GoPro CEO Nick Woodman Shares 'Insane' $1 Million Crowd-Sourced Highlight Reel

December 14, 2018

GoPro put out the call for users of its HERO7 Black camera to submit their best clips for the chance to split $1 million. The resulting highlight reel showcases the camera's latest innovation thanks to 56 creators. Nick Woodman, CEO of GoPro, explains the decision to create a crowd-sourced reel, as well as the company's recent announcement it will move some production out of China.

FULL TRANSCRIPT

MALE_1: Joining us now is Nick Woodman.

MALE_1: He's the CEO and he's the founder of Go Pro.

MALE_1: Nick, great to have you on the show.

MALE_1: Thanks for joining us today.

Nick: And thanks very much for having me.

MALE_1: So, did, did promo,

MALE_1: the highlight reel that you guys created

MALE_1: from essentially a user generated content,

MALE_1: this is a huge departure

MALE_1: from what you've done in the past.

MALE_1: Why this time take content from your customers?

Nick: Well, hero seven black,

Nick: uh, has a breakout new feature called hyper smooth.

Nick: It's the best ever in camera video stabilization.

Nick: And what that means is it makes it easy for

Nick: an average user to capture

Nick: really professional looking content,

Nick: to the point where we thought it would

Nick: be really fun to challenge our customers.

Nick: Owners of hero 7 black to go out and

Nick: shoot this year's [NOISE],

Nick: uh, highlight reel for us, you know, typically,

Nick: our internal media team goes and shoots or highlight

Nick: reel and they're professionals

Nick: and they know how to get the right shot,

Nick: uh, but to really prove how, uh,

Nick: easy heroes 7 black makes it to get stunning footage.

Nick: We asked our customers to do it and we, as you mentioned,

Nick: we were paying them a million bucks that they get to

Nick: share and the resulting video is insane

Nick: and I don't think that we're going to

Nick: shoot a highlight video

Nick: again internally when our customers

Nick: can view such an amazing job doing it.

MALE_1: Do you think that GoPro can see a second wind

MALE_1: if you will of trying to become a media company?

Nick: [NOISE] Ah, that's not an initiative for us,

Nick: although in many ways our brand is

Nick: synonymous with, uh, incredible content.

Nick: Uh, our brand is really built on top of

Nick: our customers capturing and sharing

Nick: amazing experiences with their GoPro.

Nick: Uh, so, in this way,we are a media brand.

Nick: It's just that instead of generating revenue, uh,

Nick: by selling advertising, uh,

Nick: we generate revenue by selling cameras.

Nick: Uh, so, it's a- it's

Nick: a unique approach to the business and we're really

Nick: focused on scaling the amount

Nick: of amazing user generated content,

Nick: uh, that, that, uh,

Nick: is shot on GoPro and,

Nick: and using that to build our brand internationally.

MALE_1: Nick is speaking of this amazing content,

MALE_1: you guys got 25,000 submissions for this highlight video.

MALE_1: How did you narrow it down?

Nick: [NOISE] Well, it- it's not easy because,

Nick: um, we have some of

Nick: the most active and passionate human beings

Nick: on Earth as our customers.

Nick: They're travelling the world, they're

Nick: doing really interesting things.

Nick: Ah, as you can see from the- from

Nick: the highlight reel, uh, and it,

Nick: it makes for an interesting challenge to

Nick: pick the best of the best and for sure

Nick: there are so many amazing clips and

Nick: amazing moments that didn't make- make the cut,

Nick: but now we have a GoPro Awards program, where,

Nick: uh, the majority of marketing that you see

Nick: film GoPro is actually shot by our customers.

Nick: Unless it's a studio product shot of the camera, um,

Nick: the- any visual that you see in our marketing is shot on

Nick: a GoPro and more often than not it's

Nick: actually shot by our customers,

Nick: and we pay our customers when they

Nick: do share their content with us when we use in marketing.

Nick: So, even if the customer shopped didn't make it in

Nick: the highlight reel there's a good chance you're going to

Nick: see it showing up at [inaudible 00:03:07] some Ansen.

