GoPro, Inc. (NASDAQ: GPRO) announced Thursday after market closed financial results for its first quarter ended March 31, 2020. Shares of the manufacturer of cameras, drones, and mountable and wearable accessories jumped more than 5 percent Friday morning.
Revenue for Q1 2020 was $119 million, in-line with the preliminary results published on April 15, and down from $243 million for the same prior year period.
Adjusted EBITDA for the first quarter of 2020 was negative $41 million, compared to negative $1 million in the same period a year ago.
GoPro.com represented a record percentage of revenue in Q1 2020 at 17%, up from 11% in Q1 2019.
GoPro’s Plus subscription service ended Q1 2020 with 355,000 paid subscribers, up 14% sequentially and up 69% year-over-year.
“We’ve taken decisive action to transition into a more efficient and profitable direct-to-consumer business,” said GoPro founder and CEO, Nicholas Woodman. “This benefits GoPro with a substantially reduced operating expense model, improved gross margin and a significantly lower threshold to profitability.”
“While our business slowed due to COVID-19, consumers have continued to purchase GoPro cameras at substantial levels during the pandemic, and since early April we’ve seen sell-through trend in a positive direction,” said Brian McGee, GoPro CFO and COO. “Operationally we are performing well during a difficult period and we are extremely proud of our team’s dedication. We expect our shift to a more consumer-direct model allows us to succeed both during the pandemic and in the long-term.”
The Company also emphasized that on April 15, GoPro announced Aimée Lapic, former Pandora and Banana Republic Chief Marketing Officer, as its Chief Digital Officer to lead direct-to-consumer growth initiatives.