Q2 2020 GoPro Inc Earnings Call
Good day and welcome to the Gopro second quarter 2020 earnings results Conference call.
This conference is being recorded.
This time I would like to turn the conference over to Christopher Clark Vice President Corporate Communications. Please go ahead Sir.
Thanks, Operator goodness good afternoon, everyone and welcome to Gopro second quarter 2020 earnings Conference call with me today are Gopro, CEO, Nicholas Woodman, and CFO and COO, Brian Magee.
Before we get started I'd like to remind everyone that our remarks today may include forward looking statements.
We're 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 tax actual results could differ materially.
Additionally.
Any forward looking statements made today are based on assumptions as of today, including but not limited to the assumption that consumer confidence is not further he wrote during due to the global pandemic.
We do not undertake any obligation to update these statements as it relates opened new information or future events.
Nation concerning our risk factors is available in our most recent annual report on form 10-K for the year ended December 31st 2019, which is on file with the Securities and Exchange Commission and in other reports that we may files from time to time with yes, you see.
Today, we may discuss gross margin operating expense net profit and loss as long as basic and diluted and net profit and loss per share in accordance with gap 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.
Choose to provide this information to enable investors to perform comparisons of operating results and it's 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. It was issued this afternoon.
In addition to the earnings press release, we have posted management commentary and slides containing detailed financial data and metrics for the second quarter 2020.
The management commentary in slides as well as they lead to today's live webcast in a replay of this conference call are posted on the Gopro Investor Relations website for your reference.
All income statement related numbers that are just yesterday during the call other than revenue or non gap.
Otherwise noted.
Now I'll turn the call over to go for its founder and CEO Nicholas.
Thanks, Chris and good afternoon, everyone.
As we did during our Q1 2020 earnings report, we've chosen to post management commentary for the second quarter of 2020.
Including Brian's financial overview.
Gopro Investor Relations page on our website and we encourage all to read the commentary.
I will give a brief remarks now and then we'll go directly into couponing.
As we shared in the management commentary Gopros shifted to a more direct to consumer business with lower operating costs is working.
All cobot 19 continues to negatively impact society globally.
Gopro has adapted to the pandemic and we believe our consumers are learning to live with the Pandemics too.
Demand for Gopro cameras consistently improved throughout the second quarter.
We've seen it faster than expected rebound in sell through at retail.
Despite obvious challenges, we've been able to improve our efficiency and output in all areas of the business, including significantly reducing both channel inventories and the operating expenses.
We remain on track with our product launches slated for the second half of 2020, which includes hardware software and subscription offerings.
We expect these new product launches to contribute to our momentum resulting in positive results for the rest of 2020 and continued growth in earnings expansion in 2021.
Assuming that many of you on the call have read our written commentary will now move on to couponing.
Thank you if you would like to ask a question. Please signal by pressing star one on your telephone keypad.
If you were using a speaker phone. Please make sure. Your mute function is turned off to a lot of your signal to reach our equipment.
And again press star one to ask a question.
We'll pause for just a moment to allow all callers an opportunity to signal for questions.
And we do have our first question.
Our first question comes from Eric we drink with Morgan Stanley.
Hey, guys. Good afternoon, congrats on the quarter. There I just wanted to get your take on you know you mentioned the improvement throughout the quarter in demand just curious if a if you could kind of break that down by region are there certain regions, where you're seeing a more of an improvement versus others.
And then I'll have a follow up after that thanks.
Oh, Hi, Eric as Brian or Yeah, actually we saw improvement.
Every region or a north American improved retail snapped back AMEA came back as well is ER and of course or web store business did or did very well. So we're very pleased in the quarter to see.
Everything up and kinda right as we move week over week.
The point, where quite frankly, we were.
End of June we were Maxine comping against the prior year I'm trying to sell through and demand. So I'm not every region was up a so we're very pleased and quite frankly, we are.
That continue.
Into July and August.
Excuse me.
The basis for the guidance we do.
We think we're gonna do 900000 unit sell through in Q3, which is up 5% year over year. So we're continuing to see the man metrics in Q2 week over week, but also as we head into Q3. So we're very pleased with the demand profile a globally for.
Gopro and of course go for Dot Com you know, we mentioned was about 44% of our revenue came from go for Dot Com in Q2, and we're expecting to be 36% to 40% or in Q3, a quick that's on a much higher revenue base or keeping our guidance.
