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GoPro's (GPRO) Q3 Earnings Top Estimates, Revenues Fall Y/Y
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GoPro, Inc (GPRO - Free Report) reported non-GAAP earnings of 19 cents per share for third-quarter 2022, beating the Zacks Consensus Estimate of 16 cents. The company had reported earnings of 34 cents in the year-ago quarter.
GoPro generated revenues of $305 million, down 4% (up 2% on constant currency) from the year-ago quarter’s levels. However, revenues beat the consensus mark by 2.6%.
Quarter in details
GoPro shipped 797 million camera units during the reported quarter, down 4.2% year over year. GoPro expects to exit 2022 with channel inventory in the mid-600,000 units.
GoPro recorded 2.1 million subscribers, marking 55% year-over-year growth, at the close of the reported quarter. Quik subscribers soared 68% to 282,000 from the prior-year quarter.
Region-wise, revenues from the Americas came in at $139.4 million (45.6% of total revenues), down 13% from the year-ago quarter’s levels. Revenues from Europe, the Middle East and Africa were $85 million (27.9%), up 14% year over year. The Asia Pacific generated revenues of $80.7 million (26.5%), up 22% year over year.
Based on channels, revenues from GoPro.com were $98.6 million (32.3% of total revenues), up 4.4% year over year. The uptick was driven by higher direct-to-consumer and subscription revenues. In the GoPro.com channel, hardware revenues totaled $77.2 million compared with $80 million in the prior-year quarter. Subscription revenues came in at $21.4 million, up 48% year over year.
Revenues from the Retail channel came in at $206.5 million (67.7%), down 7% from the year-ago quarter’s levels.
The company had $153.4 million in inventory compared with $120.9 million in the year-ago quarter.
Other Details
Gross profit was $116.1 million, down 15.9% year over year. Total operating expenses were $91.4 million, up 2.4% year over year. Operating income came in at $24.4 million, down 50% year over year.
Non-GAAP gross margin contracted 560 basis points to 38.2%. Adjusted EBITDA was $35 million, down 42% from the year-ago period.
Cameras with suggested retail prices at or above $400 contributed 87% to revenues in the reported quarter, down from 88% in the year-ago quarter.
Cash Flow & Liquidity
For the quarter under review, GoPro generated $40.7 million of net cash from operating activities against $67.6 million reported in the year-ago period.
As of Sep 30, the company had $217.2 million in cash and cash equivalents with $140.8 million in long-term debt.
The company repurchased $10 million worth of shares under the current $100 million buyback authorization program.
Guidance
For the fourth quarter, revenues are estimated to be $325 million (+/- $40 million). Non-GAAP adjusted earnings are expected to be 9 cents per share (+/-6 cents).
For the fourth quarter, gross margins are expected to be 35% (+/- 50 basis points). Street ASP is projected to be nearly $370.
The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have gained 11% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.9%. Shares of BLKB have lost 31.7% in the past year.
The Zacks Consensus Estimate for Cadence’s 2022 earnings is pegged at $4.22 per share, up 2.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
CDNS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average being 10.4%. Shares of CDNS have lost 19.2% in the past year.
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GoPro's (GPRO) Q3 Earnings Top Estimates, Revenues Fall Y/Y
GoPro, Inc (GPRO - Free Report) reported non-GAAP earnings of 19 cents per share for third-quarter 2022, beating the Zacks Consensus Estimate of 16 cents. The company had reported earnings of 34 cents in the year-ago quarter.
GoPro generated revenues of $305 million, down 4% (up 2% on constant currency) from the year-ago quarter’s levels. However, revenues beat the consensus mark by 2.6%.
Quarter in details
GoPro shipped 797 million camera units during the reported quarter, down 4.2% year over year. GoPro expects to exit 2022 with channel inventory in the mid-600,000 units.
GoPro recorded 2.1 million subscribers, marking 55% year-over-year growth, at the close of the reported quarter. Quik subscribers soared 68% to 282,000 from the prior-year quarter.
GoPro, Inc. Price, Consensus and EPS Surprise
GoPro, Inc. price-consensus-eps-surprise-chart | GoPro, Inc. Quote
Region-wise, revenues from the Americas came in at $139.4 million (45.6% of total revenues), down 13% from the year-ago quarter’s levels. Revenues from Europe, the Middle East and Africa were $85 million (27.9%), up 14% year over year. The Asia Pacific generated revenues of $80.7 million (26.5%), up 22% year over year.
Based on channels, revenues from GoPro.com were $98.6 million (32.3% of total revenues), up 4.4% year over year. The uptick was driven by higher direct-to-consumer and subscription revenues. In the GoPro.com channel, hardware revenues totaled $77.2 million compared with $80 million in the prior-year quarter. Subscription revenues came in at $21.4 million, up 48% year over year.
Revenues from the Retail channel came in at $206.5 million (67.7%), down 7% from the year-ago quarter’s levels.
The company had $153.4 million in inventory compared with $120.9 million in the year-ago quarter.
Other Details
Gross profit was $116.1 million, down 15.9% year over year. Total operating expenses were $91.4 million, up 2.4% year over year. Operating income came in at $24.4 million, down 50% year over year.
Non-GAAP gross margin contracted 560 basis points to 38.2%. Adjusted EBITDA was $35 million, down 42% from the year-ago period.
Cameras with suggested retail prices at or above $400 contributed 87% to revenues in the reported quarter, down from 88% in the year-ago quarter.
Cash Flow & Liquidity
For the quarter under review, GoPro generated $40.7 million of net cash from operating activities against $67.6 million reported in the year-ago period.
As of Sep 30, the company had $217.2 million in cash and cash equivalents with $140.8 million in long-term debt.
The company repurchased $10 million worth of shares under the current $100 million buyback authorization program.
Guidance
For the fourth quarter, revenues are estimated to be $325 million (+/- $40 million). Non-GAAP adjusted earnings are expected to be 9 cents per share (+/-6 cents).
For the fourth quarter, gross margins are expected to be 35% (+/- 50 basis points). Street ASP is projected to be nearly $370.
Zacks Rank & Stocks to Consider
GoPro currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are Pure Storage (PSTG - Free Report) , Blackbaud (BLKB - Free Report) and Cadence Design Systems (CDNS - Free Report) . Blackbaud sports a Zacks Rank $1 (Strong Buy) while Pure Storage and Cadence carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have gained 11% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.9%. Shares of BLKB have lost 31.7% in the past year.
The Zacks Consensus Estimate for Cadence’s 2022 earnings is pegged at $4.22 per share, up 2.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
CDNS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average being 10.4%. Shares of CDNS have lost 19.2% in the past year.