S-1 1 d552193ds1.

htm FORM S-1

Table of Contents
AsfiledwiththeSecuritiesandExchangeCommissiononMay19,2014.
RegistrationNo.333

UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549


FORMS1
REGISTRATIONSTATEMENT
Under
TheSecuritiesActof1933


GOPRO,INC.
(Exactnameofregistrantasspecifiedinitscharter)

Delaware 3600 770629474
(Stateorotherjurisdictionof
incorporationororganization)
(Primarystandard
industrialcodenumber)
(I.R.S.employer
identificationno.)


Copiesto:
GoPro,Inc.
3000ClearviewWay
SanMateo,California94402
(650)3327600
(Address,includingzipcode,andtelephonenumber,includingareacode,ofRegistrantsprincipalexecutiveoffices)


NicholasWoodman
ChiefExecutiveOfficerandPresident
GoPro,Inc.
3000ClearviewWay
SanMateo,California94402
(650)3327600
(Name,address,includingzipcode,andtelephonenumber,includingareacode,ofagentforservice)


Copiesto:

MichaelT.Esquivel,Esq. SharonZezima,Esq. RobertG.Day,Esq.
CynthiaC.Hess,Esq.
DanielJ.Winnike,Esq.
Fenwick&WestLLP
801CaliforniaStreet
MountainView,CA94041
(650)9888500
GoPro,Inc.
3000ClearviewWay
SanMateo,California94402
(650)3327600

AllisonB.Spinner,Esq.
WilsonSonsiniGoodrich&Rosati
ProfessionalCorporation
650PageMillRoad
PaloAlto,CA94304
(650)4939300


Approximatedateofcommencementofproposedsaletothepublic:AssoonaspracticableaftertheeffectivedateofthisRegistrationStatement.


IfanyofthesecuritiesbeingregisteredonthisFormaretobeofferedonadelayedorcontinuousbasispursuanttoRule415undertheSecuritiesActof1933,checkthefollowingbox.
IfthisFormisfiledtoregisteradditionalsecuritiesforanofferingpursuanttoRule462(b)undertheSecuritiesActof1933,checkthefollowingboxandlisttheSecuritiesActregistrationstatementnumberofthe
earliereffectiveregistrationstatementforthesameoffering.
IfthisFormisaposteffectiveamendmentfiledpursuanttoRule462(c)undertheSecuritiesActof1933,checkthefollowingboxandlisttheSecuritiesActregistrationstatementnumberoftheearliereffective
registrationstatementforthesameoffering.
IfthisFormisaposteffectiveamendmentfiledpursuanttoRule462(d)undertheSecuritiesActof1933,checkthefollowingboxandlisttheSecuritiesActregistrationstatementnumberoftheearliereffective
registrationstatementforthesameoffering.
Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anonacceleratedfiler,orasmallerreportingcompany.Seedefinitionsoflargeacceleratedfiler,acceleratedfiler
andsmallerreportingcompanyinRule12b2oftheExchangeAct.(Checkone):

Largeacceleratedfiler Acceleratedfiler
Nonacceleratedfiler (Donotcheckifasmallerreportingcompany) Smallerreportingcompany
CALCULATIONOFREGISTRATIONFEE
TitleofEachClassof
SecuritiestobeRegistered
Proposed
Maximum
Aggregate
OfferingPrice(1)(2)
Amountof
RegistrationFee
ClassAcommonstock,parvalue$0.0001pershare $100,000,000 $12,880

(1) EstimatedsolelyforthepurposeofcalculatingtheamountoftheregistrationfeepursuanttoRule457(o)undertheSecuritiesActof1933.
(2) Includestheofferingpriceofsharesthattheunderwritershavetheoptiontopurchasetocoveroverallotments,ifany.


TheRegistrantherebyamendsthisRegistrationStatementonsuchdateordatesasmaybenecessarytodelayitseffectivedateuntiltheRegistrantshallfileafurtheramendmentthat
specificallystatesthatthisRegistrationStatementshallthereafterbecomeeffectiveinaccordancewithSection8(a)oftheSecuritiesActof1933oruntiltheRegistrationStatementshallbecome
effectiveonsuchdateastheCommission,actingpursuanttosaidSection8(a),maydetermine.


Table of Contents

Theinformationinthisprospectusisnotcompleteandmaybechanged.Neitherwenorthesellingstockholdersmaysellthesesecuritiesuntilthe
registrationstatementfiledwiththeSecuritiesandExchangeCommissioniseffective.Thisprospectusisnotanoffertosellthesesecurities,andneither
wenorthesellingstockholdersaresolicitinganoffertobuythesesecuritiesinanystatewheretheofferorsaleisnotpermitted.

Subjecttocompletion,dated,2014
Prospectus
shares
ClassAcommonstock
ThisisaninitialpublicofferingofsharesofClassAcommonstockbyGoPro,Inc.WearesellingsharesofClassAcommonstock,andtheselling
stockholdersaresellingsharesofClassAcommonstock.Wewillnotreceiveanyproceedsfromthesaleofsharesbythesellingstockholders.The
estimatedinitialpublicofferingpriceisexpectedtobebetween$and$pershare.
Wehavetwoclassesofoutstandingcommonstock,ClassAcommonstockandClassBcommonstock.EachshareofClassBcommonstockisentitledto10
votesandisconvertibleatanytimeintooneshareofClassAcommonstock.TheholdersofouroutstandingClassBcommonstockwillholdapproximately%of
thevotingpowerofouroutstandingcapitalstockfollowingthisoffering,withourexecutiveofficersanddirectorsandtheiraffiliatesholdingapproximately%and
NicholasWoodman,ourChiefExecutiveOfficer,holdingapproximately%.
Priortothisofferingtherehasbeennopublicmarketforourcommonstock.WehaveappliedtolistourClassAcommonstockontheNASDAQGlobalSelectMarket
underthesymbolGPRO.
Weareanemerginggrowthcompanyasdefinedunderthefederalsecuritieslaws.InvestinginourClassAcommonstockinvolvesahighdegreeofrisk.
SeeRiskfactorsbeginningonpage17.

Pershare Total
Initialpublicofferingprice $ $
Underwritingdiscountsandcommissions(1) $ $
ProceedstoGoPro,Inc.,beforeexpenses $ $
Proceedstosellingstockholders $ $

(1) SeeUnderwritingforadescriptionofthecompensationpayabletotheunderwriters.
Weandthesellingstockholdershavegrantedtheunderwritersanoptionforaperiodof30daystopurchasefromusandthemuptoadditionalsharesof
ClassAcommonstock.
NeithertheSecuritiesandExchangeCommissionnoranystatesecuritiescommissionhasapprovedordisapprovedofthesesecuritiesorpassedonthe
adequacyoraccuracyofthisprospectus.Anyrepresentationtothecontraryisacriminaloffense.
TheunderwritersexpecttodeliverthesharesofClassAcommonstocktopurchaserson,2014.

J.P.Morgan

Citigroup

Barclays
Allen&CompanyLLC

Stifel

Baird
MCSCapitalMarkets

PiperJaffray

RaymondJames
,2014
Table of Contents
GoproBeaHERO.
Table of Contents
EnablingTheWorldToCaptureAndShareItsPassion.GoproBeaHERO.
Table of Contents
Tableofcontents
Prospectussummary 1
Riskfactors 17
Specialnoteregardingforwardlookingstatementsandindustrydata 43
Useofproceeds 45
Dividendpolicy 45
Capitalization 46
Dilution 49
Selectedconsolidatedfinancialdata 52
Managementsdiscussionandanalysisoffinancialconditionandresultsofoperations 55
Business 87
Management 107
Executivecompensation 115
Certainrelationshipsandrelatedpersontransactions 127
Principalandsellingstockholders 131
Descriptionofcapitalstock 134
Shareseligibleforfuturesale 140
CertainmaterialU.S.federalincometaxconsiderationsfornonU.S.holdersofClassAcommonstock 143
Underwriting 148
Conflictsofinterest 156
Legalmatters 156
Experts 156
Whereyoucanfindadditionalinformation 156
Indextoconsolidatedfinancialstatements F1

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YoushouldrelyonlyontheinformationcontainedinthisprospectusorcontainedinanyfreewritingprospectusfiledwiththeSecuritiesandExchangeCommission.
Neitherwe,thesellingstockholdersnortheunderwritershaveauthorizedanyonetoprovideyouwithadditionalinformationorinformationdifferentfromthatcontained
inthisprospectusorinanyfreewritingprospectusfiledwiththeSecuritiesandExchangeCommission.Wetakenoresponsibilityfor,andcanprovidenoassurance
astothereliabilityof,anyotherinformationthatothersmaygiveyou.Weandthesellingstockholdersareofferingtosell,andseekingofferstobuy,ourClassA
commonstockonlyinjurisdictionswhereoffersandsalesarepermitted.Theinformationcontainedinthisprospectusisaccurateonlyasofthedateofthis
prospectus,regardlessofthetimeofdeliveryofthisprospectusoranysaleofsharesofourClassAcommonstock.Ourbusiness,financialcondition,resultsof
operationsandprospectsmayhavechangedsincethatdate.
Throughandincluding,2014(25daysafterthecommencementofthisoffering),alldealersthatbuy,sellortradesharesofourClassAcommonstock,
whetherornotparticipatinginthisoffering,mayberequiredtodeliveraprospectus.Thisdeliveryrequirementisinadditiontothedealersobligationtodelivera
prospectuswhenactingasunderwritersandwithrespecttotheirunsoldallotmentsorsubscriptions.
ForinvestorsoutsidetheUnitedStates:Neitherwe,thesellingstockholdersnoranyoftheunderwritershavedoneanythingthatwouldpermitthisofferingor
possessionordistributionofthisprospectusinanyjurisdictionwhereactionforthatpurposeisrequired,otherthanintheUnitedStates.PersonsoutsidetheUnited
Stateswhocomeintopossessionofthisprospectusmustinformthemselvesabout,andobserveanyrestrictionsrelatingto,theofferingofthesharesofClassA
commonstockandthedistributionofthisprospectusoutsidetheUnitedStates.

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Prospectussummary
Thissummaryhighlightsselectedinformationcontainedelsewhereinthisprospectus.Thissummarydoesnotcontainalltheinformationyoushouldconsider
beforeinvestinginourClassAcommonstock.Youshouldreadtheentireprospectuscarefully,includingRiskfactors,Managementsdiscussionandanalysis
offinancialconditionandresultsofoperationsandourconsolidatedfinancialstatementsandrelatednotesincludedelsewhereinthisprospectus,beforemaking
aninvestmentdecision.
Companyoverview

GoProistransformingthewayconsumerscapture,manage,shareandenjoymeaningfullifeexperiences.Wedothisbyenablingpeopletocapturecompelling,
immersivephotoandvideocontentofthemselvesparticipatingintheirfavoriteactivities.Ourcustomersincludesomeoftheworldsmostactiveandpassionate
people.ThevolumeandqualityoftheirsharedGoProcontent,coupledwiththeirenthusiasmforourbrand,arevirallydrivingawarenessanddemandforour
products.Todate,wehavegeneratedsubstantiallyallofourrevenuefromthesaleofourcamerasandaccessoriesandwebelievethatthegrowingadoptionof
ourcapturedevicesandtheengagingcontenttheyenable,positionGoProtobecomeanexcitingnewmediacompany.
Whatbeganasanideatohelpathletesdocumentthemselvesengagedintheirsporthasbecomeawidelyadoptedsolutionforpeopletodocumentthemselves
engagedintheirinterests,whatevertheymaybe.Fromextremetomainstream,professionaltoconsumer,GoProhasenabledtheworldtocaptureandshareits
passions,andtheworld,inturn,isenablingGoProtobecomeoneofthemostexcitingandaspirationalcompaniesofourtime.
In2011,2012,2013andthethreemonthsendedMarch31,2014,wegeneratedrevenueof$234.2million,$526.0million,$985.7millionand$235.7millionand
reportednetincomeof$24.6million,$32.3million,$60.6millionand$11.0million,respectively.


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Ourbusinessfocus
Enablingengagingcontentisatthecoreofourbusiness.Wedevelophardwareandsoftwaresolutionstoalleviateconsumerpainpointsassociatedwith
capturing,managing,sharingandenjoyingengagingcontent.
Capture
Ourmountableandwearablecamerasandaccessories,whichwerefertoascapturedevices,enableprofessionalqualitycaptureandexceptionalversatilityat
affordableprices.Ourproductssmall,lightweight,yetdurabledesignsmakethemeasytouseeveninhighlychallengingsituations.Inaddition,ourremote
controlsolutionsandourseamlessintegrationwithmobiledevicesviatheGoProApp,ourmobileapplication,enableengagingselfcaptureduringvirtuallyany
activity.
Sincelaunchingourfirsthighdefinition,orHD,capturedeviceinJuly2009,wehavesoldmorethan8.5millionHDcameras,includingmorethan3.8millionin
2013.Wesellourproductsinover100countriesandthroughmorethan25,000retailstores.AccordingtoTheNPDGroupsRetailTrackingService,GoProwas
the#1sellingcamcorder(bydollarsandunits)andatopsixsellingcameraaccessorycompany(bydollarsandunits)intheUnitedStatesin2013.Also
accordingtoTheNPDGroup,ourHEROcamerasrepresenteda45%shareoftheU.S.camcordermarket(bydollars)in2013,upfroman11%shareduring
December2011andourcameraaccessoriesrepresenteda4%shareoftheU.S.cameraaccessorymarket(bydollars)in2013.
Manage
Weseektoeliminatethepainpointofmanagingcontentbymakingiteasyforourcustomerstotransferfootagefromtheircamerastoasystemthatefficiently
organizestheircontentandfacilitatesconvenienteditingandsharing.GoProStudio,ourdesktopapplication,andtheGoProApp,reflecttheearlystagesofour
contentmanagementplatformstrategy.
GoProStudioenablesourcustomerstoquicklyeditsimpleorcomplexvideosandcreatevideosfromtimelapsephotosequences.AsofMarch31,2014,there
hadbeenmorethan4.3milliondownloadsofGoProStudio.Duringthefirstquarterof2014,ourcustomersintheaggregateexported,onaverage,20,000videos
perdayusingGoProStudio.
Inadditiontofacilitatingfullcameracontrolfromamobiledevice,theGoProAppenablesacustomertoeasilyandwirelesslycopyfootagefromaGoProcamera
toamobiledeviceforstorageandsharingwithoutacomputer.
Share
Byfacilitatingthecapture,managementandeditingofengagingphotosandvideos,weareultimatelyhelpingourcustomerssharemorecompellingpersonal
content.GoProStudioandtheGoProAppfacilitatethepostingofphotosandvideosdirectlytoleadingsocialnetworksandcontentplatforms,including
Facebook,Instagram,Twitter,VimeoandYouTube.ThousandsofGoProcustomerphotosandvideosareshareddaily,drivingawarenessandenthusiasmfor
ourcustomerscontent,aswellasforGoProsownbrandandproducts.In2013,ourcustomersuploadedtoYouTubeapproximately2.8yearsworthofvideo
featuringGoProinthetitle.AlsoonYouTube,inthefirstquarterof2014,therewasanaverageof6,000dailyuploadsandmorethan1.0billionviews
representingover50.0millionwatchedhoursofvideoswithGoProinthetitle,filename,tagsordescription.


