
GoPro S-1 - antr
http://www.sec.gov/Archives/edgar/data/1500435/000119312514204902/d552193ds1.htm
======
zecho
Nick Woodman founded this company on a $35,000 loan from his mom in 2002. The
rise of this company has been amazing to watch. It really is a great product
line. What's most amazing is how the camera basically marketed itself with the
rise in both action sports and online video. Some damn lucky timing.

~~~
grinich
Are action sports really that new? People have been skateboarding, surfing,
and mountain biking for decades.

~~~
componentr
I believe it's just that GoPro + Internet allows for more action sports
footage from many more perspectives to be broadcast to a wider audience
compared to what was available ten years ago. I know theberrics.com uses
GoProp for a lot of their footage.

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antr
Something I find really interesting is the decreasing gross margins:

    
    
                        2011  2012  2013
        Gross margin     52%   43%   37%
        Net inc. margin  11%    6%    6%
    

I'm curious to know what is creating that margin reduction... pricing pressure
or cogs.

Additionally, the net income margin seems to be stabilised at 6%, which seems
to me pretty standard for hardware plays.

Still, the most refreshing part of this technology S1 is that GoPro has no
losses! Good for them.

~~~
kcg
They also disclose units shipped (1.15MM in 2011, 2.32MM in 2012 and 3.85MM in
2013).

A simple revenue/units calculation would imply that revenue per unit is
increasing ($205 in 2011, $227 in 2012, $256 in 2013).

This is a primitive analysis for a number of reasons, but it suggests that
pricing pressure is not the issue. The MD&A, on page 64, also states that
higher product costs were the primary reason for the gross margin decreases in
2012 and 2013, and that there was a 14% increase in average selling price in
2012.

~~~
mynegation
Depends on how you define "pricing pressure". By the similar calculation the
average COGS per unit in 2011, 2012, and 2013 is $97.11, $128.67, $162.07
respectively. It grows faster than the revenue per unit. Which may mean upward
price pressure from suppliers, downward price pressure from consumers, or
both.

~~~
kcg
Yes. I took the question as asking whether absolute revenue per unit was going
down or absolute COGS per unit was going up (or both).

Obviously there are different perspectives from which we can look at absolute
and relative pricing pressure, and with everything in finance it depends on
definitions.

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kudu
I don't understand this "trend" of posting the entire S-1 document that a
small portion of people are going to read in full. I'd much prefer to read a
news article rather than trying to skim through it all.

~~~
rjtavares
Judging by the amount of upvotes, maybe more people than you think read the
document...

Personally, I don't read it all but much prefer reading the sections I find
most relevant than reading a summary made by someone else. Also, I think it
makes for a better discussion.

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mkoryak
I have a Contour helmet camera. Everyone always asks me if its a GoPro. No
wonder GoPro is going public and Contour went out of business a few months
ago.

(and deleted all my videos on their site >:| )

~~~
unphasable
Contour camera performed fine when it was at its peak. But Go-Pro's marketing
was just leagues ahead.

~~~
marincounty
Too bad advertising is so important. I thought go-pro was a narcissistic waste
of time, but once I saw the how useful they were on the production end of the
Gold mining show on the Discovery channel; I realized their value. I hope they
continue to improve quality, and lower price points. And not spend more money
on advertising.

~~~
nl
GoPro's most effective marketing _isn 't_ traditional paid advertising, it's
the cool video your friend shot & put on YouTube.

Or if you don't have any cool friends, it's Jeb Corliss' "Grinding the
Crack"[1]. Given that many credit the massive success[2] of AWOLNATION's
"Sail" (the soundtrack to that clip) to the 26M views that clip has had, I
wonder how many GoPro's it sold, too?

[1]
[https://www.youtube.com/watch?v=TWfph3iNC-k](https://www.youtube.com/watch?v=TWfph3iNC-k)

[2]
[http://en.wikipedia.org/wiki/Sail_(song)](http://en.wikipedia.org/wiki/Sail_\(song\))
(Note that it entered the Billboad 100 a month after "Grinding the Crack" went
viral)

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hpaavola
So many TV programmes uses GoPros nowadays. Every outdoor show uses those.
They just strap them in the weirdest places. 10 GoPros is something like 5000
euros and with that a fishing show can be sure that they will catch a nice
angle when the big fish eats the lure.

Car shows? Just put one camera to every corner, on the roof, on the dash,
trunk and what ever. Because why not?

Biking in some lifestyle/feelgood show? You can put couple cameras to every
bike. When hiking everybody can have a camera.

No, the picture quality is not as good as with professional cameras, but few
second clip from awesome angle with OK quality is better than great quality
from bad angle.

