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spk02: Why don't we get started here? So thank you guys for joining. My name is Eric Woodring. I lead the hardware coverage here at Morgan Stanley. I am delighted to be joined by Nick Woodman and Brian McGee, CEO and CFO of GoPro. Let me start by reading my disclosure, then Brian can read his, and then we can get into things. So for important disclosures, please see the Morgan Stanley research disclosure website at .morgonstanley.com slash research disclosures. If you have any questions, please reach out to your Morgan Stanley sales representative. And you wanna?
spk03: Yep, let me do this. 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 today, or made today, are based on assumptions as of today. This means that results could change at any time, and our commentary about business results and outlook is based on the information available as of today's date. We do not undertake any obligation to update these statements as a result of new information or future events. Information concerning the company's risk factors is available in its most recent annual report on Form 10K for the year ended December 31st, 2023, which is on file with the SEC, and is updated in future filing. Beautiful. There we go.
spk02: Cool, so Brian and Nick, both mainstays here at the conference, so thank you guys for joining us. I figured I'd start at the top with you, Nick, and kind of go through the decision that you made to kind of pivot the -to-market approach for GoPro that refocusing on your retail partners, re-emphasizing some of the different price points that you might have missed out on recent years. So just very big picture to start off, explain a bit of detail behind this change and why this better positions GoPro as we look forward.
spk01: Sure. Well, we had a successful run during COVID, as you know, focusing primarily on our DTC business for obvious reasons. But then coming out of the pandemic, consumer behavior shifted back to retail. And so we needed to grow at retail again. During the pandemic, we went from 35,000, 36,000 doors down to about 20,000 doors, cut marketing significantly, and focused all our efforts on growing our DTC business and growing subscription. So we have a lot of re-billing to do, but that's opportunity. We've, since our -to-market strategy shift back in May of 2023, we've added over 3000 new doors, primarily in Europe. And we're seeing really strong results from that door growth as Brian can share. And as well, as you mentioned, we recognized the importance of an entry-level product at GoPro for driving, not only volume, but bringing in new customers who can later grow up with the brand and upgrade to our higher-performance products. And with the growth and retention strength of our subscription business, an entry-level customer is even more important to us now, because overall, our subscription business is converting camera buyers at a rate of 34%, 35 to 40%, and our higher-end SKUs in 25 to 30%, acquisition rate in our lower-end SKUs, and that's averaged across customers who are buying their GoPros either through gopro.com or at retail. And so the strength of our subscription attach at retail made it all the more compelling for us to scale the business back up at retail again, to maximize the overall potential of the business. And then there's also the marketing benefit that we get from being at retail. You can imagine the -of-home marketing effect of being in over 20,000 doors globally. We're up to over 23,000 doors now. I believe we shared that we plan on growing another 7,000 doors by the end of 2025, I believe is what we've publicly shared, and we're on track to do that. And as we expand our marketing efforts globally, more so a shift in marketing spend from -the-funnel conversion tactics for driving our D2C business, we've shifted that more to -of-funnel awareness, driving bigger brand-building awareness, driving marketing events. Our increased global store presence really helps convert on that added awareness as well. And we appreciate our retailers' help in putting our brand front and center in their stores.
spk02: Yep, perfect. And maybe another question for you is kind of walking us through what you offer the customer today in terms of the product offerings. We'll get into the subscription part in a bit, but you released the Hero 12 Black back in September. You saw a strong sell-through in the September quarter. So kind of what's new about this device, and how does it kind of maybe round out the offerings that you're bringing to market today? And we'll get into new products
spk01: too, so. Yeah, I mean, Hero 12 Black just continues the Hero cameras line of being the world's most versatile, capable camera for capturing any experience that your phone can't. And so whether it's industry-leading stabilization or image quality, what have you, that's really been well-received by the market. But I think what's really setting GoPro apart more and more is the overall ecosystem experience, and the consumer is validating the benefits of that experience through their subscription and our ability to retain them as subscribers. Consumers are getting a lot of value out of that. So for those of you that don't know, the modern GoPro experience is you have a camera, a GoPro that you use to capture experiences, and then when you come home and plug it in, it automatically uploads all of your content to your GoPro Cloud account. And once all that content's done being uploaded, our Cloud stitches that together into a highlight video for you that we send to you. You get a message on your phone from us. It clicks through, opens up in the app in place for you, and you can manipulate it if you want. Or you just go into the GoPro app, and your content is up in the Cloud and available to you in the app, and you can share directly from the app or make edits from the app. In February, we launched a desktop app that's now synced to your mobile app. So if you start an edit on desktop, you can pick it up later in the mobile app or vice versa, and it's all very convenient. And the next time you go to grab your GoPro off of the charger, it's obviously charged. The SD card's been automatically cleared for you, and you're ready to go. So the whole experience is very convenient. And that's something that we've been building for years and are continuing to improve in advance with the launch of our desktop app in February for Mac, launching in Windows later this year. And then building on capabilities ongoing, we're really positioning GoPro as an -to-end digital imaging solution for people that are looking to create content and capture experiences that they otherwise couldn't with their phone.
