Earnings Call Transcript - GPRO Q1 2022

Operator, Operator

Good afternoon. Thank you for attending the GoPro First Quarter 2022 Earnings Call. My name is Matt and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to our host, Jalene Hoover, Vice President of Investor Relations. Jalene, please go ahead.

Jalene Hoover, Vice President of Investor Relations

Thank you, Matt. Good afternoon, everyone and welcome to GoPro’s first quarter 2022 earnings conference call. With me today are GoPro’s CEO, Nicholas Woodman; and CFO and COO, Brian McGee. Today’s agenda will include a brief introduction from Nick followed by Q&A. For detailed information about our first quarter 2022 performance and our outlook, please read the management commentary we posted to the Investor Relations section of GoPro’s website. Before I pass the call to Nick, I would 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. This means that results could change at any time. Our commentary about our business results and the 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. Information concerning our risk factors is available in our 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 in other reports that we may file from time to time with the SEC. 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 additionally, 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 operating 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. In addition to the earnings press release and management commentary, we have posted slides containing detailed financial data and metrics for the first quarter of 2022. The management commentary, slides as well as a link to today’s live webcast and a 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 today during the call, other than revenue, are non-GAAP. Now, I'll turn the call over to GoPro's Founder and CEO, Nicholas Woodman.

Nicholas Woodman, CEO

Thanks, Jalene, and hi everybody. Thank you for joining us today. I want to recognize today it was a tough day in the market, but we are happy to be able to report what we believe is good news for GoPro investors. As we shared in the management commentary, we hit the ground running in 2022 launching new camera SKUs derived from our industry-leading HERO10 Black camera, a premium high-margin, high-ASP accessory, and new desktop software that furthers our position as the world leader in software-based video stabilization. We’re excited to be making significant progress against our strategy to further diversify our product portfolio addressing specific use cases to expand our total addressable market. We also delivered solid business performance in the quarter with revenue of $217 million, gross margin of 42%, and GAAP and non-GAAP EPS of $0.04 and $0.09, respectively. The first quarter of 2022 represents GoPro's seventh consecutive quarter of profitability on a non-GAAP basis, a trend we expect to continue throughout the year. First quarter 2022 delivers year-over-year growth across key financial metrics, including revenue, which increased by 6%, operating profit, which increased by 162%, and net income, which increased by 214%. GoPro subscribers grew 85% year-over-year to 1.74 million, and we are seeing positive usage trends that make it clear subscribers are taking advantage of their subscription benefits. We initiated our $100 million share repurchase program, buying back $10 million of shares during the quarter, and we grew our cash balance year-over-year ending with $450 million. All in all, we had an exceptional Q1. And I want to thank everyone at GoPro for their world-class execution. We have much to be excited about as we look forward to the rest of the year. Operator, we're now ready to take questions.

Operator, Operator

The first question is from Anna Glaessgen with Jefferies.

Anna Glaessgen, Analyst

I guess, first, starting off with expectations for units shipped in 2022. Can you talk about what's embedded here in terms of the recent product launches that were just announced versus the legacy franchise flagship products, like the HERO and subsequent launches there?

Brian McGee, CFO and COO

Yes. Hi, Anna. This is Brian. Let me start. Our guidance for 2022 in units is consistent with what we talked about in February. From a unit standpoint, low single digits, and then continued increases in ASPs due to continued shift of product at the high end and a big growth in our subscription business. We also expect a total of four new cameras in 2022. I think we talked about two on the last call. So, we just announced two in the first half, and we have two more new ones coming in the second half. So, that gives us confidence in the numbers. And then, I’d also point out, if you look at kind of how we guided Q2, historically, we have seen sequential lifts of between 10% to 20% on units, and we're up 17% in Q2, which is driving the $240 million revenue guidance we gave, plus or minus $5 million. And units will be down on a year-over-year basis, but up sequentially. ASPs will be down a little bit sequentially, that's more mixed, but up year-over-year, and quite healthily. And we expect good growth in ASPs in 2022. So, those are the main drivers for Q2. And then you get to Q4, and we have two new products. We typically are up on a sell-through basis 30% to 50% year-over-year. And the way we've modeled it with demand planning, we have a lot of data on customer demand and how many SKUs we have and price points of SKUs. So, we're very comfortable with the 2022 outlook guidance for Q2, Q3, and Q4.