MALE_1: Uh, Nick, I am a GoPro customer, uh,

MALE_1: I do own one of the devices, but look,

MALE_1: the big thing that I often kind of quip with right

MALE_1: now is trying to figure out how

MALE_1: you're producing these devices,

MALE_1: how you're manufacturing them,

MALE_1: the most recent news of

MALE_1: course that you announced the plan to

MALE_1: move most US bound camera production out of China,

MALE_1: uh, can you tell us more about what went

MALE_1: behind that decision? [NOISE].

Nick Woodman: Well, ah, you know there's a risk of being

Nick Woodman: included on a terrorist list and having our products ah,

Nick Woodman: that we import into the US for resale and

Nick Woodman: the US being subject to attacks.

Nick Woodman: Ah, and that forced us to,

Nick Woodman: we're not currently on the list

Nick Woodman: and so, there are, there are that's,

Nick Woodman: that's not currently impacting our business but the ah,

Nick Woodman: concern of that happening, ah,

Nick Woodman: served as a catalyst for us to consider ah,

Nick Woodman: new approaches to our supply chain ah,

Nick Woodman: that could both prevent us

Nick Woodman: from being taxed, but also could ah,

Nick Woodman: perhaps be a more efficient way of,

Nick Woodman: of producing our products period

Nick Woodman: and be better for our business.

Nick Woodman: And we determined that tariff or no tariff,

Nick Woodman: there are opportunities to

Nick Woodman: produce our product more efficiently ah,

Nick Woodman: and it's just smart diversification for our business.

Nick Woodman: And so, ah, we are by summer of 2019,

Nick Woodman: we're going to be moving the majority of

Nick Woodman: our US-bound camera production out of China.

Speaker 1: Should American consumers-

Nick Woodman: We still, we still will be producing ah,

Nick Woodman: our international bound products in China.

Nick Woodman: Cause we've got a lot of great manufacturing

Nick Woodman: partners there and ah,

Nick Woodman: that's an important part of our business.

Speaker 1: Well, let's talk a little bit more

Speaker 1: about the business because in

Speaker 1: the latest investor letter ah, you wrote,

Speaker 1: "We expect to achieve profitability in

Speaker 1: Q4 and for the second half of 2018."

Speaker 1: That was on November 1st.

Speaker 1: Are you still on track for

Speaker 1: profitability for this quarter?

Nick Woodman: Yeah. I can't provide an update to

Nick Woodman: that guidance, ah, but ah,

Nick Woodman: what we have shared is that we- we do believe that ah,

Nick Woodman: we will be profitable for

Nick Woodman: the fourth quarter and for the second half of the year.

Nick Woodman: That's still our goal.

Nick Woodman: Ah, and we've been having a very good Q4 ah, so far.

Nick Woodman: The launch of the HERO7 line

Nick Woodman: of cameras is very successful.

Nick Woodman: HERO7 Black ah, is the- has been the

Nick Woodman: best selling new GoPro in our history since launch.

Nick Woodman: And we had a very strong ah,

Nick Woodman: Cyber Black Friday and

Nick Woodman: Cyber Monday period. So, so far so good.

Nick Woodman: We still have the rest of December,

Nick Woodman: which is a really important period of sales for us ah,

Nick Woodman: but we're feeling good about entering ah,

Nick Woodman: exiting strong and entering ah, 2019.

Nick Woodman: Ah, we shared that we believe will be

Nick Woodman: break-even or profitables in Q1.

Nick Woodman: So, that's a great start,

Nick Woodman: a much better start than we've had in any years at GoPro.

Speaker 2: Ah, a great start indeed and,

Speaker 2: and congrats to see you on the team on the success that

Speaker 2: you are seeing with the HERO7 Black, ah,

Speaker 2: but what's to say that we won't see

Speaker 2: the same inventory issues later on

Speaker 2: down the line that we've seen with some

Speaker 2: of the previo- previous models?

Nick Woodman: Well, GoPro's previous ah,

Nick Woodman: inventory challenges were related to either product ah,

Nick Woodman: challenges, a- a product

Nick Woodman: that wasn't right for the market ah,

Nick Woodman: or pricing that was too high.

Nick Woodman: And so, we've learned that lesson.

