GoPro, Inc. (NASDAQ:GPRO) Q4 2018 Earnings Conference Call Transcript

Feb 06, 2019 • 05:00 pm ET


GoPro, Inc. (NASDAQ:GPRO) Q4 2018 Earnings Conference Call Transcript


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Good day and welcome to GoPro's Q4 Financial Results 2018 Earnings Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Chris Clark, Head of Corporate Communications at GoPro. Please go ahead.

Christopher Clark

Thanks, operator. Good afternoon, everyone and welcome to GoPro's Fourth Quarter and Full-Year 2018 Earnings Conference Call. With me today are GoPro's CEO, Nicholas Woodman; and CFO, Brian McGee.

Before we get started, I'd like to remind everyone that our remarks today may include forward-looking statements. Forward-looking statements and all other statements that are not historical facts are not guarantees of future performance and are subject to a number of risks and uncertainties, which may cause actual results to differ materially. Additionally, any forward-looking statements made today are based on assumptions as of today. We do not undertake any obligation to update these statements as a result of new information or future events. Information concerning our risk factors is available in our most recent quarterly report on Form 10-Q for the quarter ended September 30, 2018, which is on file with the Securities and Exchange Commission, and in other reports that we may file from time-to-time with the SEC.

Today, we may discuss gross margin, operating expense, net profit and loss as well as basic and diluted net profit and loss per share in accordance with GAAP and, additionally, on a non-GAAP basis. We believe that non-GAAP information is useful because it can enhance the understanding of our ongoing economic performance. We use non-GAAP reporting internally to evaluate and manage our operations. We choose to provide this information to enable investors to perform comparisons of operating results in a manner similar to how we analyze our own operating results. A reconciliation of GAAP to non-GAAP operating expenses can be found in the press release that was issued this afternoon.

In addition to the earnings press release, we have posted slides containing detailed financial data and metrics for the fourth quarter 2018. These slides as well as a link to today's live webcast and a replay of this conference call is posted on the GoPro Investor Relations website for your reference. All income statement related numbers that are discussed today during the call other than revenue are not GAAP, unless otherwise noted.

Now, I'd like to turn the call over to GoPro's founder and CEO, Nicholas Woodman.

Nicholas Woodman

Thanks, Chris, and good afternoon. Today, Brian and I will take you through GoPro's fourth quarter 2018 performance, and share thoughts on our outlook for 2019. In 2018, GoPro demonstrated improved execution with a focus on disciplined operating expense and inventory management. Our investments in consumer research and analytics delivered a positive return as we grew our understanding of our customers, how they're segmented, and how they likely respond to new products, pricing and marketing campaigns. This resulted in an improved ability to predictably forecast our business throughout the year.

In 2018, we grew our Plus subscription business and increased our social following. Thanks