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GoPro IPO IPO values GoPro at $3 billion, we check out the value

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IPO values GoPro at $3 billion. Check out the summary of GoPro and the valuation, part of the valuing High Tech Stocks in the Dimensions of Strategy Series by John Ashcroft and Company, experience …

IPO values GoPro at $3 billion. Check out the summary of GoPro and the valuation, part of the valuing High Tech Stocks in the Dimensions of Strategy Series by John Ashcroft and Company, experience worth sharing.

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  • 1. John Ashcroft and Company
  • 2. 0 35 70 105 140 2011 2012 2013 133.7 75.3 52.8 Adjusted EBITDA $ millions John Ashcroft and Company Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted after excluding the impact of: provision (benefit) for income taxes, interest income, interest expense, depreciation and amortization, POP display amortization and stock-based compensation. We use adjusted EBITDA as a key measure to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating adjusted EBITDA can provide a useful measure for period-to-period comparisons of our business. Accordingly, we believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. See “Prospectus summary—Summary consolidated financial data—Adjusted EBITDA” for additional information and a reconciliation of net income to adjusted EBITDA. Wearable sports camera maker GoPro Inc's [GPRO] initial public offering was priced at an estimated $24 per share, valuing the company at up to $2.96 billion. ! GoPro's IPO raised about $427.2 million, after the offering of 17.8 million class A shares was priced at the top end of the expected range of $21-$24 per share. ! The valuation reflects a multiple of 3 x revenue and a multiple of 22.1 x adjusted EBITDA for 2013 and 32.4 x net earnings. Market Cap ! $3 billion! ! PE ! ! ! ! ! ! 32.4 ! ! EBITDA multiple 22.1
  • 3. Company Overview! ! GoPro is transforming the way consumers capture, manage, share and enjoy meaningful life experiences. We do this by enabling people to capture compelling, immersive photo and video content of themselves participating in their favorite activities. Our customers include some of the world’s most active and passionate people. The volume and quality of their shared GoPro content, coupled with their enthusiasm for our brand, are virally driving awareness and demand for our products. To date, we have generated substantially all of our revenue from the sale of our cameras and accessories and we believe that the growing adoption of our capture devices and the engaging content they enable, position GoPro to become an exciting new media company.! ! What began as an idea to help athletes document themselves engaged in their sport has become a widely adopted solution for people to document themselves engaged in their interests, whatever they may be. From extreme to mainstream, professional to consumer, GoPro has enabled the world to capture and share its passions, and the world, in turn, is enabling GoPro to become one of the most exciting and aspirational companies of our time. John Ashcroft and Company Corporate Information! Incorporated as Woodman Labs, Inc. in California, trading as GoPro from February 2004. Reincorporated in Delaware in December 2011, in February 2014 the company name changed to GoPro, Inc.
  • 4. John Ashcroft and Company History! We were founded in 2004 to address the limitations of traditional cameras. In 2004, we shipped our first product, a wrist-mounted, waterproof, film-based capture device, and in 2006 we shipped our first digital capture device, the Digital HERO. We introduced our first HD capture device in 2009, the HD HERO, and we introduced our current HERO3+ family of capture devices in late 2013. We also sell mountable and wearable accessories that enable professional quality capture at affordable prices. ! We have continued to enhance our product offering by providing software solutions that address the pain points of managing, editing and sharing content. GoPro Studio enables our customers to easily edit and share simple or complex videos. The GoPro App enables customers to easily and wirelessly manage and share content from our HERO capture devices. ! Since we launched our first HD camera in 2009, we have experienced rapid growth. In 2011, 2012, 2013 and the three months ended March 31, 2014, we generated revenue of $234.2 million, $526.0 million, $985.7 million and $235.7 million and reported net income of $24.6 million, $32.3 million, $60.6 million and $11.0 million, respectively. Substantially all of our revenue has been generated from the sale of cameras and accessories. ! ! As of March 31, 2014, our products were sold to customers in more than 100 countries and through more than 25,000 retail outlets. Sales outside of the United States represented 35%, 47%, 49% and 53% of our revenue for 2011, 2012, 2013 and the three months ended March 31, 2014, respectively. Sales Strategy! Our sales strategy initially targeted independent specialty retailers focused on action sports markets, which we believe helped to establish the authenticity of our brand. We now sell our products both directly and through distribution. Our direct channel includes big box, mid-market and independent specialty retailers, as well as our website. We use our distribution channel to sell internationally and into certain specialty markets. $0 $250 $500 $750 $1,000 2011 2012 2013 985.7 526 234.2 Revenue $ millions
  • 5. 7.2 Million Likes 950,000 Followers 2.0 Million followers 450 Million Views! ! 1.8 Million subscribers John Ashcroft and Company
  • 6. -50 0 50 100 150 2012/11 2013/12 2014 Q1 -7 87 125 Growth Rate % 0 25 50 75 100 2011 2012 2013 91.3 53.2 38.8 Operating Income $ m 0 15 30 45 60 2011 2012 2013 2014 Q1 40.9 36.7 43.3 52.3 Gross Margin % John Ashcroft and Company 0 250 500 750 1000 2011 2012 2013 985.7 526.0 234.2 Revenue $ millions
  • 7. 0 1,000 2,000 3,000 4,000 2011 2012 2013 3,849 2,316 1,145 Units Shipped 000s John Ashcroft and Company $100.00 $150.00 $200.00 $250.00 $300.00 2011 2012 2013 $256.10 $227.11 $204.54 Average Revenue $
  • 8. John Ashcroft and Company . More than just Hardware ! ! The company makes virtually “all” of its revenues from hardware but is trying to position itself as a new ind of media company, with millions of subscribers across Youtube, Instagram and Facebook. Syndication ! ! The company is also developing syndication deals with Microsoft Xbox consoles and Virgin America. Video is all … Breaking News! ! Twitter acquires SnappyTV. Twitter Director of Product Management “One of the best ways to follow events as they unfold is through real time videos on Twitter. As we continue to invest in video, it’s important for us to provide tools that make it easy for TV broadcasters, businesses and event producers to share high quality videos.” Baljeet Sungh. Facebook develops Slingshot …! ! Facebook develops Slingshot to rival Snapchat.
  • 9. John Ashcroft and Company . © 2014 Go Pro be a hero : Dimensions of Strategy! Dimensions of Strategy by John Ashcroft and Company. Experience worth sharing. John Ashcroft, jkaonline ! About : Dimensions of Strategy! Dimensions of strategy, is the Corporate Strategy website of John Ashcroft and company. Experts in economics, corporate strategy, business modelling and social media. The corporate strategy group is led by Professor Brian C Oxford and the SWOT team now joined by AKA our resident social media expert. ! John Ashcroft recently developed the International MBA module for Corporate Strategy for one of the leading business schools and wrote up the case study Apple from the iPod to the iPad, the Lego Case Study, the Twitter Case Study and the Amazon Case Study. ! Disclaimer! The material is based upon information which we consider to be reliable but we do not represent that it is accurate or complete and it should not be relied upon as such. We accept no liability for errors, or omissions of opinion or fact. In particular, no reliance should be placed on the comments on trends in financial markets. The receipt of this email should not be construed as the giving of investment advice. ! Information within this presentation is derived from :! United States, Security and Exchange Commission, Washington, D.C.20549 Form S-1 Registration Statement Under The Securities Act of 1933 GOPRO, INC. 2014
  • 10. John Ashcroft and Company