Gopro Destroys Earnings!

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Yes-yes-yes gopro finally finally absolutely destroyed numbers guys they absolutely killed what i was expecting what analysts were expecting remember i was report i when i did my video a few days ago and i was talking about you know what i was expecting for gopro numbers for stocks i’m buying the august video that came out what two or three days ago i was talking

About i was expecting probably like two hundred and seventy three million to two hundred seventy seven million they absolutely killed my numbers that analysts were expecting 269 guys we’re going to look into this we got to decide you know all this information we got to look at all this together and then i gotta hop off and get on the conference call because the

Conference calls starting in like 30 minutes from me recording this right now guys so that’s one of these numbers here revenue up 34% year-over-year positive adjust to e ball right off the bat like i just said that guys that like is way better than i was expecting way better than analysts are expecting right off the bat there cameras sell-through up 18% sequentially

So that’s a really good sign because what that means is cameras that are in stores selling through so you could just sell like the say i got my book here right and i go down a local bookstore and i’m like hey will you buy a hundred of my books right they could buy a hundred of those books and technically i sold 100 books who knows those might just sit on the shelf

That’s not the best time the best sign is if i sell those books to them and then all hundred books sell off the shelf at the bookstore that’s what we’re talking about when we’re talking about camera sell-through these are cameras that were on the shelves or in these retail or on amazon or whatever and got sold through and that was up 18% so that is phenomenal

News there guys because that that’s the real indicator of super strong demand you would just sell through because you know some guys some retail store writing he wants to hook you up and so you sell into that but it’s a lot bigger deal when those are actually on the shelf and consumers are going in and buying those with money guys that is a big big positive there

Hero six infusion cameras are on track for 2017 that’s great news there that fusion camera is their new spherical camera that’s going 360 video and it has a potential to be a market leader in the 360 space so that’s going to be huge hero six going to be you know every camera launch from gopros huge right so here are six launching this year that’s going to be huge

And both them are on track to launch in 2017 that is phenomenal news there karma is the number two best-selling drone a brand in the united states right that’s phenomenal news and so many people you know would come at me in the comments and be like oh well navigator so through a karma you know irrelevant or whatever i’m like dude if karma can be number two if

Karma can be the number two best-selling drone that’s a huge win like you don’t understand how big these categories are something like drunk like imagine being the number two best-selling smartphone imagine how much revenue and profits that would be billions of dollars right imagine being even number five so you’re number two in drones like that’s still a huge

Category that’s growing super fast and that’s all a lot of money coming in guys so so that’s what i’ve always talked though go for i’ve always said go for doesn’t have to be number one gopro doesn’t have to ddg i they can just be number two that’s going to be huge for gopros business that is going to be literally a game-changer and it absolutely has been quick

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Stories positions gopro as a powerful extension of the smartphone absolutely if you haven’t played around with the software of called quick story it’s a phenomenal software editing system that can basically take all your pictures and put them into nice videos and all those kinds of things and it’s real easy to share on facebook instagram and all these different

Platforms you can save it you can share it on snapchat it knows like the best moments or say you took a bunch of video of a hiking trip like somehow i don’t know how the software like knows old this is a really important moment this was a good moment and combine them together for for literally a seamless edit so it’s pretty awesome software if you have not checked

That out guys so let’s go on and see what on mr. woodman here had to say so woodman says gopro is building momentum obviously in the numbers they’re set founder ceo nicolas woodman strong demand combined with our cost management and margin initiatives contributed to gopros keep it all positive performance for the second quarter here will 6a infusion or five point –

Case spherical camera and are on course to launch later this year which we continue to track toward our goal of full-year non-gaap profitability in 2017 that’s big to the non graphic that profitable in 2017 that’s huge guys absolutely believe gopro will definitely be gap profitable in 2018 guys though everything is exactly how i expected but better than i expected so

That’s the really good news quick stories launch in july 27th we just talked about that second quarter revenue was 297 million of 34 percent year-on-year and 36 percent quarter-on-quarter adjusted even oh was 5.1 million next phenomenal sharp focus on inventories and channel management resulting in 39 percent reduction in inventory quarter-over-quarter forward weeks

Of supply chain in the channel is down 25% old position as well for upcoming product launches basically gopros business the business which is you know managing inventory and supply and all this stuff that should be run a hell of a lot better than it was in the past and it’s amazing it’s amazing sometimes what happens gopro cut off massive amounts of employees over

The last year we know this right and people say oh that’s going to make the business worse and i said no this will actually make the business be run better because what you have is you have a lot of employees passing off the buck to each other saying oh that’s not my problem you deal with that you deal with that when you have less employees sometimes less is more

Honestly guys because then the buck stops or somebody the buck stops or somebody if something’s not being taken care of its directly on a person it’s not on 10 different people and it’s like oh this group and then you know it’s like always somehow missed that or something now a smaller corporation is sometimes more focused more laser focused and run much better

Because you know this person’s in charge of this exact thing here and if it’s not taken care of it’s their ass it’s not like oh maybe this guy’s asked but maybe this chicks ass or whoever guys the much better run company now absolutely the numbers are proof in the pudding global sell-through of cameras increased 18% sequentially additional camera sell-through

