gopro cam growth rate graph

[Christopher L Lohr]

On the Market Size slide, I've updated the graphic to sync up with Suresh's feedback. He suggested we add a small graph that showed the rate of growth in the gopro cam market... i.e. 300% over last year? Anyway, do we have detailed numbers I can use for that graph?

[Nicholas Smith]

Hey Chris,

Here is an excerpt from some early research that Krish and I worked on:

GoPro had revenues of 250M. Cameras sell for either 300 or 240, or 270 on average. Assume 95% of their revenue, or 237M comes from camera sales. 877k cameras sold in 2011. We know they had 300% year over year growth, so we can assume that they sold 292k cameras in 2010.

Based on our projections from the current financials, we expect 50% growth in camera unit sales volume for years 1 thru 3 and then 10% after that.

That means from year 2, the units sold for GoPros would be:

1,315,500

1,973,250

2,959,875

3,255,863

I know contour has also sold a few cameras, but don't know their revenue numbers to back out the number of units sold.

Hope this helps,

Nick

On Tue, May 22, 2012 at 12:56 PM, Christopher L Lohr <cl...@uw.edu> wrote:

On the Market Size slide, I've updated the graphic to sync up with Suresh's feedback. He suggested we add a small graph that showed the rate of growth in the gopro cam market... i.e. 300% over last year? Anyway, do we have detailed numbers I can use for that graph?

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[Gabriel Kunz]

The article in the bibliography of the business plan says that GoPro has a 90% market share.

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Gabe Kunz
Marketing Team Member, Highlight Hunter
voice: 484-889-1687
web: www.highlighthunter.com

[Nicholas Smith]

Bam. Perfect. Thanks for pointing that out, Gabe.

Divide all those unit numbers below by .9 and you've got a nifty little graph.

If not already cited, the revenue figures for GoPro came from INC magazine.

[Gabriel Kunz]

So did the market share figure

[Christopher L Lohr]

Ok. Thanks guys.

[Christopher L Lohr]

From the article...

"Woodman claims GoPro now holds 90 percent of the wearable-cam market, after growing well over 300 percent in 2011. Digital-imaging industry analyst Chris Chute of market research firm IDC estimates GoPro's 2011 revenue at $250 million, on sales of 800,000 cameras worldwide. He calls GoPro "the fastest-growing camera company in the world."

I'm confused about our data points here. Please clarify:

• GoPro numbers vs. wearable-cam market numbers
• market share % vs. % of revenue sales
  

This is what I have so far, but I'm not sure this is accurate if, in some cases, we're using % of revenue sales (i.e. 95% for 2010 and 2011) and in other cases we're using market share % (i.e. 90%).

2010 292k (based on 95% of GoPro rev sales - where did this 95% come from? Is this just a flat assumption?)

2011 877k (based on 95% of GoPro rev sales - where did this 95% come from? Is this just a flat assumption?)

2012 1,315,500/.9 (90% would need to be of TOTAL WEARABLE-CAMERA MARKET)

2013 1,973,250/.9 (90% would need to be of TOTAL  WEARABLE-CAMERA MARKET)

2014 2,959,875/.9 (90% would need to be of TOTAL  WEARABLE-CAMERA MARKET)

2015 3,255,863/.9 (90% would need to be of TOTAL  WEARABLE-CAMERA MARKET)

[Nick Smith]

We had just flat assumptions. If the article says 800k, just use that as a starting point for total wearable mkt. their revenue doesn't quite add up though. 

Nick

[Noah Spitzer-Williams]

I think the revenue adds up. 800k cameras sold * ~$300 price point = 240M. Their revenues last year were 250M. They also make a bunch off the camera mounts.

No?

Noah Spitzer-Williams
CEO, Highlight Hunter
voice: 607-398-0460
web: www.highlighthunter.com

[Nick Smith]

Yep. That's it. Our assumption was avg price of 270 per camera, which skewed the number sold on the high side. We good. 

Nick

[Christopher L Lohr]

I dropped a GoPro growth rate spreadsheet here:

\Dropbox\Highlight Hunter BP\Pitch Deck\FINAL DECK\FINAL PITCH DECK (GoPro_growthRate.xls). 

Could someone please check those numbers? If they need to be updated, please modify the file on dropbox and let me know. I can then update the graphic with the new numbers.

On Tue, May 22, 2012 at 11:05 PM, Nick Smith <smith.n...@gmail.com> wrote:

[Noah Spitzer-Williams]

Assuming they don't slow down dramatically, I think the numbers are good.

[Christopher L Lohr]

thanks.