She went from 29 to 250 million of wrapping up this quarter, so that would represent about 40% increase.
[noise] approximately revenue.
Growth on stuff or dot com and keeps me something too.
And then just as a quick follow up to that <unk> is there anyway, you could break down the improvement you've seen in demand from ER from camera type I mean, obviously, you mentioned that 300 and above where the large majority of sales, but improving demand for the zero eight and ER and other models or <unk>.
Are there any difference between some of them all those things.
Sure no problem, yeah that the bulk of the demand exactly on her way flat, which is great [laughter] Black also did well, but here away or.
Definitely outpace or in the quarter I went to we were expecting that.
And we were 95%.
Hi, $300, an above and you know we were 90% I think in Q1, but that represent the trend you know we've seen them we've talked about over the last.
Several quarters and maybe your Bakken [laughter] 2016, 17, 18, we ran anywhere from 40% to 55% was that I myself here $300 going above we've shifted back rather during 2019, and we were about 70%.
Our business was greater than 300.
<unk> dollar MSRP and we expect that increase in 2020 and probably even into 2021, so we're definitely seeing.
Seeing more demand at the high end.
Good that helps to drive.
Revenue growth, but it's also where are the best margin profiles for the company. So that's actually is good for us and that's good for the consumer so.
That's good value proposition ER and and the consumers are buying at the higher end.
Yeah, I would also add that because this is a trend that has been progressively improving.
We're we're also have you been planning for it and we're also happy.
With a the inventory levels for our other skews as well so everything is in line.
With where we were planning on taking the business from an inventory standpoint.
Awesome, that's helpful and if I, if I could just ask last one.
It's just you know you've you've mentioned the shift to higher a higher end devices, which are higher margin you've mentioned the shift to DTC, which is higher margin put your gross margin profile has kind of been going the opposite direction like if it. If you extrapolate you know if you say that gopro <unk> Dot com gross margins were were roughly five to 10 points higher than that.
The rest of the business in one Q or excuse me in Twoq, you that implies gopro dot com gross margins around 36%. If my math right. So can you just help me bridge that gap to help me understand you don't see other the other impacts that you're seeing on the gross margin line. Thanks.
Yeah, Eric no problem the issue for quarter one in quarter. Two is the amount of revenue. We had was so low that underabsorbed overhead by about 500 basis points. So that's the the major driver quite frankly, why margins are down and.
We have margins are retired in Q3 two.
65%.
It's a minus 50, bips and we think we're gonna be AFUDC, plus or minus 50 bips in Q4 so.
You know, what we'll see margins come up with as our volume comes up and on mix continue to improve to the high end and with new products. So.
Along with you know accessories, and we have new accessories. Like you know just give me lifestyle bags as was the growth, we're succeeding and a subscription so what all kind of comes together to help drive at Ti.
Revenue growth as well if mortgage.
Okay. That's helpful. Thank you guys and go for Dot com girlfriend outcomes, rather than 40 points by the way. So it's not a downward you et cetera, so and it is 5% to 10% better than me.
[noise]. Thank you we'll take our next question from Andrew or quits with Oppenheimer and company.
Hey, Thank you a for taking my questions guys could you talk a little bit about how the changed from direct to consumer is affecting how you guys are.
Forecast.
Unit sell through if it's changed at all and then.
How how has your confidence been in around or forecasting that are ongoing forward basis. Thank you.
Yeah, Hi, Andrew and again, Yeah, [laughter] thing I think because it has improved quite a bit both on mix in that region, a along with a go for dot com, we set in our.
Our first quarter commentary or expectation was that we'd be at least 40% go for dot com rear ended up at 44%.
We talked about ASP for 300, we math about we put that in a in my commentary ER and and it all lined up actually sell through did a lot of et cetera [noise].
So ER and the demand profile it just as expected with food demand on I hear like flat, although like I said hero seven did quite well actually masses send them to do a very well it seems in retail so we're excited about that.
We really look get good information some retailers plus what we do you want around site and that we're able to be trend that Vicki on a weekly basis to really use a lot of data mining too.
[noise] estimate.
What we're seeing on the trend line and whether the bone profiling.
So that's been that's been a real.
Area of the company refocus and a lot on the data management side I think that same huh.
Got it think I don't I don't know I'd also.
