GoPro sees Q3 EPS (7c) to (3c), consensus 7c

Sees Q3 revenue $250M-$260M, two estimates $290.4M. Sees Q3 gross margin 33.5%-34.5%. The company states: “2024 has clearly been a challenging year for GoPro. We have been impacted by delayed product launches, muted consumer spending when products were not on price promotion, a continued decline of camera sales at GoPro.com, macroeconomic concerns globally, increasing competition globally and foreign exchange rate fluctuations in China and Japan. Moreover, we’re factoring in a further launch delay of our new 360-degree camera into 2025. This is expected to negatively impact revenue in a range of $20 to $25 million in Q4 2024 relative to prior guidance. The cumulative effect of delayed product launches for 2024 is expected to impact sales by approximately $100 million. Our expectation based on the above factors is for unit sales in 2024 to be in a range of 2.6 million to 2.7 million and revenue in a range of $850 million to $870 million, or down 15% and 13% from the prior year, respectively. However, as Nick noted, we are seeing signs of growth in the overall digital imaging market, and are on track to introduce two new cameras in September – including our new flagship with significantly enhanced capabilities and our new $199 HERO camera that features a totally new form factor and attributes that we believe will excite both new and existing customers. We are committed to being profitable in 2025 and plan to reduce 2025 operating expenses to $320 million +/- $5 million, a reduction of nearly $50 million from the mid-point of projected 2024 levels. We have reasonable line of sight to reducing operating expenses by $50 million from 2024 to 2025, which is expected to be driven by reductions in non-recurring technology development expenses of approximately $20 million, and reductions in marketing, salary expenses and other operating expenses. In addition, we will continue to look for ways to reduce expenses further in 2025.” Comments taken from Q2 earnings conference call.