GoPro Earnings Live Blog: Q1 Conference Call
GoPro Inc (NASDAQ: GPRO) reports earnings this Tuesday after the bell. The company is expected to hold a conference call at 5:00pm ET; below is a live blog of the events.
06:03:04pm: The conference call has concluded.
06:03:02pm: Analyst asks: Is a VR headset a future product category? Response: We can't comment on that.
05:59:56pm: China has potential for "nice growth" going forward.
05:59:15pm: "China really is a unique opportunity...there is a recipe for doing this stuff, and frankly there's a lot of demand for premium brands in China. When you couple this stuff together, it makes for a good market opportunity."
05:59:12pm: Analyst asks if China could hit 10% of GoPro sales. Response: We're not giving guidance, but we're going to keep "expanding retail presence," presence in local social networks. "Candidly, based on those initial strong sales, which is an online and offline approach...results are good, and we'll continue to invest."
05:53:09pm: "Making these investments right now is the right thing to do...especially when delivering good financial results."
05:49:12pm: Woodman: Kolor acquisition will make it easier for people to produce VR content. "Because the consumer is already looking to GoPro as an enabler of self-capture, it's only natural to think they'd look" for personal VR content in the future.
05:47:55pm: GoPro shares now near $50.50, up 7.4% after hours. Ambarella Inc (NASDAQ: AMBA) up 2% after hours.
05:47:48pm: On question of repeat buyers: Wide price-point range is part of company's strategy..."nobody" else has that. "The product launch from last year has gone exceptionally well."
05:45:45pm: Execs highlight its "virtuous circle" strategy. The more people interested in GoPro content, the more who will be interested in GoPro cameras.
05:43:14pm: GoPro shares holding above the $50 mark.
05:39:01pm: One thing to watch is "the way that people think about using their GoPro." The No. 1 use case -- a focus on family -- is a "big shift...we have a lot of investments...really start to think about where we want to invest in terms of localized content."
05:34:14pm: Company now has a foot in the virtual reality market, says video (in bottom of article) "gives you a fantastic, spherical look at what is possible."
05:33:12pm: GoPro now up 6.5% after hours.
05:31:02pm: Gross margins: "At this point, we're extremely happy, and the guide of 45% +/- 50 bp reflects that people see the value in our products. The high end of the product line seems to be doing quite well."
05:29:01pm: Modeling for Q2 Gross Margin Expansion from 42% to 45%
05:28:14pm: Gives new guidance: Sees Q2 Sales $380M-$400M vs $333.7M Est.
05:28:12pm: GoPro now up 4% after hours.
05:27:11pm: GoPro shares now up 2% after hours.
05:26:26pm: Cash is now nearly $500M, up 16% year over year.
05:23:24pm: Q1 gross margins increased "primarily due to favorable mix shifts, due to new Hero 4 Black."
05:20:20pm: "We are confident and excited about our China strategy."
05:18:17pm: Execs talking GoPro in China. Calls initial sales "strong," company says it's expanding in the country. It will use local content strategy to promote itself, using local Chinese social media sites.
05:12:18pm: Number one use case for GoPros, via surveys, is to take family videos.
05:12:12pm: Woodman: Kolor "one of several strategic investments we are making."
05:11:11pm: Woodman touting social media growth -- YouTube, Twitter followers up ~50% year over year. GoPro is a top ten brand on Instagram.
05:07:45pm: GoPro on MotoGP partnership, a motorcycle racing championship. Woodman touts his company's ability to offer unique POV (point of view) cameras.
05:06:08pm: Nicholas Woodman, GoPro CEO, takes lead. Woodman: 2015 first quarter was "second highest revenue quarter in history." Year over year revenue grew 54 percent.
05:03:38pm: GoPro conference call beginning.
04:59:59pm: GoPro shares now down 3.45 percent after hours.
04:29:29pm: Description of Kolor from GoPro IR site:
GoPro To Acquire Kolor, A Leader In Virtual Reality and Spherical Media Solutions
GoPro Demos “Land, Air and Sea” VR Experience
SAN MATEO, CALIF. April 28, 2015 – GoPro, Inc. (NASDAQ: GPRO), enabler of some of today's most engaging content, today announced an agreement to acquire Kolor, a leader in virtual reality and spherical media solutions. All Kolor employees will join GoPro and will maintain operations at their headquarters in Savoie, France.
Spherical media enables a range of immersive viewing experiences and is an essential building block of virtual reality (VR), a technology poised to transform entertainment, education and other industries. Kolor’s solutions enable users to combine multiple photographs or videos to produce high-resolution panoramic or spherical content that can be enjoyed on mobile devices, the web or in a virtual reality environment.
“We are excited to welcome Kolor to GoPro,” said Nicholas Woodman, GoPro’s founder and CEO. “GoPro’s capture devices and Kolor’s software will combine to deliver exciting and highly accessible solutions for capturing, creating and sharing spherical content.” GoPro’s “Land, Air and Sea” spherical video demonstrates what’s possible with a few GoPro combined with Kolor’s software.
04:25:25pm: GoPro Announces Purchase of Kolor, No Terms Disclosed.
04:21:45pm: GoPro shares down 5% after hours, near $44.65.
04:06:27pm: GoPro Reports Q1 Adj. EPS $0.24 vs. Est. $0.18, Rev. $363.1M vs. Est. $340.99M
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