GoPro Reports Q4 2024 Results Amid Market Challenges

GoPro's Q4 earnings call addressed challenges and plans, revealing insights on performance and outlook for 2025. Despite a loss per share, subscription revenue growth indicates potential strength.

Date: 07-02-2025

AI Rating: 5

Earnings Per Share (EPS)
GoPro's fourth quarter report shows a GAAP net loss per share of $0.24 and a non-GAAP net loss per share of $0.09. The higher non-GAAP figure suggests ongoing challenges, despite exceeding guidance.

Revenue Growth
Revenue for Q4 was reported at $201 million, aligning with expectations but signifying stagnation. Additionally, overall subscription and service revenue demonstrated a growth of 9% year-over-year, reflecting a positive trend within a challenging market.

Net Income
The report indicates an operating loss of $80 million compared to a $34 million loss in 2023, highlighting worsening financial performance. This substantial drop in profitability may affect investor sentiment negatively.

Profit Margins
GoPro expects gross margin improvement of over 100 basis points in 2025 compared to 2024 but is currently dealing with a 35% gross margin forecast for Q1 2025. The decrease in sales indicates possible margin erosion ahead.

Free Cash Flow (FCF)
No specific data on free cash flow was provided in the report. The focus instead was placed on cash management and working capital.

Return on Equity (ROE)
No explicit return on equity figures were presented in the analysis, making it difficult to assess likelihood of future returns for investors.

Stocks: GPRO