Q4 2019 Earnings Call
Ladies and gentlemen, you can hope for today's Gopros fourth quarter 29 earnings results Conference call. At this time, we are still make additional participants do tend to be underway momentarily. We appreciate your patience flashy pictured on the line.
[music].
Good day and welcome to the Gopros fourth quarter 2019 earnings results Conference call Today's conference is being recorded.
At this time, what's kind of Coca Georgia Mr. Christopher Cook. Please go ahead Sir.
Thanks, operator, good afternoon, everyone and welcome to Gopros fourth quarter and full year 2019 earnings conference call.
With me today, Nicholas Woodman, Gopro, CEO, and Bryan Mckeag, Gopro CFO and COO.
Before we get started I'd like to remind everyone that I 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, 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 31st.
2018.
Which is on file with the Securities and Exchange Commission and other reports that we may file from time to time with the FCC.
Today, we may discuss gross margin operating expense net profit and loss as well as basic and diluted net profit and loss per share in accordance with gap in 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, which used to provide that information to enable investors to perform comparisons of operating results in a manner similar to how we analyze our own operator.
The results.
A reconciliation of GAAP to non-GAAP operating expenses can be found in the press release that was issued this afternoon.
In addition to the earnings press release, we have posted slides containing detailed financial information.
And metrics.
For the fourth quarter and full year 2019.
These slides as well as a link to today's live webcast and her and a replay of this conference call is posted on the Gopro Investor Relations website for your reference.
All income statement related numbers that are discussed today during the call other than revenue or not gap unless otherwise noted.
I'd like to turn the call over to Gopros, founder and CEO Nicholas Woodman.
Thanks, Chris and good afternoon, [laughter] today will review, our fourth quarter and fiscal 2019 performance, which was highlighted by our strongest new product lineup ever in a successful return to revenue growth and profitability.
I'll also touch on our strategic priorities for 2020.
And then Brian will walk you through our full year and fourth quarter financial performance and 2020 outlook.
In 2019.
We grew revenue, 4% year over year and earned 35 million of net income.
This represents a 67 million bottom line improvement over 2018.
Adjusted EBITDA increased more than three times year over year to 72 million.
We're proud of these achievements and while our 2019 growth in Q4 results fell slightly short of our expectations.
It's important to step back and recognize just how much we've strengthened our business and balance sheet.
Some key highlights for the year that contributed to our profitability, where our proactive move of U.S. bound camera production to Guadalajara, Mexico.
Material growth of consumer direct sales at Gopro Dot com.
And the growth of our high margin plus subscription service, which adds at the end of January totaled more than 334000 paid subscribers.
And importantly, our industry, leading products continue to drive consumers to the high end of our camera lineup lifting both A.S. peas and gross margin.
We enter 2020 with the most exciting product line up in our history.
Serving new customer segments, like bloggers, and ultra creatives with increased performance and versatility.
In Q4, we saw some nominal sell through a boat hero eight black and Max during the Black Friday Cyber Monday period.
However in December Sellthrough returned to levels still slightly up from the hero seven line in the prior year, but below our growth expectations.
Despite these dynamics, we generated fourth quarter revenue of 528 million the third largest quarter in our history and 102 million in profit our second most profitable quarter ever.
Importantly, consumers continue to gravitate towards our highest end products, which is having a positive impact on A.S. piece.
A very positive trend is that in 2019.
90% of Gopros revenue came from the 300 dollar and above price band.
Up to 62 up from 62% in the prior year.
And then the U.S. Gopro captured 93% dollar share of the action camera category in Q4, According to NPD group.
And we continue to grow our multi lens camera business with the introduction of Max.
According to NPD group during Q4 in the U. S. Max which only began selling on October 24th captured 54% unit share and 66% dollar share of the spiritual camera market.
And when combining Max with our legacy fusion camera.
Gopro capture 62% unit chair and 72% dollar share up from 14% and 38% respectively year over year.
The innovations featured in Herofour, black and Max including best in camera stabilization.
Any cameras in the world continued to keep gopro on the cutting edge.
And with the available media and a light mods whichever both received positive reviews and are selling well it gopro dot com, we're now serving important new customer segments.
And our plus subscription service continues to gain momentum as well.
As I mentioned at the top of the call as of January 31st paid subscribers grew 69% year over year to more than 334000.
