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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Presentation
Executive
Brian McGee

plus or minus 50 basis points; operating expenses of $105 million plus or minus $2 million; non-GAAP earnings of $0.74 to $0.84 per share; GAAP earnings of $0.65 to $0.75 per share.

For the full year we expect revenue to be in the range of $1.215 billion to $1.25 billion delivering growth of 6% to 9%; non-GAAP EPS in the range of $0.30 to $0.40 per share; GAAP EPS to be in the range of a slight loss of $0.10 to breakeven; and EBITDA of $90 million plus or minus $5 million. Additionally for the fourth quarter and year we expect onetime costs related to HERO8 Black production delay of $2.6 million in Q4. We incurred $1.4 million of such costs in the third quarter; other income and expense to be $2.5 million expense; tax expense to be $0.7 million or $1.9 million for the year; share count to be 150 million for Q4 and 148 million for the year. To summarize we quickly recovered from the HERO8 production delay and GoPro is on track to return to growth and profitability for the year. We continue to expect to grow 6% to 9% on the top line in 2019. And as a reminder of our financial progress our EBITDA was negative $193 million and negative $31 million in 2016 and 2017 respectively. Our EBITDA turned to a positive $22 million in 2018 and we expect positive $90 million in 2019 which is more than 4x increase year-over-year. We continue to dramatically improve our financial performance while bringing dynamic new products and innovations to the market. As we look ahead to 2020 we expect to grow revenue both units and ASPs expand gross margins drive operating leverage and meaningful increases in EBITDA and EPS in 2020 over 2019 levels.

With that operator we are ready to take questions.