SAN MATEO, Calif., April 28, 2015 /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO), maker of the world's most versatile camera and enabler of some of today's most immersive and engaging content, today announced financial results for its first quarter ended March 31, 2015.

"We kicked off 2015 by delivering the second highest revenue quarter in GoPro's history," said GoPro Founder and CEO, Nicholas Woodman. "We are making investments in talent, technology, software, and innovative new products that will fuel growth and strengthen GoPro's ecosystem."

Summary of First Quarter 2015 GAAP Results:

• Revenue of $363.1 million increased 54.0% compared to $235.7 million in the first quarter of 2014
• Gross margin of 45.1% compared to 40.9% in the first quarter of 2014
• Operating income of $22.3 million increased 34.5% compared to $16.6 million in the first quarter of 2014
• Net income attributable to common stockholders of $16.8 million or $0.11 per diluted share increased 98.2% compared to $8.5 million or $0.08 per diluted share in the first quarter of 2014
• Cash, cash equivalents and marketable securities of $491.9 million compared to $422.3 million at December 31, 2014

GoPro reports gross profit, operating expenses, operating income, net income and diluted net income per share in accordance with generally accepted accounting principles (GAAP) and on a non-GAAP basis. Non-GAAP net income excludes, where applicable, the effects of stock-based compensation, acquisition-related charges, and the tax impact of these items.  Additionally, GoPro reports non-GAAP adjusted EBITDA.  A reconciliation of preliminary GAAP financial measures to non-GAAP financial measures, as well as a description of items excluded from the calculation of non-GAAP financial measures including adjusted EBITDA, is presented in the financial statement portion of this release.

Summary of First Quarter Non-GAAP Results:

• Gross margin of 45.2% compared to 41.1% in the first quarter of 2014
• Operating income of $49.1 million increased 135.2% compared to $20.9 million in the first quarter of 2014
• Adjusted EBITDA of $56.5 million increased 97.4% compared to $28.6 million in the first quarter of 2014
• Net income of $35.6 million or $0.24 per diluted share increased 149.4% compared to $14.3 million or $0.10 per diluted share in the first quarter of 2014

First Quarter 2015 and Recent GoPro Highlights Include:

• International sales accounted for more than half of Q1 revenue; EMEA and APAC revenue was up 66% year-over-year.
• According to NPD, GoPro's five capture device models accounted for all five of the top five products in the combined digital camera and camcorder category, on a unit basis, in the US for Q1. In the same category, on a dollar share basis, GoPro capture devices accounted for 3 of the top 5 products, including the #1 spot. GoPro was also the leader in accessory unit sales with 7 of the top 10 selling accessories. 
• A study commissioned by GoPro and conducted by IPSOS, a global market research firm, showed a 70% year-over-year increase in aided awareness of the GoPro brand among consumers in nine countries across five continents.
• GoPro unveiled HEROCast™, the smallest, lightest and most cost-effective wireless HD micro transmitter on the broadcast market, enabling consumers to experience live events like never before.
• The GoPro Channel launched on premium video service Vessel, joining Roku, Xbox, LG Smart TVs, and Virgin America In-Flight entertainment.
• In Q1, the GoPro Channel App reached over one million downloads on the Xbox platform, with users watching an average of 25 minutes of GoPro videos during each viewing session.
• The GoPro Mobile App was downloaded 2.6 million times in Q1, totaling nearly 16 million cumulative downloads; Q1 installs of GoPro Studio exceeded 1.7 million with average daily exports of nearly 40,000, a 68% year-over-year increase.
• In Q1, videos published on the GoPro Channel on YouTube were up 93% while views were up 46% year-over-year.
• Content submissions to GoPro's Photo and Video of the Day program increased 50% quarter-over-quarter.
• GoPro agreed to acquire Kolor, a leader in virtual reality and spherical media solutions.

Conference Call:
GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results.

To listen to the live conference call, please dial toll free (888) 686-9705 or (913) 312-1469, access code 7553228, approximately 15 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at http://investor.gopro.com. To access the live webcast, please log in 15 minutes prior to the start of the call to download and install any necessary audio software. The webcast will be recorded and the recording will be available on GoPro's website, http://investor.gopro.com, approximately two hours after the call and for six months thereafter.

