GoPro Inc (GPRO) 2022 Q3 法說會逐字稿

Hello, everybody, and welcome to today's GoPro Third Quarter 2022 Earnings Call.

大家好，歡迎來到今天的 GoPro 2022 年第三季度財報電話會議。

My name is Drew, and I'll be coordinating your call today. (Operator Instructions)

我的名字是德魯，今天我會協調你的電話。 （操作員說明）

I'm now going to hand over to Jalene Hoover, Vice President, Investor Relations, to begin. Please go ahead.

我現在將由投資者關係副總裁賈琳·胡佛 (Jalene Hoover) 開始。請繼續。

Thank you, Drew. Good afternoon, everyone, and welcome to GoPro's Third Quarter 2022 Earnings Conference Call.

謝謝你，德魯。大家下午好，歡迎參加 GoPro 2022 年第三季度收益電話會議。

With me today are GoPro's CEO, Nicholas Woodman; and CFO and COO, Brian McGee.

今天和我在一起的是 GoPro 的首席執行官 Nicholas Woodman；首席財務官兼首席運營官布賴恩·麥基。

Today's agenda will include a brief introduction from Nick and some commentary from Brian, followed by Q&A. For detailed information about our third quarter 2022 performance and our outlook, please read the management commentary we've posted to the Investor Relations section of GoPro's website.

今天的議程將包括 Nick 的簡短介紹和 Brian 的一些評論，然後是問答環節。有關我們 2022 年第三季度業績和展望的詳細信息，請閱讀我們在 GoPro 網站投資者關係部分發布的管理評論。

Before I pass the call to Nick, I'd like to remind everyone that our remarks today may include forward-looking statements. Forward-looking statements and all other statements that are not historical facts are not guarantees of future performance and are subject to a number of risks and uncertainties which may cause actual results to differ materially. Additionally, any forward-looking statements made today are based on assumptions as of today, including but not limited to uncertainty related to the duration and impact of the COVID-19 pandemic and the war in Ukraine. This means that results could change at any time. Our commentary about our business results and outlook is based on the information available as of today's date, and we do not undertake any obligation to update these statements as a result of new information or future events. To better understand the risks and uncertainties that could cause actual results to differ from our commentary, we refer you to the most recent annual report on Form 10-K for the year ended December 31, 2021, which is on file with the Securities and Exchange Commission; and as updated in future filings with the SEC, including the quarterly report on Form 10-Q for the quarter ended September 30, 2022.

在我把電話轉給尼克之前，我想提醒大家，我們今天的言論可能包括前瞻性陳述。前瞻性陳述和所有其他非歷史事實的陳述不是對未來業績的保證，並受到許多風險和不確定性的影響，這些風險和不確定性可能導致實際結果出現重大差異。此外，今天做出的任何前瞻性陳述均基於截至今天的假設，包括但不限於與 COVID-19 大流行和烏克蘭戰爭的持續時間和影響相關的不確定性。這意味著結果可能隨時改變。我們對業務業績和前景的評論基於截至今天的可用信息，我們不承擔因新信息或未來事件而更新這些陳述的義務。為了更好地了解可能導致實際結果與我們的評論不同的風險和不確定性，我們請您參閱截至 2021 年 12 月 31 日止年度的 10-K 表格最新年度報告，該報告已在證券交易委員會存檔委員會;並在未來向 SEC 提交的文件中進行了更新，包括截至 2022 年 9 月 30 日的季度的 10-Q 表格季度報告。

Today, we may discuss gross margin, operating expense, net profit and loss, EBITDA as well as basic and diluted net profit and loss per share in accordance with GAAP and on a non-GAAP basis. We believe that non-GAAP information is useful because it can enhance the understanding of our ongoing economic performance. We use non-GAAP reporting internally to evaluate and manage our operations, and we choose to provide this information to enable investors to perform comparisons of operating results in a manner similar to how we analyze our own reporting results. A reconciliation of GAAP to non-GAAP operating expenses can be found in the press release that was issued this afternoon, which is posted on the Investor Relations section of our website.