I'd also add that as we.
As we focus more of our business on our best performing retailers, we get better data from them as well. So that helps sharpened are forecasting is as well.
And then of course, you know the direct feedback we get from our Dotcom sales channel is.
It's very accurate.
Got it yeah, I think that makes sense.
And then a question for you Nick you didn't mention your and your comments too much.
About the impact totally has has had on a new product development could you give us a little color on how comfortable you are with the with the new product road map or being on time and weren't sad and ER and in any impact Cobas had on a that development.
Yeah, we've been very fortunate we've got great manufacturing partners that had performed exceptionally well during this period I and of course, our internal team is they're just to the best of the best and.
We had a small number of our employees.
I need to continue to access.
Labs, a at Gopro offices to continue with the product development work, but the vast majority of works can be done remotely and ER. So we haven't missed a beat we're on time for all of our launches whether it's a new hardware products softwares fourth.
Subscriptions and in some ways.
It it feels as though we're we're operating even more effectively and efficiently remotely there's challenges that come with it for sure. It's it's pretty difficult at times.
When your your office has your entire family and then at home, but there's other aspects of working remotely at least for our culture that had been.
More streamlined and effective the teams are doing a phenomenal job communicating via video conferencing morale is high it's everybody is I'm really excited about the road map that we've got a its robust it's expanding in terms of the the ways that we're going to be serving consumers going forward.
I'm really excited that.
You know, we're we're really succeeding I think in our shift from being a hardware specific company to now serving consumers as an end to end solutions spanning hardware and software and cloud and giving them different ways too.
Experience Gopro, you know be it subscription or otherwise and the any outsized value that we've been delivering but that we're really going to expand on later this year with new product launches its its.
Been a long time coming but it feels really good that.
The vision that we've had for Gopro is this end to end content solution for consumers is coming to fruition and I think it's going up it's going to make a lot of sense and excite consumers. This this holiday season.
Got it Okay. I appreciate that color then last question for me I think there's really two part question <unk>. One I mean, gopro has clearly been a lifestyle brand for awhile and it looks like you're you're trying to take advantage that with a with some of the lifestyle products and in gear.
How how.
Dig in materials should we think that could be or will be overtime and then a question for your pricing around that are going forward will will that be part of the calculation for pray for street A.S.P. or how should we.
Should we think about that metric going forward. Thank you.
I'll take the first part its early days with our new products you know the weird were exceptionally good.
Perhaps marketing Oh.
Our cameras are out.
And it you know it took us with ER and when we introduced new products. It's a new muscle that we've we've got to learn how about we do learn it it took us.
I want to say a year year and a half with plus.
Really learn how to properly market that subscription offering.
And then a it really took off and we're seeing the growth that we're enjoying today and we're expecting that to accelerate.
And so we've learned that you know we need to learn these new muscles as it relates to introducing new types of products and so forth, but we're getting better and better at it ER and it's no different with our our new lighting category for our first product is Zeus, many and then our lifestyle products, including.
You know bags just.
Fantastic bag line I mean, the the quality and value and performance of this bag line is is terrific you get all the durability you'd expect from gopro, but in a really light weight design a that just makes it so convenient.
And covering so many use cases for consumers that that's relevant to their.
No, they're active lifestyle, which obviously gopro fits right in with.
But.
It is do you know and people don't know that we make bags, yet and we need to get better at driving awareness for that but just as we've done with plus where are you know with time, we learn how to do that'd be really effective.
I'm I'm Super excited for our brand to grow and these new product categories overtime, and then as we get better at that will add new product categories.
I'd say the <unk>, what we're very focused on is only answering product categories, where.
We can offer authentic value and expanded value and product differentiation from what's already out there in the world and it also has to be authentic to our brand and makes sense to the consumer wide Gopro would make this this type of products and.
And then through you know are more direct to consumer sales strategy.
We believe we're going to be able to to offer a exciting new products. It really attractive prices to consumers that results in a favorable margin to gopro. So it's a win win for everybody and then as you know we can further expand a the value to consumers that are subscribers to plus because they.
Get discounts when they buy direct from go for Dot com.
And its just a it's gonna be an exciting road ahead as it relates to new product introductions from Gopro, So stay tuned but as it relates to the materiality to our business at this point, it's more of a brand expansion in us learning how to grow into new new markets, new new product categories and over time Expo.
