GoPro Inc (GPRO) 2023 Q3 法說會逐字稿

Hello, everybody, and welcome to the GoPro Third Quarter 2023 Earnings Conference Call. My name is Sam, and I will be coordinating your call today. (Operator Instructions) I will now hand you over to your host, Christopher Clark, VP of Corporate Communications, to begin. So Christopher, please go ahead.

大家好，歡迎參加 GoPro 2023 年第三季財報電話會議。我叫 Sam，今天我將協調您的電話。 （操作員指示）我現在將把您交給東道主企業傳播副總裁克里斯托弗·克拉克（Christopher Clark）開始。克里斯托弗，請繼續。

Thank you, Sam. Good afternoon, everyone, and welcome to GoPro's Third Quarter 2023 Earnings Conference Call. With me today are GoPro's CEO, Nicholas Woodman; and CFO and COO, Brian McGee. Today's agenda will include commentary from Nick and Brian, followed by Q&A. For detailed information about our third quarter 2023 performance and our outlook, please read our Q3 '23 earnings press release and the management commentary we posted to the Investor Relations section of GoPro's website.

謝謝你，山姆。大家下午好，歡迎參加 GoPro 2023 年第三季財報電話會議。今天與我在一起的有 GoPro 執行長 Nicholas Woodman；財務長兼營運長布萊恩‧麥吉 (Brian McGee)。今天的議程將包括尼克和布萊恩的評論，然後是問答。有關我們 2023 年第三季業績和前景的詳細信息，請閱讀我們的 23 年第三季收益新聞稿以及我們在 GoPro 網站投資者關係部分發布的管理層評論。

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 fact are not guarantees of future performance and are subject to a number of risks and uncertainties, which may cause the actual results to differ materially. Additionally, any forward-looking statements made today are based on assumptions as of today. This means that results could change at any time, 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 our most recent annual report on Form 10-K for the year ended December 31, 2022, which is on file with the Securities and Exchange Commission and other reports that we may file from time to time with the SEC.

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含前瞻性陳述。前瞻性陳述和所有其他非歷史事實的陳述不能保證未來業績，並受到許多風險和不確定性的影響，這可能導致實際結果有重大差異。此外，今天所做的任何前瞻性陳述均基於截至目前的假設。這意味著結果可能隨時發生變化，我們不承擔因新資訊或未來事件而更新這些聲明的義務。為了更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，我們建議您參閱我們截至2022 年12 月31 日止年度的最新10-K 表格年度報告，該報告已在美國證券交易委員會備案我們可能不時向 SEC 提交的委員會報告和其他報告。

Today, we may discuss gross margin, operating expense, net profit and loss, adjusted EBITDA as well as basic and diluted net profit and loss per share in accordance with GAAP and on a non-GAAP basis. 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 the website. Unless otherwise noted, all income statement-related numbers that are discussed in the management commentary and remarks made today, other than revenue, are non-GAAP. Now I'll turn the call over to GoPro's Founder and CEO, Nicholas Woodman.

今天，我們可以討論根據公認會計原則和非公認會計原則計算的毛利率、營業費用、淨利潤和虧損、調整後的 EBITDA 以及基本和稀釋每股淨利潤和虧損。 GAAP 與非 GAAP 營運費用的調整可以在今天下午發布的新聞稿中找到，該新聞稿發佈在網站的投資者關係部分。除非另有說明，否則今天管理層評論和言論中討論的所有損益表相關數字（除收入外）均為非公認會計準則。現在我將把電話轉給 GoPro 的創辦人兼執行長 Nicholas Woodman。

Thanks, Chris, and thanks, everybody, for joining us today. I'm excited to share the positive progress we're making against the growth and TAM expansion strategy we initiated in May 2023, a strategy we believe will drive meaningful revenue, subscriber and profit growth over the next 2 years. As a reminder, this strategy included a return to lower pre-pandemic pricing to drive unit sales, the reintroduction of entry level-priced GoPro cameras to reach new customers, increased marketing to drive awareness, expanding GoPro's global retail channel presence to better serve consumers post-pandemic shopping behavior.

謝謝克里斯，謝謝大家今天加入我們。我很高興與大家分享我們在 2023 年 5 月啟動的成長和 TAM 擴張策略方面所取得的積極進展，我們相信該戰略將在未來 2 年內推動收入、用戶和利潤的顯著增長。提醒一下，這項策略包括恢復疫情前的較低定價以推動單位銷量、重新推出入門級價格的GoPro 相機以吸引新客戶、加強營銷以提高認知度、擴大GoPro 的全球零售渠道影響力以更好地服務消費者大流行後的購物行為。

In Q3 2023, both revenue and non-GAAP earnings per share exceeded the midpoint of our guidance. Revenue was $294 million, and non-GAAP earnings per share was $0.04. And we ended the quarter on target with 2.5 million subscribers. In September, we launched our new $399 flagship camera, HERO12 Black, loaded with powerful new features for both professional and casual users and further establishing GoPro as the performance and value benchmark for our industry.

