’s drone, Karma, was the #2 selling drone brand in the U.S. in the second quarter, according to the NPD Group’s Retail Tracking Service.

Results Summary:
 
 
Three Months Ended June 30,
($ in thousands, except per share amounts)
 
2017
 
2016
 
% Change
 
 
 
 
 
 
 
Revenue
 
$
296,526

 
$
220,755

 
34.3
 %
Gross margin
 
 
 
 
 
 
GAAP
 
35.6
%
 
42.1
%
 
(650) bps

Non-GAAP
 
36.2
%
 
42.4
%
 
(620) bps

Operating loss
 
 
 
 
 
 
GAAP
 
$
(24,983
)
 
$
(109,377
)
 
(77.2
)%
Non-GAAP
 
$
(9,250
)
 
$
(89,298
)
 
(89.6
)%
Net loss
 
 
 
 
 
 
GAAP
 
$
(30,536
)
 
$
(91,767
)
 
(66.7
)%
Non-GAAP
 
$
(12,914
)
 
$
(72,595
)
 
(82.2
)%
Diluted net loss per share
 
 
 
 
 
 
GAAP
 
$
(0.22
)
 
$
(0.66
)
 
(66.7
)%
Non-GAAP
 
$
(0.09
)
 
$
(0.52
)
 
(82.7
)%
Adjusted EBITDA
 
$
5,120

 
$
(76,757
)
 
(106.7
)%
Business Outlook
GoPro is providing the following guidance:
•
Third Quarter 2017
•
Revenue of $300 million +/- $10 million
•
GAAP and non-GAAP gross margin to be 37% +/- 1%
•
GAAP operating expenses of between $131 million and $133 million
•
Non-GAAP operating expenses of between $115 million and $117 million
•
GAAP EPS to be $(0.24) +/- $0.05
•
Non-GAAP EPS to be $(0.06) +/- $0.05
•
2017
•
GAAP operating expenses below $570 million
•
Non-GAAP operating expenses below $495 million





Upcoming Event
Management will participate in an investor conference on September 7, 2017 in New York. GoPro will furnish a link to the webcast of this event on its investor relations website, http://investor.gopro.com.
Conference Call
GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results.
To listen to the live conference call, please dial toll free (877) 681-3376 or (719) 325-2452, access code 7396825, approximately 5 minutes prior to the start of the call. 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 the recording will be 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 makes it easy for people to celebrate and share experiences. We believe life is more meaningful when shared.  We build cameras, software and accessories that help the world share itself in immersive and exciting ways.
GoPro, HERO, Karma, Quik, QuikStories 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.
For more information, visit www.gopro.com or connect with GoPro on Facebook, Instagram, LinkedIn, Pinterest, Twitter, YouTube, and GoPro’s The Inside Line.
GoPro’s Use of Social Media
GoPro announces material financial information using the Company’s investor relations website, SEC filings, press releases, public conference calls and webcasts. GoPro may also use social media channels to communicate about the Company, its brand and other matters; these communications could be deemed material information. Investors and others are encouraged to review posts on GoPro’s pages on Facebook, Instagram, LinkedIn, Pinterest, Twitter, YouTube, GoPro's investor relations website and The Inside Line.
Note Regarding Use of Non-GAAP Financial Measures
GoPro reports gross profit, gross margin, operating expenses, operating income (loss), net income (loss) and diluted net income (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis. Additionally, GoPro reports non-GAAP adjusted EBITDA. Non-GAAP items exclude, where applicable, the effects of stock-based compensation, acquisition-related costs, restructuring costs, non-cash interest expense and the tax impact of these items. A reconciliation of preliminary GAAP financial measures to non-GAAP financial measures, as well as a description of items excluded from the calculation of non-GAAP financial measures, is presented in the financial statement portion of this release. GoPro also provides future estimated ranges of revenue, gross margin, operating expenses on a GAAP and non-GAAP basis and Adjusted EBITDA.
Note on Forward-looking Statements
This press release may contain projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements in this press release include, but are not limited to, expectations regarding our business outlook for the third quarter of 2017 and calendar year 2017. 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 including 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 risks associated with the entrance into the consumer drone market and the re-launch of our drone in February 2017; 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 and as supplemented by Item 1A Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2017. 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.