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Enjoy
GoProenablestheproductionofentertainingandinspiringcontent,bothintheformofourcustomersusergeneratedcontent,orUGC,aswellasGoProoriginally
producedcontent,thatwecollectivelyrefertoasGoProprogramming.Thisoftenfeaturesprofessionalathletes,celebritiesandentertainers,aswellaseveryday
peopleengagedintheirfavoriteactivities.HavingrecognizedtheroleGoProcontentplaysinattractingandexcitingconsumers,weareexpandingthedistribution
ofGoProprogrammingtoengageandbuildrelationshipswitheventhoseconsumerswhodonotownaGoProcapturedevice.
WedistributeGoProprogrammingthroughwhatwerefertoastheGoProNetwork,acollectionofGoProChannelshostedonavarietyofplatforms,includingthe
following:

Facebook:over7.2millionlikes

Instagram:over2.0millionfollowers

Twitter:over950,000followersand

YouTube:over450millionvideoviews,over1.8millionsubscribersandranked#1ontheBrandChannelLeaderboardforJanuarythroughMarch2014.
AsofDecember31,2013,wehadnotderivedrevenuefromthedistributionof,orsocialengagementwith,ourcontentontheGoProNetwork.However,weplan
topursuenewrevenueopportunitiesfromthedistributionofengagingGoProcontentinthenearterm.Forexample,inthefirstquarterof2014,weenteredintoan
agreementwithMicrosofttodevelopandlaunchtheGoProChannelonXboxLive,aleadingdeliverysystemforIPvideostreamsonconnectedtelevisions,that
willprovideuswithaccesstoadvertisingrevenue,feesfromthirdpartysponsorshipoftheGoProChannelandtheabilitytosellourcapturedevicesdirectlyto
consumersastheywatchGoProprogramming.WeexpecttobeginearningrevenuefromGoProChanneladvertisingandsponsorshipopportunitiesonXboxLive
andGoProChanneladvertisingonYouTubeandVirginAmericainthesecondquarterof2014.WedonotexpecttherevenueearnedfromtheseGoProChannels
tobematerialtousin2014.
Thevirtuouscycle
Webelieveourbusinessfocusresultsinavirtuouscycleandaselfreinforcingconsumeracquisitionmodelthatfuelsourgrowth.Ourproductsinthehandsof
ourcustomersenablecompelling,authenticcontentthatorganicallyincreasesawarenessforGoProanddrivesdemandforourproducts.
TheGoProopportunity
WebelievethefollowingcreateanattractivemarketopportunityforGoPro.
Consumerswantaneasywaytoselfcaptureengagingcontent
BeforeGoPro,ifpeoplewantedcompelling,highqualityfootageofthemselvesengagedinactivities,theyneededaskilledthirdpartycameraoperatorandoften
requiredexpensive,fragileandcumbersomecameraequipment.


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GoProhasenabledaneweraofconvenientselfdocumentation.Ourproductshighperformancefeatures,easeofuseandversatility,madeavailableat
affordablepricepoints,provideapremiumqualityselfcapturesolutionthatappealstobothconsumersandprofessionals.
Consumerswantaquick,easywaytomanage,editandsharetheircontent
Managing,editingandsharingengaging,highqualitycontentoftenrequiressubstantialtime,resourcesandskill.GoProStudioandtheGoProAppbeginto
addressthesepainpointsbyofferingintuitive,easytousetoolsformanaging,editingandsharingprofessionalgradefootage.Associalmediaandcontent
sharingoutletslikeFacebook,Instagram,Twitter,VimeoandYouTubeproliferate,weseeanopportunitytofurtherdevelopourcurrentlyseparatesoftware
solutionsintoanintegratedandenhancedGoProcontentmanagementplatform.
Consumerscontinuetoreplacetraditionalcameraswithmobiledevices
Asmobiledevicescontinuetodisplacetraditionalcamerasandcamcorders,webelieveconsumerswillseekcapturedevicesthatofferdifferentiatedcapabilities
likeGoProproducts.Moreover,webelievemobiledevicescomplementourproducts.WiththeGoProApp,mobiledevicescanbeusedtoremotelycontrolGoPro
cameras,therebyoptimizingcustomersabilitytoselfcapturehighqualitycontentofthemselvesandtheiractivities.TheGoProAppalsoenablescustomersto
manageandsharetheircapturedcontentwithouttheneedforacomputer.Furthermore,smartphonesandtabletsexpandconsumersabilitytoaccessandenjoy
GoProcontentonline.
Consumerswantcompellingcontentondemand
WebelieveconsumerdemandforcompellingcontentcombinedwithGoProsselfcapturetechnologyandtheexplosivepopularityofsocialmediacreatea
significantmediaopportunityforGoPro.GoProprogramminghasdevelopedadedicatedandgrowingaudience.WebelieveGoProiswellpositionedtobecome
thefirstmediacompanywhosecontentiscapturedexclusivelyusingitsownhardware.WewillcontinuetoexpandourdistributionofGoProprogrammingandthe
reachoftheGoProNetworktonewplatformssuchasXboxLive.
WhatmakesGoProunique
Categorydefiningselfcapturedevices
Ourcapturedevicesofferourcustomers,bothconsumersandprofessionals,exceptionalcapabilitiesthathaveearnedusmultipleawards,includinga2013
technicalEmmyAward.Ourcamerassmall,lightweight,yetdurabledesignsmakethemeasytouseeveninhighlychallengingsituations,andalongwiththeir
affordableprices,encourageadoptionandexperimentationthatoftenleadstointerestingcontent.Inaddition,ourbroadportfolioofmountableandwearable
accessoriesenablesmultipleusecasesandfacilitatesadifferentiatedselfcaptureexperiencethanthatoftraditionalcamerasandsmartphones.Ourproducts
havebeenembracedbymediaprofessionalsandareusedinproductionbyTheDiscoveryChannel,ESPNandothernetworks.
Passionateconsumerandcontentsupportedbusinessmodel
OurbusinessmodelissupportedbysomeoftheworldsmostactiveandinfluentialconsumerswhouseGoProtocaptureandsharetheirlifeexperiencesand
interests.Theirsharedcontent


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excitesandinspiresothersaroundtheworldtodothesame,whichwebelieve,leadstohighercameraandaccessorysalesand,inturn,amassivevolumeof
UGC.
Bestinclassmarketingrelationships
GoProhasestablishedmarketingrelationshipswithmorethan120athletes,celebritiesandentertainers,andsponsorsmorethan90sportingeventsannually,
includingtheXGames,SupercrossandASPworldsurfingchampionshipevents.WepartnerwithathletessuchasOlympicgoldmedalwinningsnowboarder
ShaunWhiteand11timeworldchampionsurferKellySlater,aswellasentertainers,suchasFooFighters,JanesAddiction,GuyFieriandAltonBrown,and
producersofpopulartelevisionshows.Wealsohavepromotionalagreementswithrecreationaldestinationresorts,suchasallVailCompanyresortsandthe
WhistlerBlackcombresort.Validatingthequalityofourproductsandourgrowingroleasamediabrand,weareapproachedbyprofessionalsandorganizations
seekingtoleverageGoProasamediaplatformtodistributetheirownbrandedcontentcapturedwithourproducts.
Differentiatedsalesstrategywithspecialtyretailers
Sinceourfirstsalein2004,ourdistributionstrategyhasfocusedonspecialtyretailers,includingsurf,skiandmotorsportsoutlets,wherewebelieveGoProis
oftentheonlycapturedevicesoldinstore.Ourearly,firstmoverrelationshipswiththeseretailersandtheircustomershelpedusestablishanauthenticitythat
remainsacornerstoneofourbusiness.Thisfocusonthespecialtyretailchannelhasalsoenabledustodevelopahightouch,differentiatedsalesnetworkof
morethan25,000storesgloballythatwebelieveisdifficulttoreplicate.
Strong,globalbrand
Overthepast10years,wehavebuiltapowerfulbrandthatisemblematicofthepursuitandcelebrationofhumanpassion.Ourtrademarks,GoProandBea
Hero,arerelevantandaspirationaltoconsumers,asreflectedinthevarietyofourcustomerssharedcontent,whichspansfromourrootsinactionsportstonow
includefamily,travel,music,scienceandotherareasofhumaninterest.Thestrengthofourbrandisfurtherevidencedbyourcustomersfrequenttagging,titling
anddescribingoftheirfootageasGoProcontent.
Acompanyculturebuiltaroundourvision
GoProwasfoundedbydedicatedsportsenthusiastswhowantedabetterwaytodocumentandsharetheirpersonalpassions.Aswehavegrown,wehave
remainedfocusedonhiringemployeeswhosharethissameethos,whatevertheirpersonalinterestsmaybe.Wehavebuiltateamfocusedondeveloping
innovativesolutionstotheproblemsweencounterduringourownselfcapturepursuits,andwebelieveouremployeessharedpassion,experienceandvision
representanincreasinglyimportantcompetitiveadvantage.


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Ourstrategy
Weintendtoexpandourexistingcapturebusinesswithcontentmanagement,editingandsharingsolutionstoprovideincreasedvaluetoourcustomers,
introducenewrevenuestreamsandfurtherdifferentiateusfromcompetitors.Keycomponentsofourstrategyincludethefollowing:
Continuetointroduceinnovativecapturedevices
Werelentlesslypursueourgoalofdevelopingtheworldsmostversatilecapturedevicesandenablingselfcaptureduringanyactivity.Tostayattheforefrontof
ourindustry,wearefocusedoncontinuedproductinnovationandleadership.Areasofinnovationincludecustomsensoranddigitalsignalprocessing
technologiesaswellascustomlens,audio,batteryandaccessorydesign.
Developseamlesscontentmanagement,editingandsharingsolutions
Wearedevelopinganintegratedcontentmanagementplatformtosimplifytheorganizing,editingandsharingofengagingcontent.OurOctober2013acquisition
ofGeneralThingsInc.,awebdevelopmentfirm,hasprovideduswithadditionalsoftwarecompetenciestoacceleratethisprocess.Inaddition,wemayseekto
leverageourcontentmanagementplatformasanewrevenuestream.
Scaleasamediabrand
WeareinvestingtoscaleGoProasamediaentityanddevelopnewrevenueopportunitiesbyincreasingproductionofGoProoriginallyproducedcontentwhile
simultaneouslyincreasingtheaggregationandredistributionofourcustomersbestofUGC.Additionally,weareinvestingtodevelop,distributeandpromote
GoProprogrammingonadditionalpartnerplatformssuchasVirginAmericaandXboxLive.
Expandintonewverticalmarkets
Leveragingtheproductdevelopmentandsalesandmarketingstrategiesthathaveenabledustobealeaderinverticalmarketssuchasskiing,surfingand
motorsports,wearetargetingnewverticalmarketswherewebelieveGoProcanauthenticallydelivermeaningfulsolutionstoconsumers.
Growinternationally
Webelievethatinternationalmarketsrepresentasignificantgrowthopportunityforus.Weplantocapitalizeonthestrengthofourbrandtoincreaseourpresence
worldwidethroughadditionalretailersandstrategicdistributionpartnerships.
Expandinstorebrandandsalesfootprint
WeinvestheavilytoproduceGoProbranded,videoenabledpointofpurchase,orPOP,merchandisingdisplaysthatwemakeavailabletonearlyalloftheretail
outletsthroughwhichourproductsaresold.Havingrecognizedoursalessuccessinthesestores,coupledwithourexpandingproductportfolio,weareworking
withourretailerstofurtherexpandthefootprintofourPOPdisplays.


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Extendstrategicmarketingrelationships
Weformrelationshipswithmarketingpartnersthatuseourproductsandservicestopromotetheirownbrandsandproperties.Asaresult,GoProbenefitsnot
onlyfromtheexpandedbrandawarenessthattraditionallycomeswithsuchmarketingpartnerships,butalsofrombeingrecognizedasourpartnerstechnology
enabler.WewillcontinuedevelopingandleveragingstrategicmarketingrelationshipstoincreaseGoProbrandawareness.
Expandbrandawarenessthroughincreasedadvertising
Notwithstandingthevisibilitywehavegainedintheconsumermarketswherewehavehistoricallyfocused,webelieveconsumersinmanyothermarketsarenot
familiarwithourbrandandproducts.WebelievethisunderscoresasignificantopportunityforGoProtoexpandawarenessthroughincreasedadvertisingon
television,inprint,online,andonbillboardsandotheroutofhomeadvertising,whilecontinuingtoscaleourpromotionalmarketingeffortsandtradeshow
presence.
Riskfactors
InvestinginourClassAcommonstockinvolvesahighdegreeofrisk.YoushouldcarefullyconsidertheriskshighlightedinthesectiontitledRiskfactors
followingthisprospectussummarybeforemakinganinvestmentdecision.Theserisksinclude:

Weoperateinahighlycompetitivemarketandthesizeandresourcesofsomeofourcompetitorsmayallowthemtocompetemoreeffectivelythanwecan,
whichcouldresultinalossofourmarketshareandadecreaseinourrevenueandprofitability.

