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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Executive
Nicholas Woodman

the success HERO7 Black went on to have it's exciting to consider how HERO8 Black can contribute to our business. And MAX is proving to be a standout as well. Through the month of October at GoPro.com unit sales of MAX shattered the debut performance of its predecessor Fusion by a factor of 4. MAX is like having 3 cameras in 1 addressing multiple consumer segments be it users looking for a MAX-stabilized HERO camera a feature-rich vlogging camera or a professional-grade 360 camera.

As we've shared, we believe Max is going to play an increasingly important role in our business going forward, helping to raise as PS and gross margins while delivering the wow innovation our customers demand. Joining hero eight black and Max in our new lineup, our hero seven black at $329 and hero seven silver at $199. We promised we were going to strengthen our business by maximizing value and performance at every price point. And we've delivered you won't find a week bought in are offering this holiday. And we're confident in our lineups ability to grow both top line and APS in the fourth quarter of 2019 and 2020. As we mentioned since launch HERO8 Black and MAX have sold through at record levels at GoPro.com. And in fact all camera models are selling well at GoPro.com with aggregated camera unit sales up 50% year-over-year. We believe GoPro.com's sell-through performance serves as an encouraging indicator of demand as sell-through ramps in retail channels. Our investment in consumer research has led to a focused and highly innovative road map. Thanks to our customers' input and GoPro's incredible product and engineering teams HERO7 Black and MAX both redefine what's possible with a camera. We are confident these new products along with our long-term hardware and software road map can help us take more share of the greater $13 billion digital imaging market.

And while we anticipated this level of demand for our new products the aforementioned positive social sentiment metrics are beyond our expectations. As I mentioned HERO8 Black generated a 57% lift in positive sentiment over HERO7 Black setting a record for a new GoPro camera. In the first month our product videos social posts and other launch-related assets achieved a global reach of 857 million up 5% from the launch of HERO7 Black. We generated 70 million engagements on social channels up 74% from HERO7 Black. And the HERO8 Black 8 launch video has become the most viral launch asset in our history. This momentum builds off the widespread media and consumer acclaim we continue to see for our new products. To give you a sense of the global press coverage GoPro receives during launch there were nearly 4000 articles and reviews published in the 10 days after our product announcement. Reviewers acknowledge that we've taken our products to the next level of performance versatility and importantly appeal by addressing both the needs of our traditional customers as well as entirely new customer segments