今天，我們可以根據公認會計原則和非公認會計原則討論毛利率、運營費用、淨利潤和虧損、EBITDA 以及基本和攤薄每股淨利潤和虧損。我們相信非公認會計原則信息是有用的，因為它可以增強對我們持續經濟表現的理解。我們在內部使用非公認會計原則報告來評估和管理我們的運營，我們選擇提供此信息以使投資者能夠以類似於我們分析我們自己的報告結果的方式對運營結果進行比較。 GAAP 與非 GAAP 運營費用的對賬可以在今天下午發布的新聞稿中找到，該新聞稿發佈在我們網站的投資者關係部分。

In addition to the earnings press release and management commentary, we have posted slides containing detailed financial data and metrics for the third quarter 2022. The management commentary slides as well as a link to today's live webcast and replay of this conference call are posted on the Investor Relations section of GoPro's website for your reference. Unless otherwise noted, all income statement-related numbers that are discussed in the management commentary other than revenue are non-GAAP.

除了收益新聞稿和管理層評論外，我們還發布了包含 2022 年第三季度詳細財務數據和指標的幻燈片。管理層評論幻燈片以及今天的網絡直播和電話會議重播的鏈接發佈在GoPro 網站的投資者關係部分供您參考。除非另有說明，否則管理層評論中討論的除收入外的所有與損益表相關的數字均為非公認會計原則。

Now I'll turn the call over to GoPro's Founder and CEO, Nicholas Woodman.

現在我將把電話轉給 GoPro 的創始人兼首席執行官 Nicholas Woodman。

Thanks, Jalene. And hi, everybody. Thanks for joining us today.

謝謝，傑琳。大家好。感謝您今天加入我們。

As we shared in the management commentary which we posted to the Investor Relations section of our website, in Q3 2022, GoPro delivered revenue of $305 million, at the high end of guidance; and cash flow from operations of $41 million. GAAP EPS was $0.10 and non-GAAP EPS was $0.19.

正如我們在網站投資者關係部分發布的管理評論中所分享的，2022 年第三季度，GoPro 實現了 3.05 億美元的收入，處於指導的高端；運營現金流為 4100 萬美元。 GAAP EPS 為 0.10 美元，非 GAAP 每股收益為 0.19 美元。

Like many companies, GoPro's results for the quarter were impacted by a stronger U.S. dollar. On a constant currency basis, Q3 revenue would have been approximately $18 million higher year-over-year or up 2%, gross margin over 40% versus 38% actual results and EBITDA-to-revenue approximately 16% versus 12% actual results. Considering global FX and macroeconomic challenges, we are pleased with our Q3 2022 results.

與許多公司一樣，GoPro 本季度的業績受到美元走強的影響。按固定匯率計算，第三季度收入同比增長約 1800 萬美元或增長 2%，毛利率超過 40%，實際結果為 38%，EBITDA 與收入的比值約為 16%，實際結果為 12%。考慮到全球外彙和宏觀經濟挑戰，我們對 2022 年第三季度的業績感到滿意。

Q3 was an exciting period of new product launches and milestones. In September, we introduced our new HERO11 lineup of cameras: HERO11 Black, HERO11 Black Creator Edition and HERO11 Black Mini. And we're happy to report that mini will begin shipping to GoPro.com customers the week of November 7; and will be available at retail, beginning the week of November 14. We also launched an enhanced cloud experience that automatically sends highlight videos to subscribers.

第三季度是新產品發布和里程碑的激動人心的時期。 9 月，我們推出了全新的 HERO11 攝像機系列：HERO11 Black、HERO11 Black Creator Edition 和 HERO11 Black Mini。我們很高興地宣布 mini 將於 11 月 7 日這一周開始向 GoPro.com 客戶發貨；並將在 11 月 14 日的那一周開始零售。我們還推出了增強的雲體驗，可自動向訂閱者發送精彩視頻。

And in August, we surpassed 2 million GoPro subscribers; and are positioned to generate more than $100 million in annual recurring revenue with gross margin between 70% and 80%. GoPro subscription continues to drive value for our customers while serving as a powerful financial engine for our business. At the end of Q3, GoPro subscribers and subscription and service revenue grew, respectively, by 55% and 48% year-over-year to 2.1 million and $21 million, which positively contributes to gross margin and our bottom line. We are on track to achieve 2.2 million subscribers by year-end.

8 月，我們的 GoPro 用戶超過 200 萬；並有望產生超過 1 億美元的年度經常性收入，毛利率在 70% 至 80% 之間。 GoPro 訂閱繼續為我們的客戶創造價值，同時作為我們業務的強大財務引擎。在第三季度末，GoPro 用戶以及訂閱和服務收入分別同比增長 55% 和 48%，達到 210 萬美元和 2100 萬美元，這對毛利率和我們的利潤都有積極的貢獻。我們有望在年底前達到 220 萬用戶。

GoPro's resilience during these challenging macroeconomic times is testament to the meaningful role GoPro plays in people's lives, helping them capture and share experiences that would otherwise be impossible to document. We believe we're advancing our global relevance as a digital imaging solutions company that serves the world's most active and creative people. And our ongoing execution is thanks entirely to our talented and passionate employees.