Wedependonsalesofourcapturedevicesforsubstantiallyallofourrevenue,andanydecreaseinthesalesoftheseproductswouldharmourbusiness.

Werelyonthirdpartysuppliers,someofwhicharesolesourcesuppliers,toprovidecomponentsforourproducts.

Wedonotexpecttocontinuetogrowinthefutureatthesamerateaswehaveinthepastandprofitabilityinrecentperiodsmightnotbeindicativeoffuture
performance.

Ifoursalesduringtheholidayseasonfallbelowourforecasts,ouroverallfinancialconditionandresultsofoperationscouldbeadverselyaffected.

Wemayhavedifficultyinaccuratelypredictingourfuturecustomerdemand,whichcouldadverselyaffectouroperatingresults.

Oursuccessdependsonourabilitytomaintainthevalueandreputationofourbrand.

Toremaincompetitiveandstimulatecustomerdemand,wemustsuccessfullymanagefrequentproductintroductionsandtransitions.

Wearesubjecttointernationalbusinessuncertainties.

WearehighlydependentonourChiefExecutiveOfficer.


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Ifwedonoteffectivelymaintainandfurtherdevelopoursaleschannels,includingdevelopingandsupportingourretailsaleschannelanddistributors,our
businesscouldbeharmed.

Anymaterialdisruptionofourinformationsystemscouldadverselyaffectouroperatingresults.
Corporateinformation
WewereincorporatedasWoodmanLabs,Inc.inCaliforniaandbegandoingbusinessasGoProinFebruary2004.WereincorporatedinDelawareinDecember
2011andinFebruary2014wechangedournametoGoPro,Inc.Ourprincipalexecutiveofficesarelocatedat3000ClearviewWay,SanMateo,California94402,
andourtelephonenumberis(650)3327600.Ourwebsiteaddressiswww.gopro.com.Theinformationcontainedon,orthatcanbeaccessedthrough,ourwebsite
isnotapartofthisprospectus.InvestorsshouldnotrelyonanysuchinformationindecidingwhethertopurchaseourClassAcommonstock.Wehaveincluded
ourwebsiteaddressinthisprospectussolelyasaninactivetextualreference.
Unlessthecontextindicatesotherwise,asusedinthisprospectus,thetermsGoPro,we,us,ourandtheCompanyrefertoGoPro,Inc.,aDelaware
corporation,anditssubsidiariestakenasawhole,unlessotherwisenoted.
WehaveregisteredanumberoftrademarksincludingGOPRO,HERO,BACPACandCINEFORMandhavefiledwiththeU.S.PatentandTrademarkOffice
toregistertheGoPrologoandGoProBeaHerologo.Thisprospectusalsoincludesreferencestotrademarksandservicemarksofotherentities,andthose
trademarksandservicemarksarethepropertyoftheirrespectiveowners.


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Theoffering
ClassAcommonstockofferedbyus shares

ClassAcommonstockofferedbythesellingstockholders shares

OptiontopurchaseadditionalsharesofClassAcommon
stock
shares(withsharesofClassAcommonstockbeingofferedbyus
andsharesofClassAcommonstockbeingofferedbythesellingstockholders)

ClassAcommonstocktobeoutstandingafterthisoffering shares(sharesiftheoptiontopurchaseadditionalsharesisexercisedinfull)

ClassBcommonstocktobeoutstandingafterthisoffering shares

Totalcommonstocktobeoutstandingafterthisoffering shares(sharesiftheoptiontopurchaseadditionalsharesisexercisedinfull)

Useofproceeds Weexpecttousethenetproceedsfromthisofferingforgeneralcorporatepurposes,including
workingcapital,andtofullyrepayourtermloanunderourcreditfacility,whichhadan
outstandingbalanceof$111.0millionasofMarch31,2014.Wemayalsouseaportionofthe
netproceedstoacquireorinvestincomplementarybusinesses,technologiesorassets.We
willnotreceiveanyoftheproceedsfromthesaleofsharesbythesellingstockholders.

Conflictsofinterest Weexpecttouseatleast5%ofthenetproceedsfromthisofferingtofullyrepayourtermloan
underourcreditfacility,owedbyustoourlenders,includingaffiliatesofJ.P.MorganSecurities
LLC,CitigroupGlobalMarketsInc.andBarclaysCapitalInc.SeeUseofproceedsand
Managementsdiscussionandanalysisoffinancialconditionandresultsofoperations
Liquidityandcapitalresourcesforadditionalinformationregardingourcreditfacility.
Accordingly,thisofferingisbeingmadeincompliancewiththerequirementsofRule5121of
FINRAsconductrules.Thisrulegenerallyprovidesthatifatleast5%ofthenetproceedsfrom
thesaleofsecurities,notincludingunderwritingcompensation,isusedtoreduceorretirethe
balanceofaloanorcreditfacilityextendedbytheunderwritersortheiraffiliates,aqualified
independent


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underwritermeetingcertainstandardssetforthbyFINRAmustparticipateinthepreparationof
thisprospectusandexercisetheusualstandardsofduediligencewithrespectthereto.Piper
Jaffray&Co.isassumingtheresponsibilitiesofactingasthequalifiedindependentunderwriter
inconnectionwiththisofferingandinconductingduediligence.NoneofJ.P.MorganSecurities
LLC,CitigroupGlobalMarketsInc.orBarclaysCapitalInc.willconfirmsalesofthesecurities
toanyaccountoverwhichtheyexercisediscretionaryauthoritywithoutthepriorwritten
approvalofthecustomer.SeeConflictsofinterest.

Votingrights Wehavetwoclassesofauthorizedcommonstock:ClassAcommonstockandClassB
commonstock.TherightsoftheholdersofourClassAandClassBcommonstockare
identical,exceptwithrespecttovotingandconversion.TheholdersofourClassBcommon
stockareentitledto10votespershare,andtheholdersofourClassAcommonstockare
entitledtoonevotepershare.TheholdersofourClassAcommonstockandClassBcommon
stockwillvotetogetherasasingleclassonallmatterssubmittedtoavoteofour
stockholders,unlessotherwiserequiredbylaw.Followingthecompletionofthisoffering,each
shareofourClassBcommonstockwillbeconvertibleintooneshareofourClassAcommon
stockatanytimeandwillconvertautomaticallyuponcertaintransfersorthedatethatthetotal
numberofsharesofClassBcommonstockoutstandingrepresentslessthan10%ofthetotal
numberofsharesofClassAandClassBcommonstockoutstanding.Theholdersofour
outstandingClassBcommonstockwillholdapproximately%ofthevotingpowerofour
outstandingcapitalstockfollowingthisoffering,withourexecutiveofficersanddirectorsand
theiraffiliatesholdingapproximately%,andMr.Woodman,ourChiefExecutiveOfficer,
holdingapproximately%.Theseholderswillhavetheabilitytocontroltheoutcomeof
matterssubmittedtoourstockholdersforapproval,includingtheelectionofourdirectorsand
theapprovalofanychangeincontroltransaction.SeePrincipalandsellingstockholdersand
Descriptionofcapitalstock.


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Directedshareprogram Atourrequest,theunderwritershavereservedforsale,attheinitialpublicofferingprice,upto
3.5%oftheClassAcommonstockofferedherebyforsaletocertainbusinessassociatesof
ours.Noneofourdirectorsorexecutiveofficerswillparticipateinthedirectedshareprogram.
WewillofferthesesharestotheextentpermittedunderapplicableregulationsintheUnited
Statesthroughadirectedshareprogram.ThenumberofsharesofourClassAcommonstock
availableforsaletothegeneralpublicwillbereducedbythenumberofdirectedshares
purchasedbyparticipantsintheprogram.Anydirectedsharesnotpurchasedwillbeofferedby
theunderwriterstothegeneralpubliconthesametermsastheothersharesofourClassA
commonstockofferedhereby.Wehaveagreedtoindemnifytheunderwritersagainstcertain
liabilitiesandexpenses,includingliabilitiesundertheSecuritiesActof1933,asamended,in
connectionwiththesaleofsharesthroughadirectedshareprogram.SeeUnderwriting.

LOYAL3Platform Atourrequest,theunderwritershavereservedupto1.5%oftheClassAcommonstock
offeredherebytobeofferedthroughtheLOYAL3platformattheinitialpublicofferingprice.See
Underwriting.

ProposedNASDAQsymbol GPRO
ThenumberofsharesofourClassAandClassBcommonstocktobeoutstandingafterthisofferingisbasedon112,422,478sharesofcommonstock
outstandingasofMarch31,2014andexcludes:

27,798,919sharesofClassBcommonstockissuableupontheexerciseofstockoptionsoutstandingasofMarch31,2014withaweightedaverageexercise
priceof$3.24pershareand570,000sharesofClassBcommonstockissuablepursuanttooutstandingrestrictedstockunits,orRSUs,underour2010
EquityIncentivePlan,or2010Plan

TheeffectofthecontributionbacktousofanumberofsharesofClassBcommonstockequaltothenumberofsharesweissueuponexerciseofan
outstandingoptionforthepurchaseof6,584,427sharesofClassBcommonstockseeCertainrelationshipsandrelatedpersontransactionsEquitygrants
andcontributionagreements

sharesofClassBcommonstockissuableupontheexerciseofoptionswithanexercisepriceof$pershareandsharesofClassB
commonstockissuableuponsettlementofRSUsgrantedafterMarch31,2014

398,121sharesofClassBcommonstocksubjecttoarightofrepurchasebyusoutstandingasofMarch31,2014

sharesofClassBcommonstocksubjecttoarightofrepurchasebyusissuedafterMarch31,2014


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sharesofClassAcommonstocktobereservedforfutureissuanceunderour2014EquityIncentivePlan,or2014Plan,whichwillbecomeeffective
onthedateimmediatelypriortothedateofthisprospectus.Uponcompletionofthisoffering,anyremainingsharesavailableforissuanceunderour2010Plan
willbeaddedtothesharesreservedunderour2014Planandwewillceasegrantingawardsunderour2010Planand

sharesofClassAcommonstocktobereservedforfutureissuanceunderour2014EmployeeStockPurchasePlan,orESPP,whichwillbecome
effectiveonthedateofthisprospectus.
Our2014PlanandESPPalsoprovideforautomaticannualincreasesinthenumberofsharesreservedundertheplanseachyear,asmorefullydescribedin
ExecutivecompensationEmployeebenefitplans.
Unlessotherwisenoted,allinformationinthisprospectusassumes:

theamendmentofourcertificateofincorporationtoredesignateourcurrentlyoutstandingcommonstockasClassBcommonstockandtocreateanewclass
ofClassAcommonstocktobeofferedandsoldinthisoffering

noexerciseoftheunderwritersoptiontopurchaseuptoadditionalsharesofClassAcommonstockfromusandthesellingstockholdersinthis
offering

theconversionofalloutstandingsharesofourredeemableconvertiblepreferredstockintoanaggregateof30,523,036sharesofourClassBcommonstock
andtheconversionbythesellingstockholdersofsharesofourClassBcommonstockintothesamenumberofsharesofourClassAcommonstock,in
eachcaseinconnectionwiththeclosingofthisoffering

thefilingofourrestatedcertificateofincorporationandtheeffectivenessofouramendedandrestatedbylaws,whichwilloccurinconnectionwiththeclosing
ofthisofferingand

noexerciseofoptions,warrantsorsimilarrightsoutstandingasofthedateofthisprospectus.


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Summaryconsolidatedfinancialdata
ThefollowingtablessummarizeourconsolidatedfinancialdataandshouldbereadtogetherwithSelectedconsolidatedfinancialdata,Managements
discussionandanalysisoffinancialconditionandresultsofoperationsandourconsolidatedfinancialstatements,relatednotesandotherfinancialinformation
includedelsewhereinthisprospectus.
WederivedtheconsolidatedstatementsofoperationsdatafortheyearsendedDecember31,2011,2012and2013andthebalancesheetdataasof
December31,2013fromourauditedconsolidatedfinancialstatementsincludedelsewhereinthisprospectus.Theconsolidatedstatementsofoperationsdatafor
thethreemonthsendedMarch31,2013and2014andtheconsolidatedbalancesheetdataasofMarch31,2014havebeenderivedfromourunaudited
consolidatedfinancialstatementsincludedelsewhereinthisprospectus.Wehavepreparedtheunauditedconsolidatedfinancialstatementsonthesamebasis
astheauditedconsolidatedfinancialstatementsandhaveincludedalladjustments,consistingonlyofnormalrecurringadjustmentsthat,inouropinion,are
necessarytostatefairlythefinancialinformationsetforthinthosestatements.Ourhistoricalresultsarenotnecessarilyindicativeoftheresultsweexpectinthe
future,andourinterimresultsshouldnotnecessarilybeconsideredindicativeofresultsweexpectforthefullyearoranyotherperiod.