2023 年第三季度，營收和非 GAAP 每股盈餘都超過了我們指引的中點。營收為 2.94 億美元，非 GAAP 每股收益為 0.04 美元。本季結束時，我們的訂戶數量達到了 250 萬。 9 月，我們推出了售價 399 美元的全新旗艦相機 HERO12 Black，它為專業和休閒用戶提供了強大的新功能，進一步確立了 GoPro 作為行業性能和價值基準的地位。

As I mentioned, revenue for the quarter was ahead of guidance. This was a result of HERO12 Black and our entry-level price point cameras, both exceeding our expectations. Our entry-level SKUs generated 19% of camera revenue, demonstrating their TAM-expanding potential without cannibalizing our high-end SKUs.

正如我所提到的，該季度的收入超出了指導。這是 HERO12 Black 和我們的入門級價位相機的結果，兩者都超出了我們的預期。我們的入門級 SKU 創造了 19% 的相機收入，展示了它們在不蠶食我們高階 SKU 的情況下擴大 TAM 的潛力。

Third quarter 2023 retail channel revenue grew 12% year-over-year to $231 million or 78% of total revenue. Total camera unit sales grew 31% sequentially and 16% year-over-year. Total camera units sold into retail grew 35%, and retail sell-through grew 29%, respectively, year-over-year, aided by our renewed focus on growing our retail channel presence.

2023 年第三季零售通路營收年增 12%，達到 2.31 億美元，佔總營收的 78%。相機總銷量較上季成長 31%，較去年同期成長 16%。由於我們重新專注於擴大零售通路影響力，零售相機銷量較去年同期成長 35%，零售銷量較去年同期成長 29%。

Last quarter, we shared a target of adding approximately 2,000 new retail doors globally by the end of 2023, and I'm happy to report that we're tracking ahead of that goal, having already added 2,500 new retail doors as of today. Our work with these retailers includes refreshed point-of-purchase merchandisers, improved in-store brand presence, and enhanced account management to enable premium representation in each retail location. Our 2024 target is to open more than 3,000 additional retail doors globally, bringing our total to approximately 25,000 doors, which would be an increase of more than 30% from when we initiated this growth strategy in May of this year 2023.

上個季度，我們共同製定了到 2023 年底在全球增加約 2,000 個新零售店的目標，我很高興地報告說，我們正在提前實現這一目標，截至今天已經增加了 2,500 個新零售店。我們與這些零售商的合作包括更新購買點售貨員、改善店內品牌形像以及增強客戶管理，以在每個零售地點實現優質的展示。我們的 2024 年目標是在全球新增 3,000 多家零售店，使我們的零售店總數達到約 25,000 家，較 2023 年 5 月啟動此成長策略時增加 30% 以上。

To further leverage our growing retail network and expand our TAM, over the next 2 years, we plan to introduce several new types of cameras beginning in the second quarter of 2024. We believe each of these new camera SKUs will address distinct use cases and will be built at improved margin profiles, which we expect to contribute materially to revenue and earnings in 2024 and 2025.

為了進一步利用我們不斷成長的零售網路並擴大我們的TAM，在未來2 年內，我們計劃從2024 年第二季開始推出幾種新型相機。我們相信，這些新相機SKU 中的每一個都將解決不同的用例，並將我們預計這將為 2024 年和 2025 年的收入和盈利做出重大貢獻。

In addition to scaling our presence at retail, we continue to enhance the shopping experience at gopro.com, where we sell in more than 60 countries. While gopro.com is a significant direct-to-consumer sales channel, representing 22% of revenue in Q3, including our subscription revenue, it's also where consumers can learn about our complete end-to-end camera and software ecosystem, which includes our subscription service. Our subscription service continues to perform as both a high-value solution for subscribers and a high-margin revenue stream for GoPro. We finished Q3 on target with 2.5 million subscribers, representing 20% growth year-over-year.

除了擴大零售業務外，我們還繼續增強 gopro.com 的購物體驗，我們的產品銷往 60 多個國家。雖然gopro.com 是一個重要的直接面向消費者的銷售管道，佔第三季收入的22%（包括我們的訂閱收入），但消費者也可以在這裡了解我們完整的端到端相機和軟體生態系統，其中包括我們的訂閱服務。我們的訂閱服務將繼續作為訂閱者的高價值解決方案和 GoPro 的高利潤收入來源。我們第三季的訂閱用戶數量達到了 250 萬，年增 20%。

Subscriber attach and retention rates remained strong, and we expect to finish 2023 with between 2.5 million and 2.6 million subscribers with additional subscriber growth in 2024. As an added benefit for GoPro subscribers, later this month, we're launching a desktop version of our Quik app for macOS at no additional charge. The Quik desktop app will bring the simplicity and convenience of automatic edits to desktop users, along with manual editing and media management tools, sync-ed editing between mobile and desktop apps, plus the ability to import footage from any camera.