Nick Woodman: We understand that we need to come out with

Nick Woodman: new products every holiday season to

Nick Woodman: excite people and there's very specific price points

Nick Woodman: that we need to hit if we want

Nick Woodman: to sell through as much ah,

Nick Woodman: product as we plan.

Nick Woodman: And so, this year we got that right, lesson's learned.

Nick Woodman: That's why we're having a, a strong Q4 to date.

Nick Woodman: It's why we have the guidance that we've provided.

Nick: And, you know, the-

Nick: the reason why we shouldn't expect that again

Nick: this time is because we've got

Nick: a plan that's based on learning from our mistakes.

Nick: It's working and, ah,

Nick: we're proving that there's significant

Nick: demand for our products when we've

Nick: got exciting new products at the right price point.

Speaker 1: Nick, in the past you've, ah,

Speaker 1: expressed that you've been open to being

Speaker 1: acquired by a larger company,

Speaker 1: are you still in a position right now where you're

Speaker 1: interested in open to being acquired?

Speaker 1: And if yes, what company would that be?

Nick: [LAUGHTER] Well, what I can't tell you is, ah,

Nick: it's any CEO's job to be open to

Nick: the idea of combining forces with another company, ah,

Nick: if that other, ah,

Nick: company can help you scale your vision and-

Nick: and grow your business in

Nick: a way that you- you couldn't do it alone.

Nick: So, of course that's

Nick: something that would be- we would be open to.

Nick: It's also my job to provide return to shareholders,

Nick: and if we can provide a better return to

Nick: shareholders as a part of another company,

Nick: and of course that's something that we would consider.

Nick: Ah, but what I'm happy to report is that,

Nick: our own strategy to restore growth and

Nick: profitability to GoPro is working.

Nick: We're really excited about

Nick: the current products that we've got out in the market,

Nick: and we're really excited about

Nick: our future roadmap as well.

Nick: So, it's- it's- it's

Nick: a lot of fun right now at GoPro to

Nick: be having a strong first quarter,

Nick: and we are really looking forward to 2019 as well.

Speaker 2: Nick, In terms of surfer, I'm a snowboarder.

Speaker 2: We both have heard

Speaker 2: the message of GoPro which resounded with us,

Speaker 2: but beyond this market of extreme sports and

Speaker 2: other athletics where you see

Speaker 2: a lot of people really gravitating towards the product,

Speaker 2: what industry could this be applicable to next?

Speaker 2: Are you thinking health care,

Speaker 2: especially as we've seen

Speaker 2: some consumer tech companies really lean into that?

Nick: You know, our research shows that there

Nick: is so much untapped opportunity in

Nick: serving in GoPro serving as

Nick: a solution for active people around the world.

Nick: Now our core mission, ah,

Nick: remains the same too- and that is to help active people

Nick: capture and share experiences that

Nick: they wouldn't otherwise be able to without a GoPro.

Nick: So, in this way we're really here to

Nick: serve doers in the world.

Nick: People who are- who are out

Nick: there doing stuff that have a passion,

Nick: have an interest, and they're

Nick: pursuing it and they want to capture and share it.

Nick: Ah, in the total addressable market

Nick: that we've identified,

Nick: we- we only actually have, ah,

Nick: a little bit more than 50 percent awareness

Nick: of GoPro amongst those consumers.

Speaker 1: Right.

Nick: So, there's a lot of opportunity to grow

Nick: awareness of GoPro especially internationally.

Nick: Ah, then also hyper

Nick: specialized GoPro for those consumers

Nick: around the world that really,

Nick: ah, need us the most.

Nick: So, rather than try to go abroad and try

Nick: to get into different industries and so forth, ah,

Nick: we're more focused on doing

Nick: a better job of driving awareness,

Nick: and super serving, ah,

Nick: customers around the world,

Nick: that could benefit from the solutions that we provide.

Nick: There's still a lot of growth opportunity there.

Speaker 1: All right Nick Woodman, CEO of GoPro.

Speaker 1: He's also the founder, he's the guy

Speaker 1: who invented the GoPro.

Speaker 1: Thank you so much for joining us.

Speaker 1: We appreciate your time.

Nick: Thanks very much. Right back at you.