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Consolidatedstatementsofoperationsdata:
YearendedDecember31,
Threemonthsended
March31,
(inthousands,exceptpershareamounts) 2011 2012 2013 2013 2014

Revenue $ 234,238 $ 526,016 $ 985,737 $ 255,057 $ 235,716
Costofrevenue(1) 111,683 298,530 623,953 165,628 139,202

Grossprofit 122,555 227,486 361,874 89,429 96,514

Operatingexpenses:
Researchanddevelopment(1) 8,644 36,115 73,737 12,012 28,739
Salesandmarketing(1) 64,375 116,855 157,771 35,673 41,341
Generalandadministrative(1) 10,757 20,899 31,573 6,988 9,878

Totaloperatingexpenses 83,776 173,869 263,081 54,673 79,958

Operatingincome 38,779 53,617 98,703 34,756 16,556
Otherincome(expense),net 12 (407) (7,374) (1,694) (1,625)

Incomebeforeincometaxes 38,791 53,210 91,329 33,062 14,931
Incometaxexpense 14,179 20,948 30,751 10,027 3,882

Netincome $ 24,612 $ 32,262 $ 60,578 $ 23,035 $ 11,049

Weightedaveragesharesusedtocomputenetincomepershareattributabletocommonstockholders(2):
Basic 73,481 74,226 81,018 80,768 81,582

Diluted 78,551 74,226 98,941 98,457 100,783

Netincomepershareattributabletocommonstockholders(2):
Basic $ 0.26 $ 0.07 $ 0.54 $ 0.21 $ 0.10

Diluted $ 0.24 $ 0.07 $ 0.47 $ 0.18 $ 0.08

Proformanetincomepershareattributabletocommonstockholders(unaudited)(2):
Basic $ 0.54 $ 0.10

Diluted $ 0.47 $ 0.08

Proformaweightedaveragesharesusedtocomputenetincomepershareattributabletocommonstockholders
(unaudited)(2):
Basic 111,541 112,105

Diluted 129,464 131,306

Supplementalproformanetincomepershareattributabletocommonstockholders(unaudited)(2):
Basic

Diluted

Supplementalproformaweightedaveragesharesusedtocomputenetincomepershareattributabletocommon
stockholders(unaudited)(2):
Basic

Diluted

Otherfinancialinformation:
AdjustedEBITDA $ 52,873 $ 75,288 $ 133,726 $ 40,923 $ 28,627



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(1) Includesstockbasedcompensationexpenseasfollows:

YearendedDecember31,
Threemonthsended
March31,
2011 2012 2013 2013 2014

Costofrevenue $ 122 $ 333 $ 690 $ 220 $ 168
Researchanddevelopment 261 1,452 3,003 441 1,401
Salesandmarketing 7,690 6,335 5,670 1,204 1,414
Generalandadministrative 902 1,036 1,524 230 1,054

Totalstockbasedcompensationexpense $ 8,975 $ 9,156 $10,887 $ 2,095 $ 4,037


(2) SeeNote8ofourconsolidatedfinancialstatementsincludedelsewhereinthisprospectusforanexplanationofthecalculationsofourhistoricalbasicanddilutednetincomepershareattributable
tocommonstockholdersandourproformaandsupplementalproformaunauditedbasicanddilutednetincomepershare.
AdjustedEBITDA
WeuseadjustedEBITDAasakeymeasuretounderstandandevaluateourcoreoperatingperformanceandtrends,toprepareandapproveourannualbudget
andtodevelopshortandlongtermoperationalplans.Inparticular,theexclusionofcertainexpensesincalculatingadjustedEBITDAcanprovideauseful
measureforperiodtoperiodcomparisonsofourbusiness.Accordingly,webelievethatadjustedEBITDAprovidesusefulinformationtoinvestorsandothersin
understandingandevaluatingouroperatingresultsinthesamemannerasourmanagementandboardofdirectors.
AdjustedEBITDAisnotpreparedinaccordancewithU.S.GenerallyAcceptedAccountingPrinciples,orGAAP,andshouldnotbeconsideredinisolationof,or
asanalternativeto,measurespreparedinaccordancewithGAAP.Inaddition,adjustedEBITDAisnotbasedonanycomprehensivesetofaccountingrulesor
principles.AsanonGAAPmeasure,adjustedEBITDAhaslimitationsinthatitdoesnotreflectalloftheamountsassociatedwithourresultsofoperationsas
determinedinaccordancewithGAAP.Someoftheselimitationsare:

adjustedEBITDAdoesnotreflectinterestexpense,orthecashrequirementsnecessarytoserviceinterestorprincipalpaymentsonourdebt

adjustedEBITDAdoesnotreflecttheamountswepaidintaxesorothercomponentsofourtaxexpense

adjustedEBITDAdoesnotreflectourcashexpendituresorfuturerequirementsforcapitalexpendituresorcontractualcommitments

adjustedEBITDAdoesnotreflectchangesin,orcashrequirementsfor,ourworkingcapitalneeds

adjustedEBITDAdoesnotreflectthenoncashcomponentofemployeecompensation

althoughdepreciationandamortizationarenoncashcharges,theassetsbeingdepreciatedandamortizedoftenwillhavetobereplacedinthefuture,including
POPdisplays,andadjustedEBITDAdoesnotreflectanycashrequirementsforsuchreplacementsand

othercompaniesmaycalculateadjustedEBITDAdifferentlythanwedo,limitingitsusefulnessasacomparativemeasure.


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Becauseoftheselimitations,youshouldconsideradjustedEBITDAalongsideotherfinancialperformancemeasures,includingourfinancialresultspresentedin
accordancewithGAAP.
ThefollowingtablepresentsareconciliationofnetincometoadjustedEBITDA:

YearendedDecember31,
Threemonthsended
March31,
(inthousands) 2011 2012 2013 2013 2014

Netincome $24,612 $32,262 $ 60,578 $ 23,035 $ 11,049
Incometaxexpense 14,179 20,948 30,751 10,027 3,882
Interest(income)andexpense,net (12) 346 6,018 1,332 1,335
Depreciationandamortization 1,517 3,975 12,034 2,209 3,811
POPdisplayamortization 3,602 8,601 13,458 2,225 4,513
Stockbasedcompensation 8,975 9,156 10,887 2,095 4,037

AdjustedEBITDA $52,873 $75,288 $133,726 $ 40,923 $ 28,627

ConsolidatedbalancesheetdataasofMarch31,2014arepresentedbelow:

onanactualbasis

onaproformabasistoreflecttheconversionofalloutstandingsharesofourredeemableconvertiblepreferredstockinto30,523,036sharesofourClassB
commonstockinconnectionwiththeclosingofthisofferingand

onaproformaasadjustedbasistogivefurthereffectto(i)theapplicationofaportionoftheproceedsofthisofferingtorepayinfulltheoutstandingbalance
ofourtermloan,whichwas$111.0millionasofMarch31,2014,(ii)theconversionbythesellingstockholdersofsharesofourClassBcommon
stockintothesamenumberofsharesofourClassAcommonstockinconnectionwiththeclosingofthisoffering,(iii)thesalebyusofsharesof
ClassAcommonstockinthisofferingatanassumedinitialpublicofferingpriceof$pershare,themidpointofthepricerangesetforthonthecover
pageofthisprospectus,afterdeductingestimatedunderwritingdiscountsandcommissionsandestimatedofferingexpensespayablebyusand(iv)thefiling
andeffectivenessofourrestatedcertificateofincorporationinconnectionwiththeclosingofthisoffering.

AsofMarch31,2014
(inthousands) Actual Proforma
Proformaas
adjusted(1)
Consolidatedbalancesheetdata:
Cash $111,215 $ 111,215
Workingcapital 66,999 66,999
Totalassets 355,200 355,200
Longtermdebt,includingcurrentportion 110,666 110,666
Redeemableconvertiblepreferredstock 77,213
Totalstockholdersequity 10,391 87,604

(1) Each$1.00increaseordecreaseintheassumedinitialpublicofferingpriceof$pershare,themidpointofthepricerangesetforthonthecoverpageofthisprospectus,wouldincreaseor
decrease,respectively,ourcash,workingcapital,totalassetsandtotalstockholdersequityby$million,assumingthenumberofsharesofferedbyus,assetforthonthecoverpageofthis
prospectus,remainsthesameandafterdeductingestimatedunderwritingdiscountsandcommissions.


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Riskfactors
Youshouldcarefullyconsidertherisksdescribedbelowandallotherinformationcontainedinthisprospectusbeforemakinganinvestmentdecision.Ourbusiness,
financialconditionandresultsofoperationscouldbemateriallyandadverselyaffectedifanyofthefollowingrisks,orotherrisksanduncertaintiesthatarenotyet
identifiedorthatwecurrentlythinkareimmaterial,actuallyoccur.Inthatevent,thetradingpriceofoursharesmaydecline,andyoumaylosepartorallofyour
investment.
Risksrelatedtoourbusinessandindustry
Weoperateinahighlycompetitivemarketandthesizeandresourcesofsomeofourcompetitorsmayallowthemtocompetemoreeffectivelythanwecan,
whichcouldresultinalossofourmarketshareandadecreaseinourrevenueandprofitability.
Themarketforcapturedevices,includingcamerasandcamcorders,ishighlycompetitive.Further,weexpectcompetitiontointensifyinthefutureasexisting
competitorsintroducenewandmorecompetitiveofferingsalongsidetheirexistingproducts,andasnewmarketentrantsintroducenewproductsintoourmarkets.We
competeagainstestablished,wellknowncameramanufacturerssuchasCanonInc.,NikonCorporation,OlympusCorporation,PolaroidHoldingCorporationand
VivitarCorporation,large,diversifiedelectronicscompaniessuchasJVCKenwoodCorporation,PanasonicCorporation,SamsungElectronicsCo.,SonyCorporation
andToshibaCorporation,andspecialtycompaniessuchasGarminLtd.Manyofourcurrentcompetitorshavesubstantialmarketshare,diversifiedproductlines,well
establishedsupplyanddistributionsystems,strongworldwidebrandrecognitionandgreaterfinancial,marketing,researchanddevelopmentandotherresourcesthan
wedo.Inaddition,manyofourexistingandpotentialcompetitorsenjoysubstantialcompetitiveadvantages,suchas:

longeroperatinghistories

thecapacitytoleveragetheirsaleseffortsandmarketingexpendituresacrossabroaderportfolioofproducts

broaderdistributionandestablishedrelationshipswithchannelpartners

accesstolargerestablishedcustomerbases

greaterresourcestomakeacquisitions

largerintellectualpropertyportfoliosand

theabilitytobundlecompetitiveofferingswithotherproductsandservices.
Moreover,smartphonesandtabletswithphotoandvideofunctionalityhavesignificantlydisplacedtraditionalcamerasales.Itispossiblethat,inthefuture,the
manufacturersofthesedevices,suchasAppleInc.andSamsung,maydesignthemforuseinarangeofconditions,includingchallengingphysicalenvironments,or
developproductssimilartoours.Inadditiontocompetitionorpotentialcompetitionfromlarge,establishedcompanies,newcompaniesmayemergeandoffer
competitiveproducts.Further,weareawarethatcertaincompanieshavedevelopedcamerasdesignedandlabeledtoappearsimilartoourproducts,whichmay
confuseconsumersordistractconsumersfrompurchasingGoProproducts.

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Table of Contents
Increasedcompetitionmayresultinpricingpressuresandreducedprofitmarginsandmayimpedeourabilitytocontinuetoincreasethesalesofourproductsor
causeustolosemarketshare,anyofwhichcouldsubstantiallyharmourbusinessandresultsofoperations.
Wedependonsalesofourcapturedevicesforsubstantiallyallofourrevenue,andanydecreaseinthesalesoftheseproductswouldharmourbusiness.
Todate,substantiallyallofourrevenuehasbeenderivedfromsalesofourcapturedevices,andweexpecttocontinuetoderivethesubstantialmajorityofour
revenuefromsalesofcamerasandaccessoriesfortheforeseeablefuture.Adeclineinthepriceoftheseproducts,whetherduetomacroeconomicconditions,
competitionorotherwise,orourinabilitytoincreasesalesoftheseproducts,wouldharmourbusinessandoperatingresultsmoreseriouslythanitwouldifwederived
significantrevenuefromavarietyofproductlinesandservices.Anydecreaseinthesalesofourcapturedeviceswouldharmourbusiness.Whileweareevaluating
otherproductsandservicestoaddtoourofferings,wemaynotbesuccessfulinidentifyingorexecutingonsuchopportunities,andweexpectsalesofcapture
devicestorepresentasubstantialportionofourrevenuefortheforeseeablefuture.Asaresult,ourfuturegrowthandfinancialperformancewilldependheavilyonour
abilitytodevelopandsellenhancedversionsofourcapturedevices.Ifwefailtodeliverproductenhancements,newreleasesornewproductsthatourcustomers
want,ourbusinessandresultsofoperationswouldbeharmed.
Werelyonthirdpartysuppliers,someofwhicharesolesourcesuppliers,toprovidecomponentsforourproducts.
Allofthecomponentsthatgointothemanufactureofourcamerasandaccessoriesaresourcedfromthirdpartysuppliers,andsomeofthesecomponentsare
providedbyasinglesupplierorbyasupplierthatcouldpotentiallybecomeacompetitor.Ifweloseaccesstocomponentsfromaparticularsupplier,orexperiencea
significantdisruptioninthesupplyofproductsandcomponentsfromacurrentsupplier,wemaybeunabletolocatealternativesuppliersofcomparablequalityatan
acceptableprice,oratall,andourbusinesscouldbemateriallyandadverselyaffected.Inaddition,ifweexperienceasignificantincreaseindemandforourproducts,
oursuppliersmightnothavethecapacityorelecttomeetourneedsastheyallocatecomponentstoothercustomers.Identifyingasuitablesupplierisaninvolved
processthatrequiresustobecomesatisfiedwiththesuppliersqualitycontrol,responsivenessandservice,financialstabilityandlaborandotherethicalpractices,
andifweseektosourcematerialsfromnewsupplierstherecanbenoassurancethatwecoulddosoinamannerthatdoesnotdisruptthemanufactureandsaleof
ourproducts.Ourrelianceonsinglesource,oralimitednumberof,suppliersinvolvesanumberofadditionalrisks,includingrisksrelatedto:

suppliercapacityconstraints

priceincreases

timelydelivery

componentquality

failureofakeysuppliertoremaininbusinessandadjusttomarketconditions

delaysin,ortheinabilitytoexecuteon,asupplierroadmapforcomponentsandtechnologiesand

naturaldisasters,fire,actsofterrorismorothercatastrophicevents.