GoPro, Inc.
Preliminary Condensed Consolidated Statement of Operations
(unaudited)

 
Three months ended
 
Six months ended
(in thousands, except per share data)
June 30, 2017
 
June 30, 2016
 
June 30, 2017
 
June 30, 2016
 
 
 
 
 
 
 
 
Revenue
$
296,526

 
$
220,755

 
$
515,140

 
$
404,291

Cost of revenue
190,894

 
127,753

 
340,942

 
251,575

Gross profit
105,632

 
93,002

 
174,198

 
152,716

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Research and development
55,497

 
93,049

 
121,663

 
170,028

Sales and marketing
56,678

 
84,888

 
124,534

 
164,337

General and administrative
18,440

 
24,442

 
41,199

 
49,163

Total operating expenses
130,615

 
202,379

 
287,396

 
383,528

Operating loss
(24,983
)
 
(109,377
)
 
(113,198
)
 
(230,812
)
Other income (expense):
 
 
 
 
 
 
 
Interest expense
(3,784
)
 
(516
)
 
(4,598
)
 
(659
)
Other income, net
222

 
1,176

 
383

 
1,012

Total other income (expense), net
(3,562
)
 
660

 
(4,215
)
 
353

Loss before income taxes
(28,545
)
 
(108,717
)
 
(117,413
)
 
(230,459
)
Income tax expense (benefit)
1,991

 
(16,950
)
 
24,273

 
(31,233
)
Net loss
$
(30,536
)
 
$
(91,767
)
 
$
(141,686
)
 
$
(199,226
)
 
 
 
 
 
 
 
 
Net loss per share:
 
 
 
 
 
 
 
Basic
$
(0.22
)
 
$
(0.66
)
 
$
(1.02
)
 
$
(1.44
)
Diluted
$
(0.22
)
 
$
(0.66
)
 
$
(1.02
)
 
$
(1.44
)
 
 
 
 
 
 
 
 
Weighted-average shares used to compute net loss per share:
 
 
 
 
 
 
 
Basic
136,288

 
138,942

 
139,575

 
138,243

Diluted
136,288

 
138,942

 
139,575

 
138,243






GoPro, Inc.
Preliminary Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
June 30,
2017
 
December 31,
2016
 
 
 
 
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
149,755

 
$
192,114

Marketable securities
—

 
25,839

Accounts receivable, net
95,872

 
164,553

Inventory
126,708

 
167,192

Prepaid expenses and other current assets
29,515

 
38,115

Total current assets
401,850

 
587,813

Property and equipment, net
71,833

 
76,509

Intangible assets, net and goodwill
175,460

 
179,989

Other long-term assets
72,828

 
78,329

Total assets
$
721,971

 
$
922,640

 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
76,208

 
$
205,028

Accrued liabilities
151,317

 
211,323

Deferred revenue
15,036

 
14,388

Total current liabilities
242,561

 
430,739

Long-term debt
125,817

 
—

Other long-term liabilities
40,771

 
44,956

Total liabilities
409,149

 
475,695

 
 
 
 
Stockholders’ equity:
 
 
 
Common stock and additional paid-in capital
827,382

 
757,226

Treasury stock, at cost
(113,613
)
 
(35,613
)
Accumulated deficit
(400,947
)
 
(274,668
)
Total stockholders’ equity
312,822

 
446,945

Total liabilities and stockholders’ equity
$
721,971

 
$
922,640







GoPro, Inc.
Preliminary Condensed Consolidated Statement of Cash Flows
(unaudited)
 
