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

Nov 07, 2019 • 05:00 pm ET

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

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Q & A
Operator
Operator

Thank you very much, sir [Operator Instructions] And first from Citi we have Jim Suva.

Analyst
Jim Suva

Thank you very much. It's great you gave some original -- or some initial guidance for 2020. You mentioned some words like meaningful and growth. Are you now -- are you positioned to at least bracket that at all so expectations don't get too ahead of themselves? And if not and then I also have a follow-up.

Executive
Brian McGee

Yes. Jim this is Brian. First just as a reminder in 2019 we have great products that just hit the market growing 6% to 9% in revenue and increasing profitability dramatically along with EBITDA of about $90 million. As we frame 2020 and what's meaningful is at a minimum -- and this is not providing guidance or target but this is our targets. We want to grow at least by 40% off our midpoint of our guidance for 2019 for earnings per share. And we want to grow EBITDA off the $90 million at least 25% in 2020. So that's a pretty meaningful increase in both earnings and cash flow for the company.

Analyst
Jim Suva

That detail is greatly appreciated. And my follow-up is is there anything different about this Christmas holiday season competitively or the marketplace compared to the past? And I'm not talking about your product is very good and strong. I'm talking about like shopping trends or behaviors or promotions or product placement or keystone market caps or something. Just wondering if there's anything different from a market perspective that we should be conscious of that you guys have embraced or seen out there.

Executive
Nicholas Woodman

Well -- Nick here. Every year we get better and better at how we approach the holiday quarter. And as we shared last year and is again the case this year we're working much more closely with our retail partners bringing them into the fold earlier in our sort of the Q4 market plan advertising planning process so that we can combine efforts with our retailers to have much stronger presence in their stores and in all of the advertising that they do. So from that perspective I think we're going to do an even better job than we did last year with HERO7 Black and we did a pretty darn good job of it then. I'd say that there's more retailer and channel confidence in GoPro this year than there was last year. Last year it was a bit of a show-me year. And as we all know HERO7 Black did a terrific job of showing the world what our brand is capable of. And so coming into this year -- and we're coming off of the strong 2019 Q1 2 and 3 with our retailers.

So their confidence is high coming into the quarter which -- that's really helpful in terms of gaining support for HERO8 Black and for MAX. And then we're also feeling really good about the entire lineup that we've got from $199 with HERO7 Silver $329 with HERO7