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Inparticular,weincorporatevideocompressionandimageprocessingsemiconductorsfromoneprovider,Ambarella,Inc.,intoallofourcameras,andwedonothave
analternativesupplierforthesekeycomponents.IfAmbarellastoppedsupplyingcomponentsonacceptableterms,oratall,orweexperienceddelaysinreceiptof
componentsfromAmbarella,wewouldexperienceasignificantdisruptioninourabilitytoproduceourproducts,andourbusinesswouldbemateriallyandadversely
affected.
Wedonotexpecttocontinuetogrowinthefutureatthesamerateaswehaveinthepastandprofitabilityinrecentperiodsmightnotbeindicativeof
futureperformance.
Althoughourrevenueandprofitabilityhavegrownrapidlyfrom2009through2013,youshouldnotconsiderourrecentrevenuegrowthasindicativeofourfuture
performance.Infutureperiods,ourrevenuecoulddeclineorgrowmoreslowlythanweexpect.Wealsomayincursignificantlossesinthefutureforanumberof
reasons,includingotherrisksdescribedinthisprospectus,andwemayencounterunforeseenexpenses,difficulties,complications,delaysandotherunknown
factors.
Ifoursalesduringtheholidayseasonfallbelowourforecasts,ouroverallfinancialconditionandresultsofoperationscouldbeadverselyaffected.
Seasonalconsumershoppingpatternssignificantlyaffectourbusiness.Specifically,ourrevenueistraditionallystrongestinthefourthquarterofeachyeardueto
increasedconsumerpurchasesduringholidayperiods,andfourthquarterrevenuecomprised44%and37%ofour2012and2013revenue,respectively.Giventhe
strongseasonalnatureofoursales,appropriateforecastingiscriticaltoouroperations.Weanticipatethatthisseasonalimpactonournetsalesislikelytocontinue
andanyshortfallinexpectedfourthquarternetsales,duetomacroeconomicconditions,adeclineintheeffectivenessofourpromotionalactivitiesorsupplychain
disruptions,orforanyotherreason,wouldcauseourannualresultsofoperationstosuffersignificantly.
Incontrast,asubstantialportionofourexpensesarepersonnelrelatedandincludesalaries,stockbasedcompensation,benefitsandincentivebasedcompensation
planexpenses,whicharenotseasonalinnature.Accordingly,intheeventofrevenueshortfalls,wearegenerallyunabletomitigatethenegativeimpactonmarginsin
theshortterm.Ifthisweretooccur,ouroperatingresultswouldbeharmed.
Wemayhavedifficultyinaccuratelypredictingourfuturecustomerdemandwhichcouldadverselyaffectouroperatingresults.
Toensureadequateinventorysupplyandmeetthedemandsofourretailersanddistributors,wemustforecastinventoryneedsandplaceorderswithourcontract
manufacturersandcomponentsuppliersbasedonourestimatesoffuturedemandforparticularproducts.Wehaverelativelyrecentlybegunproducingourproductsin
substantialvolumes,andwehaveexperiencedrapidgrowth.Wemaybeunabletomeetcustomer,retailerordistributordemandforourproductsormayberequiredto
incurhighercoststosecurethenecessaryproductioncapacityandcomponents.Wecouldalsooverestimatefuturesalesofourproductsandriskcarryingexcess
productandcomponentinventory.Further,ourabilitytoaccuratelyforecastdemandforourproductscouldbeaffectedbyotherfactors,includingproductintroductions
bycompetitors,unanticipatedchangesingeneralmarketdemand,macroeconomicconditionsorconsumerconfidence.Ifwefailtocontinuetodevelopthe
infrastructurethatenablesustoaccuratelyforecastcustomerdemandforourproducts,ourbusinessandoperatingresultscouldbeadverselyaffected.

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Oursuccessdependsonourabilitytomaintainthevalueandreputationofourbrand.
Oursuccessdependsonthevalueandreputationofourbrand,includingourprimarytrademarksGoProandBeaHero.TheGoPronameandpremiumbrandimage
areintegraltothegrowthofourbusinessandexpansionintonewverticalmarkets.Maintaining,promotingandpositioningourbrandwilllargelydependonthesuccess
ofourmarketingandmerchandisingeffortsandourabilitytoprovideconsistent,highqualityproducts.Ifwefailtoachievetheseobjectivesorifourpublicimageor
reputationweretobetarnishedbynegativepublicity,ourbrand,businessandoperatingresultscouldbeadverselyaffected.Negativepublicityregardingtheathletes
wesponsorandcelebritiesweareassociatedwith,ourproducts,ourcustomersUGCandthelaborpoliciesofanyofoursuppliersormanufacturerscouldcreate
correspondingnegativepublicityforus,harmourbrandimageand,asaresult,adverselyimpactoursalesandresultsofoperations.Maintainingandenhancingour
brandmayrequireustomakesubstantialinvestmentsandtheseinvestmentsmaynotachievethedesiredgoals.Ifwefailtosuccessfullypromoteandmaintainour
brandorifweincurexcessiveexpensesinthiseffort,ourbusinessandoperatingresultscouldbeadverselyaffected.
Toremaincompetitiveandstimulatecustomerdemand,wemustsuccessfullymanagefrequentproductintroductionsandtransitions.
Webelievethatwemustcontinuallydevelopandintroducenewproducts,enhanceourexistingproductsandeffectivelystimulatecustomerdemandfornewand
upgradedproducts.Ourresearchanddevelopmenteffortsarecomplexandrequireustoincursubstantialresearchanddevelopmentexpense.Ourresearchand
developmentexpensewas$8.6million,$36.1million,$73.7millionand$28.7millionfor2011,2012,2013andthethreemonthsendedMarch31,2014,respectively,
andweanticipatethatresearchanddevelopmentexpensewillincreaseinthefuture.Wemaynotbeabletoachieveanacceptablereturn,ifany,onourresearchand
developmentefforts.Further,anyfailuretocompleteproducttransitionseffectivelycouldharmourbrand.
Thesuccessofnewproductintroductionsdependsonanumberoffactorsincluding,butnotlimitedto,timelyandsuccessfulresearchanddevelopment,marketand
customeracceptance,theeffectiveforecastingandmanagementofproductdemand,purchasecommitmentsandinventorylevels,themanagementofmanufacturing
andsupplycosts,andtheriskthatnewproductsmayhavequalityorotherdefectsintheearlystagesofintroduction.Forexample,inordertolaunchourHERO3line
ofcapturedevicesintimeforthe2012holidayshoppingseason,weimplementedacompresseddesignandmanufacturingcycle.Asaresult,ourinitialproductionrun
ofHERO3Blackeditioncapturedevicessufferedfromanumberofdesignissues,partshortagesandmanufacturingproblems,whichreducedthenumberofunitswe
wereabletoshipforthe2012holidayseason.Moreover,becauseofthecompresseddevelopmentschedule,ourHERO3capturedevicesrequiredasubsequent
firmwareupdatetoaddresscertainissues,whichresultedinnegativepublicityforus.Inthefuture,ifwedonotsuccessfullymanageproducttransitions,especially
duringtheholidayshoppingseason,ourrevenueandbusinessmaybeharmed.
Theintroductionofnewproductsorproductenhancementsmayshortenthelifecycleofourexistingproducts,orreplacesalesofsomeofourcurrentproducts,
therebyoffsettingthebenefitofevenasuccessfulproductintroduction,andmaycausecustomerstodeferpurchasingourexistingproductsinanticipationofthenew
productsandpotentiallyleadtochallengesinmanaginginventoryofexistingproducts.Wealsoprovidepriceprotectiontosomeofourretailersasaresultofournew
productintroductions.Ifwefailtoeffectivelymanagenewproductintroductions,ourrevenueandprofitabilitymaybeharmed.

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Anymaterialdisruptionofourinformationsystemscouldadverselyaffectouroperatingresults.
Weareincreasinglydependentoninformationsystemstooperateourecommercewebsite,processtransactions,respondtocustomerinquiries,manageoursupply
chainandinventory,shipgoodsonatimelybasisandmaintaincostefficientoperations.Anymaterialdisruptionorslowdownofoursystems,includingadisruptionor
slowdowncausedbyourfailuretosuccessfullyupgradeoursystems,systemfailures,viruses,computerhackersorothercauses,couldcausedelaysinoursupply
chainorcauseinformation,includingdatarelatedtocustomerorders,tobelostordelayedwhichcouldresultindelaysinthedeliveryofmerchandisetoourstores
andcustomersorlostsales,especiallyifthedisruptionorslowdownoccurredduringtheholidayseason.Anyoftheseeventscouldreducedemandforourproducts,
impairourabilitytocompletesalesthroughourecommercechannelsandcauseourrevenuetodecline.Ifchangesintechnologycauseourinformationsystemsto
becomeobsolete,orifourinformationsystemsareinadequatetohandleourgrowth,wecouldlosecustomersorourbusinessandoperatingresultscouldbe
adverselyaffected.
Inparticular,weareheavilyreliantonoursoftwareasaservice,orSaaS,enterpriseresourceplanningsystemstoconductourorderandinventorymanagementand
financialprocesses.Asweexpandouroperations,weexpecttoutilizeadditionalsystemsandserviceprovidersthatmayalsobeessentialtomanagingourbusiness.
Althoughthesystemsandservicesthatwerequirearetypicallyavailablefromanumberofproviders,itistimeconsumingandcostlytoqualifyandimplementthese
relationships.Therefore,ourabilitytomanageourbusinesswouldsufferifoneormoreofourproviderssufferaninterruptionintheirbusiness,orexperiencedelays,
disruptionsorqualitycontrolproblemsintheiroperations,orwehavetochangeoraddsystemsandservices.Wemaynotbeabletocontrolthequalityofthe
systemsandserviceswereceivefromthirdpartyserviceproviders,whichcouldimpairourabilitytoimplementappropriateinternalcontrolsoverfinancialreporting
andmayimpactourbusiness,operatingresultsandfinancialcondition.
WearehighlydependentonourChiefExecutiveOfficer.
OurfuturesuccessdependsinsignificantpartonthecontinuedserviceofourChiefExecutiveOfficer,NicholasWoodman.Mr.Woodmaniscriticaltothestrategic
directionandoverallmanagementofourcompanyaswellasourresearchanddevelopmentprocess.Mr.Woodmanisanatwillemployeeandtherearenovesting
restrictionsonanyoftheClassBcommonstockthatheowns.ThelossofMr.Woodmancouldadverselyaffectourbusiness,financialconditionandoperating
results.
Wedependonkeypersonneltooperateourbusiness,andmanymembersofourcurrentmanagementteamarenew.Ifweareunabletoretain,attractand
integratequalifiedpersonnel,ourabilitytodevelopandsuccessfullygrowourbusinesscouldbeharmed.
InadditiontothecontinuedservicesofMr.Woodman,webelievethatourfuturesuccessishighlydependentonthecontributionsofourexecutiveofficers,aswellas
ourabilitytoattractandretainhighlyskilledandexperiencedsales,researchanddevelopmentandotherpersonnelintheUnitedStatesandabroad.Someofour
executivemanagementteam,includingourChiefFinancialOfficer,GeneralCounsel,andVicePresidentofCommunications,joinedusveryrecentlyandthese
changesinourmanagementteammaybedisruptivetoourbusiness.
Allofouremployees,includingourexecutiveofficers,arefreetoterminatetheiremploymentrelationshipwithusatanytime,andtheirknowledgeofourbusinessand
industrymaybe

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difficulttoreplace.Ifoneormoreofourexecutiveofficersorkeyemployeesleaves,wemaynotbeabletofullyintegratenewpersonnelorreplicatethepriorworking
relationships,andouroperationscouldsuffer.Qualifiedindividualsareinhighdemand,andwemayincursignificantcoststoattractthem.Manyofthecompanies
withwhichwecompeteforexperiencedpersonnelalsohavegreaterresourcesthanwedo.CompetitionforqualifiedpersonnelisparticularlyintenseintheSan
FranciscoBayArea,whereourheadquartersarelocated.Ifweareunabletoattractandretainhighlyskilledpersonnel,wemaynotbeabletoachieveourstrategic
objectives,andourbusiness,financialconditionandoperatingresultscouldbeadverselyaffected.
Ifwedonoteffectivelymaintainandfurtherdevelopoursaleschannels,includingdevelopingandsupportingourretailsaleschannelanddistributors,our
businesscouldbeharmed.
Asaconsumerfacingcompany,wedependuponeffectivesaleschannelstoreachtheconsumerswhoaretheultimatepurchasersofourcapturedevices.Inthe
UnitedStates,weprimarilysellourproductsdirectlythroughamixofretailchannels,includingbigbox,midmarketandspecialtyretailers,andwereachcertainU.S.
marketsthroughdistributors.Ininternationalmarkets,weprimarilysellthroughdistributorswhointurnselltolocalretailers.Wedependonretailerstoprovide
adequateandattractivespaceforourproductsandPOPdisplaysintheirstores.Wefurtherdependonourretailerstoemploy,educateandmotivatetheirsales
personneltoeffectivelysellourproducts.Ifourretailersdonotadequatelydisplayourproducts,choosetopromotecompetitorsproductsoveroursordonot
effectivelyexplaintocustomerstheadvantagesofourproducts,oursalescoulddecreaseandourbusinesscouldbeharmed.Similarly,ourbusinesscouldbe
adverselyaffectedifanyofourlargeretailcustomersweretoexperiencefinancialdifficulties,orchangethefocusoftheirbusinessesinawaythatdeemphasizedthe
saleofourproducts.WearealsoinvestingheavilyinprovidingnewretailerswithPOPdisplaysandexpandingthefootprintofourPOPdisplaysinexistingstores,and
therecanbenoassurancethatthisinvestmentwillleadtoincreasedsales.
WedependonourdistributorstoreachcertainmarketsegmentsintheUnitedStatesandtoreachourinternationalretailers.Ourdistributorsgenerallyofferproducts
fromseveraldifferentmanufacturers.Accordingly,weareatriskthatthesedistributorsmaygivehigherprioritytosellingothercompaniesproducts.Ifweweretolose
theservicesofadistributor,wemightneedtofindanotherdistributorinthatarea,andtherecanbenoassuranceofourabilitytodosoinatimelymanneroron
favorableterms.Further,ourdistributorsbuildinventoriesinanticipationoffuturesales,andifsuchsalesdonotoccurasrapidlyastheyanticipate,ourdistributors
willdecreasethesizeoftheirfutureproductorders.Wearealsosubjecttotherisksofourdistributorsencounteringfinancialdifficulties,whichcouldimpedetheir
effectivenessandalsoexposeustofinancialriskiftheyareunabletopayfortheproductstheypurchasefromus.Anyreductioninsalesbyourcurrentdistributors,
lossofkeydistributorsordecreaseinrevenuefromourdistributorscouldadverselyaffectourrevenue,operatingresultsandfinancialcondition.
Asmallnumberofretailersanddistributorsaccountforasubstantialportionofourrevenue,andifourrelationshipswithanyoftheseretailersor
distributorsweretobeterminatedorthelevelofbusinesswiththemsignificantlyreduced,ourbusinesscouldbeharmed.
Ourtenlargestcustomers,measuredbytherevenuewederivefromthem,accountedfor44%,42%,51%and51%ofourrevenuefor2011,2012,2013andthethree
monthsendedMarch31,2014,respectively.Oneretaileraccountedfor15%,15%,17%and13%ofourrevenuefor2011,2012,2013andthethreemonthsended
March31,2014,respectively.Onedistributoraccountedfor10%ofourrevenueforthethreemonthsendedMarch31,2014.Thelossofasmallnumber