Up 10% since our Q3 earnings call.
We expect strong growth to continue and in fact, we're targeting to happen between 600000 to 700000 paid subscribers a year from now which would contribute between $35 million to $40 million up high margin annual recurring revenue on a four.
Looking basis into 2021.
And in marketing and important component of the Herofour Black and Max launch was our million dollar challenge, where we invited our customer community to shoot our Herofour black and Max highlight video.
We were floored by the quality and volume up submissions we received.
Herofour Black and Max users submitted more than 42000 videos, an increase of 68% over last year's million dollar challenge.
We awarded just over $22000 to each of the 45 contributors who were selected for the video, which we published last week.
In the first week since publishing the highlight reel garnered more than five times the views of last year's video.
You can see this incredible showcase of our customers creativity talent and passion on any of our brand channels, including Instagram and you too.
Initiatives like the million dollar challenge bolster engagement within the Gopro community and helped attract 4.2 million new social followers in 2019 up 29% year over year.
On any given day in 2019, Gopro content generated more than 2 million organic views, which totaled a record 737 million organic used during the year.
Year over year increase of 29%.
Turning to software Gopro made significant progress in 2019.
In Q4 monthly active users of the Gopro App grew 20% year over year and usage of the ABS automatic editing feature grew 400%.
In 2020, we plan to monetize a new gopro app experience that addresses widespread pain points that anyone with a smartphone aura gopro faces.
One that we believe gopro is uniquely positioned to salt.
We believe that our app strategy can significantly expand our Tam while growing a new source of high margin revenue for our business.
The time has come for gopro to establish itself not only as a leader in digital imaging hardware, but in software as well.
Our 2020 focus is this.
Maximize the profitability of our core hardware business by Super serving our most engage customers with high end higher ASP products.
Scale, our plus subscription business to 600 to 700000 paid subscribers by yearend.
And releasing new Gopro app experience to address what we believed to be a significant tam and profit expanding opportunity.
And we intend to do this while keeping a tight rein on opex.
We're also focused on scaling our direct to consumer capabilities to further improve gross margin and profitability.
In 2019 direct to consumer sales through Gopro Dot com grew 40% year over year and generated more than 10% of our revenue.
We are determined to aggressively build on this momentum in 2020.
Finally, as you saw in our press release I am pleased to share that Brian Magee, who has served as Gopros Chief Financial Officer. Since March 2016 has been appointed to Chief operating Officer. In addition to is ongoing role as CFO.
Brian has proven himself to be a tremendously important leader at Gopro with a deep understanding of our business and all of US. It Gopro are excited to work with Brian in his new expanded role.
That's a perfect segue to turn the call over to Brian who will elaborate on our plans to expand profitability and create value for gopro shareholders in 2020 and beyond.
Thanks, Nick on a personal note I want to take a moment say. Thank you you and the board for their continued confidence in me and my appointment to COO, along with my ongoing role as CFO.
I'm looking forward to continuing the journey building on the momentum we have established over the past several years and driving value creation in the business than 2020 and beyond.
Now I'll share an overview of our performance for 2019, and then discuss our outlook for 2020.
The full year 2019 revenue increased 4% to $1.195 billion.
Good and Karma, which we discontinued in 2018 revenue grew 7% year over year.
On a GAAP basis, we incurred a four year net loss of 14.6 million, but were profitable on a non-GAAP basis with net income of 35.3 million.
In line with our goal to achieve full year profitability.
In 2019, our got bps in truth to a 10 cents loss per share compared to a 78 net loss per share and 2018.
Well, our non-GAAP bps improved to 24 cents net income per share compared to a 23 cents net loss in 2018.
And the adjusted EBITDA of 72 million represented in more than three times improvement.
In 2018.
We're pleased with the positive impact our operational initiatives.
And on our financial performance as shown by the continuous improvement to our bottom line looking back in 2016, we had a non-GAAP net loss 201 million.
Which has improved each successive year to a net loss of 96 million and 32 million in 2017 and 2018, respectively.
Finally, returning to profitability in 2019, but non-GAAP net income of $35 million.
[noise] looking at the fourth quarter of 2019, we were profitable on both a GAAP and non-GAAP basis with net income of 95.8 million and I hadn't 2.5 million respectively.