~~~
awor
"Gold Rush: Alaska" and "Yukon Gold" are both filmed in my local area (Dawson,
Yukon, Canada), and both companies strap GoPros onto every piece of heavy
equipment they can. If they fall off and get run over, they're out $300, which
is a negligible amount of money for productions of their scale.

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brg
I know little of the device or the company, but perhaps someone can help
inform me and others. Is GoPro a single product company, with expected growth
and decline curves of Iomega or Palm? Or is it divested across wearables or
some other sector?

~~~
callmeed
They have 3 models ("white", "silver", "black") of their main product–the Hero
camera–which is currently in it's 3rd version (the Hero3). The only other
products they produce (to my knowledge) are accessories for the camera.

I don't think comparison to Palm or Iomega is fair. Camera technology seems a
little more cemented than storage or mobile operating systems.

I think the rise of sectors like drones will make GoPro a successful
complement for a long time. I'm sure they could divest into specialized
cameras for these sectors if they wanted to (think infrared/multispectral
imaging for agriculture). Right now, however, they seem to have a "Do one
thing and do it really well" approach.

~~~
negrit
They also have a editing video software. It's currently free.

And they also organize events.

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imrehg
Am I the only one who thought seeing the title "oh, nice, a new GoPro model
already!" before clicking the link?

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malanj
Revenue growth is pretty astounding:

* 187% from 2012 to 2013

* 225% from 2011 to 2012

* 363% from 2010 to 2011

~~~
amorphid
I wonder how long the GoPro device lasts before a consumer replaces it. In my
mind, a GoPro is something you wear on your head while doing crazy stuff. Even
if GoPro never makes technology improvements, it seems like people would be
destroying them as part of normal use, like other types of athletic equipment.

~~~
jdfreefly
Skydiver with 3 GoPros in the family. I started with the 1, got my wife a 2,
and then I upgraded to a 3. The V1 is still alive and kicking, but the image
quality was so much better on the 3 that I felt like I had to upgrade.

Also, we see new jumpers every year, and the first thing they want to do is
start jumping with a GoPro (even if we don't want them to for safety reasons).

I think they're doing a good enough job with new features that people like me
will keep upgrading for a while.

~~~
us0r
Same here. I've seen one survive from 10,000 ft (lost helmet). You would
really have to try hard to break one of these.

~~~
morganw
Dropped one without the case: lens onto concrete floor and it chipped it.

Consequence of fumbling while trying to take it out of the case for SD card
retrieval and charging. Now, I unmount the case, take it to a desk in a
carpeted room & open the case.

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Zigurd
GoPro has all the characteristics of a successful long-term brand. I recently
bought one for my son. I could not find a better product in that category.
Many of his friends have one (or more). It produces great video. It is simple
to use. They are nearly indestructible.

Established camera makers don't seem to understand how to compete, despite the
GoPro being a pretty simple camera made with an off-the-shelf camera SoC that
comes with firmware for many of the key features.

It pleases me that the valuation is more than double that of Twitch. A glimmer
of hope for life outdoors.

~~~
dublinben
>I could not find a better product in that category

Really? What were your considerations? I'm always told that the Sony Action
Cam is better quality.

~~~
nl
_I 'm always told that the Sony Action Cam is better quality._

It's not.

The image quality is comparable to the Hero 3+, with no clear consensus as to
which is better (eg [1],[2]). Sony uses the Zeiss lens as a selling point, but
still can't do the 4K resolution of the GoPro.

GoPro's image quality is good enough for it not to be something that counts
against it in almost any case. A quick look at some of the clips produced by
GoPros will give enough evidence to convince most doubters.

GoPro usually wins because of a combination of things.

Firstly there is the form factor. Usually it is seen as a downside, but then
you discover that the "wide & short" GoPro factor is the only one you can
chest mount safely, and the only one you can helmet mount in the middle of a
helmet. That's usually enough to counter any "form factor" arguments (although
I'd like to see a "long narrow" GoPro - there are some cases where it is
better too).

Then there is the ecosystem. You can get GoPro mounts for _anything_. Most
competing cameras sell adaptors, but then you often run into the form factor
problem - the more common "long narrow" form factor doesn't fit into the same
space as "wide short".

Then there's the software. GoPro's software isn't fantastic, but it's mostly
ok. Most of the competitors have pretty bad software.

[1] [http://www.digitalrev.com/article/gopro-hero-3-vs-
sony/Njk3M...](http://www.digitalrev.com/article/gopro-hero-3-vs-
sony/Njk3MDQ3MDg_A)

[2]
[http://www.usatoday.com/story/tech/personal/2013/08/31/perso...](http://www.usatoday.com/story/tech/personal/2013/08/31/personal-
camcorder-pov-camera/2724163/)

~~~
codfrantic
>GoPro factor is the only one you can chest mount safely, and the only one you
can helmet mount in the middle of a helmet.

I agree on the chest mount, but the helmet? Why wouldn't I be able to put my
AS15 on my helmet with the provided stickymount? I prefer long and thin on my
helmet...

I actually prefer the AS15's colours compared to the GoPro White (which is
closest in pricing), and the Sony cost me €100,- less. (€150 / €250)

~~~
nl
Probably depends on the sport. Many like it mounted on the front of the helmet
facing slightly down, and the isn't usually possible with (typically) top
mounted long-thin cameras.