訂戶附加率和保留率仍然強​​勁，我們預計到2023 年年底，訂戶數量將達到250 萬至260 萬，並且到2024 年訂戶數量還會進一步增長。作為GoPro 訂戶的額外福利，本月晚些時候，我們將推出桌面版GoPro適用於 macOS 的 Quik 應用程式無需額外付費。 Quik 桌面應用程式將為桌面用戶帶來自動編輯的簡單性和便利性，以及手動編輯和媒體管理工具、行動和桌面應用程式之間的同步編輯，以及從任何相機匯入素材的能力。

We plan to launch a Windows version of the Quik desktop app in the second quarter of 2024. As a part of the Quik desktop app launch, we're introducing a new Premium+ $99 subscription tier that includes an advanced desktop-based HyperSmooth Pro video stabilization feature, plus increased cloud storage for footage captured with any camera. GoPro subscribers at both the original $49 premium tier and the new $99 Premium+ tier will continue to enjoy unlimited cloud storage of footage captured with their GoPro at original quality.

我們計劃在 2024 年第二季推出 Windows 版本的 Quik 桌面應用程式。作為 Quik 桌面應用程式發布的一部分，我們將推出新的 Premium+ 99 美元訂閱套餐，其中包括基於桌面的高級 HyperSmooth Pro 視訊穩定功能功能，加上增加的雲端儲存空間，可儲存任何相機拍攝的鏡頭。原始 49 美元高級套餐和新的 99 美元 Premium+ 套餐的 GoPro 訂戶將繼續享受使用 GoPro 以原始品質拍攝的無限視頻片段的雲端儲存。

We expect our new Quik desktop app to further establish GoPro as an exciting end-to-end content creation solution for consumers, whether they're just getting started or they're an advanced creator. Our innovative auto editing experience represents a convenient starting point for new creators, and we believe the ongoing investments we're making in AI and computer vision will help maintain GoPro as an innovator in this space.

我們希望新的 Quik 桌面應用程式能夠進一步將 GoPro 打造成令人興奮的端到端內容創作解決方案，無論消費者是剛剛入門還是高級創作者。我們創新的自動編輯體驗為新創作者提供了一個便利的起點，我們相信我們在人工智慧和電腦視覺方面的持續投資將有助於維持 GoPro 作為該領域創新者的地位。

To reinforce GoPro's commitment to innovation and engineering excellence, we recently welcomed Vince Nakayama as GoPro's new Senior Vice President of Engineering. Vince brings a unique blend of software, hardware and UX experience to GoPro, having delivered many unique product and content experiences while holding influential roles at HP, Silicon Graphics, NetApp, Apple, Sony, Amazon, Flex and Microsoft. He's passionate about cameras and cutting-edge technologies, and we're excited for him to augment our efforts in AI to help our customers enrich their content and discover more utility in the use of their cameras and accessories.

為了強化 GoPro 對創新和卓越工程的承諾，我們最近歡迎 Vince Nakayama 擔任 GoPro 新任工程資深副總裁。 Vince 為GoPro 帶來了軟體、硬體和UX 體驗的獨特整合，交付了許多獨特的產品和內容體驗，同時在HP、Silicon Graphics、NetApp、Apple、Sony、Amazon、Flex 和Microsoft 擔任有影響力的職位。他對相機和尖端技術充滿熱情，我們很高興他能夠加強我們在人工智慧方面的努力，幫助我們的客戶豐富他們的內容，並在使用相機和配件時發現更多實用性。

On the marketing front, we're making solid progress in driving awareness and visibility for GoPro's brand through increased marketing collaboration with our retail channel partners as well as expanded athlete and event sponsorships and activations that align with the markets we serve. An example of this is the recently expanded slate of motorsports series GoPro is now aligned with as the official action camera partner: MotoGP, FIA Karting World Championships, AMSOIL Championship Off-Road, Pro Motocross Championship, Monster Energy Supercross, MXGP, World Supercross, Formula DRIFT and Nitrocross. These partnerships, along with the many other sponsorships in other verticals we serve, benefit both GoPro and the series themselves through the incredible content we produce together, content that authentically demonstrates the performance of our products and legitimizes our brand in the sport.

在行銷方面，我們透過加強與零售通路合作夥伴的行銷合作以及擴大與我們服務的市場一致的運動員和賽事贊助和活動，在提高 GoPro 品牌知名度和知名度方面取得了紮實的進展。例如，GoPro 最近擴大了一系列賽車運動系列，現已成為官方運動相機合作夥伴：MotoGP、FIA 卡丁車世界錦標賽、AMSOIL 越野錦標賽、專業摩托車越野賽錦標賽、Monster Energy Supercross、MXGP、World Supercross、方程式DRIFT和Nitrocross。這些合作夥伴關係以及我們所服務的其他垂直領域的許多其他贊助，透過我們共同製作的令人難以置信的內容使GoPro 和該系列本身受益，這些內容真實地展示了我們產品的性能並在運動中使我們的品牌合法化。

We're excited about our future, which would not be possible without our approximately 900 passionate employees. I want to thank them for their commitment to excellence. We foster a workplace culture of respect and accountability, an approach that yields consistently high employee engagement rates and third-party recognition. Most recently, we were recognized by U.S. News & World Report as one of the best places to work, adding to Outside Magazine's recognition of GoPro as one of the 50 best places to work for the past 2 years.

