Strong demand in the first quarter
According to GoPro (GPRO), in the first quarter, it saw sell-through grow more than sell-in, and it expects this trend to continue in the second quarter and throughout 2018. This development indicates an increase in demand for GoPro devices.
GoPro has historically had a weak first quarter due to excess channel inventory, an issue the company has now corrected. GoPro claims to be the number one player in the action camera space, and it was the best-selling camera in the United States for the 17th consecutive quarter.
GoPro’s sell-through has slowed since 2015 due to its overpriced older products. GoPro has accepted that because it didn’t lower the selling prices of its older products, it saw sell-through falls of 50% in Q4 2015 and Q4 2017. Once it lowered the prices of its products by $100, GoPro saw an increase in sell-through.
GoPro also stated that in 2017, sales were affected because its Session product line-up was unappealing to customers. In the first quarter, GoPro shipped 758,000 cameras, an increase of 2.7% YoY (year-over-year) compared to the 738,000 units it shipped in the first quarter of 2017.
Rise in international revenue
Prior to GoPro’s IPO in June 2014, North America accounted for 75% of its total revenue. This figure is now close to 45%–50%, indicating an increase in international revenue and market share. GoPro products are experiencing strong demand in Asia and EMEA (Europe, the Middle East, and Africa) regions.
Revenue in Japan has doubled for the company for the last two consecutive years. It rose 22% YoY in the first quarter.