Three months ended
 
Six months ended
(in thousands)
June 30, 2017
 
June 30, 2016
 
June 30, 2017
 
June 30, 2016
Operating activities:
 
 
 
 
 
 
 
Net loss
$
(30,536
)
 
$
(91,767
)
 
$
(141,686
)
 
$
(199,226
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
11,467

 
9,482

 
23,160

 
17,804

Stock-based compensation
11,235

 
17,404

 
24,360

 
33,135

Excess tax benefit from stock-based compensation
—

 
(227
)
 
—

 
(917
)
Deferred income taxes
156

 
(3,166
)
 
(1,894
)
 
(13,494
)
Non-cash restructuring charges
1,834

 
—

 
2,800

 
—

Non-cash interest expense
1,530

 
—

 
1,530

 
—

Other
2,133

 
397

 
3,763

 
1,162

Net changes in operating assets and liabilities
(9,247
)
 
22,417

 
(61,399
)
 
82,811

Net cash used in operating activities
(11,428
)
 
(45,460
)
 
(149,366
)
 
(78,725
)
 
 
 
 
 
 
 
 
Investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment, net
(4,946
)
 
(3,973
)
 
(10,112
)
 
(12,192
)
Maturities of marketable securities
—

 
19,279

 
14,160

 
71,302

Sale of marketable securities
—

 
4,585

 
11,623

 
6,791

Acquisitions, net of cash acquired
—

 
(59,313
)
 
—

 
(104,353
)
Net cash provided by (used in) investing activities
(4,946
)
 
(39,422
)
 
15,671

 
(38,452
)
 
 
 
 
 
 
 
 
Financing activities:
 
 
 
 
 
 
 
Proceeds from issuance of common stock
591

 
620

 
6,629

 
5,265

Taxes paid related to net share settlement of equity awards
(1,927
)
 
(318
)
 
(8,210
)
 
(860
)
Proceeds from issuance of convertible senior notes
175,000

 
—

 
175,000

 
—

Prepayment of forward stock repurchase transaction
(78,000
)
 
—

 
(78,000
)
 
—

Excess tax benefit from stock-based compensation
—

 
227

 
—

 
917

Payment of deferred acquisition-related consideration
—

 
(594
)
 
(75
)
 
(950
)
Payment of debt issuance costs
(5,250
)
 
(136
)
 
(5,250
)
 
(3,221
)
Net cash provided by (used in) financing activities
90,414

 
(201
)
 
90,094

 
1,151

Effect of exchange rate changes on cash and cash equivalents
838

 
(122
)
 
1,242

 
(134
)
Net increase (decrease) in cash and cash equivalents
74,878

 
(85,205
)
 
(42,359
)
 