Anna Glaessgen, Analyst

Great, thanks. And then, one follow-up here. It's great to see that the retail to subscriber attach rate continues to increase, 39% in the quarter. What are the key levers here that could continue to narrow the gap toward the direct-to-consumer subscriber, and how are you thinking about improving that conversion within the retail channel?

Brian McGee, CFO and COO

Yes, great question.

Nicholas Woodman, CEO

A primary reason for the increase in our conversion rate from 18% last year to 39% in the first quarter of this year is our enhanced efforts to showcase the benefits of being a subscriber within the Quik app, which is our GoPro app. We've made it much clearer to users who purchased their GoPro at retail why they should consider subscribing. We're not finished yet; the app will continue to develop throughout the year, making subscriber benefits even more accessible. We believe this will positively influence their decision to become subscribers. Currently, we are informing users about the benefits, and in the future, we aim to create a more engaging experience for them, which we anticipate will lead to even better conversion rates. Additionally, we plan to further simplify how users can enjoy the subscription benefits through the app. We are already seeing strong usage trends, and we're pleased with how subscribers are utilizing their benefits. We expect this engagement to grow over time as we enhance the overall experience for them. Overall, we are very pleased with our progress and have many initiatives planned to drive further improvements.

Brian McGee, CFO and COO

From our perspective, subscription is GoPro's financial engine. We experienced an 85% year-over-year growth in subscribers, reaching $19 million with a 73% increase, resulting in a margin of 70 to 80 points. This is very profitable. Looking ahead, we anticipate surpassing $80 million in subscription and service revenue in 2022. Additionally, this year serves as an investment year for subscriptions at retail. We have increased the retail attach rate from about 18% a year ago to 39% by marketing to the retail cohort, converting them through the app with promotions and competitive pricing, which has led to improved conversion rates. This cohort behaves almost identically to those subscribing on GoPro.com, so we expect similar retention rates and renewals at a $50 full price point in 2023. This will enhance our subscription revenue and margins in 2023, with revenue projected to increase by more than 50% compared to 2022. This represents a significant increase, and with a margin of 70 to 80 points, it will contribute considerable margin dollars to our bottom line year-over-year.

Anna Glaessgen, Analyst

Great. Sorry, but I have one more follow-up. I appreciate the information on the number of subscribers, or the percentage of subscribers using the cloud for storage. Do you have any details on how this looks by cohort, and how storage usage might indicate subscription retention?

Brian McGee, CFO and COO

They behave the same. So, basically identical in how much content people put in the cloud, whether it came from retail or GoPro.com. So, they're comparable from that perspective. The other really good indicator is what's coming from retail from all cameras. It's not just the flagship; it's actually in proportion to flagship with HERO10, HERO9, HERO8, and Max. And they're being added proportionately. So, even people who are buying HERO8 and older cameras are actually subscribing. That shows you that there's a real benefit to the subscription for people who are buying GoPros. It's not just the flagship; it's across the board. It's mostly flagship on GoPro.com because that's what we mostly sell on GoPro.com; it's flagship. But via retail, it's proportional, which is great.

Operator, Operator

The next question is from Martin Yang with Oppenheimer.

Martin Yang, Analyst

My first question is related to the question asked by the previous analyst. So, when you think about different ways to convert users into subscribers, how about different channels for conversion? For example, the upcoming desktop editing suite. Is that a driver for future conversion into '23?