在這些充滿挑戰的宏觀經濟時期，GoPro 的複原力證明了 GoPro 在人們生活中發揮的重要作用，幫助他們捕捉和分享原本無法記錄的經驗。我們相信，作為一家為世界上最活躍和最具創造力的人提供服務的數字成像解決方案公司，我們正在提升我們的全球影響力。我們持續的執行完全歸功於我們才華橫溢且充滿熱情的員工。

Looking ahead to 2023, we plan to invest in people, technology and innovation that yield leading-edge products and services, with an emphasis on subscription value creation and growth. While we anticipate continued macroeconomic headwinds in 2023 and potentially beyond, we are confident in our ability to operate GoPro as a profitable company and to strategically position the company for when the global economy improves and currency exchange rates normalize. Our business is strong. Our products are market leading, and we feel well positioned for the future.

展望 2023 年，我們計劃投資於產生領先產品和服務的人員、技術和創新，重點是訂閱價值的創造和增長。雖然我們預計 2023 年及以後的宏觀經濟將繼續逆風，但我們有信心將 GoPro 運營為一家盈利的公司，並在全球經濟改善和貨幣匯率正常化時為公司進行戰略定位。我們的業務很強大。我們的產品處於市場領先地位，我們對未來充滿信心。

Before jumping into Q&A, Brian has a few comments to share.

在進入問答環節之前，Brian 有一些評論要分享。

Thanks, Nick.

謝謝，尼克。

I'd like to provide some color on our Q4 and full year 2022 outlook. As a reminder: There are both CEO and CFO comments in the extended management commentary posted in the Investor Relations section of our website.

我想為我們的第四季度和 2022 年全年展望提供一些顏色。提醒一下：在我們網站的投資者關係部分發布的擴展管理評論中有 CEO 和 CFO 評論。

Looking ahead, we anticipate continued impact from key macro dynamics on our business, which we've contemplated in the fourth quarter and full year 2022 guidance. We expect to exit 2022 with cash of approximately $400 million, which contemplates continued share repurchases with $68 million remaining under our existing program.

展望未來，我們預計關鍵宏觀動態會對我們的業務產生持續影響，我們已經在第四季度和 2022 年全年指導中考慮了這一點。我們預計將在 2022 年以約 4 億美元的現金退出，其中考慮在我們現有計劃下剩餘 6800 萬美元的持續股票回購。

We expect the U.S. dollar to remain at current levels relative to the Australian dollar, British pound, euro and Japanese yen. Our 2022 outlook reflects anticipated FX impact to revenue, margin and earnings of more than $55 million compared to 2021 and up more than $20 million since our August earnings call. Unlike last year, when retailers struggled to secure inventory, many have an abundance of merchandise, resulting in reduction in open-to-buy dollars.

我們預計美元相對於澳元、英鎊、歐元和日元的匯率將保持在當前水平。與 2021 年相比，我們對 2022 年的展望反映了對收入、利潤率和收益的預期外匯影響超過 5500 萬美元，自 8 月財報電話會議以來增加了超過 2000 萬美元。與去年不同的是，當零售商努力確保庫存時，許多人擁有豐富的商品，導致開放購買美元減少。

Consumers are prioritizing living expenses and experiences over things, while also paying more for food, housing, health care and other items as inflation hovers around a 4-decade high. As a result, retailers are accelerating and increasing their promotional activities to reduce inventory, such as Black Friday deals being announced weeks in advance.

隨著通脹徘徊在 4 年來的高位，消費者將生活費用和體驗放在首位，同時也在食品、住房、醫療保健和其他項目上支付更多費用。因此，零售商正在加速並增加他們的促銷活動以減少庫存，例如提前幾周宣布黑色星期五交易。

Looking ahead into 2023, we will manage the business with the following priorities: laser-focused on remaining cash flow positive, laser-focused on subscription growth and retention, develop leading-edge technologies and innovative products, grow our total market share, manage appropriate levels of channel and owned inventory. While challenging in the present, currencies and the macroeconomic environment will improve over time. We are the market leader with an effective business model which we believe will once again generate impressive earnings once macroeconomic conditions improve and currency exchange rates normalize. We expect to be profitable in 2023 while continuing to drive operating cash flow. We have the balance sheet strength to navigate the current economic environment and believe we will emerge an even stronger GoPro in the future, as our business fundamentals are sound.