我們對我們的未來感到興奮，如果沒有我們約 900 名充滿熱情的員工，我們的未來就不可能實現。我要感謝他們對卓越的承諾。我們營造一種尊重和問責的工作場所文化，這種方法可以帶來持續的高員工敬業度和第三方認可。最近，我們被《美國新聞與世界報道》評為最佳工作場所之一，而《Outside》雜誌在過去兩年中也將 GoPro 評為 50 個最佳工作場所之一。

We're excited for the upcoming holiday season. Demand is strong. We're making steady progress expanding our retail network, and we're looking forward to launching new margin-accretive hardware in 2024 while continuing to enhance our software and subscription offerings. We believe our strategy positions us well for the rest of the year and will yield meaningful unit, revenue, subscriber and profit growth in 2024 and 2025. Now I'll pass the call over to Brian to share some color on our Q4 outlook.

我們對即將到來的假期感到興奮。需求強勁。我們在擴大零售網路方面取得了穩步進展，我們期待在 2024 年推出新的可增加利潤的硬件，同時繼續增強我們的軟體和訂閱產品。我們相信，我們的策略使我們在今年剩餘時間內處於有利地位，並將在2024 年和2025 年實現有意義的單位、收入、訂戶和利潤增長。現在我將把電話轉給Brian，分享我們對第四季前景的一些看法。

Thanks, Nick. The third quarter of 2023 represented the first full quarter operating under our growth and TAM expansion strategy that we implemented in May 2023. I'd like to now frame, at a high level, where we are as we evolve our business.

謝謝，尼克。 2023 年第三季是我們在 2023 年 5 月實施的成長和 TAM 擴張策略下營運的第一個完整季度。我現在想在較高的層面上框架我們在發展業務時所處的位置。

Based on the full year outlook provided today in our written commentary, revenue and unit sales for 2023 are expected to be ahead of what we estimated on our Q2 '23 earnings call. We returned to year-over-year unit growth in the third quarter at 16% and expect unit growth to be approximately up 15% year-over-year in the fourth quarter. We increased door count by 13% since the second quarter. Through October, we are tracking to our estimated 1 million units of camera sell-through in the fourth quarter of 2023.

根據我們今天在書面評論中提供的全年展望，2023 年的收入和銷售量預計將超過我們在 2023 年第二季財報電話會議上的估計。我們第三季的銷量年增率恢復到 16%，預計第四季的銷量年增約 15%。自第二季以來，我們的門數增加了 13%。截至 10 月，我們預計 2023 年第四季相機銷量將達到 100 萬台。

We returned to non-GAAP profitability in the third quarter and expect to be profitable on a non-GAAP basis in the fourth quarter. These are very positive early signs that our plans to return GoPro to growth and profitability are working.

我們在第三季度恢復了非 GAAP 盈利能力，預計第四季度將在非 GAAP 基礎上實現盈利。這些都是非常積極的早期跡象，表明我們讓 GoPro 恢復成長和獲利的計劃正在發揮作用。

Our success in selling more of our entry-level products than initially projected has put pressure on near-term margin. We expect margin pressure to continue through Q1 2024 until the replacement of our current low-margin entry-level products are replaced with newly designed entry-level cameras at lower price point, at lower cost -- product costs that are expected to come in the second quarter of 2024.

我們成功銷售了比最初預計更多的入門級產品，這給近期利潤率帶來了壓力。我們預計利潤率壓力將持續到2024 年第一季度，直到用新設計的價格更低、成本更低的入門級相機取代我們當前的低利潤入門級產品——產品成本預計將在2024 年第一季度出現。2024 年第二季。

We continue to invest in innovation, notably in system-on-chip, hardware, accessories and software. In addition, we are expanding marketing and sales capabilities to fuel growth while also driving efficiencies in other areas of the business. We have prudently tightened operating expenses for 2023, which we expect to be at $365 million, down from $370 million estimated during our last earnings report.

我們持續投資創新，特別是系統單晶片、硬體、配件和軟體。此外，我們正在擴大行銷和銷售能力，以推動成長，同時提高其他業務領域的效率。我們審慎收緊了 2023 年的營運支出，預計為 3.65 億美元，低於上一份收益報告中估計的 3.7 億美元。

We continue to tightly manage our balance sheet metrics, particularly inventory and DSO. We expect to reduce inventory exiting the fourth quarter to be below $100 million or approximately 40 days of inventory. And we expect to exit 2023 with cash of $300 million, including a minimum of $10 million of stock buybacks in the fourth quarter or $40 million in share repurchases for the year.

我們繼續嚴格管理我們的資產負債表指標，特別是庫存和 DSO。我們預計第四季的庫存將減少到 1 億美元以下或大約 40 天的庫存。我們預計到 2023 年退出時將擁有 3 億美元的現金，其中包括第四季至少 1,000 萬美元的股票回購或全年 4,000 萬美元的股票回購。

Our guidance reflects our excitement for the fourth quarter and 2023 and even more so for the future. Looking ahead to 2024, we expect to grow units to a range of 3.5 -- sorry, 3.3 million to 3.5 million or more than 10% over 2023. That would put revenue in a range of $1.1 billion to $1.2 billion. We expect to end 2024 with approximately 25,000 doors or growth of approximately 14% year-over-year. We expect to improve gross margin of 32% in 2023 to 37%, plus or minus 50 basis points, in 2024, driven by the following factors: by approximately 230 basis points from the introduction of a lower-cost entry-level product in Q2 2024, 150 basis points from price protection incurred in 2023 for the strategic price move, approximately 80 basis points from identified product component cost savings, and approximately 70 basis points from subscription growth and other improvements.