Nicholas Woodman, CEO

Yes. Well, our upcoming desktop app will certainly be a driver for subscription because it will court consumers who prefer to use a desktop for managing, editing, and getting the most out of their content, whereas today we're mobile-focused, and that doesn't work for everybody. Interestingly, as you go higher up the passion curve for personal content creation, people tend to shift to a desktop platform because it's a more convenient and powerful platform, obviously for managing and editing your content. So, we're excited about that. We've shared on previous calls that we used to have a desktop application that we long ago sunsetted. But we still have seen very significant use of that application, even though we don't support it anymore, which is obviously a clear sign that there's healthy demand for an updated desktop offering from GoPro. And that will sync with your mobile and cloud GoPro experience and be quite powerful and convenient. I think it's going to be very well received by people. So, we're really excited about it. So, yes, we do think that our desktop app will be a subscription driver. And another important driver, obviously, is increasing unit sales over time. As Brian noted, and it's a really important point, that we're seeing similar subscription rates amongst owners of all of our cameras, whether it's HERO8, HERO9, our flagship HERO10 Black, and Max. It's really encouraging to see that the subscription is appealing to people who are buying in at different price points and different performance levels. And it also bodes well for our strategy to increase our product portfolio of cameras and potentially enter new product categories that we're not currently in, to address the needs of specialized users. We've shared that we don't see any reason why GoPro can't return to the 4 million and greater number of units sold through a year. And we're targeting 3.3 million this year. But both through an organic resurgence of sell-through, when the economy and geopolitical and travel normalcy returns to the world, we think that we're going to be in a really good position. And then you layer on top of that the broader portfolio that we're building. We feel really confident about our ability to grow our unit volume, which will clearly translate into accelerated subscription growth, which is really exciting to think about. Because as Brian noted, subscription is the financial engine of GoPro. It has such a significant margin and EBITDA impact on our business that it frankly can be quite transformative as we look a few years out. So, all very exciting to think about.

Operator, Operator

The next question is from Nik Todorov with Longbow Research.

Nik Todorov, Analyst

Nick, first question for you. Can you talk about the TAMs of the new cameras, I guess, probably for the ones that you've announced so far, and maybe help us size those TAMs? And I would also like to hear from you talk about the added value of HERO Bones versus using the camera that already comes with most high-end drones?

Nicholas Woodman, CEO

As for the total addressable market, we're aiming for 3.3 million units this year and are confident that we can increase that back to 4 million or more over time, similar to pre-pandemic GoPro sales. Some of this growth will come organically, and some through expanding our hardware offerings, both in cameras and possibly new product categories. Our strategy is to target user segments that may be seen as niche by others, but we've demonstrated that these niches can collectively contribute significantly to our business. GoPro began by creating cameras for surfers and has since expanded to cater to mountain bikers, racecar drivers, and professional content creators. We've effectively built our brand by focusing on numerous niche use cases and serving a diversified customer base with unique needs. Our approach with products like Bones involves leveraging these niches and growing our business steadily rather than pursuing broad mass-market successes. We are focused on achieving smaller wins, which have historically benefited the company, while remaining open to unexpected major successes. It's important to note that we will continue to excite our customers with new flagship cameras each year, as that remains the foundation of our business. Additionally, we can utilize that technology to create lower-cost derivative cameras to help grow incrementally. The Bones product is an example of serving a smaller yet vital user group more effectively than anyone else can, thanks to our technology. Regarding your question about using the Bones camera on small cinematic drones instead of the built-in cameras, it’s really about image quality and performance. The FPV drone cinematography community has expressed a clear preference for smaller, lighter GoPros because they seek the best image quality and view GoPro as the best choice for their needs. We've observed many drone filmmakers buying HERO10 cameras, modifying them, and using them as lightweight solutions. The feedback has been strong, indicating a demand for a specialized camera for this group, which is why we created it. We believe we are uniquely positioned to fulfill their requests, and it's fulfilling to finally respond to the demand we’ve received over the years.

Nik Todorov, Analyst

Thank you for the thorough response, Nick. I appreciate it. I have a question regarding the assumptions for growth in the second half of the year. It suggests a significant increase in units. Could you clarify how much of this anticipated growth in the second half is expected to stem from new products, especially if they are aimed at a broader market to boost unit sales, compared to growth from the established HERO flagship line? How should we break down the expected growth from new products versus legacy offerings in the second half?

Brian McGee, CFO and COO

New products will drive most of the growth. On the new products, we’d expect the flagship and then there's one other which we have very good historical analytics on for driving demand. So, that's why we're pretty comfortable with what the demand outlook would be between Q3 and Q4. Obviously, the older cameras still play a role; 10, 9, and a bit of 8 and MAX which has continued to do really well. So, the new products are more mass appeal versus more initially like the Bones.