展望 2023 年，我們將以以下優先事項管理業務：專注於保持正現金流，專注於訂閱增長和保留，開發領先的技術和創新產品，增加我們的總市場份額，管理適當的渠道和自有庫存水平。儘管目前充滿挑戰，但貨幣和宏觀經濟環境將隨著時間的推移而改善。我們是市場領導者，擁有有效的商業模式，我們相信一旦宏觀經濟狀況改善和貨幣匯率正常化，該模式將再次產生可觀的收益。我們預計 2023 年將實現盈利，同時繼續推動經營現金流。我們擁有應對當前經濟環境的資產負債表實力，並相信由於我們的業務基礎穩健，未來我們將成為更強大的 GoPro。

Operator, we are now ready to take questions.

接線員，我們現在可以回答問題了。

(Operator Instructions) Our first question today is from Martin Yang from Oppenheimer.

（操作員說明）我們今天的第一個問題來自奧本海默的 Martin Yang。

Can you talk about the margin expectations for next year? What are -- in very general terms, what are the puts and takes, assuming no further occurrence -- currency headwinds?

你能談談明年的利潤率預期嗎？什麼是——在非常籠統的情況下，假設不再發生——貨幣逆風是什麼？

Yes. So Martin, on a constant currency basis, we'd expect to be at the low end of our operating model, which is 40% to 43%. On an as -- actual results basis, it's going to look a lot closer to the guidance we've provided for the fourth quarter. So mid-30s, plus or minus around that, I would think, just given the -- currently what's going on with exchange rates. And it's all driven by exchange rates, by the way.

是的。所以馬丁，在不變的貨幣基礎上，我們預計將處於我們運營模式的低端，即 40% 到 43%。在實際結果的基礎上，它看起來更接近我們為第四季度提供的指導。所以在 30 多歲左右，我認為，只要考慮到目前匯率的情況，就會出現上下浮動。順便說一句，這一切都是由匯率驅動的。

Got it. And a follow-up on GoPro mini. Is there any early signals you can get, for instance, from reviews, from maybe core customer feedback, on the mini and whether or not mini's delay has any meaningful impact on your 4Q guidance?

知道了。以及對 GoPro mini 的跟進。您是否可以獲得任何早期信號，例如，從評論、可能來自核心客戶反饋、關於 mini 以及 mini 的延遲是否對您的 4Q 指導有任何有意義的影響？

On the guidance question, no. As we talked, I think, on the last call, our expectation is that mini would be, from a sell-through perspective in the fourth quarter, I think, #4 in the lineup. HERO11 will be the best; HERO10; I think, HERO9; and then mini. So that's been our expectation and we expect that to hold. I'll let Nick comment on the reviews.

關於指導問題，沒有。正如我們所說的，我認為，在最後一次電話會議上，我們的預期是，從第四季度的銷售角度來看，我認為 mini 將在陣容中排名第四。 HERO11 將是最好的；英雄10；我認為，HERO9；然後迷你。所以這是我們的期望，我們希望它能夠保持。我會讓尼克對評論發表評論。

Thanks for that. I didn't catch the first part of that question.

感謝那。我沒有聽懂那個問題的第一部分。

Yes. So what are the customer feedback on mini? What are -- what the core users are saying about this new product.

是的。那麼客戶對 mini 的反饋是什麼？什麼是——核心用戶對這個新產品的評價。

Well, the mini reviews haven't come out yet. Those are embargoed until we actually start shipping mini, but the feedback that we've received just through the coconut wireless, if you will, is very positive. Mini is a result of continued demand for us to bring back the session-like experience that we previously had in the session camera. Those of you may remember that we had session and HERO5 Session, which is a cube-shaped camera that was distinct for its one-button simplicity and really convenient form factor. And I can assure everybody who is interested in seeing that form factor come back: We've hit it out of the park with mini. It's everything that, that session camera was, and so much more, as it features all of the resolution, frame rates and performance of the full HERO11 Black camera but in a much simplified and slimmed-down camera. And it's become my favorite GoPro of all time, so I'm really excited for this product to get in the hands of our customers. And I think it's going to be another hit for GoPro.