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eyeareque
I hope with their extra money they make from this they can use it to make
their products and software more reliable. I've had to RMA at least 5 of their
cameras over the years. I've had every single one, minus their first film
wrist camera.

It is so infuriating to deal with a camera that crashes, wont turn on, gets
stuck in a software update, has buttons fail, has the locking clips crack,
wifi remote problems, short battery life.... all while you're in the moment
and want to capture something.

I wish to move to another company but it seems there aren't any competitors
who match up yet (when my gopros do work properly). There is a camera by AEE
that I want to try out. I like the image quality better so far, I wish them
luck because without a doubt gopro needs some competition.

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PanMan
I really like GoPro, bought one a few months ago. But longterm I really
wonder: it seems this will be disrupted from the low end, right? Currently
GoPro's have better quality, but in a few years a $50 Chinese clone will also
do 4k video at 120 fps. Where can GoPro add value when that happens? There
isn't much lock in (a bit in the various plastic mounts). Any thoughts where
they will go?

~~~
ZenPro
They now a branding company not a video company.

The term GoPro is used to describe any action-orientated camera in popular
consumer circles. Aficionados will always use the correct terminology but my
family and friends just refer to portable, waterproof, sports cameras as Go
Pro's.

Even you tell them it is a Sony or X brand of helmet cam they will say "So it
is like a Go Pro?"

They have become synonymous with the market like Hoover and BiC.

They also provide software services for editing footage and galleries for for
you to upload your work. In time I can imagine they will expand to make the
editing process as easy as possible.

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krisgee
The greatest part of GoPro's marketing is their youtube page. They just post
videos shot with GoPros and like amateur versions of the same. I go there when
I'm feeling like I need a taste of the outdoors and I've also got a GoPro on
order, coincidence? Maybe but probably not.

~~~
beltex
This.

Some of my favourites.

Lions -
[http://www.youtube.com/watch?v=MNCzSfv4hX8](http://www.youtube.com/watch?v=MNCzSfv4hX8)

Base jumping -
[http://www.youtube.com/watch?v=fVcV9ItdZ8w](http://www.youtube.com/watch?v=fVcV9ItdZ8w)

Skydiving (from the stratosphere) -
[http://www.youtube.com/watch?v=dYw4meRWGd4](http://www.youtube.com/watch?v=dYw4meRWGd4)

~~~
nl
Also note that their (free) video software make creating this style of video
incredibly easy, and just happens to have a pre-reel "GoPro" trailer by
default. Everyone leaves it in because they want their video to "look pro".

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mbillie1
My Hero3 is one of my favorite tech gadgets. Awesome video quality, stupendous
battery life, tough enough for bitter cold days in the wilderness skiing. I
hope they continue to make good stuff!

~~~
tlrobinson
I love the Hero 3 too, but I found the footage I shot with it just wasn't that
great until I got a quadcopter (DJI Phantom) to mount it on, along with a
gimbal to stabilize it. The footage you can get out of a $1000 rig now is
amazing.

I wouldn't be surprised if GoPro acquires DJI, or DJI IPOs themselves in < 5
years.

~~~
jrnkntl
Which gimbal do you use on the Phantom? Zenmuse?

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summerqueen
I had expected them to list Google Glass under competition.

~~~
rasz_pl
Is it because you never saw glass footage (poorly focused almost choppy 720p
with extremely poor dynamic range)? or read about battery life?

if anything this is their competition

[https://www.indiegogo.com/projects/pivothead-
smart](https://www.indiegogo.com/projects/pivothead-smart)

[http://pivothead.com/](http://pivothead.com/) seems to be down at the moment,
but company is real and has real products.

~~~
evan_
Also the Glass is 4x the cost of the most expensive thing GoPro sells.

It doesn't mean a future version couldn't be competitive though, and Google
has certainly thought about it:

[http://www.youtube.com/watch?v=D7TB8b2t3QE#t=232](http://www.youtube.com/watch?v=D7TB8b2t3QE#t=232)

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nkg
Facebook should go for it! Then, they would own Go Pro to capture stuff, and
Oculus to VR-display the same stuff.

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andrewtbham
What do you think will be the valuation of the company?

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justinzollars
can we talk about tech here?

~~~
notwedtm
A technology company going public isn't?