Nik Todorov, Analyst

And if I can squeeze one financial question, you made a comment in the prepared remarks about the success and expansion of the accessory portfolio. Brian, what can you share from a financial standpoint and help us understand how much accessories add to either ASP or sales or any other metric that help us frame that?

Brian McGee, CFO and COO

Yes. We're growing our expectations to grow accessories this year. We don't break out how big it is, but it is a significant part of our business, and it’s margin accretive to the Company. So, it's positive there. It's also a significant benefit to our subscribers. Part of the deal on the subscription is financial. I mean, they pay $50, and then they get $100 off the camera at the 50% off on accessories. A significant amount of our accessories that are sold actually are to that group. So, they're engaged with GoPro and buying quite a bit of accessories. So, that's a powerful force on the business that also builds the relationship with the customer and keeps them in as a subscriber and why we have a healthy retention rate. So, it's a positive in almost every direction.

Nicholas Woodman, CEO

One thing I'd like to add, Nikolay, to your question about Bones and future cameras is that I should add that we're really happy with the sell-through that we're seeing since the launch of Bones and our other new camera SKU HERO10 Black Creator Edition. Both those cameras are selling through either in line with our forecasts or above what we had expected in terms of sell-through. So, great job, congratulations to GoPro team on successfully launching these two new products. Results so far are really good. We're really encouraged by that. And then you made a comment about how we're looking for quite an uptick later in the year and what were these cameras that were coming out? How are they going to support that? Brian, do you want to add to your answer about how we're not expecting anything out of the ordinary for Q4 as it relates to our historical performance?

Brian McGee, CFO and COO

Yes, I mentioned that in response to Anna's question as well. Typically, in any year, we anticipate a sequential increase in sell-through in the fourth quarter compared to the third quarter, ranging from 30% to 50%. This increase is lower if we have fewer units available and higher if we have more units to release into the market, especially considering what we plan to introduce. This provides us with a strong understanding of demand and the demand profile, which helps us align our strategy as we look towards the third and fourth quarters.

Operator, Operator

The next question is from Erik Woodring with Morgan Stanley.

Unidentified Analyst, Analyst

Hi. This is Patrick on for Erik. Thanks for taking the questions this afternoon. So, if we look back over the last three years, second quarter sell-in grew sequentially by a little bit more than 30%. And I believe you guys are guiding to an 18% sequential selling growth. So, we're just looking to better understand what are some of the drivers that are limiting sell-in growth in the second quarter?

Brian McGee, CFO and COO

Yes. We typically see a sequential increase of 10% to 20% from Q1. Our numbers have not been as high as what you just mentioned in the last three years. We're at 70% in Q2 and expect to achieve about 675,000 in sell-through for the quarter, which represents an increase. We also expect to reduce channel inventory again in Q2, as this positions us for success in the second half when we anticipate additional units coming in. Overall, we're aligned with our usual sequential growth expectations.

Unidentified Analyst, Analyst

And then, one more from my end. If you just kind of look at the U.S. dollar and the recent strength, how are you thinking about potential pricing action in international markets, as you work to offset both currency and component cost inflation?

Brian McGee, CFO and COO

Yes. Included in our guidance of 40.5% plus or minus 50 basis points, that's down sequentially from 42%. At least 1%, maybe up to 1.5% is going to be currency related with the strength of the dollar in March and April. Component costs are also included in our guidance. As far as pricing goes, we've already moved up the price curve. And if we try to move prices up, I think that's going to have a deteriorating effect on demand. There'll be more of a negative actually than a positive. And so, that I don't think really makes sense. The other thing is, we have such a large subscription business that we get a little bit of air cover there from a margin perspective, because it's going to grow as well in Q2. And with the margin profile, I call it the financial engine for GoPro. It’s going to help to keep margins in the 40s as we continue to grow that. So, we can buffer a little bit here on component prices and currency because we have a diversified business between hardware and cameras and what accessories and what we're able to deliver in the market on subscription. It really is a diversified way of looking at the business.

Operator, Operator

The next question is from Jim Suva with Citigroup.