好吧，迷你評論還沒有出來。在我們真正開始運送 mini 之前，這些都是禁運的，但是如果你願意的話，我們通過椰子無線收到的反饋是非常積極的。 Mini 是由於我們不斷要求我們帶回我們以前在會話相機中擁有的類似會話的體驗。你們中的那些人可能還記得我們有 session 和 HERO5 Session，這是一個立方體形狀的相機，它的獨特之處在於它的一鍵式簡單性和非常方便的外形。我可以向所有有興趣看到這種外形尺寸回歸的人保證：我們已經用 mini 把它打出了公園。這就是那個會話攝像機的一切，以及更多，因為它具有完整 HERO11 Black 攝像機的所有分辨率、幀速率和性能，但在一個大大簡化和精簡的攝像機中。它已經成為我一直以來最喜歡的 GoPro，所以我很高興這款產品能夠交到我們的客戶手中。而且我認為這將是 GoPro 的又一次成功。

Our next question today comes from Jim Suva from Citigroup.

我們今天的下一個問題來自花旗集團的 Jim Suva。

A question on you've been hearing about the electronic stores working-down consumer electronics inventory levels. I know GoPro.com has been a great success and you've been able to manage your inventories there a little better. I'm just wondering about your external inventory levels. How are they? What are you kind of hearing? And I'm sure it's built into [consensus expectations], but what should we think about inventory levels kind of at the big box retailer storefronts and also just with small retailers also?

您聽說過一個關於電子商店降低消費電子產品庫存水平的問題。我知道 GoPro.com 取得了巨大的成功，您已經能夠更好地管理您的庫存。我只是想知道您的外部庫存水平。他們怎麼樣？你在聽什麼？而且我確信它已經建立在[共識預期]中，但是我們應該如何看待大型零售商店面以及小型零售商的庫存水平？

Yes. Jim, this is Brian. Let me comment on big box retail. In the third quarter, they reduced their inventories along with weeks of supply on a year-over-year basis. Their on-hand inventory declined about 25% year-over-year, so they're definitely bringing them down. And I mentioned that in my opening remarks. The open-to-buy dollars is definitely down and we're seeing it. And we're seeing, I think, they were down to 8 weeks of inventory. They're normally around 9, 10, 11 this time of year, going into the holidays, so they're definitely squeezing inventory down. By the way, that's not related just to GoPro. I think this is more of a broader industry-wide issue regarding kind of demand and what retailers are willing to hold, so -- and so we're seeing it across the board. It's not just big box. We're going to see it everywhere.

是的。吉姆，這是布賴恩。讓我評論一下大盒子零售。在第三季度，他們減少了庫存以及數週的供應量，同比下降。他們的現有庫存同比下降了約 25%，因此他們肯定會降低庫存。我在開場白中提到了這一點。開放購買美元肯定下跌，我們正在看到它。我認為，我們看到他們的庫存減少到了 8 週。每年這個時候他們通常在 9 點、10 點、11 點左右，進入假期，所以他們肯定會壓縮庫存。順便說一句，這不僅僅與 GoPro 有關。我認為這更像是一個更廣泛的全行業問題，涉及需求種類和零售商願意持有什麼，所以 - 所以我們全面看到了它。這不僅僅是一個大盒子。我們會到處看到它。

On the dot-com side. So we're pretty pleased. I mean they went up to 32% of revenue in the quarter. I think that was up from 30% last year. I think overall last year we were about 34%. We should be between 35% and 40% on dot-com this year. So we're definitely making good progress on driving more demand to GoPro.com. And of course, that's improving. It will help in our margin front, but it also helps to drive subscribers, right, because we have 95% attach on the GoPro.com front. So that's pretty exciting as we've made that business model change and it's proving to be pretty sound.

在 .com 方面。所以我們很高興。我的意思是他們在本季度佔收入的 32%。我認為這比去年的 30% 有所上升。我認為去年我們的總體比例約為 34%。今年我們應該在 .com 上佔 35% 到 40% 之間。因此，我們肯定會在推動對 GoPro.com 的更多需求方面取得良好進展。當然，情況正在改善。這將有助於我們的利潤率，但它也有助於推動訂戶，對，因為我們在 GoPro.com 方面有 95% 的附加值。所以這非常令人興奮，因為我們已經改變了商業模式，並且證明它非常合理。

And on your opening comments, Nick made some comments about, of course, focusing on cash flow, but what caught my ear was the increase in subscriptions and market share. To do that, does it take like more employees, more investments, a reshuffling? Are those bodies already in place? Because you have seen great success with our subscriptions, but it seems like Nick kind of alluded to even a bigger increase [in your] focus. Or maybe I'm just reading too much into that.