Non-GAAP gross margin was 38.6%, which was negatively impacted by terrorists and freight costs associated with our hero at black production billing.
Contributed 280 basis point impact on gross margin and approximately six cents impact on EPS in the quarter.
Our GAAP and non-GAAP earnings per share for the fourth quarter was 65 cents per share and 70 cents per share respectively.
Adjusted EBITDA for the fourth quarter improved to $112 million in 91% increase from 59 million a year ago.
Turning to the balance sheet, we ended the period with cash and cash equivalents of $165 million, an $86 million sequential improvement.
Accounts receivable ended at 201 million and inventory declined $106 million sequentially ending at $144 million.
Now, let's discuss our quarterly business performance in more detail.
Jim or units shipped during the quarter and for the year totaled 1.9 million and 4.3 million units respectively.
Cameras with retail prices above $300 represented more than 90% of a revenue in the fourth quarter.
And 90% for the full year compared to 74% and 62% for the same periods in 2018, respectively.
The shift to a higher price cameras, the flux customer demand and our strategic initiatives can move the market the cameras with both higher asps and margins.
The result, fourth quarter Street ASP increased to $285.
7% year over year increase and inline with our guidance for the quarter.
Three that she is defined as total reported revenue divided by camera units shipped.
We estimate camera unit sell through for the fourth quarter and 2019 was approximately 1.4 million units and 4.3 million units respectively.
And we ended the quarter with higher channel inventory based on the factors Nick discussed.
We're pleased with the demand for new products was generated $528 million of revenue for the quarter, our third highest revenue quarter in our history Richie profitability on a GAAP and non-GAAP basis for the quarter.
And we reduced our second highest quarterly.
Adjusted EBITDA of 112 million and exited the year within operating model focused on balancing the need for continuous innovation and cost management.
With 200 with 2019 behind US I will now provide guidance for 2020.
In terms of product trends and impact on revenue.
Targeting camera asked people to increase between 6% to 10% year over year due to sales of higher priced cameras as well as accessories and subscription revenue growth.
Camera unit sales are expected to be 6% to 10% lower year over year, given channel inventory levels exiting 2019.
Translates into guidance of approximately flat revenue year over year.
As I previously mentioned, we exited Q4, 2000 2019 with higher levels of channel inventory than anticipated.
We expect demand for our products in the first quarter to be at historical levels of approximately 850000 to 900000 unit sell through.
However from a sell in perspective, Q1 will be a quarter of correction in the sales into the channel and it was helping revenue is expected to be lighter than our historical percentage of Q1 revenue.
The combination of normal sell through and reduced selling reduced channel inventory to appropriate levels exiting Q1.
With that contact we expect the following for Q1.
Revenue in a range of 140 $260 million net loss of 40 million to $50 million and cash to be essentially.
Flat sequentially.
We expect to be profitable for quarters, two quarters three in quarter, four with expanded gross margin and EPS for the year.
More specifically for 2020, we expect gross margin to be in a range of 38% to 39%.
Non-GAAP earnings of 40 cents to 50 cents per share.
GAAP earnings of a penny to 11 cents per share.
EBITDA increasing to between 95 to 110 million approximately 50% growth at the mid point year over year.
Cash to increase year over year by $80 million to $100 million.
To summarize we expect to continue to improve our profitability in 2020 with net income increasing $30 million at the midpoint of our outlook.
We expect margins to increase through the year, while continuing our focus on effective cost management.
With that operator, we're ready to take questions.
Thank you if you'd like to ask a question to signal by pressing star one on your telephone keypad, if you're using a speakerphone. Please make sure. They function is turned off today your signal to reach our equipment. Once again that the star one if you'd like to ask a question.
So just a moment hello, everyone and opportunity to signal.
And once again that is star one if he'd like to ask a question.
[noise] will pick up first question from Andrew Uerkwitz with Oppenheimer <unk> Co. [noise].
[noise]. Thanks, Jennifer I'll, let me ask question here. The first question is.
Brian could you on the inventory piece or is there particular model that that's higher than another you I give us a little color on on what that was import it looks like.
Yeah, I mean, if I compare to where we've been historically, our inventory, but what we have on hana within that channel or higher selling inventory of their newest inventory and who you know in some years passed through with older inventory that we had the discounting to get rid of it we don't have that.
