GoPro reported an operating loss of $3.79 million against a profit of $24.4 million in Q3, ended Sep. 30, as total revenues declined by 3.5 percent year-over-year to $294.3 million from $305.1 million. Sales of entry-level cameras generated 19 percent of period revenues and exceeded internal expectations as total camera units grew by 16 percent year-over-year. Retail sales increased by 12 percent to $231 million. The net loss was $3.7 million against a net profit of $17.6 million. Gross margin slid by 600 basis points to 32.0 percent from 38.0 percent.
GoPro, which increased its year-over-year subscription base by 20 percent to 2.5 million, called its holiday demand strong. The company intends to launch new types of cameras over the next two years, starting in Q2/24, and see them contribute positively to both sales and earnings next year and in 2025.
On the retail front, GoPro added 2,500 new doors in Q3. All of them are offering an improved in-store presence for the brand. In 2024, the company wants to open more than 3,000 additional retail doors globally to bring its worldwide total to about 25,000 or more than 30 percent higher than in May 2023.
GoPro is currently forecasting year-over-year unit growth of more than 10 percent in 2024 to a range of 3.3 to 3.5 million, helping to push the company’s total annual revenues to $1.1 to 1.2 billion next year. Meanwhile, lower-cost, entry-level products are forecast to contribute 230 basis points of gross margin next year to help improve the overall gross margin to 37 percent, plus or minus 50 basis points, from about 32 percent in 2023.
