John Ashcroft and Company
Wearable sports camera maker GoPro Inc's [GPRO] initial public
offering was priced at an estimated $24 per share, valuing the
company at up to $2.96 billion.
!
Adjusted EBITDA $ millions
GoPro's IPO raised about $427.2 million, after the offering of 17.8
million class A shares was priced at the top end of the expected
range of $21-$24 per share.
!
The valuation reflects a multiple of 3 x revenue and a multiple of
22.1 x adjusted EBITDA for 2013 and 32.4 x net earnings.
140
133.7
105
Market Cap ! $3 billion!
!
PE ! ! ! ! ! ! 32.4 !
!
70
35
75.3
52.8
0
2011
2012
2013
EBITDA multiple 22.1
Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted after excluding the impact of: provision (benefit) for income
taxes, interest income, interest expense, depreciation and amortization, POP display amortization and stock-based compensation. We use adjusted EBITDA as a key measure to
understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In
particular, the exclusion of certain expenses in calculating adjusted EBITDA can provide a useful measure for period-to-period comparisons of our business. Accordingly, we believe
that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board
of directors. See “Prospectus summary—Summary consolidated financial data—Adjusted EBITDA” for additional information and a reconciliation of net income to adjusted EBITDA.
John Ashcroft and Company
Company Overview!
!
GoPro is transforming the way consumers capture, manage, share and enjoy meaningful life experiences. We
do this by enabling people to capture compelling, immersive photo and video content of themselves
participating in their favorite activities. Our customers include some of the world’s most active and passionate
people. The volume and quality of their shared GoPro content, coupled with their enthusiasm for our brand, are
virally driving awareness and demand for our products. To date, we have generated substantially all of our
revenue from the sale of our cameras and accessories and we believe that the growing adoption of our capture
devices and the engaging content they enable, position GoPro to become an exciting new media company.!
!
What began as an idea to help athletes document themselves engaged in their sport has become a widely
adopted solution for people to document themselves engaged in their interests, whatever they may be. From
extreme to mainstream, professional to consumer, GoPro has enabled the world to capture and share its
passions, and the world, in turn, is enabling GoPro to become one of the most exciting and aspirational
companies of our time.
Corporate Information!
Incorporated as Woodman Labs, Inc. in California, trading as GoPro
from February 2004. Reincorporated in Delaware in December
2011, in February 2014 the company name changed to GoPro, Inc.
John Ashcroft and Company
History!
We were founded in 2004 to address the limitations of traditional
cameras. In 2004, we shipped our first product, a wrist-mounted,
waterproof, film-based capture device, and in 2006 we shipped
our first digital capture device, the Digital HERO. We introduced
our first HD capture device in 2009, the HD HERO, and we
introduced our current HERO3+ family of capture devices in late
2013. We also sell mountable and wearable accessories that
enable professional quality capture at affordable prices.
!
We have continued to enhance our product offering by providing
software solutions that address the pain points of managing,
editing and sharing content. GoPro Studio enables our customers
to easily edit and share simple or complex videos. The GoPro
App enables customers to easily and wirelessly manage and
share content from our HERO capture devices.
!
Since we launched our first HD camera in 2009, we have
experienced rapid growth. In 2011, 2012, 2013 and the three
months ended March 31, 2014, we generated revenue of $234.2
million, $526.0 million, $985.7 million and $235.7 million and
reported net income of $24.6 million, $32.3 million, $60.6 million
and $11.0 million, respectively. Substantially all of our revenue
has been generated from the sale of cameras and accessories.
!
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As of March 31, 2014, our products were sold to customers in
more than 100 countries and through more than 25,000 retail
outlets. Sales outside of the United States represented 35%, 47%,
49% and 53% of our revenue for 2011, 2012, 2013 and the three
months ended March 31, 2014, respectively.
Revenue $ millions
$1,000
985.7
$750
$500
$250
526
234.2
$0
2011
2012
2013
Sales Strategy!
Our sales strategy initially targeted independent specialty
retailers focused on action sports markets, which we believe
helped to establish the authenticity of our brand. We now sell
our products both directly and through distribution. Our direct
channel includes big box, mid-market and independent
specialty retailers, as well as our website. We use our
distribution channel to sell internationally and into certain
specialty markets.
John Ashcroft and Company
7.2 Million Likes
950,000 Followers
2.0 Million followers
450 Million Views!
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1.8 Million subscribers
John Ashcroft and Company
Revenue $ millions
1000
985.7
750
150
100
500
250
Growth Rate %
125
87
50
526.0
0
234.2
0
-7
-50
2011
2012
2013
2012/11
Operating Income $ m
100
2013/12
Gross Margin %
60
91.3
75
45
52.3
43.3
50
25
2014 Q1
30
53.2
38.8
36.7
40.9
15
0
0
2011
2012
2013
2011
2012
2013
2014 Q1
John Ashcroft and Company
Units Shipped 000s
4,000
3,849
3,000
2,316
2,000
1,000
1,145
0
2011
2012
2013
Average Revenue $
$300.00
$250.00
$200.00
$256.10
$227.11
$204.54
$150.00
$100.00
2011
2012
2013
John Ashcroft and Company
More than just Hardware !
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The company makes virtually “all” of its revenues from hardware
but is trying to position itself as a new ind of media company, with
millions of subscribers across Youtube, Instagram and Facebook.
Syndication !
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The company is also developing syndication deals with Microsoft
Xbox consoles and Virgin America.
.
Video is all … Breaking News!
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Twitter acquires SnappyTV. Twitter Director of Product
Management “One of the best ways to follow events as they
unfold is through real time videos on Twitter. As we continue to
invest in video, it’s important for us to provide tools that make it
easy for TV broadcasters, businesses and event producers to
share high quality videos.” Baljeet Sungh.
Facebook develops Slingshot …!
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Facebook develops Slingshot to rival Snapchat.
John Ashcroft and Company
© 2014 Go Pro be a hero : Dimensions of Strategy!
Dimensions of Strategy by John Ashcroft and Company. Experience worth sharing. John Ashcroft, jkaonline
!
About : Dimensions of Strategy!
Dimensions of strategy, is the Corporate Strategy website of John Ashcroft and company. Experts in economics,
corporate strategy, business modelling and social media. The corporate strategy group is led by Professor Brian C Oxford
and the SWOT team now joined by AKA our resident social media expert.
!
John Ashcroft recently developed the International MBA module for Corporate Strategy for one of the leading business
schools and wrote up the case study Apple from the iPod to the iPad, the Lego Case Study, the Twitter Case Study and
the Amazon Case Study.
!
Disclaimer!
.
The material is based upon information which we consider to be reliable but we do not represent that it is accurate or
complete and it should not be relied upon as such. We accept no liability for errors, or omissions of opinion or fact. In
particular, no reliance should be placed on the comments on trends in financial markets. The receipt of this email should
not be construed as the giving of investment advice.
!
Information within this presentation is derived from :!
United States, Security and Exchange Commission, Washington, D.C.20549 Form S-1 Registration Statement Under The
Securities Act of 1933 GOPRO, INC. 2014
John Ashcroft and Company
John Ashcroft and Company