Investor Presentaiton
APPENDIX: GAAP TO NON-GAAP RECONCILIATIONS
GoPro
To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial
measures, including non-GAAP gross margin, operating expenses, operating income (loss), net income (loss), diluted net income (loss) per
share and adjusted EBITDA. We use non-GAAP financial measures to help us understand and evaluate our core operating performance and
trends, to prepare and approve our annual budget, and to develop short-term and long-term operational plans. Our management uses, and
believes that investors benefit from referring to these non-GAAP financial measures in assessing our operating results. These non-GAAP
financial measures should not be considered in isolation from, or as an alternative to, the measures prepared in accordance with GAAP, and are
not based on any comprehensive set of accounting rules or principles. We believe that these non-GAAP measures, when read in conjunction
with our GAAP financials, provide useful information to investors by facilitating:
•
the comparability of our on-going operating results over the periods presented;
•
the ability to identify trends in our underlying business; and
the comparison of our operating results against analyst financial models and operating results of other public companies that supplement
their GAAP results with non-GAAP financial measures.
These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as
determined in accordance with GAAP. Some of these limitations are:
• adjusted EBITDA does not reflect tax payments that reduce cash available to us;
adjusted EBITDA excludes depreciation and amortization and, although these are non-cash charges, the property and equipment being
depreciated and amortized often will have to be replaced in the future, and adjusted EBITDA does not reflect any cash capital expenditure
requirements for such replacements;
Confidential information. Copyright © 2021. GoPro, Inc. All rights reserved.
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