Indicating that it does not expect Christmas sales to be hit by supply-chain constraints, GoPro reported better-than-expected third-quarter results. The company posted a net profit of $311.8 million for the period, up from $3.3 million a year ago. Revenues grew by 13 percent to $317 million against GoPro’s own estimates of $290 million. The gross margin improved to 43.6 percent from 35.4 percent. Adjusted Ebitda jumped to $60 million from $39 million.
“Despite supply chain constraints that are affecting many industries, we have successfully partnered with our suppliers to produce inventory to support our fourth-quarter revenue expectations,” said the company’s CEO, Nick Woodman. “GoPro.com and our retail partners will be stocked and ready for shoppers this holiday season.”
The company noted that 98 percent of the 800,000-odd action cameras it sold during the period were at or above the $300 price tag – up from 83 percent in the third quarter of 2020. The average sale price for cameras in the quarter was $381, up 25 percent year on year, following the launch of the new Hero10 Black camera.
As GoPro continued to shift toward the DTC model, revenues from GoPro.com rose by 16 percent to $94 million, representing a third of total sales. The number of subscribers increased by 168 percent year-over-year to 1.34 million, generating revenues of $14 million.
For the fourth quarter, GoPro expects revenue of $375 million to $385 million, shy of forecasts of $403 million. However, GoPro estimates revenue of $1.14 billion to $1.15 billion for the full year against analysts’ forecasts of $1.15 billion.
The company sees fourth-quarter gross margins above 40 percent, ahead of the 38.3 percent seen a year earlier, despite potential impacts from rising freight rates amid the supply-chain crunch. “We expect freight rates to reduce as holiday traffic levels ease as we get into 2022,” GoPro said, adding that it expected fourth-quarter sell-through of 1.1 million units and around 3.4 million for 2021.