Jim Suva, Analyst

Thank you. I have a strategy question for Nick and a financial question for Brian. Nick, with the launch of the Creator and Bones this year, can we say that the pace has shifted into a tick and tock rhythm, where the first half of the year focuses on specialized needs and the second half caters to a broader consumer market? Am I understanding this correctly? Also, regarding Bones, is it currently only available in the U.S., or is that just its initial launch, with plans for a global release later? I found that quite interesting. Brian, on the financial side, should we consider anything in our projections moving forward, such as inflation affecting research, design engineers, employee merit increases, and the challenges posed by COVID? Are there any factors that could influence operating expenses or share counts in the near future?

Nicholas Woodman, CEO

On the tick-tock, are we changing our launch cadence? I would say, I wouldn't read into that. It makes sense what you said. But no. At the same time, we are likely to continue to surprise and delight you with future product launches. So, listen for perhaps some clues and what we share. But I don't think you can be as definitive as the way that you laid it out. And then, in terms of Bones being a U.S. launch. We're being very thoughtful about how we roll out some products versus others, which are more sure to have mainstream appeal and so forth like that. With Bones, we wanted to learn; it was about speed to market. We're able to get that product out a lot quicker if we focused on the U.S. and then learn about demand and grow from there. So, chalk it up to being quick to market and thoughtful about how we approach what we see as an important opportunity for us to super serve a very influential group of content creators that are helping keep GoPro at the forefront of some of the most exciting content that's being generated. For those of you on the call who aren't aware, the majority of really wow shots that you're seeing from drones these days are being captured with much smaller, lighter, more agile drones that people are flying with goggles that they wear that give them a first-person view as though they're sitting in the cockpit of the drone. And they're mounting stripped-down GoPros and now Bones to their drones to capture film-quality footage. The majority of really wow drone shots these days are not being captured with the larger, heavier, slower, less nimble drones that you may have been familiar with when we were making drones ourselves. So, the world has changed. It's evolved. And it's great to see GoPro still being the camera of choice for capturing these amazing aerial perspectives.

Jim Suva, Analyst

Brian, anything about converts or OpEx or merit or on the P&L that we should be aware of?

Brian McGee, CFO and COO

On the convertible debt, we paid down $125 million on April 15th, reducing our overall debt. Interestingly, we generated over $150 million in cash flow over the past year, which allowed us to make that payment. We anticipate ending the year with cash between $450 million and $480 million, and we expect to finish Q2 with about $330 million. As is typical for us, we generate the majority of our free cash flow in the second half of the year. Additionally, we were recognized as the number one large employer by Outside Magazine, which reflects various factors, including a significant merit increase we provided to our employees this year, which was approximately double our usual increase. This increase is included in our guidance for operating expenses, projected to be between $340 million and $345 million for the year, along with considerations for inflation. It's also important to highlight that our exceptional retention rate with employees globally is contributing to this recognition, and we are very pleased with our team's continuity and performance.

Jim Suva, Analyst

Great. So just to be clear, Brian, it sounds like the converts, the balance sheet we see today still has it in it. But now, the quarter is paid off. So, we should make that adjustment going forward. Am I correct?

Brian McGee, CFO and COO

Yes. We should remove $125 million from short-term debt, and cash within the $330 million for Q2.

Operator, Operator

Thank you. The last question comes from Paul Chung of JP Morgan.

Paul Chung, Analyst

We're noticing some weakness in consumer demand in the EMEA region across various products. While EMEA performed well last quarter, what observations do you have heading into the start of the second quarter? Are there any notable trends in other regions? It seems like Asia also had a strong quarter.

Brian McGee, CFO and COO

Yes. Asia experienced an 11% increase year-over-year in Q1, while Europe saw a 24% rise, which is quite strong. America experienced a slight decline, with some softness later in the quarter. There has been discussion about market rates, but we are currently observing good sell-through, having achieved 675,000 units. This morning, EMEA is performing slightly better than we had anticipated for the quarter. We continue to see solid demand in Europe and Asia, while North America is still somewhat slow but beginning to improve. New products, particularly the Creator Edition and Bones, are doing well and performing better than expected, contributing to the overall sell-through in the business.