我們的指引反映了我們對第四季和 2023 年甚至未來的興奮。展望 2024 年，我們預計將在 2023 年將單位數量增加到 350 萬到 330 萬到 350 萬，增加 10% 以上。這將使收入達到 11 億到 12 億美元。我們預計到 2024 年底，數量約為 25,000 扇，年增約 14%。我們預計，在以下因素的推動下，毛利率將在2023 年從32% 提高到2024 年的37%，正負50 個基點： 由於第二季推出更低成本的入門級產品，毛利率提高約230 個基點到2024 年，由於2023 年策略性價格變動而產生的價格保護將帶來150 個基點，確定的產品組件成本節省將帶來約80 個基點，訂閱增長和其他改進將帶來約70 個基點。

We expect operating expenses to grow modestly from $365 million in 2023 to approximately $385 million in 2024. And we expect non-GAAP tax expense to be approximately $1.5 million in 2024. Successfully executing against these assumptions would result in revenue growth, margin expansion and subscriber growth. In addition, expected earnings leverage is substantial in 2024, and we expect to generate in a range of $30 million to $50 million in non-GAAP net income, a solid $60 million to $80 million improvement over 2023. This profitability improvement enables us to increase our capital allocation in 2024.

我們預計營運費用將從2023 年的3.65 億美元小幅成長至2024 年的約3.85 億美元。我們預計2024 年非GAAP 稅務費用約為150 萬美元。成功執行這些假設將導致收入成長、利潤率擴大和用戶增加生長。此外，2024 年的預期獲利槓桿相當大，我們預計將產生 3000 萬至 5000 萬美元的非 GAAP 淨利潤，比 2023 年大幅提高 6000 萬至 8000 萬美元。這種盈利能力的改善使我們能夠我們2024年的資本配置。

In summary, we are pleased by the results of our first quarter -- first full quarter of our growth and TAM expansion plan. We look forward to exciting developments and software releases in the fourth quarter and believe we will enter 2024 with strong momentum and that strategies will be a catalyst for expanding growth and profitability in 2024 and 2025. And now operator, we are ready to take questions.

總之，我們對第一季的業績感到滿意——我們的成長和 TAM 擴張計劃的第一個完整季度。我們期待第四季度的令人興奮的開發和軟體發布，並相信我們將以強勁的勢頭進入2024 年，並且該戰略將成為2024 年和2025 年擴大增長和盈利能力的催化劑。現在運營商，我們準備好回答問題了。

(Operator Instructions) Our first question comes from Erik Woodring from Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的 Erik Woodring。

I have two. Maybe Nick or Brian, 4Q sell-through guidance of 1 million units, obviously, great to hear you're tracking there at this point. That's up about 10% year-over-year, I believe. Can you just give us a bit more detail on how you would characterize the demand environment? And specifically, how do you think about that growth being driven by the lower price point and GoPro's specific actions and products versus just kind of a better overall consumer health for the holiday period? If you could just kind of dissect that however best, that would be really helpful. And then I have a follow-up.

我有兩個。也許尼克或布萊恩，第四季度銷售指導為 100 萬台，顯然，很高興聽到您此時正在跟踪這一點。我相信，這一數字年增了約 10%。能否更詳細地介紹一下您如何描述需求環境？具體來說，您如何看待較低價格點以及 GoPro 的具體行動和產品推動的成長，而不是假期期間消費者整體健康狀況的改善？如果你能盡可能地剖析它，那將會非常有幫助。然後我有一個後續行動。

Maybe I can start and then Nick can come in behind me. Just to kind of maybe frame it a little bit, Q3 was off-the-charts good. I mean we were up 31% sequentially. We moved our price point to where they've historically been. We saw terrific performance out of HERO12 Black and even more momentum, quite frankly, out of the entry-level products. And retail performed exceptionally well, up 35% in sell-in of units year-over-year and nearly 30% increase in sell-through. So the retail side of it is doing very well. We expect that to continue in the fourth quarter.

也許我可以開始，然後尼克可以站在我後面。只是為了稍微概括一下，第三季的表現非常好。我的意思是我們比上一季成長了 31%。我們將價格點移至歷史水平。我們看到了 HERO12 Black 的出色性能，坦白說，入門級產品的動力甚至更強。零售業表現異常出色，銷量較去年同期成長 35%，售出率成長近 30%。所以它的零售方面做得非常好。我們預計這種情況將在第四季繼續下去。

HERO12 will do well, and we'll have growth over what we did in HERO11 just based on the performance we're seeing to date and our expectation for the quarter, Erik. I think the other thing we'll see that's helping to drive the business is about 30% or so of our unit volume in the fourth quarter will be our entry-level product. And I mean, that's up substantially from last year. We had some, but we continue to drive the entry level, and that's driving units. And that's why I mentioned, yes, we still get hit a little bit on margin. But we drive more subscribers as a result of that, nearly 30% attach, and it reduces inventory and drives cash flow.

