GoPro, Inc.

Good day and welcome to Go Pro's first quarter 2020 earnings results conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Christopher Clark, Vice President of Corporate Communications. Please go ahead.

Thanks, operator. Good afternoon, everyone, and welcome to Go Pro's first quarter 2020 earnings conference call. With me today are Go Pro CEO Nicholas Woodman, and CFO and COO Brian McGee. Before we get started, I'd like to remind everyone that our remarks today may include forward-looking statements. Forward-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 results to differ materially. Additionally, any forward-looking statements made today are based on assumptions as of today, including, but not limited to, The assumption that the COVID-19 pandemic does not materially worsen. We do not undertake any obligation to update these statements as a result of new information or future events. Information 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 we may file from time to time with the SEC. Today we may discuss gross margin, operating expense, net profit and loss, as well as basic and diluted net profit and loss per share in accordance with GAAP 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. We choose to provide this information to enable investors to perform comparisons of operating results in a manner similar to how we analyze our own operating results. A reconciliation of gaps and non-gap operating expenses can be found in the press release that 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 first quarter 2020. The management commentary and slides, as well as a link to today's live webcast and a replay of this conference call, are posted on the GoPro Investor Relations website for your reference. All income statement related numbers that are discussed today during the call, other than revenue, are not GAAP unless otherwise noted. Now I'll turn the call over to GoPro's founder and CEO, Nicholas Woodman.

Thanks, Chris, and good afternoon, everyone. Due to the high volume of companies reporting earnings today, we've chosen to post management commentary for the first quarter of 2020 to the GoPro Investor Relations page on our website. I'll now give brief remarks and then we'll go directly into Q&A. Brian's financial overview is included in our posted remarks. As we shared in the management commentary, which I encourage all to read, GoPro is adapting to these challenging times with a strategic realignment to transition to a more efficient and profitable direct-to-consumer business. It is important to point out that while our business slowed due to COVID-19, we're seeing a positive rebound in demand, and people have continued to buy GoPro cameras in significant numbers throughout the pandemic, as our written commentary outlines in detail. We believe the decisive action we've taken to lower operating expenses and accelerate our shift to a more consumer direct model capitalizes on this continued demand in an efficient manner, giving GoPro a much improved cash generating business model that sets us up to succeed in the near term with the potential to be more profitable than ever in the long term. Assuming that many of you on the call have already read our written commentary, We'll now move on to Q&A.