spk02: And let's touch on that, because I think it's important. If you rewind multiple years, I think a pain point was like, hey, I've created an image or a video, what do I do with it now? Now you're giving your customers tools to maybe not even do it, allow you to do it yourselves. Can you talk about how that has changed the customer interaction with the brand GoPro, the camera GoPro, the subscription? Do you see stronger engagement because of that? Meaning are your users actively
spk01: using these tools too? Absolutely. And if they weren't, we wouldn't see such strong retention rates. Why pay for something that you're not using? So 1,000%, the GoPro of today is world's more convenient than the previous experience where we're primarily building really capable hardware, but then leaving it more up to the end user, to our customer to figure out what to do with their content after the fact. And the experience that I just described is extremely convenient and people are willing to pay for it and we're seeing engagement rates improving, which is great. And then going forward, I'll ask a question for you. If you were to ask me, like, what's the future? Of GoPro and how do we intend to continue growing this business and stay relevant in today's phone-centric world is we're really focused on enabling capture and creativity that goes beyond the phone. We recognize that the phone is really capable for a lot of people and meets their needs, but there's a lot of us out there who are doing things, engaging in activities where we want to capture, document the experience ourselves during the activity. And a phone's just not convenient for that. And as well with the whole creator movement, you have influencers, creators, people who are inspired to make a career out of creating engaging content and they're looking for solutions that go beyond just what a phone can do. And so our roadmap, as we shared on our last earnings call, is really exciting because we're focusing on discrete differentiated product experiences at each price point, starting with a new entry-level product that we're launching a little bit later this year that's going to be very entry-level, all the way up to very high-end products by the end of 2025 that'll see us having the broadest product portfolio in the history of the brand, all the way to a new market that we're gonna be serving in the form of tech-enabled motorcycle helmets for street sport enthusiasts. So enabling, capturing creativity beyond the phone, we think has a pretty big breadth and significant TAM expanding opportunity. So you
spk02: kind of answered this question, so I'm gonna ask it a bit different way, but obviously you've talked about committed to launching four new SKUs this year. You talked about the low-end launch, the new price point or the low-end price point. Entry-level. Entry-level, let's call it. In 2Q. Maybe just talk about why now is the right time to make that change. What is it that you see that allows you to say, ah, we can capture more of this TAM and expand that TAM relative to what we've been able to capture historically?
spk01: Well, I think more than anything, the opportunity's already always been there. We just were very focused on maximizing the market for the hero camera and then a little thing called the pandemic hit and that sort of took a bit of focus and that now that we're past all that, we've identified that, hey, we can build a bigger business, we believe, by building solutions for many different users at different use cases and using those, and those products align with price points that we believe are important for us to hit rather than offering three or four different price points of the same product, which has historically been our business. Historically, we've made the hero camera at entry-level, mid-level, and flagship, and then a year-old flagship discounted. And that's been the business aside from our max camera which is our 360 camera that we haven't refreshed in just over four years, max two, call it, our newest 360 camera is coming out later this year, we've shared that. But aside from our 360 camera, the business has primarily been driven by the sales of the hero camera. And that built a billion-dollar business, that's great. But to grow beyond that, we believe that we need to broaden our product portfolio to make GoPro more relevant to more people who are looking to capture and create content in more diverse ways. And our research has identified many clear opportunities to do that. Our brand resonates with average consumers all the way up to professionals that are creating film and television content. And to date, we've largely tried to serve them with the world's most versatile camera, which is the hero camera. It's done an amazing job, but we ask too much of it.
spk00: We
spk01: can grow the business by targeting new markets and new consumers with new products. So by the end of 2025, we will have the largest product portfolio in the history of the brand. Perfect, that's great.
