GoPro told a conference organized by JMP Securities that it expects its revenues to improve by 20 to 25 percent this year, even if there is no broad economic recovery and no increase in travel, thanks in part to the development of its direct-to-consumer operations. As previously reported, GoPro suffered a sales decline of 25 percent to $891 million last year, resulting in a loss of $66.7 million.

The progress is going to come essentially from the action camera maker’s new subscriber-based offerings and new software. By reaching a goal of two million subscribers at the end of this year, up from 760,000 at the end of 2020, it would add $100 million in sales on an annualized basis, carrying a gross margin of 70 percent and an operating margin of 50 percent that would contribute from 20 to 30 percentage points to this year’s net earnings.

GoPro is charging $49.99 a year for the subscription, which goes with its cameras. A new revenue stream is set to come from a less expensive subscription service at $9.99 per year for customers who don’t have its hardware. Like the users of its cameras, they would have access to cloud-based video production editing tools to curate photos and videos from mobile devices, computers and drones.

The bulk of the revenues would still come from the sale of action cameras, which are on target to reach 700,000 units in the first quarter and 3.6 million for the year, up from 2.8 million in 2020. Sales of cameras with a price of $300 or higher represented more than 90 percent of the company’s revenues in the fourth quarter of last year.