(116,160
)
Cash and cash equivalents at beginning of period
74,877

 
248,717

 
192,114

 
279,672

Cash and cash equivalents at end of period
$
149,755

 
$
163,512

 
$
149,755

 
$
163,512





GoPro, Inc.
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures
To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross profit, gross margin, operating expenses, operating income (loss), net income (loss), earnings (loss) per share and adjusted EBITDA. We also provide forecasts of non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss) and non-GAAP diluted earnings per share. These non-GAAP measures are not in accordance with, nor serve as an alternative for GAAP. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our GAAP results of operations. These non-GAAP measures should only be viewed in conjunction with corresponding GAAP measures.
In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis. The excluded items represent stock-based compensation and other charges that we do not consider to be directly related to core operating performance. We use non-GAAP measures to evaluate the core operating performance of our business, for comparison with forecasts and strategic plans and for calculating return on investment. In addition, management’s incentive compensation is determined using non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating:
•
the comparability of our on-going operating results over the periods presented;
•
the ability to identify trends in our underlying business; and
•
the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures.
The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:
•
Stock-based compensation expense relates to equity awards granted primarily to our workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These non-cash charges are not factored into our internal evaluation of net income (loss) as we believe their inclusion would hinder our ability to assess core operational performance. We believe that excluding this expense provides greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry.
•
Acquisition-related costs include the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party transaction costs incurred for legal and other professional services. These costs are not factored into our evaluation of potential acquisitions, or of our performance after completion of the acquisitions, because these costs are not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such costs are inconsistent and vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses being acquired.
•
Restructuring costs primarily include severance-related costs, stock-based compensation expenses and facilities consolidation charges recorded in connection with restructuring actions announced in the first and fourth quarters of 2016 and the first quarter of 2017. We believe that excluding these costs provides greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry.
•
Non-cash interest expense. In connection with issuance of the Convertible Senior Notes in April 2017, we are required to recognize non-cash interest expense in accordance with the authoritative accounting guidance for convertible debt that may be settled in cash. We exclude this incremental non-cash interest expense for purposes of calculating non-GAAP net income (loss). We believe that excluding non-cash interest expense provides greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry.
•
Income tax adjustments. Beginning in the first quarter of 2017, we have implemented a cash-based non-GAAP tax expense approach (based upon expected annual cash payments for income taxes) for evaluating operating performance as well as for planning and forecasting purposes. This non-GAAP tax approach eliminates the effects of period specific items, which can vary in size and frequency and does not necessarily reflect our long-




term operations. Historically, we computed a non-GAAP tax rate based on non-GAAP pre-tax income on a quarterly basis, which considered the income tax effects of the adjustments above.
•
Adjusted EBITDA excludes the amortization of point-of-purchase (POP) display assets because it is a non-cash charge, and is similar to the depreciation of property and equipment and amortization of acquired intangible assets.





GoPro, Inc.
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures
(unaudited)

Reconciliations of non-GAAP financial measures are set forth below:
 
Three months ended
 
Six months ended
(in thousands, except per share data)
June 30, 2017
 
June 30, 2016
 
June 30, 2017
 
June 30, 2016
 
 
 
 
 
 
 
 
GAAP net loss
$
(30,536
)
 
$
(91,767
)
 
$
(141,686
)
 
$
(199,226
)
Stock-based compensation:
 
 
 
 
 
 
 
Cost of revenue
415

 
412

 
910

 
769

Research and development
5,390

 
7,086

 
11,072

 
13,096

Sales and marketing
1,995

 
3,679

 
4,686

 
6,883

General and administrative
3,435

 
6,227

 
7,692

 
12,387

Total stock-based compensation
11,235

 
17,404

 
24,360

 
33,135

 
 
 
 
 
 
 
 
Acquisition-related costs:
 
 
 
 
 
 
 
Cost of revenue
1,195

 
222

 
2,430

 
444

Research and development
946

 
2,218

 
2,082

 
3,503

Sales and marketing
—

 
—

 
—

 
22

General and administrative
1

 
235

 
(22
)
 
1,104

Total acquisition-related costs
2,142

 
2,675

 
4,490

 
5,073

 
 
 
 
 
 
 
 
Restructuring costs:
 
 
 
 
 
 
 
Cost of revenue
25

 
—

 
418

 
364

Research and development
1,702

 
—

 
7,381

 
2,655

Sales and marketing
361

 
—

 
5,603

 
2,678

General and administrative
268

 
—

 
1,409

 
811

Total restructuring costs
2,356

 
—

 
14,811

 
6,508

 
 
 
 
 
 
 
 
Non-cash interest expense
1,530

 
—

 
1,530

 
—

Income tax adjustments
359

 
(907
)
 
20,798

 
(4,825
)
Non-GAAP net loss
$
(12,914
)
 
$
(72,595
)
 
$
(75,697
)
 
$
(159,335
)
 
 
 
 
 
 
 
 
Non-GAAP diluted net loss per share
$
(0.09
)
 
$
(0.52
)
 
$
(0.54
)
 
$
(1.15
)