在你的開場評論中，尼克當然對現金流發表了一些評論，但引起我注意的是訂閱量和市場份額的增加。要做到這一點，是否需要更多的員工、更多的投資、重新洗牌？那些機構已經到位了嗎？因為您已經看到我們的訂閱取得了巨大的成功，但尼克似乎暗示[您的]關注度會更大。或者，也許我只是讀得太多了。

If you -- and Nick can comment maybe, on top of me. We expect to be at 2.2 million subscribers by the end of this year. That's up 40% over 2021. Another thing we pointed out is retention of our annual subscribers, who make up 85% of the total subs, has improved about 5%, actually better than 5%, from this time last year. And we're seeing some companies reported their storage business was actually down in storage. We're the opposite. Our storage has doubled year-over-year for GoPro content. So we're seeing real usage by the consumers. And now we're providing highlight videos for people who put their content up in the cloud, so which is another great service. So we'll continue to drive more software engineering, Jim, into 2023 to continue to build out our subscription and service offerings because it's the most profitable portion of our business, right? As a product, a subscription is 70% to 80% margin and the fastest-growing product we've got, so we call it the financial engine for GoPro and it's turning out to be the case.

如果你——尼克也許可以發表評論，在我之上。我們預計到今年年底將有 220 萬訂戶。這比 2021 年增長了 40%。我們指出的另一件事是，佔總訂閱人數 85% 的年度訂戶的留存率比去年這個時候提高了約 5%，實際上好於 5%。我們看到一些公司報告說他們的存儲業務實際上在存儲中下降。我們是相反的。我們的 GoPro 內容存儲空間同比翻了一番。因此，我們看到了消費者的實際使用情況。現在，我們正在為將內容放在雲端的人們提供精彩視頻，這是另一項很棒的服務。所以我們將繼續推動更多的軟件工程，Jim，到 2023 年繼續構建我們的訂閱和服務產品，因為這是我們業務中最賺錢的部分，對吧？作為一種產品，訂閱有 70% 到 80% 的利潤，是我們擁有的增長最快的產品，因此我們將其稱為 GoPro 的財務引擎，事實證明確實如此。

Yes. And I would just add that we really want to emphasize to investors how laser-focused we are on growing our subscription business and investing in it to add ongoing value for our subscribers. It's proving to be very valuable to our subscribers. It's a differentiator for GoPro that goes beyond our already market-leading cameras, and it's just clearly proving to be the financial engine for our business. And so it's really a everyone-wins strategy when we emphasize our efforts around growing the value and scale of the subscription business, so I think Brian said it well. And I'm glad that you picked up on it, Jim.

是的。我只想補充一點，我們真的想向投資者強調我們是多麼專注於發展我們的訂閱業務並對其進行投資，以便為我們的訂閱者增加持續的價值。事實證明，它對我們的訂閱者非常有價值。這是 GoPro 的一個差異化因素，超越了我們已經處於市場領先地位的相機，而且它清楚地證明是我們業務的財務引擎。因此，當我們強調我們圍繞增加訂閱業務的價值和規模所做的努力時，這確實是一個雙贏的戰略，所以我認為布賴恩說得很好。我很高興你知道了，吉姆。

Yes. And again, I meant it in a -- the question in a very complimentary manner because it's been a great success.

是的。再一次，我的意思是——這個問題非常恭維，因為它取得了巨大的成功。

Thanks for that.

感謝那。

(Operator Instructions) Our next question today is from Erik Woodring from Morgan Stanley.

（操作員說明）我們今天的下一個問題來自摩根士丹利的 Erik Woodring。

Maybe, Nick, if I ask you the first one. Now that you've launched all of the new flagship and derivative cameras, can you maybe just elaborate on why you changed your strategy? Was it something in the data? Was it something that you thought was kind of low-hanging fruit? I'd just love to kind of understand, now that you can look back, what the driving force was behind the strategy change; and then almost getting to Brian's comment earlier, just how we should think about each of the new cameras in terms of importance to sell-in and sell-through. And then I have a follow-up.