HERO12 將會表現出色，根據我們迄今為止所看到的表現以及我們對本季的預期，我們將比 HERO11 取得成長，Erik。我認為我們將看到的另一件有助於推動業務發展的事情是，我們第四季銷售的 30% 左右將是我們的入門級產品。我的意思是，這比去年大幅增加。我們有一些，但我們繼續推動入門級，那就是驅動單元。這就是為什麼我提到，是的，我們的利潤率仍然受到了一些打擊。但我們因此吸引了更多訂閱者，近 30% 的訂閱者，這減少了庫存並推動了現金流。

So from that perspective, it's positive and we expect to replace our entry-level price point products that we're selling today with a new one that's got an appropriate cost profile in Q2 of '24. And that, as I mentioned, lifts margins next year about 230 basis points. So kind of framing it that way, and I can say our sell-through so far to date between retail and gopro.com are tracking to where we need to be for the quarter. We have to now get into the holiday season. We're coming into that, right, with Black Friday and Cyber Monday and the holiday and the like.

因此，從這個角度來看，這是積極的，我們預計將在 24 年第二季度用具有適當成本概況的新產品取代我們今天銷售的入門級價格點產品。正如我所提到的，這將使明年的利潤率提高約 230 個基點。就這樣來看，我可以說迄今為止零售和 gopro.com 之間的銷售量正在追蹤我們本季需要達到的水平。我們現在必須進入假期。我們即將進入這個階段，對吧，黑色星期五和網路星期一以及假期等等。

But so far, that's going well. And we have great indications from our retail partners too who are also very excited. So I don't know, Nick, if you have anything more to add?

但到目前為止，進展順利。我們的零售合作夥伴也給了很好的指示，他們也非常興奮。所以我不知道，尼克，你還有什麼要補充的嗎？

Yes. I mean, I'd add, it was great to see HERO12 Black come out of the gates so strong and maintain that momentum. HERO12 Black's proven to be -- have a really good launch and follow-on sales that compare really well with HERO11 Black's performance a year ago. So it's great to see that improvement. And we think that's not only due to it being a phenomenal product that's been really well received by media and consumers alike. But this year, we also have the support of our retail partners in a way that we haven't had since before the pandemic. So it's a great indicator that our strategy to focus more on our retail presence and work more closely with our retail partners is paying off. That's great to see.

是的。我想說的是，很高興看到 HERO12 Black 如此強勁地走出大門並保持這種勢頭。事實證明，HERO12 Black 的推出和後續銷售非常好，與一年前的 HERO11 Black 表現相當。所以很高興看到這種改進。我們認為這不僅是因為它是一款受到媒體和消費者一致好評的非凡產品。但今年，我們也得到了零售合作夥伴的支持，這是自大流行之前以來我們從未有過的。因此，這是一個很好的指標，表明我們更加關注零售業務並與零售合作夥伴更密切合作的策略正在取得回報。很高興看到這一點。

And then as we noted in my prepared remarks, the strength of our entry-level products has really been exceeding our expectation, but without cannibalizing our higher-end products. So our expectation that our entry-level price products would expand the TAM and bring in new customers, without eroding the high end, has proven to be true. So it's a great -- it puts us in a great position going into the holiday season because we have a much better lineup for every buyer at every price point, every type of gift giver, this year compared with last year. So we're feeling really good.

正如我們在準備好的發言中指出的那樣，我們入門級產品的實力確實超出了我們的預期，但並沒有蠶食我們的高端產品。因此，事實證明，我們的入門級價格產品能夠擴大 TAM 並吸引新客戶，同時又不會侵蝕高端市場，這一預期已被證明是正確的。所以這是一件好事——它使我們在進入假期季節時處於有利地位，因為與去年相比，今年我們為每個價位的每個買家、每個類型的送禮者提供了更好的產品陣容。所以我們感覺非常好。

Okay. That's really helpful. Thank you both for all that color. I guess maybe my second question is for you, Brian. And your business is transactional and very kind of -- and very seasonal. And we haven't yet passed the 2023 holiday period, but you've given us some fairly specific guidance for the entirety of 2024. Can you maybe just help us understand what gives you confidence to kind of set some of these bogeys for next year? And kind of how you come to these conclusions so far in advance? Just give us some confidence in the baseline that you're setting for next year would be really helpful. And that's it for me.

好的。這真的很有幫助。謝謝你們兩位的顏色。我想也許我的第二個問題是問你的，布萊恩。你的業務是交易性的，而且非常季節性。我們還沒有度過 2023 年的假期，但您已經為我們提供了 2024 年全年的一些相當具體的指導。您能否幫助我們了解是什麼讓您有信心為明年設定一些柏忌？ ？您是如何提前得出這些結論的？只要讓我們對您明年設定的基線有一些信心就會非常有幫助。對我來說就是這樣。

Yes. No worries. Well, let's see. I think we're going to see continued growth on the entry level to more units than we were doing this year because we'll have a full year of selling that. So that's several hundred thousand units alone going into '24, and we're seeing that demand. So that's going to continue. We really started this kind of mid or, call it, May of this year. So it's just kind of putting a full year bet to kind of the increase in demand. We're seeing strong demand in HERO12. We expect that to continue.