Was above $300 was up 13% batsmen almost average selling price with karyn’s was up including 7% email ema 194 % in japan hero 5 black was the best-selling digital image camera in the united states in the second quarter according to the npd group to retail tracking service so i mean what else can you say the best-selling digital imaging camera in the whole united

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States like awesome awesome anybody says you know gopro why would you buy a gopro a lot of different use cases versus a smartphone i’m not strapping my smartphone to go surfing or go mountain biking or going hiking or doing all these different things or putting it on a drone like you know there’s a million different things that you would use a gopro for that you

Would never use your smartphone for in a million years guys next up here let’s look at this more than 50% of gopros revenue was generated in markets outside of the united states so that’s phenomenal news that’s that’s a company that’s growing very well outside of the united states demand for gopro was high on amazon prime day which was july 11 so a little less than

A month ago a hero session bundle sort sold more than 10 times the weekly run great hero 5 black was offered with no discount and moved the equivalent of a full week of normal sale through for just one day guys in 18min discounted they mean the discount the camera and has sold more in a day than doesn’t usually in a week that is phenomenal news the quick mobile

Video editing app was installed 5.6 million times that is that is really great news gopro gained 1.6 million 1.6 million new social media followers in the second quarter instagram followers were up 39 percent year-over-year to thirteen point seven million international followers were up 94 percent this is just phenomenal news guys all around there i mean you know

The social media platforms are so big and gopros one of the very few companies that really understands about building brand on social media and that’s one of the ways gopro is honestly built the business is through social media it’s just something they really understand youtube they really understand instagram facebook snapchat they understand all these different

Types of platforms twitter and how you can gain followers on those platforms and then sell products when you come out with products on that as big time guys now let’s go ahead and next up this look at the the numbers here so we already talked about the revenue so no need to go over that again i mean that’s ridiculous growth from 220 million last year to 296 s is

Awesome growth there the thing i was most impressed with was the net loss came in so much less on a non-gaap basis they lost about almost 13 million dollars right but that’s comparing last year to 72 million dollars they lost in the same quarter so the trend is going in the right direction guys when you go from losing you know 72 million dollars in a quarter so

Now you’re only losing twelve point nine and you know by this time next year they should be full profitable you know across the board that is big-time and then the guidance was really strong here so they died it for revenue of 300 million plus or minus ten million guys that’s really strong revenue growth there when analysts were expecting around 278 million for

Next quarter guys so phenomenal news across the board for gopro way better than i expected which i love when my expectations are exceeded and i think woodman’s finally understanding the game of wall street which is a different type of game you got to play which is really more about under promising and over delivering which is opposite of what he did for you know

The last a year and a half where he would over promise and then under the liver which it which get you and have real nasty streak with wall street now as far as a stock price let’s talk about the stock price it could absolutely move up over the next few weeks and have a nice move up but the big thing for now is this is three straight quarters where the company is


Showing great growth you know double-digit plus growth right now we got great guidance again so it’s obviously a growth company is no doubt about that is a strong growth company a strong double-digit growth company right now grow gopro is so what we’re looking at here is now a company that i think will start attracting some hedge fund managers who are like you can’t

Really bypass this one anymore because it’s like oh this is this is a strong growing company i need to start putting some money in this this will still i don’t believe gopro will start attracting more of the conservative investment managers i don’t believe they’ll they’ll start attracting the mutual fund managers yet i don’t believe they’ll start attracting those

Type of people yet those that are you know huge sums of money out there because they’re not profitable yet and a lot of those ones only like to get in the profitable company so if 2018 rolls on and we get into 2018 if gopro can prove its profitable on a non-gaap in gaap basis i believe all of a sudden those mutual fund managers those more conservative investment

Managers will start to funnel money into gopro sir shirley but slowly but surely but as far as now i see a you know as far as moving up could be a short squeeze in the short term things like that short sell is getting out some short sellers will probably go long though pro because the trends obviously changing and things like that and other little money can come

Into you know more investment people that might take a little bigger risk with a company like gopro and like i said some hedge fund managers that kind of see this double-digit growth in there are a little more aggressive type investors they’ll see a gopro would be like i need to get in this one now when it’s nine dollars a share or whatever will be tomorrow rather

Than get in at twelve or fourteen or something like that guys so really phenomenal news across the board i can’t wait to see how all this plays out especially as we go into september when the products are launched very excited across the board i love i freaking love when a company beats what i’m weighing big time beats like way beats what i’m expecting from the

Company so great news across the board let’s just hope this trend keeps going there they’re moving up in the right way and i love to see especially it’s like the you know man it’s just i think it’s even more meaningful to me because of how much i’ve gone through with this talk and anybody that watches the channel you know how much i’ve gone through with this stock

And just then you know down 30% and there’s an ad and just a disaster so you know the pain i felt and when you finally get that good feeling guys it’s a special i definitely have some good juices flowing through me right now so anyway i hope you guys enjoyed this let me know i’m thinking about maybe live-streaming tomorrow i might not post a video i think about

This livestream and let me know if you guys would like me a live stream tomorrow or any like that let me know what you thought about the numbers or anything like that guys love to hear from you and have a great day

Transcribed from video
Gopro Destroys Earnings! By Financial Education

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