spk02: And then the last question I'll ask you before I turn it to Brian is, at 4Q Earnings, you announced the acquisition of Foresight Helmet Systems. You alluded to it earlier. You've talked about this as a TAM expander. Can you maybe just speak a little bit more about your vision with that acquisition, how we should be thinking about the TAM expansion you could get from that deal?
spk01: Well, it's on brand, for one. I don't think anybody's surprised. I think maybe you're surprised, but then you think about it for a moment, and you go, ah, that kind of makes sense. GoPro tech-enabling motorcycle helmets is very much in line with the brand that we built today. We have a long heritage in motor sports from professional racing through enthusiast markets. And we've all seen GoPros widely used on motorcycle helmets, whether it's racers or commuters. And so, as I mentioned, have been focused on enabling capture beyond the phone and use cases where a phone is just simply not convenient or even practical. The motorcycle industry, the motorcycle market is an obvious one for us. And motorcycle enthusiasts are already using a number of technologies, whether it's digital imaging, you know, solutions like GoPro or communications devices that they're attaching to the outside of their helmet. It makes sense for a lot of that to be collapsed into the helmet, very much so for the higher-end helmet market. And it's an exciting new market for us to leverage our brand and technical capability to enable capture and, in some cases, creativity beyond the phone for the motorcycle community. Cool, perfect. And as we learn in that market and improve our capabilities there, we'll be identifying other potential integration opportunities, other integration markets for helmets beyond just motorcycles. So TBD.
spk02: That's perfect. So, Brian, I'll pivot over to you. And I wanna talk a little bit about the near-term environment because we've heard a lot, not just from yourselves, but from a lot of consumer hardware companies about some interesting dynamics around the holidays and promotions and how that impacts revenue versus gross margins. And so can you maybe just talk about what you're seeing in terms of consumer demand and consumer appetite for consumer hardware, specifically GoPro product, and then just into one queue, kind of how that's trending relative to your expectations?
spk03: Yeah, let me maybe touch on Q4, which is
spk02: what
spk03: you're talking about. We've Q1 into it. And Q4, by and large, we came through and hit the numbers we needed to hit, improved our margin and met our earnings per share number. And the interesting point about this past Q4 was we didn't sell as many entry-level products as we had expected for quite a bit. And the reason was if a product didn't have a discount on it in Q4, it didn't sell as well as you would have expected, and it didn't. And that was the first. I mean, we traditionally held price points at entry level and they had been 25 to 30% of our business in the fourth quarter, we came in about 20, which was pretty unusual. But we also had finite supply, and we know we have low margin there and it wasn't worth chasing because we know we'd be selling it, finishing selling those products out in Q1 and Q2. So we improved margin instead and made our numbers. As I look at Q1, that dynamic has changed. So we guided about 550,000 units to sell through, plus or minus, I think, 50,000 units. We're largely on track to meet those numbers, which is good. We're not having to discount our Hero 10 line, entry-level product, and it's probably gonna come in about 25% of our business this quarter versus 20 last quarter. So the consumer's not requiring necessarily the discount as much in Q1. So we feel good about that. From a demand perspective, that also means as we make those sell through numbers, our channel inventory continues to decrease. We talked about on the earnings call. That's important because we gotta clear out the rest of our max product as we look ahead to replace that, which is a 360 camera, or Hero 10 or Hero 9 products ahead of product launches that are coming later this year. So we're gonna be in pretty good shape to do that. We're currently selling at our entry-level products that are basically zero margin. Now we also get the benefit of subscription, which comes on the back end of the margin, and we have good retention, but we'll come out with new products that are re-engineered, have the right cost point for the price point, margin positive. So we guided margins up for the year on nearly 400 basis points, I believe. Now, the reason for that is we stopped selling products we don't make any margin on. We start selling products we do make margin on. We don't have price protection, 30 plus million in 24 that we had in 23. We've done a really good job on supply chain management, reducing costs, reducing tariffs, realigning supply chain between China and Thailand to reduce those costs. So that's all moved in the right direction, and then our subscription business continues to grow, albeit not as fast as it has, and it's largely tied to units, which comes back the next point of continuing to drive unit volume, which will convert into subscription growth. So that's kind of how we see this. The evolution of our margin improvement is low end is Q1 being 35% or so, Q2, Q3, and then 37, 38% Q4.
