Nick Woodman, the founder and inventor of GoPro launched the revolutionary company back in 2002. Just 12 years later, GoPro will be filing for an IPO worth around ＄100 million.
What makes GoPro so special and why are the implications so significant?
For those unfamiliar with GoPro Cameras, they are small headphones that can be held using a camera pod or strapped to your helmet. Adventure enthusiasts, tourists, and casual people are all fans.
In fact, there are countless similarities between Apple’s iPod and GoPro’s cameras. Both were revolutionary instruments, simple products, and loved by casual and professional users. This seems to be the ingredient for a successful technology, consumer-based product these days.
In general, GoPro’s unique hook comes from its simple build. The micro-cameras are convenient and functionally addictive. Not only that, but everyone’s using them, and there is nothing like real product validation when your consumers are advocating your product through the vast universe of social media.
Social networking has only increased the universal nature of panoramic, landscape, and self-imposed images. Moreover, elementary school children and even senior citizens often use social platforms to publically display images to their social networks. This only allows the rapid popularity of the company to further rise among all demographics.
But is the price justified?
On paper, it all seems to make sense. According to GoPro’s S-1 documents with the SEC, 2013 revenue was ＄985.7M, which is roughly an 87% improvement from the year prior. Their financial growth is extremely impressive and they are already making roughly 4 million units this year.
As such, the ＄100M IPO seems reasonable, considering that most technology and consumer groups who have gone public near this selling range are not nearly as profitable. Keep in mind that most companies who sell at this range are in debt and do not have profitable net income. Investors are mainly focusing on the potential and expected growth of the company. In a sense, it is a huge risk to invest in those types of companies. However, GoPro seems to be much different and other investors, such as Redbull, agree that this is a company worth watching.
