The lens look different and larger on the black than the white and silver. Also different from the Hero6.

Nice one printing the model number in VISIBLE markings this time. :-p

https://seekingalpha.com/article/4195315-gopro-fundamentals-continue-deteriorate

Summary GoPro's Q2 results were nothing to write home about.

Company fundamentals continue to deteriorate.

Short covering was likely the reason shares rallied.

GoPro's (NASDAQ:GPRO) Q2'18 results beat both on the top and the bottom line. The company on an adjusted basis lost $0.15 per share, and revenue was $283M, beating by about $13M.

However, revenue was down 4.6% Y/Y, and EPS deteriorated Y/Y, as the company last year lost only $0.09 per share vs. $0.15 for the current quarter.

The company also pointed out that revenue Q/Q was up 40% sequentially. Please note that last year's Q2 revenue was also about 40% higher than Q1. So on average, I do not see anything improving much with the business.

Yes, GoPro cameras held 97% of the action camera category in dollar volume, and the company has the top 5 best-selling cameras as was mentioned in the conference call.

Yes, Fusion captured 48% of the corresponding market in the U.S., and GoPro's market share in Japan increased 58%; however, all these fine statistics are not doing much for revenue growth and profitability.

As for guidance, it was heartbreaking at best. The company forecasted Q3 revenue to be in the range between $260M and $280M, when last year for the same quarter revenue came in at $330. In other words, the company is telling us revenue will be about 20% less Y/Y for Q3.

For Q4, the company is projecting revenue in the range between $380M and $400M vs. $334M last year, or about a 20% increase. However, please note GoPro will be introducing three new cameras for the second half of 2018, so it is only natural that these sell higher during the holiday season.

Turning to the balance sheet, I see a continued deterioration. Cash and equivalents as of June 30 were 140M vs. 245M Y/Y. This despite inventories falling by almost 50% to $86M vs. $150M last year.

Total liabilities were $438M vs. $551M last year; however, please note that total assets were reduced by about $225M Y/Y. In other words, the reduction in total assets was twice that of total liabilities. I consider this a deterioration of the balance sheet. While the company is not in financial strain yet, if this deterioration continues, it will eventually find itself in a difficult position.

Perhaps the only positive was that non-GAAP gross margins edged up a bit to 31% from 24% in Q1. But when one looks on a comparative Y/Y basis, last year this time around gross margins were 36%. So even on a gross margin basis, things are deteriorating.

The company forecasted it will be profitable for the second half of 2018; however, for the full year, it still expects to lose $25-35 million.

@EspenB

I wonder about only one thing - how this guys still afloat?

Updated info on the new 2018 range which will probably be released in late september. GoPro Inc has a presence at the upcomming Photokina show so we are likely to see new cameras here. It would be a waste of time to show Hero6 at Photokina and then launch the Hero7 series the next week in october IMO.

Bluetooth certifications confirm the continuing existence of the Hero6 (product code "SPCH1") as well as "S" and "W" versions. Presumably the WHITE, SILVER and BLACK range is back. The silver is probably hardware identical to the Hero6. The white might be a Hero6 with crippled firmware as indicated in the previous posting. I think the Hero5/Hero2018 which still uses an Ambarella processor is likely to get retired.

Also Woodman have confirmed the release of three new models priced at 200, 300 and 400 USD respectively in the investor presentation earings call earlier in august.

Hero7 Black will have updated GP1 processor according to statements at Reddit.

But it seem pretty obvious that each of the three new cameras must performe slightly better than the previous three models at the same 200, 300, 400 USD price points... Woodman stated that the new range would be cheaper to manufacture and thus provide for higher profit margins for the company and still have more features for the consumer.

Looks like one of the upcomming GoPro cameras is designated SPTM1.

https://fccid.io/CNFSPTM1/Label/Label-and-label-location-3905305