SAFE HARBOR STATEMENT This presentation may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “should,” “will” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements in this presentation may include, but are not limited to, expectations regarding our business outlook for 2018 and our ability to address the industry-wide shortage in supply of passive components. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the risk that our reduction in operating expenses may impact our ability to meet our business objectives and achieve our revenue targets and may not result in the expected improvement in our profitability; the fact that our future growth depends in part on further penetrating our addressable market and growing internationally, and we may not be successful in doing so; any inability to successfully manage frequent product introductions (including roadmap for new hardware and software products) and transitions, including managing our sales channel and inventory and accurately forecasting future sales; our reliance on third party suppliers, some of which are sole source suppliers, to provide components for our products; the effects of the industry-wide shortage of passive components; our dependence on sales of our cameras, mounts and accessories for substantially all of our revenue (and the effects of changes in the sales mix or decrease in demand for these products) and; the effects of a decrease in sales during the holiday season; the fact that an economic downturn or economic uncertainty in our key U.S. and international markets may adversely affect consumer discretionary spending; the effects of the highly competitive market in which we operate; the fact that we may not be able to achieve revenue growth or profitability in the future; risks related to inventory, purchase commitments and long-lived assets; difficulty in accurately predicting our future customer demand; the importance of maintaining the value and reputation of our brand; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2017 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, each of which are on file with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. GoPro disclaims any obligation to update these forward-looking statements. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. GoPro disclaims any obligation to update these forward-looking statements. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures, including non-GAAP gross margin, operating expenses, operating income (loss), net income (loss), earnings (loss) per share and adjusted EBITDA. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The non-GAAP financial measures used by GoPro may differ from the non-GAAP financial measures used by other companies. A reconciliation of these measures to the most directly comparable U.S. GAAP measure is included in the Appendix to these slides. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of GoPro.
GOPRO AT A GLANCE ESTABLISHED HQ IN 30M+ 36M+ IN 2004 SAN MATEO CAMERAS 1 FOLLOWERS 2 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 2017 Revenue: $1.2 Billion • 3 Sales in >100 Countries; >25,000 Retail Locations • Sold More Than 30 Million Cameras Since the First HD HERO in 2009 • Launched $199 Entry-Level HERO Camera in Q1 2018 • Announced Instagram Stories Integration that Enables Direct Sharing from GoPro App on May 1 • PLUS Subscription Service Had 160K Paying Subscribers as of Jun. 2018, Up 9% Q/Q • 4 Fusion Held 48% of the Spherical Camera Market on a Dollar Basis • Launched HERO6 Black, the Most Powerful and Convenient GoPro, in Sep. 2017 • HERO6 Black is Powered by GoPro’s Custom-Designed GP1 Processor • HERO5 Black Sold More Than 4 Million Units Since Its Launch – the Best-Selling GoPro Ever • 5 GoPro is the Best-Selling Camera in the U.S. for 18 Straight Quarters 1 Cumulative HERO cameras sold since first HD HERO in 2009 through Q2 2018 2 GoPro followers across all social media platforms, as of Q2 2018 3 As of 6/30/18 4 In Q2 2018, according to NPD 5 Among Digital Image Cameras on a unit basis through Q2 2018, according to NPD
