GoPro Inc (GPRO)’s 4th Quarter and FY 2014 Financial Results Conference Call Transcript

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We report net income and and basic and diluted net income per share in accordance with GAAP and additionally on a non GAAP basis. We believe that non GAAP information is useful because it can enhance the understanding of our ongoing economic performance. We use non GAAP reporting internally to evaluate and manage our operations. We have chosen to provide this information to enable investors to provide comparisons of our operating results in a manner similar to how we analyze our own operating results. The reconciliation of GAAP to non GAAP financial data can be found in the earnings press releases, press release we issued today. What ask, we ask that you review this information in conjunction with this call.

All numbers that are disclosed in today’s conference call, other than revenue, are non GAAP unless otherwise noted. In addition to the earnings press release, we have posted slides containing detailed financial data and metrics for the fourth quarter and full year 2014. Both of these documents and a link to the webcast for today’s earnings conference call are posted on the events and presentations page of the GoPro investor relations website and your reference, for your reference. In the interested time I would like to invite those participating in the Q&A portion of the call to please limit yourself to one question each. Now, I’ll turn the call over to GoPro’s CEO, Nicholas Woodman. Nick?

Nicholas Woodman – Chief Executive Officer and Chairman
Hi everyone and thanks for joining the call. Needless to say GoPro had a great fourth quarter capping off our most exciting year ever. We’re extremely pleased with our results and excited about our outlook for 2015 and beyond. I’m going to steal a little bit of Jack’s thunder by sharing some of our financial results upfront as I’m so proud of them. In the fourth quarter, GoPro grew revenue by 75% year over year to $634 million, more revenue than we generated in all of 2012. Our growth margin dollars nearly double year over year to $304 million resulting in earnings per share of .99 cents. And we ended the year with a cash balance of $422 million. Beyond the great financial posts in Q4 and 2014, we’re excited of how GoPro has evolved from an enabling piece of technology into a global content sharing movement that transcends age, gender and nationality. GoPro enabled the world to capture and share experiences like never before. And the resulting perspective in a immersive content allows us to see our world like never before. The limitless points of view our cameras an accessories enable make it easy for people to capture virtually any life experience.

This resulted in some of the world’s most engaging content. Content that goes on to drive awareness of our brand and business and inspires others to capture and share engaging experiences of their own and it’s snowballing. In 2014, more than 3.9 years of content with GoPro mentioned in the title was uploaded to YouTube. Up significantly from the 2.8 years of contented, content posted during 2013. The GoPro channel on YouTube generated over 98 million views in the fourth quarter alone, an increase of 34% year over year. While total minutes viewed for the quarter was up 59% year over year. This performance was enabled by video hits such as originally produced The Adventure of Life of 4K series, which has received more than 40 million views since being launched.

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