Acted to become material, but for the time being.
I wouldn't consider it so Brian if you want to add color to that.
[noise], yeah, thanks, Nick a into a.
Selling more bags and lifestyle products and weve, many inviting them [noise].
Add two or three there too so that's a.
Positive turned on that and that herc, along with selling more of our cameras at the high end, adding more accessories that people want having more on a subscription.
And all accumulates to a higher through their fee.
Got it thanks, guys I appreciate your time.
Thank you.
And once again, ladies and gentlemen to ask a question. Please press star one well take our next question from Paul Chung with JP Morgan.
Hey, guys I'm. Thanks for taking my questions. So no just don't free cash.
You know Brian's for you the use of cash was a bit more kinda than previous previous guidance.
You know what's going on there was it more a function of kind of lower earnings or some puts and takes on you know working cap and you had initially forecasted and then.
You know as we think about the second half should we also you know expect a pretty strong seasonal for Q or will you kinda give some benefits and in three Q4, maybe the initial selling of the flagship.
Refresh and then can we you know to me even hit breakeven this year.
Ah. Thanks, Paul Yeah. Good question in Q2, we have estimated back then and then they called we'd see at about 100 million up Tas ending second quarter. We ended at 80, well not different can safely at all in accounts receivable that just happened to be a little bit a kind.
I mean.
Between when we thought we would have failed and when the.
Particularly deals where we would have sales so that moved around a little bit. So that's actually you know getting collective in July and that could catch exactly up even today above where we were and are doing through that so that's a positive trend as we've put in our guidance our expectation is for cash and.
Q3.
Given the higher revenue expectation because of sell through and demand or we think will end at about 130 million of cats and then include paying off a the 30 million. We have bought on asset back line. So that's cash flow from operations of about 80 million in.
In Q3, and [laughter] Ah, Yes, Q4, let's just go off kinda that guidance, we gave it could be a higher from a revenue perspective, I think Q3 and that should drive cats or to about 200 million so expectation.
Distant with what we said I know last earnings call and given.
The fact that we think we're gonna be profitable in Q3 on the non-GAAP basis.
Between a one sentence seven cents per share.
And what and.
We've tried to get your could be pick real close to breakeven and maybe even slightly a profitable. So yes. We think we have that side of thing profitable. So the demand profile continue in the way, we think it well for the remainder of the war.
[noise], Thanks, Brian and then Nick just on the you know Gopro slow you know plus subs you know as Youve kind of move to direct to consumer How's your attach rate kind of.
Different when consumers buy on Cooper dot com or is it different.
And then what are your plans to kind of increase that attach rate as you do kind of ramp up this direct to consumer.
Yes, we do a a much better job driving plus attach earlier in the.
Customers ownership of Gopro and the the best time as you can imagine is when they're they're buying their gopro because.
There are they're the most engaged in their thinking about all the ways that they want to benefit and there's they're thinking about the value of that or purchase and becoming a plus subscriber significantly expands or the value of their purchase it improves the experience that they have and that's something that we're gonna be.
Expanding significantly later in the year, so as as appealing as gopro.
Plus has been a it's it's going to get a major boost or in a in a short in the short while.
So we have that benefit and then we have the benefit of.
Increasing the total number of customers that were serving directly through dot com. So we can expand the or the the attach rate through an improved plus subscription offering and then expand the number of customers that weekend attached to a because of the expanded.
Direct business so that's a.
That contributes to our.
Patients to finish the year with between 600 to 700000 plus subscribers, we still feel really good about that.
And then of course, that's something that we expect to further build on in 2021 as we grow our direct business further and then over time, we just continue to load up that plus subscription offering with more and more value or two to further build upon that the opportunity that would go.
Okay. Thanks, Mick I would actually have an add on top of that actually living and I'm talking about 'cause.
Mix right, but the other thing we've done and Andrew you Kinda pessimists about data we've done some may be testing or on the site and with a plus subscriptions and sounded very high attach model. So it doesn't it comes with some good data and analytics is widely.
I think we can drive to.
Mcmackin, that's the kind of to 700000 subscribers.
The end of the yeah.
Yeah, and one more thing too is our shifts to.
Promoting annual subscriptions with with even more value.
It is obviously having a.