Q2 2018 HIGHLIGHTS # 1 #1 97 % ACTION CAMERA BRAND IN SELLING CAMERA OF ANY OF THE ACTION CAMERA N.A., EUROPE, AND ASIA 1 CATEGORY 3 TYPE FOR 18 QUARTERS IN A ROW 2 48 % 160 K 36 M+ SPHERICAL CAMERA ACTIVE PAYING PLUS SOCIAL FOLLOWERS SHARE 4 SUBSCRIBERS, UP 9% 5 ACROSS ALL PLATFORMS 1 According to NPD and GfK; 2 In the US according to NPD; 3 In the US by dollar volume, according to NPD; GoPro held 22% of overall US digital imaging unit share as of Q2 2018; 4 On a dollar basis, according to NPD; 5 Since Q1 2018
WE HELP THE WORLD CELEBRATE AND SHARE ITSELF IN IMMERSIVE AND EXCITING WAYS
ABOUT US what we make WHAT WE MAKE WHAT WE DO what we do Versatile Storytelling Solutions Enable Immersive Sharing
GOPRO ECOSYSTEM CAPTURE SHARE CLOUD NOW INCLUDES DIRECT 30M+ CAMERAS SOLD 160K PAYING SUBSCRIBERS SHARING TO INSTAGRAM
GOPRO MODEL: A VIRTUOUS CYCLE VIRAL SHARED EXPERIENCES AWARENESS + ADOPTION
THRIVING GLOBAL BRAND AND COMMUNITY HIGHLY GROWING FOLLOWERS ENGAGED SUBSCRIBERS 1 LIKES 1 FOLLOWERS 1 ~15M 131 M 93 % 35 MM ~11M ~10M ~10M ~7M ~6M Video views of Increase in ~4M ~1MM organic GoPro median organic ~2M ~2M content across viewership per Q2 '14 Q2 '16 Q2 '18 Q2 '14 Q2 '16 Q2 '18 Q2 '14 Q2 '16 Q2 '18 social channels in video YoY in 2017 ~30% CAGR ~10% CAGR ~60% CAGR Q2 2018 ~ 20% YoY Growth ~5% YoY Growth ~15% YoY Growth Note: GoPro has over 36 million followers across all social platforms 1 Social media numbers are as of Q2 of each year
2018 PRIORITIES Strengthen our analytics and understanding of customer behavior to enable 1 better business planning Increase our investment in marketing to grow our brand and attract new 2 customers globally Launch products that broaden GoPro’s appeal at all price points, with 3 greater emphasis on new customers 4 Focus on our ecosystem of camera, app and cloud experiences Expand the value proposition of our subscription offerings to attract new 5 customers and engage our global user base 6 Attract, engage and retain top talent
EVOLUTION OF PRODUCT PORTFOLIO Underperformed expectations Product fit and other questions KARMA KARMA $799 $799 FUSION $699 HERO4 HERO4 HERO6 Black Black Black $499 $499 $499 HERO4 HERO3 HERO3+ HERO6 HERO4 HERO5 HERO5 Silver Black Black Black Black Black Silver $399 $399 $399 $399 $399 $399 $399 HERO3 HERO3+ HERO5 HERO3+ HERO5 HERO5 HERO+ Silver Silver Black Silver Session Session LCD $299 $299 $299 $299 $299 $299 $299 Session $299 HERO3 HERO3 HERO3 Session HERO+ HERO White White White $199 $199 $199 $199 $199 $199 Session $149 HERO HERO $129 $129 ✓ ✓ ✓ ✘ ✘ ✘ ✓
INDUSTRY LEADING HARDWARE MSRP: $199.99 MSRP: $299.99 MSRP: $399.99 MSRP: $699.99 • Photo: 10MP / 10FPS Burst / Time Lapse • Photo: 12MP / 30FPS Burst / Time Lapse • Photo: 12MP / 30FPS Burst / Time Lapse • Photo: 18MP • Video: 1440p60 / 1080p60 • Video: 4K30 / 1080p120 • Video: 4K60 / 1080p240 • Video: 5.2K30 / 3K60 • Voice Control • Voice Control • Voice Control • Gimbal-Like Stabilization • Waterproof: 33FT / 10M • Waterproof: 33FT / 10M • Waterproof: 33FT / 10M • OverCapture: 1080p30 / 720p60 • Simple One Button Control • Simple One Button Control • Simple One Button Control • Waterproof: 16FT / 5M • Video Stabilization • Video Stabilization • Advanced Video Stabilization • Voice Control • Wi-Fi + Bluetooth • Wi-Fi + Bluetooth • Wi-Fi + Bluetooth • Wi-Fi + Bluetooth • Touch Screen • Touch Screen • Touch Screen • GPS • Auto Upload to Cloud • Auto Upload to Cloud • Auto Upload to Cloud • 360 Audio • Advanced Wind Noise Protection • Advanced Wind Noise Protection • GPS • GPS • RAW Photos • RAW Photos • Touch Zoom • HDR Photos • Optimized GP1 Processor
TECHNOLOGY INNOVATOR CAPTURE COMPUTER VISION + APPS INNOVATION MACHINE LEARNING FACE SMILING FACE SMILING DOG Next Gen Capture Leads Mobile & Cloud Improved Capture & To Next Gen Sharing Automated Storytelling Storytelling Automation
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