 
Three months ended
 
Six months ended
(dollars in thousands)
June 30, 2017
 
June 30, 2016
 
June 30, 2017
 
June 30, 2016
GAAP gross profit
$
105,632

 
$
93,002

 
$
174,198

—

$
152,716

Stock-based compensation
415

 
412

 
910

 
769

Acquisition-related costs
1,195

 
222

 
2,430

 
444

Restructuring costs
25

 
—

 
418

 
364

Non-GAAP gross profit
$
107,267

 
$
93,636

 
$
177,956

 
$
154,293

 
 
 
 
 
 
 
 
GAAP gross profit as a % of revenue
35.6
%
 
42.1
%
 
33.8
%
 
37.8
%
Stock-based compensation
0.1

 
0.2

 
0.2

 
0.2

Acquisition-related costs
0.4

 
0.1

 
0.4

 
0.1

Restructuring costs
0.1

 
—

 
0.1

 
0.1

Non-GAAP gross profit as a % of revenue
36.2
%
 
42.4
%
 
34.5
%
 
38.2
%
 
 
 
 
 
 
 
 
GAAP operating expenses
$
130,615

 
$
202,379

 
$
287,396

 
$
383,528

Stock-based compensation
(10,820
)
 
(16,992
)
 
(23,450
)
 
(32,366
)
Acquisition-related costs
(947
)
 
(2,453
)
 
(2,060
)
 
(4,629
)
Restructuring costs
(2,331
)
 
—

 
(14,393
)
 
(6,144
)
Non-GAAP operating expenses
$
116,517

 
$
182,934

 
$
247,493

 
$
340,389

 
 
 
 
 
 
 
 
GAAP operating loss
$
(24,983
)
 
$
(109,377
)
 
$
(113,198
)
 
$
(230,812
)
Stock-based compensation
11,235

 
17,404

 
24,360

 
33,135

Acquisition-related costs
2,142

 
2,675

 
4,490

 
5,073

Restructuring costs
2,356

 
—

 
14,811

 
6,508

Non-GAAP operating loss
$
(9,250
)
 
$
(89,298
)
 
$
(69,537
)
 
$
(186,096
)

 
Three months ended
 
Six months ended
(in thousands)
June 30, 2017
 
June 30, 2016
 
June 30, 2017
 
June 30, 2016
GAAP net loss
$
(30,536
)
 
$
(91,767
)
 
$
(141,686
)
 
$
(199,226
)
Income tax expense (benefit)
1,991

 
(16,950
)
 
24,273

 
(31,233
)
Interest expense (income), net
3,652

 
117

 
4,413

 
(217
)
Depreciation and amortization
11,467

 
9,482

 
23,160

 
17,805

POP display amortization
4,955

 
4,957

 
10,120

 
9,700

Stock-based compensation
11,235

 
17,404

 
24,360

 
33,135

Restructuring costs
2,356

 
—

 
14,811

 
6,508

Adjusted EBITDA
$
5,120

 
$
(76,757
)
 
$
(40,549
)
 
$
(163,528
)





Reconciliations of non-GAAP financial measures for business outlook are set forth below:
(in thousands)
Q3 2017
 
Full year 2017
GAAP operating expenses
$ 130,000 - $ 133,000

 
$
570,000

Estimated adjustments for:
 
 
 
Stock-based compensation
13,500

 
55,000

Acquisition-related costs
1,500

 
4,000

Restructuring costs
1,000

 
16,000

Non-GAAP operating expenses
$ 115,000 - $ 117,000

 
$
495,000

 
Q3 2017
GAAP net loss per share
$ (0.29) - $ (0.19)

Estimated adjustments for:
 
Stock-based compensation
0.10

Acquisition-related costs
0.02

Restructuring costs
0.01

Non-cash interest expense
0.01

Income tax adjustments
0.04

Non-GAAP net loss per share
$ (0.11) - $ (0.01)



# # # # #

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investor@gopro.com

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GoPro, Inc. Reports