GoPro, Inc. (NASDAQ:GPRO) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET


GoPro, Inc. (NASDAQ:GPRO) Q3 2019 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen and welcome to today's GoPro's Third Quarter 2019 Results Conference Call. [Operator Instructions].

And then at this time I would like to turn the floor over to Christopher Clark Vice President of Communications.

Christopher Clark

Thanks operator. Good afternoon everyone and welcome to GoPro's Third Quarter 2019 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 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 annual report on Form 10-K for the year ended December 31 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 gap information is useful because it can enhance the understanding of our ongoing economic performance.We use non gap reporting internally to evaluate and manage our operation. We choose to provide this information to enable investors to perform comparisons of our operating results in a manner similar to how we analyze our own operating results. A reconciliation of gap to non gap operating expenses can be found in the press release it was issued this afternoon. In addition to the press release, we have posted slides containing detailed financial data and metrics for the third quarter 2019. 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 or not gap 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 I'm going to update you on the positive reception of our new product lineup and some key performance metrics. Then Brian will take you through GoPro's third quarter performance and our improved outlook for the rest of 2019 and 2020. Simply put all signs indicate HERO8 Black and MAX are unquestionable hits. Since launch unit sales of HERO8 Black at have eclipsed every previous new GoPro including last year's flagship HERO7 Black by 40%. HERO8 Black has also generated the highest social engagement and positive sentiment metrics of any new GoPro up 57% over HERO7 Black a year ago. Considering