Positive impact with retention as well, we're really happy with where the churn rate is and something that we're going to keep building on but Brian's right. There's a there's a lot of small things that we're doing that are having a big impacts on the on the program.
Okay, Great and then last question.
If you could expand on the you know the web Cam feature.
That functionality has been added what kind of feedback are you getting from consumers and do you see kind of a bump there and sales in your view as a result of adding this feature and why now for this feature as well. Thank you.
Well the why now is you know.
I think quite clear that people are.
Using web cams and video conferencing far more than they were prior to coated.
Their lives streaming far more than they were prior to co bid.
And.
What we recognized that.
ER with firmware update or we could make it possible for our customers to use there.
Gopros Herofive black specifically as as a web Cam is just to an important feature now more important than ever.
That that we wanted to enable them with that functionality and that he really black with its wide angle lands is really differentiated from other web cameras in so far as it's just more versatile and and it's very helpful for.
People, who are video conferencing or live streaming activities, where they just need a wider angle lens to fit the scene and you know whether there are giving instruction of some sort or or or where they they can't be you know in the same location is where their their computer isn't there.
They need some flexibility with having the the the web camera de coupled from that computer and give them more perspectives versatility than they could get from the traditional web camera. So we're filling that gap. It's interesting I mean this the same wide angle performance and image quality and versatility that has made gopro so successful.
Oh.
As a activity camera is helping make a successful as a web camera as well. So that's great to see and then we're expanding on that further alert. Further later this year with enhancing the live streaming experience that we currently offer.
Addressing some of the pain points that exist with some of the other live streaming platforms. So that'll be an added bonus for our customers as well and the feedback has been great. I mean anytime you you give somebody you more performance more capability for their money.
And enhance the value of your products and don't charge him anything for it on [laughter] consumers love that and so it's been really positively received and a it's something that we look forward to building upon going forward.
Great. Thanks, so much.
Thank you.
And we'll now take our next question from Jim Suva with Citigroup.
Good afternoon, gentlemen, this is my Cadiz for Jim at City of Lab. One question I appreciate the Opex commentary in the prepared remarks, however, I'm curious if there's any expected moderation in the variable selling costs and my getting into 2021 as you can.
You need to optimize the direct sales model or should we think of the second half guidance as the proper level going forward.
Hi, Mike <unk>, Brian.
And I last call. We said, we wanted to get Opex down to the about the to another 50 million level and 2021, but we're also seeing what about higher demand I think it's going to be between <unk> to 60 to 80.
No I am a plus we'll do some investments to continue to optimize the site not a lot, but a little bit that goes a long ways to drive after do seem to go for dot com, so, but well see a nice lift. So HM. Even then you know were up a little bit in the second half.
ER and again, that's for variable selling costs, a little bit of digital marketing and actually some.
Continued enhancements on so for Dot com.
Right to improve the marketing on our platform.
[noise] also things right.
Thank you and we'll take our next question from Nick total rough with Longbow Research.
Hey, guys, thanks, and good afternoon.
Brian and Nick I guess that 500 to 600000 Ah channel inventory or target for exiting the year instead, the right amount of inventory that we should be thinking about going forward and as you guys are positioned to model to a direct or you expect that that inventory a in general to go down four during 2021.
Ah Hey mix is fine I know, that's about right level, I think probably and 21 more at the half million or on a long run into that range I think we're gonna in somewhere in the midpoint of EUR 500 to 600000.
End of 2020 Walker bring on inventory Blom, so our working capital position home crew.
This year I'm actually going into next year. So no. We're happy with that what were what what's helping to drive that quite frankly is demand I mean sell through I think we did about 750000 units in Q2, it's up more than 20% from our estimate of success.
2000.
Seeing that demand continues we've talked about so.
You know that are not that leads us nicely into a 2021 should demand profiles.
Yeah on a that trajectory.
Okay and talking about filled through I understand the you know last year was an easier comp and that's why you're saying sell through growing year over year, but if we look at traditionally in the third quarter sell through has been anywhere from 1.2 1.1 million units, so that implies roughly down 15.
Percent versus that narrow <unk> low, but then the implied fourth quarter for sell through up about 1.2 million units, that's down like more than 20% versus the traditional level off sell through that you're seeing the four quarter. So why that delta you essentially implying that the four quarters is gonna be weaker.
And then see even though I guess is there anything else driving that or how should a bridge that gap.