About GoPro, Inc. (NASDAQ: GPRO):
GoPro, Inc. is transforming the way consumers capture, manage, share and enjoy meaningful life experiences. We do this by enabling people to self-capture engaging, immersive photo and video content of themselves participating in their favorite activities. Our customers include some of the world's most active and passionate people. The quality and volume of their shared GoPro content, coupled with their enthusiasm for our brand, virally drives awareness and demand for our products.

What began as an idea to help athletes document themselves engaged in their sport has become a widely adopted solution for people to document themselves engaged in their interests, whatever they may be. From extreme to mainstream, professional to consumer, GoPro has enabled the world to capture and share its passions. And in doing so the world, in turn, is helping GoPro become one of the most exciting and aspirational companies of our time.

For more information, visit www.gopro.com or connect with GoPro on YouTube, Twitter, Facebook, Pinterest, or LinkedIn.

GOPRO^® and HERO^® are trademarks or registered trademarks of GoPro Inc. in the United States and other countries.

Note on Forward-looking Statements
This press release may contain projections or other forward-looking statements regarding future events. These statements involve risks and uncertainties, and actual events or results may differ materially.  Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the effects of the highly competitive market in which we operate; our dependence on sales of our capture devices for substantially all of our revenue; our reliance on third-party suppliers, some of which are sole-source suppliers, to provide components for our products; the fact that we do not expect to continue to grow in the future at the same rate as we have in the past, and profitability in recent periods might not be indicative of future performance; difficulty in accurately predicting our future customer demand; the importance of maintaining the value and reputation of our brand; any inability to successfully manage frequent product introductions and transitions; the effects of international business uncertainties; our reliance on our Chief Executive Officer; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2014, which is on file with the Securities and Exchange Commission.  These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein.  GoPro disclaims any obligation to update these forward-looking statements.

Investor Contact:
Peter Salkowski (855) GOPROHD or (855) 467-7643
investor@gopro.com

Media Contact:
Jeff Brown (650) 332-7600 x 9997

GoPro, Inc.
Reconciliation of Preliminary GAAP to Non-GAAP Financial

To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross profit, operating expenses, operating income, net income, earnings per share and adjusted EBITDA.  These non-GAAP measures are not in accordance with, nor serve as an alternative for GAAP.  We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our GAAP results of operations.  These non-GAAP measures should only be viewed in conjunction with corresponding GAAP measures.

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis.  The excluded items represent stock-based compensation and charges that are primarily driven by discrete events that we do not consider to be directly related to core operating performance.  We use non-GAAP measures to evaluate the core operating performance of our business, for comparison with forecasts and strategic plans and for calculating return on investment. In addition, management's incentive compensation is determined using non-GAAP measures.  Since we find these measures to be useful, we believe that investors benefit from seeing results reviewed by management in addition to seeing GAAP results.  We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating:

• the comparability of our on-going operating results over the periods presented;
• the ability to identify trends in our underlying business; and
• the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:

• Stock-based compensation expense relates to equity awards granted primarily to our workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These non-cash charges are not factored into our internal evaluation of net income as we believe their inclusion would hinder our ability to assess core operational performance. We believe that excluding this expense provides greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry.
• Acquisition-related charges include the amortization of acquired intangible assets primarily consisting of acquired technology, customer relationships, trade names, and covenants not to compete related to our acquisitions. These charges are not factored into our evaluation of potential acquisitions, or of our performance after completion of acquisitions, because they are not related to our core operating performance, and the frequency and amount of such charges vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses being acquired.
• Adjustment for taxes relates to the tax effect of the adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure of non-GAAP net income. We believe that these adjustments provide us with the ability to more clearly view trends in our core operating performance.
• Adjustment to shares includes the conversion of the redeemable convertible preferred stock into shares of common stock as though the conversion had occurred at the beginning of the period and the initial public offering shares issued July 2014, as if they had been outstanding since the beginning of the period.

Reconciliations of non-GAAP financial measures are set forth below ($ in thousands):

Reconciliations of non-GAAP financial measures are set forth below ($ in thousands):

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SOURCE GoPro, Inc.