GoPro Reports 20.3% Revenue Decline and $432.3 Million Net Loss for Fiscal Year 2024

GoPro, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenue falling to $801.5 million, a decrease of 20.3% from $1.0 billion in 2023. The company attributed this decline primarily to a reduction in camera units shipped, which dropped by 18.5% to 2.4 million units, influenced by macroeconomic challenges and increased competition. The net loss for the year was $432.3 million, compared to a loss of $53.2 million in the previous year, reflecting a substantial increase in operating losses.

In terms of operational metrics, GoPro's gross margin improved to 33.8% from 32.2% in 2023, driven by a higher contribution from subscription services and reduced operational costs. However, the company faced challenges with its subscription growth, which slowed to 1% year-over-year, down from 12% in the previous year. The total number of subscribers reached approximately 1.5 million, indicating a need for enhanced customer retention strategies. The company also reported a significant increase in its research and development expenses, totaling $185.9 million, as it focused on innovation and product development.

Strategically, GoPro made notable moves, including the acquisition of Forcite Helmet Systems in February 2024, aimed at expanding its product offerings in tech-enabled helmets. The company launched its HERO13 Black camera in September 2024, featuring advanced capabilities such as HyperSmooth 6.0 image stabilization and improved battery life. Despite these product launches, the company experienced a delay in the release of its next-generation 360-camera, which contributed to the decline in revenue.

Geographically, GoPro's revenue from the Americas accounted for 47.3% of total revenue, while international markets, including Europe, the Middle East, and Asia, represented 32.3% and 20.4%, respectively. The company noted that its international operations are subject to various risks, including currency fluctuations and geopolitical tensions, which could further impact its financial performance. As of December 31, 2024, GoPro employed 696 people, reflecting a reduction in workforce due to restructuring efforts aimed at improving operational efficiency.

Looking ahead, GoPro's management expressed cautious optimism about returning to profitability through continued innovation and effective cost management. The company plans to focus on enhancing its subscription offerings and expanding its market presence, particularly in the retail channel. However, the ongoing macroeconomic conditions, including inflation and consumer spending patterns, remain critical factors that could influence the company's future performance.