spk02: Okay, perfect. If we, you talked about inventory management, obviously critical in this business. If we then talk about kind of the new retail doors that you guys have opened, again, 3K in less than nine months, outperforming your expectations, can you maybe characterize what type of retailers you're kind of working with now? Are these old retailers? Are they entirely new? What are you learning about growing your retail footprint both in terms of kind of competition and visibility into the channel? Just a little more detail on this is such a key initiative. What are you seeing as you go through this?
spk03: You want me to start? Yeah, yeah, of the 3200 or so doors we've opened in the nine months, about two thirds of those are in Europe. Some of the doors we opened were retailers we used to do business with. So we've re-engaged, which is great. And then we've also expanded distribution into new doors, new dealers throughout Europe as well. Europe got cut back probably the most as we looked at that. Now, the good news from that is we are really seeing the positive results from opening new doors, particularly in Europe. We saw it a bit in Q4, we're really seeing it in Q1. I mean, our retail presence is, our year over year increases better than 60%, our unit volume through retail in Europe, it's gonna be up 20%, about 20%, I would think, in Asia as we start to open more doors there. North America, the door count is slower because we largely have retained that group of retailers. But we'll be expanding more in mid-market and specialty in the US market and that's gonna help propel growth as we look ahead in the second half of this year and then into 25. So I think the main message is the new doors we're opening are actually having a, we can see a positive effect of that in the market.
spk02: Okay, perfect. And then so maybe just to bring all of these kind of like demand comments together and then we'll touch on the subscription side is, how should we be thinking about sell through trends in 2024, obviously, some macro challenges, some cross currents there, but then offsetting that new product launches, new door openings, when we put those together, what should we be thinking about for you guys this year?
spk03: Yeah, our expectation on sell through is up about eight to 10%, 24 over 23. Entry level's gonna contribute to that, but also having a new 360 camera, we haven't lost one in four years-ish, right? So that's a new skew to the market, along with the Hero cameras. And then in addition to that, then you have a lot more accessories. We're expanding on the whole subscription front. Now we have three, right? Entry level, $10 a year for that subscription for non-GoPro content. And more than half the people who were in that subscription bucket don't own a GoPro. So it's really using, being used, get the premium and now the premium plus. And we're seeing really good activity on that premium plus. We did a lot of consumer insight research on the premium plus and how did the premium group that pays $50 a year versus 100 feel about it? And the feedback was pretty overwhelming. Oh, the retention rates would increase significantly, or potentially increase significantly, if we offered that capability to do desktop for that group. And so we did, we offered it, we included it. And we're mostly marketing premium plus to the premium subscription guys. And the increases there that we're seeing on premium plus, about 80% of that increase is all from the premium section. So we are seeing the migration up from 50 to 100. So that's a really positive movement on the subscription front.
spk02: Perfect. And then the last question here was just on pricing, right? So again, a lot of new product launches, we talked about entry level, we've talked about premium with the Max, the 360 cam. How should we be thinking about ASP growth? Again, for the camera, we can talk about blended ASPs, but how should we be thinking about ASP growth this year with all those cross currents?
spk03: Yeah, I'll give maybe a longer outlook on ASP growth. 24 will be largely flat ASP to 23, but the second half of this year starts to increase ASP growth. So that's a trend that's gonna continue into 25. So you'll see 25 go up and 26 up even more from there. And largely because as we look at the roadmap, we look at the product launches we're gonna do this year and next year, it is moving up in price point from a hardware perspective. As we get that growth, that reinvigorates growth in subscription, right? And then we also have a lot more accessories that accompany the cameras we're gonna have. So the combination of those is gonna push ASPs higher.
spk02: Okay, so let's pivot to the subscription offering because you've added a lot there over time, not just in terms of kind of software offerings, but in terms of how consumers engage with the brand and the product. So as you look at your subscriber base today and you see those new subscriber cohorts come on, what are the maybe features or solutions you find these customers are most attached to? And then again, maybe just reiterating how that's been impacting churn or attach rates at the point of purchase.