Issues they've looked ahead to a 2020 that's good that's it's a standard line up which is great. It's also worth pointing out you know sell through levels. While we expect 850. The 900000, that's a historical Q1 we.
We are on track to hit that for the quarter well based upon the sell through we're seeing and and the like so we feel good about the sell through in being able to get channel inventory aligned by the end of Q1 going into a really good selling season in Q2, two and four.
Got it and then I'm just broadly speaking Nick you mentioned I think 90% of revenues a higher price points is there more simplification that it can be done a in the lineup or are you still happy with a good better best strategy.
[noise].
It's important to have products for each of the customer segments.
That are interested in gopro and that we believe that we can get a good return on investment by developing products for so I.
I think that having a multi skew lineup that addresses these important customer segments is a strategy that we're going to stick with.
Again, I I shared on the last call that good better best represents.
Three customer segments. We've now moved past that we're now you know good better best in ultra creative a with the ultra creative customer segment being the one that Max's designed for so we're very focused on identifying a you know what.
What the key customer segments, we already sell to want most from US and then as well or it's important that we identify new customer segments that we think that we can authentically serve and get a good return on investment from.
Got it and then just kinda thinking longer term.
It seems like you guys are still gaining share in the broader camera market, where do you where do you think the kind of.
Normalized level of sales could be or do you think we'll get to back to a sustainable growth level.
Or is do you think the camera the broader camera industry headwinds will remain there and so while you guys made gained some share.
Yeah, its revenue growth, maybe little bit more difficult should we kind of adjust or thinking there.
I think it's a combination of.
Strong hatching execution and as I mentioned, identifying you know what customer segments what problems.
Exists that gopro can uniquely served.
And <unk> and possibly add new customer segments.
To grow, but but what we're focused on for 2020 primarily is.
With the customer segments that were currently serving doing an even better job of creating higher performance products for them.
And moving even a higher percentage of our customers up the food chain to higher gross margin higher ASP products. We've proven that were really good at that yes, [laughter] as we shared in 2018, 62% of our business was a revenue came from the 300 dollar and about price band and we move that too.
90%.
In 2019, and we're not done yet we still got tremendous innovation coming in future products.
And where I believe we've done a pretty good job of.
Building a reputation as a very fast paced highly innovative company, that's capable of allowing our customers every year and and were where we're not going to stop that anytime soon.
So maximizing profitability via that strategy is our focus and as well I, we see us pretty significant opportunity to expand gopros Tam and ultimate relevance to a larger number of consumers by building on our capabilities is a software company to address what we think are.
Big Global problems is shared by virtually everybody that uses a a smartphone to capture a photo and video content as well as our existing gopro customers as well.
It's an evolution of our strategy to leverage the strength of our our and profitability of our hardware business.
To grow at a new suite of products.
In the form of an app experience and that's something you're going to see from us.
In 2020.
And then just to build on that if you can just it seems like a lot of the innovation like the last couple years and then.
I would say probably equally shared between the app experience and the camera.
Do you think that will continue and 2020 2021.
Or is there going to be shifting focus to that but more on the software side.
I can say.
Without a doubt you're going to continue to see the same type of innovation, a performance and overall, Oh Wow coming out of our hardware our camera development team. Our roadmap is is really exciting it's the.
It's the heartbeat of Gopro and it's something that we do really really well so I'm I'm very confident that our multiyear road map in cameras will can and accessories.
We'll continue to excite so there's no taking the foot off the gas there whatsoever, what I'm talking about is adding an additional effort investment and energy into bringing our software development [noise] up to the pace of our hardware development, that's something that's really important because.
As I as I mentioned in my.
Prepared remarks that I really do believe it's it's time for gopro to be recognized a as old as a world leader and software as we are in a digital imaging hardware and I think that we've got the team and the expertise to do it and I'm really excited for 2020.
Got it. Thank you guys appreciate the the time and effort.
Thank you.
Well now take next question from Paul Coster with JP Morgan.
You guys its Paul showing on for costs are thanks for taking my questions.
Just first up on on Gopro, plus a nice group there I mean, you mentioned I think 600000 saws bye.
2020, if you could kind of expand on how you get there.
This more you know from your existing installed base, a little more kind of depending on when new camera sales and then you know even if you do you put up the sub numbers there will still be around maybe close to 35 million in revenue contribution or you know around like 3%. So are there any other levers you can put.
