GoPro 10-Q: Helmet Tech Acquisition & Q2 Financials

TL;DR

GoPro's Q2 10-Q shows $450K in bad debt allowance and a planned helmet tech acquisition closing Q1'24.

AI Summary

GoPro, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported an allowance for doubtful accounts receivable of $450,000 for the year ended June 30, 2024. In January 2024, GoPro entered into an agreement to acquire a privately-held company specializing in technology-enabled helmets, with the transaction expected to close in the first quarter of 2024.

Why It Matters

This filing provides insight into GoPro's financial health and strategic moves, including a significant acquisition aimed at expanding its product offerings.

Risk Assessment

Risk Level: medium — The filing details financial figures and a pending acquisition, which inherently carry financial and integration risks.

Key Numbers

• $450K — Allowance for doubtful accounts receivable (As of June 30, 2024, indicating potential uncollectible revenue.)
• Q1 2024 — Expected acquisition closing (GoPro plans to acquire a helmet technology company.)

Key Players & Entities

• GoPro, Inc. (company) — Filer of the 10-Q
• June 30, 2024 (date) — End of reporting period
• $450,000 (dollar_amount) — Allowance for doubtful accounts receivable for the year ended June 30, 2024
• January 2024 (date) — Date of acquisition agreement
• first quarter of 2024 (date) — Expected closing period for acquisition

FAQ

Key Financial Figures

• $0.0001 — which registered Class A common stock, $0.0001 par value GPRO NASDAQ Global Select Mar

Filing Documents

• gpro-20240630.htm (10-Q) — 1604KB
• gpro2024-06x30exhibit3101.htm (EX-31.01) — 8KB
• gpro2024-06x30exhibit3102.htm (EX-31.02) — 8KB
• gpro2024-06x30exhibit3201.htm (EX-32.01) — 6KB
• gpro-20240630_g1.jpg (GRAPHIC) — 33KB
• 0001500435-24-000132.txt ( ) — 8915KB
• gpro-20240630.xsd (EX-101.SCH) — 52KB
• gpro-20240630_cal.xml (EX-101.CAL) — 71KB
• gpro-20240630_def.xml (EX-101.DEF) — 471KB
• gpro-20240630_lab.xml (EX-101.LAB) — 854KB
• gpro-20240630_pre.xml (EX-101.PRE) — 751KB
• gpro-20240630_htm.xml (XML) — 946KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Cash Flows 6 Condensed Consolidated Statements of Stockholders' Equity 7 Notes to Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 42

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 43 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 70 Item 3. Defaults Upon Senior Securities 70 Item 4. Mine Safety Disclosures 70 Item 5. Other Information 70 Item 6. Exhibits 71

Signatures

Signatures 72 2 Special Note About Forward-Looking Statements This Quarterly Report on Form 10-Q of GoPro, Inc. (GoPro or we or the Company) includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding guidance, industry prospects, product and marketing plans, or future results of operations or financial position, made in this Quarterly Report on Form 10-Q are forward-looking. To identify forward-looking statements, we use words such as "expect," "anticipate," "believe," "may," "will," "estimate," "intend," "target," "goal," "plan," "likely," "potentially," or variations of such words and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their date. If any of management's assumptions prove incorrect or should unanticipated circumstances arise, the Company's actual results could materially differ from those anticipated by such forward-looking statements. The differences could be caused by a number of factors or combination of factors including, but not limited to, those factors identified and detailed in Risk Factors in Part II, Item 1A. of this Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. Forward-looking statements include, but are not limited to, statements regarding our plans to improve product offerings; projections of results of operations, research and development plans, marketing plans, plans to expand our global retail and distribution footprint, and revenue growth drivers; plans to manage our operating expenses effectively; plans to drive profitability, including our restructuring plans and the improved efficiencies in our operations that such plans may create; our ability to achieve profitability if there are delays in our product launches; the impact of negative macroeconomic factors including fluctuating intere

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements GoPro, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands, except par values) June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 133,036 $ 222,708 Marketable securities — 23,867 Accounts receivable, net 86,337 91,452 Inventory 97,331 106,266 Prepaid expenses and other current assets 34,723 38,298 Total current assets 351,427 482,591 Property and equipment, net 9,011 8,686 Operating lease right-of-use assets 17,064 18,729 Goodwill 152,351 146,459 Other long-term assets 26,901 311,486 Total assets $ 556,754 $ 967,951 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 65,901 $ 102,612 Accrued expenses and other current liabilities 108,215 110,049 Short-term operating lease liabilities 10,434 10,520 Deferred revenue 53,914 55,913 Total current liabilities 238,464 279,094 Long-term taxes payable 13,112 11,199 Long-term debt 92,898 92,615 Long-term operating lease liabilities 24,332 25,527 Other long-term liabilities 3,269 3,670 Total liabilities 372,075 412,105 Commitments, contingencies and guarantees (Note 10) Stockholders' equity: Preferred stock, $ 0.0001 par value, 5,000 shares authorized; none issued — — Common stock and additional paid-in capital, $ 0.0001 par value, 500,000 Class A shares authorized, 126,471 and 123,638 shares issued and outstanding, respectively; 150,000 Class B shares authorized, 26,259 and 26,259 shares issued and outstanding, respectively 1,014,115 998,373 Treasury stock, at cost, 26,608 and 26,608 shares, respectively ( 193,231 ) ( 193,231 ) Accumulated deficit ( 636,205 ) ( 249,296 ) Total stockholders' equity 184,679 555,846 Total liabilities and stockholders' equity $ 556,754 $ 967,951 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 GoPro, Inc. Condensed Consolidated Statements of Operations (unaudited

View Full Filing

View this 10-Q filing on SEC EDGAR