GoPro 2Q15 Earnings Call Notes

GoPro: The only way to invest in user generated content, social media, virtual reality and drones at the same time

“Today GoPro is both an enabler and a beneficiary of four of the biggest trends in technology and entertainment. The first trend is user generated content…The second major trend propelling GoPro is social media which represents a global audience for shared GoPro content… third trend benefiting GoPro is Virtual Reality. With our recent acquisition of VR content enabling software and our continued development of spherical capture devices, we believe GoPro is exceptionally well positioned for the Virtual Reality movement…The fourth trend benefiting GoPro is Quadcopter. In May we announced that we will be launching our own Quadcopter in the first half of 2016. ”

Two new VR products announced

“In May, GoPro announced two new products that will play a significant role in the creation of content for Virtual Reality. The first is the six camera spherical array for capturing high resolution video and photos for virtual and augmented reality. The resulting images are stitched into a six case spherical image using GoPro software and viewed on VR and AR headsets like Facebook’s Oculus, Google Cardboard, and Microsoft’s HoloLens.”

500m in cash on the balance sheet

“we ended the quarter with cash, cash equivalents and marketable securities of 517 million, up 25 million or 5.1% sequentially, due primarily to cash flow from operations.”

Going public has given the resources to add the people to get the supply chain in order

” one of the things that we really benefited on over the last year. As we’ve grown good reason to go public and get bigger and strong. We’re able to add the resources, the teams, the people, that can do all the product planning, that can do get the product out on a timely basis and set up the supply chain so that you can get product out one time. We’ve grown a lot of people in the company in the last year, there is just more people focused on making these great events happen and we’re seeing the positive results of that.’

It’s hard to compete with us because we’re maniacally focused on our vision

“we run fast and we run hard and it’s working. And I frankly share your feeling that we’ve outpaced the competition we run at an exhausting pace and this is all we do. We are over 1,300 employees that are manically focused on our vision and we all come to work every day with that shared vision and this is all that we think about, all that we work on and you see it in the execution. And that’s a very difficult thing for somebody to compete with and I think you’re seeing that play out at retail”