spk01: Convenience above all else is what people are subscribing for, followed very quickly by capability. And hence our launch of the desktop app in February for Mac and later this year for Windows. We recognized that just by asking our subscribers, what do they want? They want a desktop. They wanted the ability to have a synced experience between cloud, mobile and desktop. And now we have that at least for Mac and iOS. And our long-term vision there, both for expanding our TAM as well as providing as much value as possible for subscribers to improve retention and acquisition is to keep building out that experience so that it's valuable not only to GoPro subscribers but to people regardless of what camera they own, whether you have a DSLR or any other type of camera and you're wanting to have the most convenient solution for organizing your content, sharing it, making the most of it, editing, whether you're entry level or you're an aspiring professional, that's what we see the opportunity. Think of it in some sense as the middle ground between the professional yet somewhat complex solutions offered by Adobe and at the other end of the spectrum, the free yet maybe not capable enough tools that come natively with your phone. Right there in the middle is an opportunity for GoPro and because our research indicates consumers consider our brand as enabling really exciting, engaging content, not just as a camera company. So that gives us a lot of opportunity on the software side. And if we do our job, we'll not only take care of our subscribers and bring in more subscribers and retain them longer, but we might even be able to grow a business courting consumers that don't even own a GoPro. Right, okay,
spk02: perfect. And if we quantify that again, you ended 2023 with about two and a half million subscribers, you did guide that up about 100,000 net new subscribers in 2024. Just help us understand where that growth comes from. Is that a relatively conservative outlook again, just trying to start the year on the right footing? Could you outperform that? How do we think about numerically the subscriber path from here?
spk03: Yeah, I think I said on the call, it may be a little bit conservative. And part of the reason is retention rates have been very, very good. So first year retention rate, 60 to 65%, second year, close to 75%, and then better than 80% in year three. So actually our retention rate for the existing cohorts is way better than what our acquisition rates are gonna be, so I should see an ARPU increase, right? And then a benefit on subscribers. Now, but I also have a little bit of mix shift too, because we're gonna sell more on the entry level, and that has a 25% or so attach rate versus a 35 to 40 on the higher end. So you have to balance that out with a little bit of the mix in what we're gonna sell. And so that's why we're a little bit conservative on the number. Could it be higher? Possibly, depending on how we do on some of the retention. Okay. So
spk02: I wanna touch on a comment you made Nick earlier, and you made it on the earnings call, which is exciting as a product focused company, which is, you're evaluating certain TAM expansion opportunities, there's gonna be investments required for those opportunities to accelerate your product's expansion in 2025 and 2026. So can you maybe expand on the investments that you need to make? Are they new? Are they additive? How should we be thinking about what's required to invest in the business in order to drive those products that you talked about earlier
spk01: in the session? Yeah, I would start by saying, we maybe should have been a little bit more specific that any investment we're considering isn't anything too dramatic. So investors would probably be happy to hear that. But no, having identified that the best opportunity we believe to grow the TAM is to just broaden this product portfolio. We're really excited to do so, and we've thus settled on a roadmap that has us, as I mentioned, will have us with the broadest product offering in the history of the brand by the end of 2025. And as you can imagine, that takes a little bit of investment, but all within reason. And it's, again, I think that the aspect of our roadmap that's most exciting from a growth perspective, from a TAM expanding perspective, is that we're not going to be making just different flavors of the same thing at different price points, but we're going to be making differentiated product at each price point to cater to different use cases, cater to different audiences, and they align really well with the price points that we have intended for them. And importantly, they take us to higher end products, higher end experience, higher end price points than we've ever been before. But that said, it's going to be a diversified product offering, so we're not relying on any one skew to pull more than its weight. And it's all a part of our diversification strategy to respect the importance of the Hero camera to our business, but broaden our offering to diversify our offerings, diversify our revenue so that we're not so dependent on that one skew to outperform year after year after year. And that is part of the rationale behind our acquisition of four-site helmet systems to begin building tech-enabled motorcycle helmets, just because we see a real opportunity in diversification.
spk02: And I wanted to circle back again to the comments you made about the kind of non-GoPro users where you're having success. What do you think the value proposition is that you're offering that these users maybe can't get elsewhere? We kind of talked about the broad swath of offerings. Where do yours really hit home for those that don't have a GoPro but still want to utilize the GoPro software for editing, uploading, et cetera? Convenience,
spk01: I think. Accessibility. Because we're starting out with so many entry-level consumers buying our cameras, we have to be very focused on ease of use of the software and helping people be successful. And then provide the capability for more advanced users to do more as they improve their own skills, if you were. But automation is a big area of focus for us. Investing in AI capabilities that can help improve better, faster, more engaging automatic edits of your content. I mean, as you can imagine, one of the biggest challenges that our customers have is going from the dozens of clips that they're capturing with a GoPro, because the hardware makes it easy, to actually translating that into something watchable and shareable. And all of our research indicates that everybody wants that to be automatic. So that's a big area of opportunity for us. And tying that into a manual capability for those who, it's their hobby, it's their craft. And catering that experience to the creator community that maybe wants to make a profession out of it, I think wrapping that all up and driving awareness of that experience with our brand is our biggest opportunity. I mean, our social reach, just our brand alone, over 50 million on our own channels, before you even get to our influencer and sponsored athlete network. We have a pretty significant awareness driving opportunity for relative to our sort of nascent presence in this market. It's an exciting growth opportunity for us. Good, good. And I would add, we're building all of this anyway for our existing camera owner community. So for us to leverage that work to go court consumers that don't even need a GoPro, it's not like that's a huge investment for us to go do that.