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ofourlargecustomers,orthereductioninbusinesswithoneormoreofthesecustomers,couldhaveasignificantadverseimpactonouroperatingresults.Whilewe
haveagreementswiththeselargecustomers,theseagreementsdonotrequirethemtopurchaseanymeaningfulamountofourproducts.
Ifweencounterproblemswithourdistributionsystem,ourabilitytodeliverourproductstothemarketandtomeetcustomerexpectationscouldbe
harmed.
Werelyonaselectnumberofthirdpartydistributionfacilitiesforsubstantiallyallofourproductdistribution.Ourdistributionfacilitiesincludecomputercontrolledand
automatedequipment,whichmeanstheiroperationsmaybevulnerabletocomputervirusesorothersecurityrisks,theproperoperationofsoftwareandhardware,
electronicorpowerinterruptionsorothersystemfailures.Further,becausesubstantiallyallofourproductsaredistributedfromonlyafewlocations,ouroperations
couldbeinterruptedbylabordifficulties,extremeorsevereweatherconditions,orfloods,firesorothernaturaldisastersnearourdistributioncenters.Ifweencounter
problemswithourdistributionsystem,ourabilitytomeetcustomerexpectations,manageinventory,completesalesandachieveourobjectivesforoperating
efficienciescouldbeharmed.
Wearesubjecttointernationalbusinessuncertainties.
RevenuefromoutsidetheUnitedStatescomprised35%,47%,49%and53%ofourrevenuein2011,2012,2013andthethreemonthsendedMarch31,2014,
respectively,andweexpectthisportiontoincreaseinthefuture.Further,oursupplychainpartnershaveoperationsincountriesincludingChina,Singaporeandthe
Netherlands.Weintendtoexpandourrelationshipsinthesecountriesandmayestablishadditionalrelationshipsinothercountriestogrowouroperations.Operatingin
foreigncountriesrequiressignificantresourcesandmanagementattention,andwehavelimitedexperienceenteringnewgeographicmarkets.Wecannotbeassured
thatourinternationaleffortswillbesuccessful.Internationalsalesandoperationsmaybesubjecttoriskssuchas:

difficultiesinstaffingandmanagingforeignoperations

burdensofcomplyingwithawidevarietyoflawsandregulations

adversetaxeffectsandforeignexchangecontrolsmakingitdifficulttorepatriateearningsandcash

politicalandeconomicinstability

terroristactivitiesandnaturaldisasters

traderestrictions

differingemploymentpracticesandlawsandlabordisruptions

theimpositionofgovernmentcontrols

lesserdegreesofintellectualpropertyprotection

tariffsandcustomsdutiesandtheclassificationsofourgoodsbyapplicablegovernmentalbodies

alegalsystemsubjecttoundueinfluenceorcorruptionand

abusinesscultureinwhichillegalsalespracticesmaybeprevalent.
Theoccurrenceofanyoftheseriskscouldnegativelyaffectourinternationalbusinessandconsequentlyourbusiness,operatingresultsandfinancialcondition.

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Wemaybesubjecttoproductliabilityorwarrantyclaimsthatcouldresultinsignificantdirectorindirectcosts,orwecouldexperiencegreaterreturns
fromretailersthanexpected,whichcouldharmourbusinessandoperatingresults.
Wegenerallyprovidea12monthwarrantyonallofourproducts,exceptintheEuropeanUnion,orEU,whereweprovideatwoyearwarrantyonallofourproducts.
Theoccurrenceofanymaterialdefectsinourproductscouldmakeusliablefordamagesandwarrantyclaimsinexcessofourcurrentreserves.Inaddition,wecould
incursignificantcoststocorrectanydefects,warrantyclaimsorotherproblems,includingcostsrelatedtoproductrecalls.Anynegativepublicityrelatedtothe
perceivedqualityofourproductscouldaffectourbrandimage,decreaseretailer,distributorandcustomerdemand,andadverselyaffectouroperatingresultsand
financialcondition.Also,whileourwarrantyislimitedtorepairsandreturns,warrantyclaimsmayresultinlitigation,theoccurrenceofwhichcouldadverselyaffectour
businessandoperatingresults.
Ourintellectualpropertyrightsandproprietaryrightsmaynotadequatelyprotectourproducts.
Ourcommercialsuccesswilldependsubstantiallyonourabilitytoobtainpatentsandotherintellectualpropertyrightsandmaintainadequatelegalprotectionforour
productsintheUnitedStatesandothercountries.Wewillbeabletoprotectourintellectualpropertyfromunauthorizedusebythirdpartiesonlytotheextentthat
theseassetsarecoveredbyvalidandenforceablepatents,trademarks,copyrightsorotherintellectualpropertyrights,orareeffectivelymaintainedastradesecrets.
Asofthedateofthisfiling,wehave42issuedpatentsand68patentapplicationspendingintheUnitedStatesand15correspondingissuedpatentsand12patent
applicationspendinginforeignjurisdictions.OurissuedU.S.patentswillexpirebetween2024and2032andourissuedforeignpatentswillexpirebetween2022and
2038.Weapplyforpatentscoveringourproducts,services,technologiesanddesigns,aswedeemappropriate.Wemayfailtoapplyforpatentsonimportant
products,services,technologiesordesignsinatimelyfashion,oratall.Wedonotknowwhetheranyofourpatentapplicationswillresultintheissuanceofany
patents.Evenifpatentsareissued,theymaynotbesufficienttoprotectourproducts,services,technologies,ordesigns.Ourexistingandfuturepatentsmaynotbe
sufficientlybroadtopreventothersfromdevelopingcompetingproducts,servicestechnologies,ordesigns.Noconsistentpolicyregardingthebreadthofpatent
claimshasemergedtodateintheUnitedStatesandweexpectthelandscapeforpatentprotectionforourproducts,servicestechnologies,anddesignstocontinueto
beuncertain.IntellectualpropertyprotectionandpatentrightsoutsideoftheUnitedStatesareevenlesspredictable.Asaresult,thevalidityandenforceabilityof
patentscannotbepredictedwithcertainty.Moreover,wecannotbecertainwhether:

wewerethefirsttoconceiveoforinventtheinventionscoveredbyeachofourissuedpatentsandpendingpatentapplications

wewerethefirsttoreducetopracticeinventionscoveredbyeachofourissuedpatentsandpendingpatentapplications

wewerethefirsttofilepatentapplicationsfortheseinventions

otherswillindependentlydevelopsimilaroralternativeproducts,technologies,servicesordesignsorduplicateanyofourproducts,technologies,servicesor
designs

anypatentsissuedtouswillprovideuswithanycompetitiveadvantages,orwillbechallengedbythirdparties

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wewilldevelopadditionalproprietaryproducts,services,technologiesordesignsthatarepatentableor

thepatentsofotherswillhaveanadverseeffectonourbusiness.
Thepatentsweownorlicenseandthosethatmaybeissuedtousinthefuturemaybechallenged,invalidated,renderedunenforceableorcircumvented,andthe
rightsgrantedunder
anyissuedpatentsmaynotprovideuswithproprietaryprotectionorcompetitiveadvantages.Moreover,thirdpartiescouldpracticeourinventionsinterritorieswhere
wedonothavepatentprotectionorinterritorieswheretheycouldobtainacompulsorylicensetoourtechnologywherepatented.Suchthirdpartiesmaythentryto
importproductsmadeusingourinventionsintotheUnitedStatesorotherterritories.Additionaluncertaintymayresultfrompotentialpassageofpatentlegislationby
theU.S.Congress,legalprecedentbytheU.S.FederalCircuitCourtsandSupremeCourtastheydeterminelegalissuesconcerningthescopeandconstructionof
patentclaimsandinconsistentinterpretationofpatentlawsbythelowercourts.Accordingly,wecannotensurethatanyofourpendingpatentapplicationswillresultin
issuedpatents,orevenifissued,predictthebreadth,validityandenforceabilityoftheclaimsupheldinourandothercompaniespatents.
Wehaveregisteredandappliedtoregistercertainofourtrademarksinseveraljurisdictionsworldwide.Insomejurisdictionswherewehaveappliedtoregisterour
trademarks,otherapplicationsorregistrationsexistforthesame,similarorotherwiserelatedproductsorservices.Ifwearenotsuccessfulinarguingthatthereisno
likelihoodofconfusionbetweenourmarksandthemarksthatarethesubjectoftheotherapplicationsorregistrationsownedbythirdparties,ourapplicationsmaybe
denied,preventingusfromobtainingtrademarkregistrationsandadequateprotectionforourmarksintherelevantjurisdictions,whichcouldimpactourabilitytobuild
ourbrandidentityandmarketourproductsandservicesinthosejurisdictions.Whetherornotourapplicationisdenied,thirdpartiesmayclaimthatourtrademarks
infringetheirrights.Asaresult,wecouldbeforcedtopaysignificantsettlementcostsorceasetheuseofthesetrademarksandassociatedelementsofourbrandin
theUnitedStatesorotherjurisdictions.
Eveninthosejurisdictionswhereweareabletoregisterourtrademarks,competitorsmayadoptorapplytoregistersimilartrademarkstoours,mayregisterdomain
namesthatmimicoursorincorporateourtrademarks,ormaypurchasekeywordsthatareidenticalorconfusinglysimilartoourbrandnamesastermsinInternet
searchengineadvertisingprograms,whichcouldimpedeourabilitytobuildourbrandidentityandleadtoconfusionamongpotentialcustomersofourproductsand
services.Webelievethatothercompanieshavecopiedsomeofourtrademarksforuseinthemarketplace.Wehavesentdemandlettersinanumberofthese
instances,buttherecanbenoassurancethatweareawareofallsuchinstancesorthatwewillprevailshouldsuchlettersbeineffective.Ifwearenotsuccessfulin
provingthatwehavepriorrightsinourmarksandarguingthatthereisalikelihoodofconfusionbetweenourmarksandthemarksofthesethirdparties,ourinabilityto
preventthesethirdpartiesfromcontinuingtouseourmarksorconfusinglysimilarmarksmaynegativelyimpactthestrength,valueandeffectivenessofourbrand
namesandourabilitytomarketourproductsandpreventconsumerconfusion.
ThelawsofcertaincountriesdonotprotectintellectualpropertyandproprietaryrightstothesameextentasthelawsoftheUnitedStatesand,therefore,incertain
jurisdictions,wemaybeunabletoprotectourproducts,services,technologiesanddesignsadequatelyagainstunauthorizedthirdpartycopying,infringementoruse,
whichcouldadverselyaffectourcompetitiveposition.Forinstance,weareawareofcamerasthathavebeendesignedandlabeled

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toappearsimilartoourproducts,andareavailableforsaleincountrieswithinAsia,Europeand,toalesserextent,theUnitedStates.Toprotectorenforceour
intellectualpropertyrights,wemayinitiateproceedingsorlitigationagainstthirdparties.Suchproceedingsorlitigationmaybenecessarytoprotectourtradesecrets
orknowhow,products,technologies,designs,brands,reputation,likeness,authorshipworksorotherintellectualpropertyrights.Suchproceedingsorlitigationalso
maybenecessarytodeterminetheenforceability,scopeandvalidityoftheproprietaryrightsofothers.Anyproceedingsorlawsuitsthatweinitiatecouldbe
expensive,takesignificanttimeanddivertmanagementsattentionfromotherbusinessconcerns.Additionally,wemayprovokethirdpartiestoassertclaimsagainst
us.Theseclaimscouldinvalidateornarrowthescopeofourownintellectualpropertyrights.Wemaynotprevailinanyproceedingsorlawsuitsthatweinitiateandthe
damagesorotherremediesawarded,ifany,maybecommerciallyvaluable.Theoccurrenceofanyoftheseeventsmayadverselyaffectourbusiness,financial
conditionandoperatingresults.
Ourbusinessmaysufferifitisallegedordeterminedthatourtechnologyoranotheraspectofourbusinessinfringestheintellectualpropertyrightsof
others.
Themarketsinwhichwecompetearecharacterizedbytheexistenceofalargenumberofpatentsandtradesecretsandalsobylitigationbasedonallegationsof
infringementorotherviolationsofintellectualpropertyrights.Moreover,inrecentyears,individualsandgroupshavepurchasedpatentsandotherintellectualproperty
assetsforthepurposeofmakingclaimsofinfringementtoextractsettlementsfromcompanieslikeours.Fromtimetotime,thirdpartieshaveclaimedthatweare
infringingupontheirintellectualpropertyrightsorhaveofferedlicensestousinrespectoftechnologytheyownthatmaybeinfringeduponbyourproducts,andwe
expecttocontinuetoreceivesuchclaimsoroffersinthefuture.Wearecurrentlyinreceiptoflettersofthisnatureinrespectofwhichwehavereachednoresolution
withthethirdpartysender.Also,thirdpartiesmaymakeinfringementclaimsagainstusthatrelatetotechnologydevelopedandownedbyoneofoursuppliersfor
whichoursuppliersmayormaynotindemnifyus.Evenifweareindemnifiedagainstsuchcosts,theindemnifyingpartymaybeunabletoupholditscontractual
obligationsanddeterminingthescopeoftheseobligationscouldrequireadditionallitigation.Claimsofintellectualpropertyinfringementagainstusoroursuppliers
mightrequireustoredesignourproducts,rebrandourservices,enterintocostlysettlementorlicenseagreements,paycostlydamageawardsorfaceatemporaryor
permanentinjunctionprohibitingusfrommarketingorsellingourproductsorservices.Ifwecannotordonotlicensetheinfringedintellectualpropertyonreasonable
termsoratall,orsubstitutesimilarintellectualpropertyfromanothersource,ourrevenueandoperatingresultscouldbeadverselyimpacted.Additionally,our
customers,distributorsandretailersmaynotpurchaseourofferingsiftheyareconcernedthattheymayinfringethirdpartyintellectualpropertyrights.Respondingto
suchclaims,regardlessoftheirmerit,canbetimeconsuming,costlytodefendinlitigation,divertmanagementsattentionandresources,damageourreputationand
brandandcauseustoincursignificantexpenses.Theoccurrenceofanyoftheseeventsmayhaveanadverseeffectonourbusiness,financialconditionand
operatingresults.
Ifweareunabletoanticipateconsumerpreferencesandsuccessfullydevelopattractiveproducts,wemightnotbeabletomaintainorincreaseourrevenue
andprofitability.
Oursuccessdependsonourabilitytoidentifyandoriginateproducttrendsaswellastoanticipateandreacttochangingconsumerdemandsinatimelymanner.Ifwe
areunabletointroducenewproductsornoveltechnologiesinatimelymannerorournewproductsortechnologiesarenotacceptedbyconsumers,ourcompetitors
mayintroducemoreattractive