是的。不用擔心。好吧，走著瞧。我認為我們將看到入門級產品的持續成長，數量將超過今年，因為我們將有一整年的時間來銷售它。因此，光是進入 24 年就有數十萬台，我們看到了這種需求。所以這將繼續下去。我們其實是從今年中旬開始的，或者說是今年五月。因此，這只是將全年的賭注押在需求的成長上。我們看到 HERO12 的需求強勁。我們預計這種情況會持續下去。

And we have some other new products coming that are going to should -- we would expect that they're going to do really well next year. So at least 3 new products next year coming as well as what we've got today going into '24. So from that perspective, it's good. We'll continue to add doors, expand that reach another 14% next year. We've got the full year of pricing at our lower price points, $399 and below versus $499 and below. That alone is lifting unit volume, and we're seeing that demand happen as we meet the consumer where they are. So that's another aspect of where we're going and adding more doors.

我們還有其他一些新產品即將推出，我們預計它們明年會表現出色。因此，明年至少將推出 3 種新產品，以及我們今天推出的 24 世紀新產品。所以從這個角度來看，這是好的。我們將繼續增加門，明年將達到另外 14%。我們的全年定價較低，為 399 美元及以下，而 499 美元及以下。僅此一點就增加了單位銷售量，而且我們看到，當我們滿足消費者所在的位置時，需求就會發生。所以這是我們要增加更多門的另一個面向。

And we're driving a lot more engagement with subscription. We'll drive subscription up that we expect in the year. So we're seeing positive momentum on where we're going so far with Q3 now behind us, Q4 ahead of us, with really strong retail demand and consumer demand. So I think we can look ahead and go, yes, the moves we've made midyear of '23, we expect to continue to be playing out in 2024.

我們正在推動更多的訂閱參與。我們將在今年推動訂閱量的成長，達到我們的預期。因此，我們看到了迄今為止我們所取得的積極勢頭，第三季度已經過去，第四季度即將到來，零售需求和消費者需求非常強勁。所以我認為我們可以展望未來，是的，我們在 23 年年中採取的舉措，預計將在 2024 年繼續實施。

And then I talked -- that's on the top line and then I talked about how do we improve margin and getting to about 37%. And that's really key for us next year as we drive that margin. OpEx goes up a little bit to support innovation, and that goes right to the bottom line for a pretty substantial profit improvement as we've laid it out.

然後我談到了——這是最重要的，然後我談到了我們如何提高利潤率並達到 37% 左右。這對我們明年提高利潤率來說非常關鍵。營運支出略有上升以支持創新，這直接關係到利潤大幅增長的底線，正如我們所闡述的那樣。

(Operator Instructions) And our next question comes from Martin Yang from Oppenheimer.

（操作員說明）我們的下一個問題來自奧本海默的 Martin Yang。

First question is about retention rate. Really appreciate you sharing the first year, second year retention. Can you maybe comment on how those retention rates changed versus a year or 2 years ago?

第一個問題是關於保留率。非常感謝您分享第一年、第二年的保留。您能否評論一下這些保留率與一年或兩年前相比有何變化？

Yes. Martin, this is Brian. Retention rates have generally been increasing, and they've gone from the 50s now up to -- in the first year, to 60% to 65% in year 1, and year 2 is holding at 70% to 75%. So we're very pleased with that. We have, even within that, seen improvement in retention rates from those who have signed up on the web. And that's improved about 10% -- 5%. So that's an encouraging trend, and we'll work more on the op stores as well.

是的。馬丁，這是布萊恩。保留率總體上一直在上升，從第一年的 50 多歲，到第一年的 60% 到 65%，第二年保持在 70% 到 75%。所以我們對此非常滿意。即使在這種情況下，我們也看到那些在網路上註冊的用戶的保留率有所提高。改善了約 10% - 5%。所以這是一個令人鼓舞的趨勢，我們也會在OP商店上做更多的工作。

And as we get into next year, because we'll be kind of 3 years into this, we can start reporting on the third year retention. But so far, the retention rates have continued to improve as well as attach rates, which are up year-over-year. So things have continued to move in the right direction on subscription as well.

當我們進入明年時，因為我們已經進入了三年，所以我們可以開始報告第三年的保​​留情況。但到目前為止，保留率和附加率都在持續提高，並且逐年上升。因此，訂閱方面的事情也繼續朝著正確的方向發展。

Got it. And the lower-cost models have a lower attach rate for service. What are your plans to raise that attach rate? Or do you feel that the 30% attach rates for subscription is where you want it to be?

知道了。成本較低的型號的服務附加費也較低。您計劃如何提高附加率？或者您認為 30% 的訂閱附加費是您想要的嗎？

Well, on the attach rate currently, it's 40%, right, for -- actually, in combined between retail and gopro.com and who comes in and buys. We think adding the premium subscription service will add to that retention rate. We've done a lot of work in consumer insights. That's why we're -- for people who subscribe to GoPro, they'll have access to a desktop app. We -- that's been a very positive response rate from a consumer insight perspective. So hopefully, that drives not only attach but increased retention rates over time.

