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3 Ways GoPro Is Winning

Growing brand and media ecosystem

• As of March 31, daily uploads to GoPro’s online media channel had exceeded 40,000

• Video uploads serve as advertising for GoPro products and are keeping the company synonymous with action cameras

• GoPro retains rights to video uploads and recently unveiled GoPro Licensing, which makes user content available for commercial use

Growing brand and media ecosystem

• GoPro has partnerships to provide video coverage with

NHL and the NHL Players Association, ESPN and the X

Games, Tour de France, Moto GP, and other sports organizations. It also has

video distribution partnerships with

Microsoft, Roku, Virgin America, and more. Deals like these are working to

promote the company as a premium technology brand.

Growing brand and media ecosystem

• Downloads of the GoPro Mobile App increased from 13 million as of December 31, 2014 to 18 million as of June 30, 2015

• GoPro Studio, the company’s editing suite, was downloaded over 1.7 million times in Q2 2015, up more than 100% year-over-year.

Improving the hardware lineup

• GoPro is finding success iterating its core camera line and introducing

new devices across a range of price points, but with a mostly premium

product mix• With an expanding range of cameras, the company is spreading key product launches throughout the year, capitalizing on demand from the enthusiast demographic and maintaining pricing strength.

The Hero4 line launched in Q4 2014 and has been a big sales driver,

while the company’s compact cube camera, the HERO 4 session,

debuted at $399 in July.

Improving the hardware lineup

• GoPro has announced a quadcopter drone for the first half of 2016.

• Ambarella, the company that supplies the key video chips in GoPro cameras, has indicated that it expects the aerial camera drone market to takeoff quickly Parrot AR Drones; Image source: Wikimedia Commons

Improving the hardware lineup

• GoPro is also readying camera arrays for virtual reality use. The company will release a six-camera-array aimed at professional videographers, and also a sixteen-camera-array for a partnership with Google’s Jump VR platform.

• Widespread consumer adoption of VR is still a ways off, but GoPro has ground floor opportunities in the segment and could help propel the tech to mainstream use

Building business abroad

• GoPro is evidencing strong momentum in APAC (Asia Pacific) and EMEA (Europe, Middle East, and Africa) territories

• Non-domestic markets now account for roughly half the company’s sales

Building business abroad

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America EMEA APAC

Share of GoPro revenue by Geographic segment

Building business abroad

• Momentum overseas is helping

the company deliver impressive sales growth. GoPro’s revenue in the

second quarter was up roughly 50% year-over-year

• Combined revenues for the APAC and AMEA were up

126% in the quarter, and the territories present big growth opportunities going

forward

Is GoPro cheap at current prices?

• After the recent sell-off, GoPro stock is back in a price range which has shown resistance over the last year. The stock has been very volatile, and will likely continue to be, but brand strength, momentum in the action camera segment, and overseas growth

potential combine to make GoPro a viable medium-to-long-term

investment for those who are not especially risk averse.

• An influx of competitors and pricing pressure stand as credible obstacles to

GoPro’s ability to deliver significant share growth over the long haul, but

with its forward price to earnings ratio at roughly 35, the stock looks

historically inexpensive and its growth prospects look strong.

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