Paul Chung, Analyst

And then for your guidance, are you kind of baking in any sort of rebound in travel-related activity? And do you have any data on how travel trends kind of provide uplifts in certain channels? And how that impacts the overall business in general, if that were to pick up meaningfully?

Brian McGee, CFO and COO

Yes, we haven't considered travel in our projections. Domestic travel in the U.S. is increasing, but international travel has not rebounded. That will significantly impact us because as international travel rises, we’ll be selling to cruise lines and duty-free stores across Europe and in popular destinations in Asia. Currently, that market is essentially non-existent since the COVID pandemic began. Historically, travel accounted for about 10% of our sales when we were operating at 4 million units, so it represents a substantial opportunity for growth once it returns.

Paul Chung, Analyst

Your subscription count for the year was confirmed. Could you discuss the visibility into that target of 2.2 million? What additional features can we expect? Also, what are some of the most appealing features that keep subscribers engaged on the platform? I believe you mentioned that storage is a key feature.

Brian McGee, CFO and COO

Nick, do you want that or you want me to take it?

Nicholas Woodman, CEO

We've communicated that a significant focus for us this year is to transition our editing tools from the mobile app to the cloud. This shift is intended to enhance the user experience by making it more convenient, faster, and ultimately more successful. It's encouraging to see that 72% of our subscribers are already storing footage in the cloud, and we believe that facilitating easier access to this will greatly enhance engagement and usage. Additionally, we will keep improving how we integrate benefits into both the app and camera experiences, making them more intuitive for our subscribers to maximize their subscription advantages. As I mentioned earlier, by the end of the year, we aim to significantly enhance how we help all camera owners leverage subscription benefits for a limited time, which we believe will drive conversion. Although we have been successfully converting users, we currently rely on informing them verbally about the benefits without providing an experiential component. This situation will be vastly improved later this year, and we’re looking forward to it. Furthermore, another important aspect I've discussed multiple times is our plan to expand our hardware product offerings to attract more users whose needs exceed our current focus. We see this as an opportunity to grow our total addressable market and, more importantly, to increase subscriptions. Given our robust conversion rates among camera buyers, we are confident that introducing more camera options will help us reach new customers and convert them into subscribers at rates similar to what we currently achieve. Long-term, we also see potential for GoPro to diversify into new product lines beyond our current offerings, while still aligning with our brand strengths and appealing to our existing customer base. We believe there's significant potential to engage new subscribers through additional products beyond cameras. This represents an exciting growth opportunity for us, and we believe it would be short-sighted to limit GoPro's identity to just cameras. We view it more expansively.

Paul Chung, Analyst

And then for the last question, the cash guidance looks promising and indicates strong free cash flow for the year. It seems like you're well-positioned with inventory and have enough for the upcoming releases later this year. How much cash is necessary to operate the business? It appears that free cash flow is stabilizing and becoming of high quality. Is it possible for you to buy back a significant amount of shares from this point? Thank you.

Brian McGee, CFO and COO

Sure. As we move forward, we have authorized a $100 million buyback and have so far repurchased $10 million. We have the potential to increase this as we progress through this year and into 2023. If we continue generating the free cash flow we are currently seeing, the buyback could significantly increase. The numbers indicate we will achieve $180 million to $190 million in EBITDA this year, compared to around $170 million last year. Additionally, what I shared regarding subscriptions for 2023 shows that this will contribute positively to our margins, gross profit, and bottom line. Therefore, I anticipate greater buyback activity in 2023 compared to 2022, as we will realize the cash and distribute it accordingly. Also, keep in mind that in 2025, we have to repay the second convertible note that is due in November, which amounts to $145 million.

Operator, Operator

Thank you. There are no additional questions waiting at this time. So, I'll pass the conference over to the management team for closing remarks.

Nicholas Woodman, CEO

Thank you, operator, and thank you everyone for joining today's call. We look forward to connecting with you at a slate of upcoming events later this quarter and on our next earnings call in August. Until then, this is team GoPro signing off.

Operator, Operator

That concludes the GoPro first quarter 2022 earnings call. Thank you for your participation. You may now disconnect your lines.