也許，尼克，如果我問你第一個。既然您已經推出了所有新的旗艦和衍生相機，您能否詳細說明一下您為什麼改變策略？是數據中的東西嗎？你認為這是一種容易實現的目標嗎？我只是想了解一下，現在你可以回顧一下，戰略變化背後的驅動力是什麼；然後幾乎進入了布賴恩之前的評論，我們應該如何考慮每款新相機對銷售和銷售的重要性。然後我有一個跟進。

Are you referring to not just having a good, better, best of the same camera but rather coming out with different types of cameras at different price points?

您指的不僅僅是擁有一台好、更好、最好的相機，而是以不同的價格推出不同類型的相機？

Exactly.

確切地。

Is that -- it's -- okay. Well, that -- what we learned before -- what we learned through customer research was that people -- what we thought before those people just broke into categories of different price sensitivity -- you had your entry-level buyer, your value buyer who wants to buy last year's flagship at a discount. And then you have your "tip of the spear" buyer that needs the latest and greatest and is willing to pay for it. We learned that there's a lot more to it than just price and that there are also different interests at different price levels, so it's a bit of a matrix. And so what we went to work on was developing not just products at different price points but different experiences, different solutions for different types of consumers at different price points. And that gave us the confidence to go in both directions, to the higher end with the HERO11 Black Creator Edition which builds on the success of HERO10 Black creator edition the year before, where we really are pushing the boundaries of features and performance and also price. It's our highest-priced GoPro and it's done quite well. It's we've exceeded our expectations and stayed there, and we're really happy with that. And that's why we came out with the HERO11 Black version of that. And then as we moved into different products, we realized that, as you come down the price stack, people are also looking for more simplicity. And we're not done there yet. We're still learning about how simple, how straightforward yet still how capable ultimately in terms of the quality of video and photos that it captures can we make a GoPro and make GoPro more accessible to more people who are maybe interested at a lower price point but they want something new from us. And they do not necessarily just want to buy yesteryear's products at discount after discount.

是不是——它是——好的。嗯，那——我們之前學到的——我們通過客戶研究學到的是人們——我們在這些人剛剛進入不同價格敏感度的類別之前的想法——你有你的入門級買家，你的價值買家想打折買去年的旗艦。然後你就有了你的“尖端”買家，他們需要最新和最好的並且願意為此付費。我們了解到，它不僅僅是價格，而且在不同的價格水平上也有不同的利益，所以它有點像一個矩陣。所以我們要做的不僅僅是開發不同價位的產品，而是為不同價位的不同類型消費者開發不同的體驗、不同的解決方案。這讓我們有信心在兩個方向上前進，在 HERO11 Black 創作者版的更高端，它建立在前一年 HERO10 Black 創作者版的成功基礎上，我們確實在推動功能、性能和價格的界限.這是我們價格最高的 GoPro，而且做得很好。是我們超出了我們的期望並留在那裡，我們對此感到非常高興。這就是我們推出 HERO11 Black 版本的原因。然後當我們轉向不同的產品時，我們意識到，隨著價格的下降，人們也在尋找更簡單的東西。我們還沒有完成。我們仍在學習如何簡單、直接但最終在它捕獲的視頻和照片的質量方面有多大能力我們可以製作 GoPro 並讓更多可能以更低價格感興趣的人更容易使用 GoPro但他們想從我們這裡得到新的東西。而且他們也不一定只是想打折又打折地購買昔日的產品。

So we're not done yet with innovation and exploring new products that can court customers in an exciting way to grow our TAM, but we're really happy with how it's gone this year. And kudos to GoPro's product development and engineering teams and operations teams for getting out such great products this year, during challenging supply -- periods of -- where there's challenges in supply and so forth. Once again, team GoPro got the job done and the products are just outstanding.

因此，我們還沒有完成創新和探索可以以令人興奮的方式吸引客戶來發展我們 TAM 的新產品，但我們對今年的進展感到非常滿意。感謝 GoPro 的產品開發和工程團隊以及運營團隊在今年推出如此出色的產品，在充滿挑戰的供應期間——供應面臨挑戰的時期等等。 GoPro 團隊再次完成了工作，產品非常出色。

Okay, that was really helpful. And then maybe, Brian, if I just direct one to you. You've obviously alluded earlier in Q&A and in your prepared remarks to big box retailers reducing inventories and weeks of supply. I'm just curious if -- from your seat. Is there more inventory reduction to come? Or have we seen most of it and now it's just kind of waiting for whatever reorders might come? And then any other color that you can share on how holiday demand is shaping up, how it might look different from last year would be great. And that's it for me.