嗯，目前的附加率是 40%，對吧，實際上，零售和 gopro.com 以及誰進來購買。我們認為添加高級訂閱服務將提高保留率。我們在消費者洞察方面做了很多工作。這就是為什麼我們 - 對於訂閱 GoPro 的人來說，他們將可以存取桌面應用程式。從消費者洞察的角度來看，我們的回應率非常正面。因此，希望這不僅能推動附加，而且隨著時間的推移還能提高保留率。

So -- and we'll add other kind of services and applications to service that just enhances it over time, and that's really to continue to drive attach and retain the subscribers we have.

因此，我們將在服務中添加其他類型的服務和應用程序，隨著時間的推移，這些服務和應用程式只會增強它，這實際上是為了繼續推動附加並保留我們擁有的訂戶。

Got it. Last question for me is on the upcoming new cameras for '24. Can you maybe generally talk about the inspiration for the new designs? Are they coming from available product out of the market, customer feedback or any other source that will drive you to come up with maybe a more niche-specific design?

知道了。我的最後一個問題是關於 24 年即將推出的新相機。能大概談談新設計的靈感嗎？它們是否來自市場上可用的產品、客戶回饋或任何其他可以促使您提出更針對利基市場的設計的來源？

I'll take that. Thanks. Yes, it's a little bit of everything. We're doing more and more consumer research to understand what consumers want to see from us, what maybe our current products are missing that would compel them to purchase. And as well, just through our experience in so many categories for so many years, we've been identifying new form factors, new capabilities that would better tailor a GoPro for a specific use case.

我會接受的。謝謝。是的，一切都只是一點點。我們正在進行越來越多的消費者研究，以了解消費者希望從我們這裡看到什麼，我們目前的產品可能缺少什麼，迫使他們購買。此外，憑藉我們多年來在眾多類別中的經驗，我們一直在確定新的外形尺寸和新功能，以便更好地針對特定用例自訂 GoPro。

I think that we're getting more -- a better understanding that it's not just price points that we have to hit to attract consumers. But it's also unique usability and product functionality for different use cases that we think that if we nail it and we nail it at the right price point, we can expand our TAM. And that goes both -- in both directions. We've shared that we're working on a new entry-level product that's going to be at the appropriate margin level for GoPro that we're going to launch in Q2 of next year. We're really excited about that.

我認為我們越來越了解，為了吸引消費者，我們不僅僅需要達到價格點。但它也具有針對不同用例的獨特可用性和產品功能，我們認為，如果我們能夠做到這一點，並且以合適的價格點做到這一點，我們就可以擴展我們的 TAM。這都是雙向的。我們已經透露，我們正在開發一款新的入門級產品，將為 GoPro 提供適當的利潤水平，並將於明年第二季推出。我們對此感到非常興奮。

Not only is that going to be a phenomenal price point, but we also think the user experience is going to be phenomenal for that entry-level user, really helping them be successful with their GoPro, which we believe is going to lead to increased engagement and the potential to up-sell them to other products over time.

這不僅會是一個驚人的價格點，而且我們還認為對於入門級用戶來說，用戶體驗將是驚人的，真正幫助他們透過 GoPro 取得成功，我們相信這將提高參與度以及隨著時間的推移將它們追加銷售到其他產品的潛力。

And then at the high end, we have new products coming that we think are going to really excite consumers and help drive further growth. So it's across the spectrum that we're targeting new products, and it's -- next year is going to be a really exciting time.

然後在高端市場，我們推出了新產品，我們認為這些產品將真正激發消費者的興趣並有助於推動進一步的成長。因此，我們正在瞄準新產品的各個領域，明年將是一個非常令人興奮的時刻。

And there are no further questions. I'd like to hand the call back to the management team for any closing remarks.

沒有其他問題了。我想將電話轉回管理團隊以供結束語。

Thank you, operator, and thank you, everyone, for joining today's call. As I said earlier, we're excited about the upcoming holiday season. Demand is strong. We're making steady progress expanding our retail network, and we're looking forward to launching new margin-accretive hardware in 2024, while continuing to enhance our software and subscription offerings.

謝謝接線員，也謝謝大家參加今天的電話會議。正如我之前所說，我們對即將到來的假期感到興奮。需求強勁。我們在擴大零售網路方面取得了穩步進展，我們期待在 2024 年推出新的可增加利潤的硬件，同時繼續增強我們的軟體和訂閱產品。

And to those of you still trying to figure out the perfect gift to give this holiday season that will make you look like a hero, it's simple. GoPro. Thanks again for joining today's call, everyone. This is Team GoPro signing off.

對於那些仍在想辦法在這個節日送出一份讓自己看起來像英雄的完美禮物的人來說，這很簡單。 GoPro。再次感謝大家參加今天的電話會議。這是 GoPro 團隊的簽字儀式。

This concludes today's conference call. Thank you, everyone, for joining. You may now disconnect.

今天的電話會議到此結束。謝謝大家的加入。您現在可以斷開連線。