spk02: Okay. So with a bit of time we have left, maybe Brian, I'll turn back to you and just talk about what this means kind of for the margin profile of the business. Margins, EBITDA margins have peaked around 10 to 15% historically. You're putting through some structural gross margin improvements. You're also accelerating product expansion with measurable investments. And so as we put all these kind of together in a blender, what should we be thinking about as kind of like an adjusted EBITDA margin business as we look out a few years after we get some of the benefits from what you've talked about?
spk03: Yeah, if you look out a few years, we should be, I would say in the 8% to 11% range of EBITDA margins to revenue. We've been historically, as you kind of alluded to, the highest was 2021, think about 13%, 14%. And even did well in 22%. So I think getting the products back, we've definitely got a good path for margin improvement. And that margin improvement and a little bit of growth is going to lead to the expanded EBITDA. And just as a reminder, I mean, our balance sheet management has been really, really good. I mean, our DSO, 25 to 30 days pretty consistently. Days of inventory, less than 50, as you look at annually. And so most of the EBITDA, quite frankly, translates right to free cash flow. And so that's the nice part about our model, is our ability to not just manage the business for profitability, but also the balance sheet and bringing that cash home.
spk02: So you just led me into the question that I'm going to ask you directly about balance sheet and capital allocation, which is very strong balance sheet. 250 million of cash. That even takes into account the 50 million you used to pay down part of the convert towards the end of last year. So you've been able to buy back some stock. You obviously did the foresight acquisition. One, how should we be thinking about the capital allocation priorities? Is it still buybacks first? And then anything that we should be thinking about in terms of capital structure, as you get close to the end of 25 in the convert coming due, just bring that all together for us. Yeah,
spk03: I mean, we've had two converts. We've paid one down. That was 125 million. The second one was 145. We paid 50 million of it down. We'll likely use some capital allocation this year to continue to buy down debt. It has the advantage of, again, streamlining the balance sheet, reducing debt. It reduces my interest payments, which are pretty small, but it still reduces that. And it also has the reduction of share benefit as well, right, for how we have to account for it. So I kind of get a triple by buying the debt down. And so we'd end this year with substantially less debt than what we have today. So that makes the balance remaining for November of 2025 pretty small, pretty much in material. And to the extent we have extra cash available, continue to look at buying back shares. The last two years, we bought back $40 million of shares in 2021, 2022, 2023. So we've been pretty consistent on that and paying down debt.
spk02: Perfect. So we have about a minute here. I want to give you the dance floor, kind of talk about a big picture of the evolution of the GoPro brand, the evolution of the GoPro model as we move into mid, end of 2024, 2025, 26. A lot of things that are exciting on the docket. Kind of what's your message that you want to leave everybody with as we sign off here?
spk01: Oh, I think the most exciting part of GoPro is our growth potential today. Again, we cut back a lot during COVID. And as you know, it takes time to build back. You can cut it really quickly, but building takes time. And we only just made our shift back into retail decision back in May of 2023. We've got a lot of momentum there. We've only just shared and potential there still. We shared that we'll grow another 7,000 doors by the end of 2025. And as I shared, by the end of 2025, we also plan on having the broadest product portfolio in the history of the brand. And that's just by 2025. So I think if investors are wondering, hey, what's the long tale story to GoPro? Where can they really take this brand? I would say think about all of the digital imaging desires and needs that consumers and even non-consumer markets have beyond what the phone can offer. Historically, this brand has been primarily focused on selling hero cameras at different price points. We've evolved our thinking to recognize that to maximize the tap potential of the brand, that we need to diversify and broaden our product portfolio. And that's what we're going to do. And we think that that's got a very long runway to it. Beautiful. We'll leave it there. Nick, Brian, thank you guys very much. Thanks, Eric. Thank you. Awesome.
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