好的，這真的很有幫助。然後也許，布賴恩，如果我直接給你一個。很明顯，您早先在問答環節和準備好的對大型零售商的評論中提到了減少庫存和供應週數。我只是好奇是否- 從您的座位上。是否有更多的庫存減少？還是我們已經看到了大部分，現在它只是在等待可能出現的任何重新訂購？然後，您可以分享有關假期需求如何形成的任何其他顏色，它看起來與去年有何不同，這將是很棒的。對我來說就是這樣。

Sure, no worries. In our prepared remarks, I did comment that our sell-through in the month of October was right on track to where it needed to be. So that's been a positive. It's great for -- our demand planning team has been doing a heck of a job predicting what our demand levels would be. And again they did it in Q3 while we were able to kind of beat our numbers, so good job on that. This is a pretty challenging environment. And you'll see even in my guidance it's the range actually is pretty wide for Q4, and I think there's a bunch of dynamics at play here. Consumer behavior, I think, is going to be difficult to predict in the quarter because of living expenses; and paying more for food, housing, care; inflation at all-time highs. I think that's interest rates rising. Those are going to be difficult predictors. And at the same time, we have retailers who are absolutely not willing to carry as much inventory as they have historically. And those 2 dynamics are playing out. And it's why we definitely took our numbers down for Q4, [as it is for many]. We're not alone or unique in this given what's going on. That said, I think our team has got a pretty darn good handle on kind of the demand dynamics. Like I said, we hit October. We're feeling good about kind of what our offers will be in the months of November and December. So I think those are positives, so we came out in the midpoint of this guide.

當然，不用擔心。在我們準備好的評論中，我確實評論說，我們在 10 月份的銷售量正按計劃進行。所以這是積極的。這非常棒——我們的需求計劃團隊一直在努力預測我們的需求水平。他們在第三季度再次做到了，而我們能夠擊敗我們的數字，這方面做得很好。這是一個非常具有挑戰性的環境。即使在我的指導中，你也會看到，第四季度的範圍實際上相當廣泛，我認為這裡有很多動態在起作用。我認為，由於生活費用，本季度的消費者行為將難以預測；並為食物、住房、護理支付更多費用；通脹處於歷史最高水平。我認為這是利率上升。這些將是難以預測的。與此同時，我們的零售商絕對不願意像過去那樣攜帶盡可能多的庫存。這兩種動力正在發揮作用。這就是為什麼我們肯定會降低第四季度的數字，[對許多人來說都是如此]。鑑於正在發生的事情，我們在這方面並不孤單或獨一無二。也就是說，我認為我們的團隊已經很好地處理了這種需求動態。就像我說的，我們到了十月。我們對 11 月和 12 月的報價感到滿意。所以我認為這些都是積極的，所以我們在本指南的中點出現了。

I'll also point out that we continue to track very well to the 2.2 million subscriber number. We still have 2 months to do it. They're big months, but so far, we're tracking ahead. So the key pieces of our business that drives this model are moving in -- up to the right and in the right direction.

我還要指出，我們繼續很好地跟踪 220 萬用戶數量。我們還有 2 個月的時間去做。它們是重要的幾個月，但到目前為止，我們正在向前追踪。因此，推動這種模式的我們業務的關鍵部分正在朝著正確的方向前進。

Thank you. We have no further questions at this time, so I will now refer you back to the management team for closing remarks.

謝謝你。我們目前沒有其他問題，所以我現在將您轉介給管理團隊以結束髮言。

Thank you very much, operator. And thank you, everyone, for joining today's call.

非常感謝您，接線員。感謝大家加入今天的電話會議。

As I said earlier, our business is well positioned to weather these challenging times. And we're confident in our ability to operate GoPro as a profitable company until macroeconomic conditions improve and foreign exchange rates normalize. Despite the challenges ahead, we are very excited for the future.

正如我之前所說，我們的業務已做好準備以度過這些充滿挑戰的時期。在宏觀經濟狀況改善和外匯匯率正常化之前，我們對將 GoPro 作為一家盈利公司運營的能力充滿信心。儘管面臨挑戰，但我們對未來感到非常興奮。

Many thanks again for joining today's call. This is team GoPro signing off.

再次感謝您加入今天的電話會議。這是 GoPro 團隊的簽約。

That concludes today's GoPro Third Quarter 2022 Earnings Conference. You may now disconnect your lines.

今天的 GoPro 2022 年第三季度財報會議到此結束。您現在可以斷開線路。