Yeah, Hi, Nick Good question, Yeah, if you actually looking at how we guided and picked in second half units would be down little bit more than 10% I think tend to go over your basis.
And so but it's either up so we're up about 10%, we said we'd be about 10% I ask you lift.
In Q3 to 20 over Q3 with 19.
In Q4 will be higher so on a revenue basis than the second half I think we think about 660 million of Ah Robinson, who are last years second half from a guidance implies something about 5% less than that so on a revenue basis and around margin basis were.
Actually better and we're going to drive more profitability.
[noise] grades and Nick.
You guys started collecting a lot more data on how I'm sorry, what do you have something helpful.
No no I'm sorry. Thanks.
Nick I would just add to what Brian said that.
You know, we're focused on driving profitability, and we're making business decisions products decisions pricing decisions.
Distribution decisions to drive a more efficient and more profitable business we're not.
We're not fixated on unit sell through like we used to be were fixated on earnings growth.
Yeah, I mean, how do I mean last I think a couple of years ago, you talked about you know the full color being the poor quarter always has been very competitive environment. So I would assume given the current economic situation did it's gonna be even more challenging to to draw.
Our attention from customers and get their or their money, but how do you view the four quarter environment now that we're about to go in and in terms of discounting and promotions or where are you guys. I guess like what are you guys plenty, but how do you hear the situation.
Well one of the benefits of going direct to consumer is or the value that we can provide consumers while still.
Generating a healthy margin for gopro.
And that can be more challenging at retail.
Over any fourth quarter, especially.
When there is a lot of competition for share of consumer wallet as you know.
And so this is another reason that our direct to consumer shift is is so important to US is it allows us to do a better job.
Of delivering expanded value to consumers to help convert them into paying customers while simultaneously generating.
Margins that result in a profitable gopro, it's a it's it's it's all about value and so your question about how do you attract consumers is you got a wild them with with your products you've got a wow them. What's your performance you got a wild them with a the experience and you've got to wow them with value and the trick for any business.
To do so and generate a healthy margin and we believe that we've got a terrific plan to do that this fourth quarter and as well going forward into 21.
Retail is still important to us, but we've we've we're learning that a there's a there's a more profitable.
Fishing.
Way and value laid and way to operate our business and serve our customers than being so reliant on retail and load balancing our business more strategically between retail and direct is going to result in a in a in a much more profitable business, we believe and I think you're going to see that in 2020.
One in and we're gonna <unk>, we're going to start to see what what what Gopros brand and product line are really capable of as it relates to generating profits.
Okay got it.
Last question for me I think you guys started collecting a lot more did on how customers use your your cameras and you last year again outside of new features an ability for gopro to be used for example is a blogging camera I guess you guys have any data or update how is that application going is there enough.
Eric what does the customer feedback on that.
Yeah, we've been very successful with establishing gopro as a staple for any serious blogger and you can see for yourself you know be it.
Instagram or or you to pick talk what have you influencers are regularly using gopro to.
To help.
Communicate with their audiences and.
That was very clearly demonstrated that the launch of hero, eight where and before that hero seven but really punctuated by here late and Max.
And so far as how well those cameras work as a blogging solution.
And we're excited that the new products that we got on tap take that even further so we're seeing this isn't it as an important consumer use case, where where we are in fact, succeeding in serving our customers in this way.
And live streaming is another one that we see a growing due to the pandemic and as I mentioned, we're going to be expanding our live streaming.
Capabilities and experience for consumers later this year and so across the board, but we're constantly looking at ways to make the world's most versatile camera, even more versatile and and valuable for our customers.
Okay got it thanks, guys. Good luck.
Thank you.
Thank you and we have no further questions at this time I would now like to turn the call back to management for additional or closing remarks.
Thank you operator.
Oh I'd like to close the call today by sharing my gratitude for Gopro employees around the world.
You all are excelling in executing during extremely challenging times and to our millions of customers it'll appear as though you haven't missed a beat when we launch our new products later this year.
They're going to be amazed because you all are truly amazing.
And so on behalf of all of them. Thank you so much for all the terrific work.
It's gonna be a fun rest of the year and to everybody else on the call. Thank you for joining stay safe and his team gopro signing off.
Ladies and gentlemen, this concludes today's call. We thank you for your participation you may now disconnect [noise].
[music].