GoPro told investors at the Citi’s Global Technology Virtual Conference that it still hopes to meet projected revenue growth of 30 percent for the second half of this year, although the supply of components still poses a challenge. The growth is coming especially from a shift to direct-to-consumer sales, with customer retention rates of about 90 percent, and subscriptions, which already grew by 211 percent in the second quarter. Focusing on higher-end and higher-margin cameras, subscriptions are yielding margins in the 70 to 80 percent range. As a result, GoPro is targeting an overall gross margin of more than 40 percent for the second half of 2021, up from a previous going rate of around 30 percent. The Covid pandemic will cause the company to suffer a decline in the sell-through of its products to between 3.5 and 3.6 million items this year. As travel has historically contributed between 10 and 20 percent of the total volume, a return to international travel could help GoPro to return to a historical range of 4 million units.

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