If the 20-year-old action camera company reaches the $100 million sales objective from subscriptions this year, it will represent 22 percent year-over-year growth from FY22.
CEO Nick Woodman told analysts that GoPro is selling subscriptions “to people who don’t even own” one of its cameras. The company ended 2022 with 43 percent growth in subscribers to 2.25 million and 52 percent revenue growth for the segment to $82 million - with more customers connecting to the GoPro app since the pandemic shut down travel.
In Q4, the group’s adjusted EBITDA slipped by 69 percent to $22.0 million from $71.6 million. Net income was down by 94 percent to $3.1 million from $52.6 million, and operating income slid 97 percent to $1.7 million from $58.6 million. Period revenues fell by 18 percent to $321.0 million from $391.1 million, in line with company guidance. Subscription and service revenues rose by 30 percent to $22 million, with cameras costing $400 or more representing 90 percent of all sales in the period. The Q4 sell-through rate was down 8 percent year-over-year, with most of the decline seen in North America. On a sell-in basis, Europe and North America were down by 21 and 24 percent, respectively. GoPro sold approximately 900,000 units in Q4, shy of its 950,000-unit objective.
For FY22, adjusted EBITDA declined by 43.5 percent to $94.8 million from $167.8 million. Annual net income was off by 92 percent year-over-year to $28.8 million from $371.2 million. Annual operating income slipped by 66 percent to $39.0 million, as annual revenues declined by 5.8 percent to $1,093,541,000 versus $1,161,084,000. On a constant-currency basis, revenues declined by 2 percent. Direct-to-consumer revenues from GoPro.com represented 38 percent of all sales, up from 34 percent in FY21.
GoPro says its FY23 strategy is to maintain its ongoing profitability and end the year with a cash position of $325 to $350 million while making investments in technology to help court a broader consumer base and introduce a new, premium subscription tier for existing GoPro owners that syncs the mobile, cloud and desktop experience.
