GoPro posts US$81 million in revenue for the third quarter of 2020
GoPro ended its third financial quarter of 2020 on September 30, two weeks after launching its HERO9 Black flagship unit. The company now reports this event has led to total revenues of nearly US$281 million (113.9% up year-on-year (YoY)), $81 million of which had been accrued in its latest quarter.
The action-cam OEM also revealed that it made a generally-accepted accounting practice- (GAAP) generated net income of $3.3 million, compared to -$74.8 million for 3Q2019. It also posted a gross margin of 35.4%, compared to 21.7% for the same quarter of the previous year.
This success was attributed to the HERO9 Black's release, and also to a shift to a direct-to-consumer (DTC) business model, in which it now focuses on selling via gopro.com. The new camera's sales has also contributed in a 65% YoY increase in the number of its subscribers. This figure surpassed half a million in 3Q2020, and is now expected to exceed 600,000 by the end of the year.
Meanwhile, the move to DTC is credited with improved camera sell-through (over 950,000 units for Q3 2020), as well as a steady fall in its operating expenses. They were estimated at $90 million for its latest quarter, or -9% YoY. Finally, GoPro is now sitting on $147 million in cash and investments, compared to $80 million in 2Q2020.