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products,whichcouldhurtourcompetitiveposition.Ournewproductsmightnotreceiveconsumeracceptanceifconsumerpreferencesshifttootherproducts,and
ourfuturesuccessdependsinpartonourabilitytoanticipateandrespondtothesechanges.Failuretoanticipateandrespondinatimelymannertochanging
consumerpreferencescouldleadto,amongotherthings,lowerrevenueandexcessinventorylevels.
Aswecontinuallyseektoenhanceourproducts,wemayincuradditionalcoststoincorporateneworrevisedfeatures.Wemightnotbeableto,ordeterminethatitis
notinourintereststo,raisepricestocompensatefortheseadditionalcosts.Forexample,ourgrossprofitdeclinedasapercentageofrevenuein2012and2013
comparedtotheprioryearperiodsdue,inpart,totheadditionalcostsofincorporatingnewfunctionalityintoournewestgenerationofproducts.
Ifweencounterissueswithourmanufacturers,ourbusiness,brandandresultsofoperationscouldbeharmedandwecouldlosesales.
Wedonothaveinternalmanufacturingcapabilitiesandrelyprimarilyontwocontractmanufacturers,ChiconyElectronicsCo.Ltd.andSkyLightDigitalLimited/Sky
LightIndustrialLimited,tomanufactureourproducts.Wecannotbecertainthatwewillnotexperienceoperationaldifficultieswithourmanufacturers,including
reductionsintheavailabilityofproductioncapacity,errorsincomplyingwithproductspecifications,insufficientqualitycontrol,failurestomeetproductiondeadlines,
increasesinmanufacturingcostsandincreasedleadtimes.Additionally,ourmanufacturersmayexperiencedisruptionsintheirmanufacturingoperationsdueto
equipmentbreakdowns,laborstrikesorshortages,componentormaterialshortages,costincreasesorothersimilarproblems.Further,inordertominimizetheir
inventoryrisk,ourmanufacturersmightnotordercomponentsfromthirdpartysupplierswithadequateleadtime,therebyimpactingourabilitytomeetourdemand
forecast.Therefore,ifwefailtomanageourrelationshipwithourmanufacturerseffectively,oriftheyexperienceoperationaldifficulties,ourabilitytoshipproductsto
ourretailersanddistributorscouldbeimpairedandourcompetitivepositionandreputationcouldbeharmed.
Intheeventthatwereceiveshipmentsofproductsthatfailtocomplywithourtechnicalspecificationsorthatfailtoconformtoourqualitycontrolstandards,andwe
arenotabletoobtainreplacementproductsinatimelymanner,weriskrevenuelossesfromtheinabilitytosellthoseproducts,increasedadministrativeandshipping
costs,andlowerprofitability.Additionally,ifdefectsarenotdiscovereduntilaftercustomerspurchaseourproducts,ourcustomerscouldloseconfidenceinthe
technicalattributesofourproductsandourbusinesscouldbeharmed.
Wedonotcontrolourcontractmanufacturersorsuppliers,orrequirethemtocomplywithaformalcodeofconduct,andactionsthattheymighttake
couldharmourreputationandsales.
Wedonotcontrolourcontractmanufacturersorsuppliers,includingtheirlabor,environmentalorotherpractices,orrequirethemtocomplywithaformalcodeof
conduct.Thoughweconductperiodicauditsofourcontractmanufacturersandsupplierscompliancewithapplicablelawsandgoodindustrypractices,theseaudits
maynotbefrequentorthoroughenoughtodetectnoncompliance.Aviolationoflabor,environmentalorotherlawsbyourcontractmanufacturersorsuppliers,ora
failureofthesepartiestofollowethicalbusinesspractices,couldleadtonegativepublicityandharmourreputation.Inaddition,wemaychoosetoseekalternative
manufacturersorsuppliersiftheseviolationsorfailuresweretooccur.Identifyingandqualifyingnewmanufacturersorsupplierscanbetimeconsumingandwemight
notbeabletosubstitutesuitablealternativesinatimelymanneroratanacceptablecost.Otherconsumerproductscompanieshavefacedsignificantcriticismforthe
actionsoftheirmanufacturersandsuppliers,

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andwecouldfacesuchcriticismourselves.Anyoftheseeventscouldadverselyaffectourbrand,harmourreputation,reducedemandforourproductsandharmour
abilitytomeetdemandifweneedtoidentifyalternativemanufacturersorsuppliers.
Ourgrowthdependsinpartonourpenetratingadditionalconsumermarkets,andwemaynotbesuccessfulindoingso.
Ourinitialgrowthhaslargelybeenfueledbytheadoptionofourproductsbypeoplelookingtoselfcaptureimagesofthemselvesparticipatinginexcitingphysical
activities.Webelievethatourfuturegrowthdependsnotonlyoncontinuingtoreachthiscoredemographic,butalsobroadenourcustomerbasetoincludeamore
diversegroupofconsumersseekingtocapturethemselves,familymembersandthingsaroundthemintheirdailylives.Whileweareinvestinginsalesandmarketing
activitiestoreachthisexpandedmarket,wecannotbeassuredthatwewillbesuccessfulindoingso.Ifwearenotsuccessfulinpenetratingadditionalconsumer
markets,wemightnotbeabletogrowourmarketshareandrevenue.
Weplantocontinuetoinvestinthefurtherdevelopmentofacontentmanagementplatformandtheacquisitionanddistributionofcontent,andwemight
notbesuccessfulindoingso.
Webelievethatenablingconsumerstoeasilymanage,shareandenjoytheirGoProcontentwillincreaseconsumerinterestinourproducts,andweintendtocontinue
toinvestinimprovingoursoftwareofferingsandthefurtherdevelopmentofourcontentmanagementplatformtoassistconsumerswiththesetasks.Thedevelopment
ofthesesoftwareofferingsandothertoolsneededforthesepurposesrequiresdifferentskillsfromourhistoricalcorefocusofdevelopingcapturedevices.
WeareinvestingtoscaleGoProasamediaentityanddevelopnewrevenueopportunitiesbyincreasingproductionofGoProoriginallyproducedcontentwhile
simultaneouslyincreasingtheaggregationandredistributionofourcustomersbestofUGC.Additionally,weareinvestingtodevelopanddistributetheGoPro
ChannelonmorepartnerplatformssuchasXboxLiveandVirginAmerica.Theexecutionofthisbusinessstrategyrequiresdifferentskillsfromourhistoricalcore
focusofdevelopingcapturedevices.
Toachieveourgoals,wehaverecentlyhiredpersonnelwithwhatwebelievearerequisiteskillsandexperiencetoexecuteontheseplans,andwecontinuetoseek
additionalpersonnelwiththeseskills.Wecannotbeassuredofourabilitytoorganize,manageandexecutetheserelativelynewfunctionswithinourbusiness.Ifwe
arenotsuccessful,wemaynotachieveourgoalsoffacilitatinggreaterconsumeruseoftheircontentandscalingGoProasamediaentity,andwemightnotrecover
theinvestmentswemakeintheseefforts,whichcouldadverselyaffectourbusinessandoperatingresults.
Wemayacquireotherbusinessesorreceiveofferstobeacquired,whichcouldrequiresignificantmanagementattention,disruptourbusiness,dilute
stockholdervalueandadverselyaffectouroperatingresults.
Aspartofourbusinessstrategy,wemayselectivelymakeinvestmentsinoracquireothercompanies,productsortechnologies.Wemaynotbeabletofindsuitable
acquisitioncandidatesandwemaynotbeabletocompleteacquisitionsonfavorableterms,ifatall.Ifwedocompleteacquisitions,wemaynotultimatelystrengthen
ourcompetitivepositionorachieveourgoals,andanyacquisitionswecompletecouldbeviewednegativelybyusersorinvestors.Inaddition,ifwefailtointegrate
successfullysuchacquisitions,orthetechnologiesassociatedwithsuchacquisitions,intoourcompany,therevenueandoperatingresultsofthecombinedcompany