Well, there like increasing pricing or providing more value added options to kind of.
Oh, it's twice your installed base.
So growth is going to come from God continued availability globally.
Improved marketing to drive awareness are we still have a lot of opportunity there to drive awareness or [laughter] improved just marketing and be a benefits experience to our.
Our customers.
And then we're not done rolling out benefits to attract additional customers and then of course, we've got ongoing efforts to improve churn rate.
Which is an important part of any subscription service and we're doing quite well there and what we see opportunities to do even better. So there's no one lever that makes all the difference in in terms of getting that 600, 700000 number but we've got a number of levers.
Just as we have had in the past that we think we're just going to continue to improve upon that that business and I just want to get a shout out to the team that's responsible for plus they've been doing a phenomenal job and we're really proud of the progress that we've made and Paul I mean can add on to that you know Nick mentioned churned, which they seem to.
Hundred percent. So we're going after that we're seeing better retention or on the plus side, which is great and well 3% of our revenue, it's very profitable its like 80 points margin in 40% to 50% operating profit. So it matters to the bottom line as we grow they are all of this business.
Boosting margins from our hardware business through an overall or better level as well as well as the bottom line.
Gotcha, Thanks, Brian and congrats on your expanded role but.
So what does that mean for the company in terms of direction, which areas are going to focus your attention on how will the strategy kind of changed from the past year and then finally, how will your success kind of measure.
Oh, I hope if measure with a better stockpiled ore.
All employees in <unk> and Gopro, that's number one I mean, we laid it out I think pretty well on the 20 point and what we wanted to do we're gonna grow or margins were going to expand the P.S., we gathered a almost double I mean tee up year over year, we've got great product lineup will continue.
To.
Innovate and we'll continue to be more efficient how we operate the boomlet and create room to be able to invest in the things that Nick talked about on the software side, while still holding our opex into a window that keeps us profitable.
Gotcha and then last question is I'm not sure if I saw free cash flow guide.
So I assume you expect some positive free cash flow given your net income guy but.
You can help us with your expectations for no cash from operations Capex.
I guess that score.
Free cash of magnitude for 2021, and then finally, where would you kind of look too.
Deploy that extra cash thank you.
So yeah in my prepared remarks, our expectation is to increase cash to do the $100 million in 2020.
Our exit of 165 and.
2019, so that's very nice cash flow no real big increases in Capex, I think that they kind of historical level. So it's really driving what profitability in working capital that's going to make the cats improvement.
And so when we get there we can you know figure out give you do buyback where do we do other things with it puts the company in much better cash position looking forward to 20, 120 and 21.
Thank you.
[noise] <unk> relative to next question, it's something we're doing with Morgan Stanley.
Hey, guys. Thank you for kicking the question here. So if we just go back to the channel inventory and for keeper filaments I I, just want to piece together and make sure I understand the what's.
The reason you Miss kind of your force you expectations is that so in for the newer models you know that the new lineup wasn't as.
Good as you expected is that correct I just want to make sure that right.
The Oh, sorry could you ask the question one more time.
Yes, I'd just like how to piece together you know you said channel inventory is higher but it's not a result of legacy models, it's more a kind of even across all the model. So its I combine that with your four key performance does that mean essentially some of your newer models or maybe the materials seven black you didn't sell as as well as.
People expected that just loves simpler and kind of combining it with your comments.
Okay I understand we had a really strong on black Friday cyber Monday period.
Where [noise].
We were very happy with the sell through that we saw and then [laughter].
Post Black Friday cyber Monday.
In December.
We saw sell through.
Returned to levels that were Bob still up from a the year prior or the hero seven a launch here.
So that was good to see that growth year over year, Bob of all of our inline products, but the sell through growth wasn't.
What we expected a wasn't as much as we'd expected and that resulted in us finishing a Q4.
With a bit more channel channel inventory than we were expecting.
[laughter].
I'm not I mean, just after that because as we like the have into Q1. You know we are seeing sellthrough, Greg that that kind of historical levels. So you know, we're we're going to be able to work our way through that inventory and you know off to the bases in Q2 and and the rest of the.
I think that's a that's that's really the key point that as important for people to recognize it.
Be historically see.
You know 850 to 900000 units or sell through.
