GoPro said its revenues surged by 71 percent to $204 million in the first quarter to March 31 on the back of increasing demand for its higher-end cameras and a rise in customers’ subscriptions.
The company reported a net loss of $10.2 million for the period, down sharply from a loss of $63.5 million in the same period a year ago. At the operating level, adjusted Ebitda turned positive at $10.7 million, compared with a loss of $41.4 million in the same period a year ago.
The GAAP and non-GAAP gross margins for the quarter were 38.6 percent and 39.2 percent, respectively, up by 6.4 and 5.0 percentage points year-on-year. Operating expenses were reduced by 13 percent.
Cameras with retail prices above $300 represented 95 percent of the company’s sales of action cameras. Average street selling prices rose by 4 percent to a record $366 per unit. In March, GoPro launched its new Quik App and made it available to smartphone users via a $9.99 annual subscription. Overall, year-on-year camera sales were flat in terms of volume at 700,000 units in the quarter.
On the other hand, GoPro reached the milestone of one million subscribers to its online service, allowing consumers to store images and video, with the firm now also rolling out livestreaming.
Direct-to-consumer sales at gopro.com came in at $82 million, rising to a 40 percent share of total revenues for the quarter, up from 33 percent in the fourth quarter of 2020. This helped to drive higher margins and subscriptions as more than 90 percent of website purchases result in a new subscription. Retail sales rose to $121.6 million from $94.1 million year on year.
“This is the new GoPro. We’ve evolved from a hardware unit-sales-centric business to a successful direct-to-consumer subscription-centric business with a significant opportunity to grow margin and profitability,” said Nick Woodman, the company’s CEO. “Equally exciting is that one million GoPro subscribers represents approximately $50 million of high margin and recurring revenue,” he added.