GoPro Inc (GPRO)’s 4th Quarter and FY 2014 Financial Results Conference Call Transcript

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Operator
And once again that is *1 if you do have a question. We’ll take our next question from Ben Bollin with Cleveland Research.

Benjamin Bollin, Cleveland Research
Good afternoon. Thanks for taking the call. When you look at your content and your strategy, uhm you’re talking about the live content angle now. Uhm how you monetize that? How does it contribute to the model, and when do you see the content becoming a meaningful opportunity?

Nicholas Woodman – Chief Executive Officer and Chairman
Nick Woodman here. That’s a good question it relates to the live broadcast um, in terms of live television and enabling live [inaudible] perspective to be included in televised events, GoPro largely benefits from increased brand exposure and getting consumers excited about perspectives that are possible with a GoPro and also the validation that occurs when they see GoPro perspectives used in live television, hugely validated for the brand and an incredible promotion opportunity for GoPro. I wouldn’t think of those as revenue events, is more GoPro being used by professional broadcasters as an enabling technology to improve the show for the fans at home and we get a huge brand boost from that when it happens and then I’ll turn the second part of your question over to our president Tony Bates.

Anthony Bates –  President and Director
Just to reaffirm what Nick just mentioned, the results really reflect I think the [inaudible] of the content enable strategy that we in the beginning and just in terms of live is just another way to really capture the imagination to what’s possible with GoPro. Just to expand a little bit, when we think about the revenue that comes from media, it isn’t our focus today. Our focus today is continuing to excite and amaze folks in terms of what’s possible with a GoPro and that again reflects in our results. Our focus has been one to show what’s possible with a GoPro as we continue to increase our distribution channels, Nick already mentioned it we talked about Roku, expect that to come in spring. That’s just another channel but I’d also point to obviously the great results you continue to see in both viewership and sharing that we see in YouTube and quite some increase that we put our focus on other social channels Facebook, obviously, we mentioned Instagram and there’s two phenomenon that we see, one is the additional viewership that we see in those channels but more importantly the way people have started to share GoPro content in a much more social way and so that again reinforces and benefits the content enabling strategy we have around media.

Operator
We’ll take the next question with Alex Gauna with JMP Securities, please go ahead.

Alex Gauna – JMP Securities
Thanks for taking my question. Congratulations on the blowout results. I’m just curious, in terms of what you learned, in terms of that smashing debut performance with the National Hockey League and also with the Winter X games. This live opportunity, what new directions can you go in, what are the technology challenges, and what can you do with the technology to make those experiences even better?

Nicholas Woodman – Chief Executive Officer and Chairman
Great question, I think that you know, we’re just in the early days of enabling live GoPros perspectives on television, we haven’t even officially debuted the product and made it available yet, stay tuned for more news on that, but, you know, in the first weekend alone we saw the NHL using [inaudible]. Of course the X Games, EPSN using it in the X Games and it was a huge success from was effectively the first live debut of the product and as you know anything that’s live is live and so we were thrilled with how much both networks used GoPro live perspectives and as a viewer at home it was the most exciting Winter games I’ve ever seen because for the first time we were able to regularly see the action from the perspective of the athlete and you could tell as the program went on and ESPN got more comfortable with how fabulous the image quality coming from the GoPro was they used it more and more and more so that was really encouraging to see and I think what we’re going to see is, you know, other broadcast professionals are watching this programming and they’re seeing what this other networks are doing with a GoPro and they’re seeing how the show is enhanced so one can imagine that GoPro live on television could benefit in many of the same ways the rest of the brands company has is that the more that broadcasters use GoPros to enhance programming, the more other will be inspired to do the same and we could see a faboulous expansion of the GoPro movement to television and not just digitally distributed content as we’re seeing it today.

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