In Q1, and we're seeing that again for this Q1, which puts us in a good bins position channel inventory wise as we exit Q1 and enter Q2, so yeah, Brian phrased it as a quarter of correction in his prepared remarks, but that.
Really important to recognize that.
We believe we get out of the channel inventory issue by the end of Q1 and it sets us up for a profitable Q2.
And then at Q profitable Q3 in Q4, well which is.
<unk> basically built on the strength of the product lineup that we've got out right now.
Okay that that they additional color is a is super helpful. Thank you and the just on the balance sheet. You guys had previously guided to cash and equivalents of $2 million. Obviously, it ended a little bit lower and if you. Just you know days payable looks like it was a it came down fairly considerably. So it is working capital dug into kind of adult.
Between where you ended up and where the guidelines and would just love some color on the on the days payable huh.
Yeah. This is basically if you look at the balance sheet accounts receivable was up significantly and that's just timing of when we got the cash from when we make a sale. So that'll hit in Q1, so definitely going to help working capital and cash flow and 2020 that becomes more of a timing issue and.
Inventory, we thought we would be at about 125 million I believe and came in at 144 and that difference it really relates.
More on the topline so because we have the inventory so that those two are the dynamic on the cast.
Awesome and then if I could just sneak it a lot. So I'd I'd love to just here any kind of reception you got from the after the launch of the modest and especially if you could share anything that you've heard from what I would consider kind of new customers for gopro and getting a tough bloggers that that may be looking to gopro cameras, now where out where they had.
Before thanks.
Sure well general receptions been very positive for the mods ever since launch and now that we've got the media Mod in the light Motta out. The initial reviews of those have been very positive and a there they're meeting or exceeding expectation, which is always great.
To see and.
If sell through at Gopro Dot Com is any indication people are really excited about them because the sales of risk. So I think that we've successfully expanded the performance in versatility of our flagship in a really meaningful way, that's resonating with consumers, helping us reach new customer segment as you.
No like bloggers and ultra Creatives and five that's a encouraging because that's at a trend that we're going to continue to pursue a recognizing that it [laughter]. They those types of cups to customers make up the vast majority of of of our buyers and as well.
While we get the best return on our development a investment so Fortunately our road map is aligned with what our customers seem to be interested in.
Great. Thanks, very much that.
Thank you thanks.
Thank you will not take a final question, Jim Suva with Citi.
Hi, Thank you very much I'm getting a lot, but so far mentioned black Friday cells are very strong, but then they were still <unk> year over year, but <unk> celebrated in the month of December after cyber Monday.
It's around why not be celebration happens I'm will there be changing promotions change in.
Michelle targeted selling days are well why why do you think there was actually a change thank you.
Well there was mixed results across retail over that period, we saw some retailers do really well we saw some retailers had some softness.
So I think that there's some macro she was going on there are certainly so that that may explain part of it.
You know as you as you as you noted.
We we did see a slight increase of sell through of are in line a products over the period. After the December period year over year. So that was good to see and yeah. It was a tough comp from the here a seven year. So we what we are happy to see that but yes. It wasn't up to our expectations are we did.
Have a you know terrific promotions during the period and as as we've shared our products. So that the lineup across the board has never been better at each skews. So oh, we expected to see a bit better performance than we did.
I think it was it a host of of reasons, but but honestly, there's nothing conclusive that that that we've identified that would explain why we came up a little bit short hair.
Pardon.
[noise] 18.
[music].
Yeah.
Thank you Jim.
Thank you that does conclude today's question answer session of to turn the conference back over to management for any additional closing remarks.
Thank you operator.
I'd like to <unk>, [laughter] I'd like to revisit how far we've come.
In 2019, we delivered top line growth [noise].
Returned to full year profitability and a meaningful improvement in EBITDA.
And we believe our 2020 plan to Super serve our most engaged customers with high margin high end products meaningfully grow our plus subscription business.
And launch in monetize a new Gopro App experience all with a continued commitment to expense management.
Will allow us to grow both margin and EPS in 2020 generating value for shareholders.
And I want to thank you I give it thank you to the more than 900 gopro employees around the world who are getting it done on behalf of our customers.
Your work has made gopro the best selling camera in North America for the past six years and.
And I'm looking forward to making it seven in 2020.
This is team gopro signing off.
I think that does conclude todays conference. Thank you and your participation you may now disconnect.
Oh.
Oh.
[noise].