# GoPro to Layoff 7% of Workforce After Poor Holiday Sales



## Canon Rumors Guy (Jan 16, 2016)

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<em>16% Annual Revenue Growth to $1.6 Billion for 2015</em></p>
<p><strong>SAN MATEO, Calif., Jan. 13, 2016</strong> /PRNewswire/ — GoPro, Inc. (NASDAQ: GPRO) today reported certain preliminary financial results for the fourth quarter and year ended December 31, 2015.</p>
<p>GoPro expects revenue to be approximately $435 million for the fourth quarter of 2015 and $1.6 billion for the calendar year. Fourth quarter revenue reflects lower than anticipated sales of its capture devices due to slower than expected sell through at retailers, particularly in the first half of the quarter. Fourth quarter revenue includes a $21 million reduction for price protection related charges resulting from the HERO4 Session repricing in December. Non-GAAP gross margin for the fourth quarter of 2015, excluding the impact of price protection and a charge of between $30 million and $35 million to cost of revenue for excess purchase order commitments, excess inventory, and obsolete tooling is anticipated to be between 44.5% and 45.5%. Non-GAAP gross margin for the fourth quarter of 2015 is anticipated to be between 34.5% and 35.5%. Non-GAAP operating expenses for the fourth quarter of 2015 are estimated to be between $150.0 million and $152.5 million.  Cash, cash equivalents and marketable securities at December 31, 2015 totaled approximately $475 million.</p>
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<p>These preliminary, unaudited results are based on management’s initial review of operations for the quarter and year ended December 31, 2015 and remain subject to the completion of the Company’s customary annual closing and review procedures. Final adjustments and other material developments may arise between the date of this press release and the dates GoPro announces fourth quarter 2015 results and the filing of the Company’s Annual Report on Form 10-K with the SEC.</p>
<p><strong>Zander Lurie Appointed to GoPro Board</strong>

Zander has resigned from his role as Senior Vice President of GoPro Entertainment and has been appointed to serve on GoPro’s board of directors. Mr. Lurie has deep experience working with Internet-based business models across digital and traditional media. At GoPro Entertainment, he built a team dedicated to pursuing new formats and revenue streams from user-generated content and the Company’s large cache of digital entertainment. Prior to GoPro, he served as an executive at CBS Corp. which he joined with the acquisition of CNET Networks where he served as CFO and head of Corporate Development. Mr. Lurie began his career in the technology investment banking group at J. P. Morgan where he led equity transactions and mergers and acquisitions in the Internet sector.</p>
<p><strong>Reallocation of Resources</strong>

Over the past two years, GoPro’s headcount has grown by more than 50% annually, to more than 1,500 employees at the end of 2015. To better align resources to key growth initiatives, GoPro has implemented a reduction in its workforce of approximately 7 percent. The Company estimates it will incur approximately $5 million to $10 million of restructuring expenses in the first quarter of 2016, substantially all of which will be severance costs.</p>
<p><strong>Fourth Quarter and Full Year 2015 Earnings Conference Call</strong>

GoPro will release its financial results for the fourth quarter and full year 2015 after the market closes on February 3, 2016.</p>
<p>GoPro management will host a conference call and live webcast for analysts and investors on February 3, 2016 at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company’s financial results.</p>
<p>To listen to the live conference call, please dial toll free (888) 806-6221 or (913) 981-5588, access code 4243159, approximately 15 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the “Events & Presentations” section of the Company’s website at http://investor.gopro.com. To access the live webcast, please log in 15 minutes prior to the start of the call to download and install any necessary audio software. The webcast will be recorded and the recording will be available on GoPro’s website, <a href="http://investor.gopro.com/">http://investor.gopro.com</a>, approximately two hours after the call and for six months thereafter.</p>
<p>GoPro reports gross margin and operating expenses, in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis. Non-GAAP gross margin and non-GAAP operating expenses exclude, where applicable, the effects of stock-based compensation and acquisition-related costs. A reconciliation to the comparable GAAP guidance has not been provided because certain factors that are materially significant to the Company’s ability to estimate the excluded items are not accessible or practically estimable at this time.</p>
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## JMZawodny (Jan 16, 2016)

I was really scratching my head went GoPro went public a while back - thinking who would buy that stock. Reading just how many employees they now have and the ridiculous pricing of their cameras (easily undercut by competitors), this reduction in staff is likely just the first turn in a long downward spiral. I wonder who will buy the company in a few years and at what price.


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## HighLowISO (Jan 17, 2016)

Yup. Just another public company scam. The insiders will make money and that's it. I'm surprised the announcement is only 7%.


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## mycanonphotos (Jan 19, 2016)

I think this is a ploy.. I mean, after you purchase a GoPro you need to spend twice as much in GoPro accessories to utilize it properly!!


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## kaihp (Jan 19, 2016)

As far as I understand, GoPro's latest camera (Hero4 Session), was a quite a let-down for a lot of people so the sales tanked. I wasn't surprised about that, since it was introduced at the same price as the Hero4 Black edition, but with much lower video specs and a fixed battery.

The only improvements from the other cams were a slightly smaller size, being waterproof to 10m, and having 2 mic's (so it would choose the mic with the least noise and not even doing active noise cancellation or similar).

We should see a "Hero5" with 4K/60p in H.265 and 4K/120p in H.264 sometime this year, based on the Ambarella H2 SoC.


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