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couldbeadverselyaffected.Acquisitionsmaydisruptourongoingoperations,divertmanagementfromtheirprimaryresponsibilities,subjectustoadditionalliabilities,
increaseourexpensesandadverselyimpactourbusiness,financialcondition,operatingresultsandcashflows.Wemaynotsuccessfullyevaluateorutilizethe
acquiredtechnologyandaccuratelyforecastthefinancialimpactofanacquisitiontransaction,includingaccountingcharges.Wemayhavetopaycash,incurdebtor
issueequitysecuritiestopayforanysuchacquisition,eachofwhichcouldaffectourfinancialconditionorthevalueofourcapitalstock.Thesaleofequityor
issuanceofdebttofinanceanysuchacquisitionscouldresultindilutiontoourstockholders.Ifweincurmoredebtitwouldresultinincreasedfixedobligationsand
couldalsosubjectustocovenantsorotherrestrictionsthatwouldimpedeourabilitytomanageouroperations.Inaddition,ourfutureoperatingresultsmaybe
impactedbyperformanceearnoutsorcontingentbonuses.Furthermore,acquisitionsmayrequirelargeonetimechargesandcanresultinincreaseddebtorcontingent
liabilities,adversetaxconsequences,additionalstockbasedcompensationexpenseandtherecordingandsubsequentamortizationorimpairmentsofamounts
relatedtocertainpurchasedintangibleassets,anyofwhichcouldnegativelyimpactourfutureresultsofoperations.Wemayalsorecordgoodwillinconnectionwith
anacquisitionandincurgoodwillimpairmentchargesinthefuture.Inthefuture,ifouracquisitionsdonotyieldexpectedrevenue,wemayberequiredtotakecharges
toouroperatingresultsbasedonthisimpairmentassessmentprocess,whichcouldadverselyaffectourresultsofoperations.
Failuretoobtainnew,andmaintainexisting,highqualityevent,athleteandcelebritysponsorshipscouldharmourbusiness.
Establishingrelationshipswithhighprofilesportingevents,athletesandcelebritypersonalitiestoevaluate,promoteandestablishproductcredibilitywithconsumers,
includingenteringintosponsorshipandlicensingagreements,hasandwillcontinuetobeakeyelementofourmarketingstrategy.However,ascompetitioninthe
cameraandvideorecordermarketshasincreased,thecostsofobtainingandretainingevent,athleteandcelebritysponsorshipsandlicensingagreementshave
increased.Ifweareunabletomaintainourcurrentassociationswithourevent,athleteandcelebritypartners,ortodosoatareasonablecost,wecouldlosethe
benefitsoftheserelationships,andwemayberequiredtomodifyandsubstantiallyincreaseourmarketinginvestments.Inaddition,actionstakenbyendorsersofour
productsthatharmtheirreputationscouldalsoharmourbrandimagewithconsumers.Thefailuretocorrectlyidentifyhighimpactevents,promisingathletesorother
appealingpersonalitiestouseandendorseourproducts,orpoorperformancebyourendorsers,couldadverselyaffectourbrandandresultindecreasedsalesofour
products.
Ifweareunabletomaintainoracquirerightstoincludeintellectualpropertyownedbyothersinthecontentdistributedbyus,ourmarketing,salesor
futurebusinessstrategycouldbeaffectedorwecouldbesubjecttolawsuitsrelatingtoouruseofthiscontent.
ThedistributionofGoProcontenthelpstomarketourbrandandourproducts.IfwecannotcontinuetoacquirerightstodistributeUGCoracquirerightstouseand
distributemusic,athleteandcelebritynamesandlikenessesorothercontentforouroriginalproductionsorforourGoProStudioEditTemplates,ourmarketingefforts
couldbediminished,oursalescouldbeharmedandourfuturecontentstrategycouldbeadverselyaffected.Inaddition,thirdpartycontentprovidersmayallegethat
wehaveviolatedtheirintellectualpropertyrights.Ifweareunabletoobtainsufficientrights,successfullydefendouruseoforotherwisealterourbusinesspractices
onatimelybasisinresponsetoclaimsofinfringement,misappropriation,misuseorotherviolationofthirdpartyintellectualpropertyrights,ourbusinessmaybe
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distributorofcontent,wefacepotentialliabilityfornegligence,copyright,ortrademarkinfringementorotherclaimsbasedonthenatureandcontentofmaterialsthat
wedistribute.Ifwearefoundtobeliableforinfringement,thenourbusinessmaysuffer.
Ifourcustomersarenotsatisfiedwithourtechnicalsupportorsoftwareupdates,theymaychoosenottopurchaseourproducts,eitherofwhichwould
adverselyimpactourbusinessandoperatingresults.
Ourbusinessrelies,inpart,onourcustomerssatisfactionwiththetechnicalsupportandsoftwareupdatesweprovidetosupportourproducts.Ifwefailtoprovide
technicalsupportservicesthatareresponsive,satisfyourcustomersexpectationsandresolveissuesthattheyencounterwithourproducts,customersmaychoose
nottopurchaseadditionalproductsandwemayfacebrandandreputationalharm,whichcouldadverselyaffectouroperatingresults.
WecouldbeadverselyaffectedbyviolationsoftheU.S.ForeignCorruptPracticesAct,theU.K.BriberyActorsimilarantibriberylawsinother
jurisdictionsinwhichweoperate.
Theglobalnatureofourbusinessandthesignificanceofourinternationalrevenuecreatevariousdomesticandlocalregulatorychallengesandsubjectustorisks
associatedwithourinternationaloperations.TheU.S.ForeignCorruptPracticesAct,ortheFCPA,theU.K.BriberyAct2010,ortheU.K.BriberyAct,andsimilaranti
briberyandanticorruptionlawsinotherjurisdictionsgenerallyprohibitU.S.basedcompaniesandtheirintermediariesfrommakingimproperpaymentstononU.S.
officialsforthepurposeofobtainingorretainingbusiness,directingbusinesstoanother,orsecuringanadvantage.Inaddition,U.S.publiccompaniesarerequiredto
maintainrecordsthataccuratelyandfairlyrepresenttheirtransactionsandhaveanadequatesystemofinternalaccountingcontrols.UndertheFCPA,U.S.
companiesmaybeheldliableforthecorruptactionstakenbydirectors,officers,employees,agents,orotherstrategicorlocalpartnersorrepresentatives.Assuch,if
weorourintermediariesfailtocomplywiththerequirementsoftheFCPAorsimilarlegislation,governmentalauthoritiesintheUnitedStatesandelsewherecould
seektoimposesubstantialciviland/orcriminalfinesandpenaltieswhichcouldhaveamaterialadverseeffectonourbusiness,reputation,operatingresultsand
financialcondition.
Weoperateinareasoftheworldthatexperiencecorruptionbygovernmentofficialstosomedegreeand,incertaincircumstances,compliancewithantibriberyand
anticorruptionlawsmayconflictwithlocalcustomsandpractices.Ourglobaloperationsrequireustoimportandexporttoandfromseveralcountries,which
geographicallyexpandsourcomplianceobligations.Inaddition,changesinsuchlawscouldresultinincreasedregulatoryrequirementsandcompliancecostswhich
couldadverselyaffectourbusiness,financialconditionandresultsofoperations.Wecannotbeassuredthatouremployeesorotheragentswillnotengagein
prohibitedconductandrenderusresponsibleundertheFCPAortheU.K.BriberyAct.IfwearefoundtobeinviolationoftheFCPA,theU.K.BriberyActorotheranti
briberyoranticorruptionlaws(eitherduetoactsorinadvertenceofouremployees,orduetotheactsorinadvertenceofothers),wecouldsuffercriminalorcivil
penaltiesorothersanctions,whichcouldhaveamaterialadverseeffectonourbusiness.
Wearesubjecttogovernmentalexportandimportcontrolsandeconomicsanctionslawsthatcouldsubjectustoliabilityandimpairourabilitytocompete
ininternationalmarkets.
TheU.S.andvariousforeigngovernmentshaveimposedcontrols,exportlicenserequirementsandrestrictionsontheimportorexportofsometechnologies.Our
productsaresubjecttoU.S.exportcontrols,includingtheCommerceDepartmentsExportAdministrationRegulationsandvariouseconomicandtradesanctions
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OfficeofForeignAssetsControls,andexportsofourproductsmustbemadeincompliancewiththeselaws.Furthermore,U.S.exportcontrollawsandeconomic
sanctionsprohibittheprovisionofproductsandservicestocountries,governments,andpersonstargetedbyU.S.sanctions.Eventhoughwetakeprecautionsto
preventourproductsfrombeingprovidedtotargetsofU.S.sanctions,ourproducts,includingourfirmwareupdates,couldbeprovidedtothosetargetsorprovidedby
ourcustomersdespitesuchprecautions.Anysuchprovisioncouldhavenegativeconsequences,includinggovernmentinvestigations,penaltiesandreputational
harm.Ourfailuretoobtainrequiredimportorexportapprovalforourproductscouldharmourinternationalanddomesticsalesandadverselyaffectourrevenue.
In2014,wedeterminedthatwemayhaveshippedsomeproductstointernationalcustomersthat,priortoshipment,mayhaverequiredeitheraonetimeproduct
revieworapplicationforanencryptionregistrationnumberinlieuofsuchproductreview.Wehavesinceacquiredtheappropriateencryptionregistrationnumber.We
alsorecentlydeterminedthatweprovidedcontrolledtechnologytoouroffshoremanufacturingpartnerswithouttherequiredexportlicensesandhavesubmittedan
exportlicenseapplicationfortheexportofcontrolledtechnologytoouroffshoremanufacturingpartners.Wehavemadeaninitialvoluntarysubmissiontothe
CommerceDepartmentsBureauofIndustryandSecuritytoreportthesepotentialviolationsandareintheprocessofpreparingasupplementaldisclosure.
Wealsodiscoveredin2014potentialsanctionsviolationsinvolvingtransactionswithsanctionedparties,theprovisionofsupportservicestopersonsinanembargoed
country,andfirmwareupdatestopersonsinseveralembargoedcountries.Uponlearningofthesetransactionsandassociatedexportcontrolrequirements,we
promptlyinitiatedaninternalinvestigationandaretakingremedialmeasurestopreventsimilarexportcontrolviolationsfromoccurringinthefuture.Wehavemadean
initialvoluntarysubmissiontotheU.S.DepartmentofTreasurysOfficeofForeignAssetsControltoreportthesepotentialviolationsandarepreparingasupplemental
orupdatedisclosure.
Whilewedonotexpectthesubjectmattersofourvoluntarysubmissionstohaveamaterialeffectonourbusinessoroperatingresults,theycouldresultinpenalties,
costs,andrestrictionsonexportprivileges.
Oureffectivetaxrateandtheintendedtaxbenefitsofourcorporatestructureandintercompanyarrangementsdependontheapplicationofthetaxlawsof
variousjurisdictionsandonhowweoperateourbusiness.
Theapplicationofthetaxlawsofvariousjurisdictions,includingtheUnitedStates,toourinternationalbusinessactivitiesissubjecttointerpretationanddependson
operatingourbusinessinamannerconsistentwithourcorporatestructureandintercompanyarrangements.Thetaxingauthoritiesofthejurisdictionsinwhichwe
operatemaychallengeourmethodsforvaluingtechnology,intercompanyarrangements,includingourtransferpricing,orourcurrentorhistoricaltaxpositions,
includingwithrespecttoresearchanddevelopmenttaxcreditsandourpriorstatusasanScorporation.Anysuchchallengecouldbecostlyandtimeconsumingto
defendandmayincreaseourworldwideeffectivetaxrate,andconsequentlyadverselyaffectourfinancialpositionandresultsofoperations.Inordertoeffectively
structureandexecuteourinternationaloperationswewillneedtocontinuetohire,trainandmanagequalifiedpersonnel.Ifournewhiresunderperform,orifweare
unsuccessfulinhiring,training,managingandintegratingthesenewemployees,ourbusinessmaybeadverselyaffected.

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OurcorporatestructureincludeslegalentitieslocatedinjurisdictionswithincometaxrateslowerthantheU.S.statutorytaxrate.Ourintercompanyarrangements
resultinincomeearnedbysuchentitiesinaccordancewitharmslengthprinciplesandcommensuratewithfunctionsperformed,risksassumedandownershipof
valuablecorporateassets.WebelievethatincometaxedincertainforeignjurisdictionsatalowerraterelativetotheU.S.statutoryratewillhaveabeneficialimpact
onourworldwideeffectivetaxrate.
Significantjudgmentisrequiredinevaluatingourtaxpositionsanddeterminingourprovisionforincometaxes.Duringtheordinarycourseofbusiness,therearemany
transactionsandcalculationsforwhichtheultimatetaxdeterminationisuncertain.Forexample,oureffectivetaxratescouldbeadverselyaffectedbyearningsbeing
lowerthananticipatedincountrieswherewehavelowerstatutoryratesandhigherthananticipatedincountrieswherewehavehigherstatutoryrates,bychangesin
foreigncurrencyexchangeratesorbychangesintherelevanttax,accountingandotherlaws,regulations,principlesandinterpretations.Asweoperateinnumerous
taxingjurisdictions,theapplicationoftaxlawscanbesubjecttodivergingandsometimesconflictinginterpretationsbytaxauthoritiesofthesejurisdictions.Itisnot
uncommonfortaxingauthoritiesindifferentcountriestohaveconflictingviews,forinstance,withrespectto,amongotherthings,themannerinwhichthearmslength
standardisappliedfortransferpricingpurposes,orwithrespecttothevaluationofintellectualproperty.Inaddition,taxlawsaredynamicandsubjecttochangeas
newlawsarepassedandnewinterpretationsofthelawareissuedorapplied.Inparticular,thereisuncertaintyinrelationtotheU.S.taxlegislationintermsofthe
futurecorporatetaxratebutalsointermsoftheU.S.taxconsequencesofincomederivedfromintellectualpropertyheldinforeignjurisdictions.
Ourexistingcorporatestructureandintercompanyarrangementshavebeenimplementedinamannerthatwebelievecomplieswithcurrenttaxlaws.However,ourtax
liabilitiesmaybeadverselyaffectedifsuchstructureandarrangementsarechallengedbyataxingauthorityorweareunabletoappropriatelyadaptthemannerin
whichweoperateourbusinessoriftaxlawschange.
Aneconomicdownturnoreconomicuncertaintyinourkeymarketsmayadverselyaffectconsumerdiscretionaryspendinganddemandforourproducts.
Ourproductsarediscretionaryitemsforconsumers.Factorsaffectingthelevelofconsumerspendingforsuchdiscretionaryitemsincludegeneralmarketconditions,
macroeconomicconditionsandotherfactorssuchasconsumerconfidence,theavailabilityandcostofconsumercredit,levelsofunemploymentandtaxrates.As
globaleconomicconditionscontinuetobevolatileoreconomicuncertaintyremains,trendsinconsumerdiscretionaryspendingalsoremainunpredictableandsubject
toreductionsduetocreditconstraintsanduncertaintiesaboutthefuture.Unfavorableeconomicconditionsmayleadconsumerstodelayorreducepurchasesofour
products.Consumerdemandforourproductsmaynotreachoursalestargets,ormaydecline,whenthereisaneconomicdownturnoreconomicuncertainty.Our
sensitivitytoeconomiccyclesandanyrelatedfluctuationinconsumerdemandcouldadverselyaffectourbusiness,financialconditionandoperatingresults.
Wehavepreviouslyidentifiedamaterialweaknessinourinternalcontroloverfinancialreporting,andifweareunabletomaintaineffectiveinternal
controls,wemaynotbeabletoproducetimelyandaccuratefinancialstatements,andweorourindependentregisteredpublicaccountingfirmmay
concludethatourinternalcontroloverfinancialreportingisnoteffective,whichcouldadverselyimpactourinvestorsconfidenceandourstockprice.
Priortothisoffering,wewereaprivatecompanyandwerenotrequiredtotestourinternalcontrolsonasystematicbasis.Ourindependentregisteredpublic
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requiredtoformallyattesttotheeffectivenessofourinternalcontroloverfinancialreportinguntilthelaterof(1)theyearfollowingourfirstannualreportrequiredtobe
filedwiththeSEC,or(2)thedatewearenolongeranEmergingGrowthCompanyasdefinedintherecentlyenactedJumpstartourBusinessStartupsActof2012,
orJOBSAct,ifwetakeadvantageoftheexemptionscontainedintheJOBSAct.Weanticipatethatafterthecompletionofthisofferingandupontheexpirationof
availableexemptions,pursuanttoSections302and404oftheSarbanesOxleyActof2002,ortheSarbanesOxleyAct,wewillberequiredtoevaluateanddetermine
theeffectiveness,provideamanagementreportandbesubjecttoattestationofourinternalcontroloverfinancialreporting,beginningwithourannualreportforthe
fiscalyearendingDecember31,2015.
InconnectionwiththepreparationofourfinancialstatementsfortheyearsendedDecember31,2011and2012,we,inconjunctionwithourindependentregistered
publicaccountingfirm,identifiedamaterialweaknessinthedesignandoperatingeffectivenessofourinternalcontroloverfinancialreporting.Amaterialweaknessis
adeficiency,oracombinationofdeficiencies,ininternalcontroloverfinancialreportingsuchthatthereisareasonablepossibilitythatamaterialmisstatementofour
annualorinterimfinancialstatementswillnotbepreventedordetectedonatimelybasis.Thematerialweaknessprimarilycompriseddeficienciesrelatedtoalackof
technicalaccountingskills,monitoringactivitiesandalackofadequatereviewprocessesandcontrolswithinouraccountingandfinanceorganization.During2013,we
tookcertainactionsthatremediatedthematerialweakness,whichincludedhiringmanagementlevelpersonnelwithtechnicalaccountingexpertise,designing
adequatereviewandmonitoringproceduresinouraccountingandfinanceorganization,andidentifyingandimplementingimprovedprocessesandcontrols.
Further,weareintheprocessofdesigningandimplementingthesystemofinternalcontroloverfinancialreportingrequiredtocomplywithourfutureobligationsandto
strengthenouroverallcontrolenvironment.Thisinitiativewillbetimeconsuming,costly,andmightplacesignificantdemandsonourfinancialandoperational
resources,aswellasourITsystems.
Ourcurrenteffortstodesignandimplementaneffectivecontrolenvironmentmaynotbesufficienttoremediateorpreventfuturematerialweaknessesorsignificant
deficienciesfromoccurring.Acontrolsystem,nomatterhowwelldesignedandoperated,canprovideonlyreasonableassurancethatthecontrolsystemsobjectives
willbemet.Becauseoftheinherentlimitationsinallcontrolsystems,noevaluationofcontrolscanprovideabsoluteassurancethatmisstatementsduetoerroror
fraudwillnotoccurorthatallcontrolissuesandallinstancesoffraudwillbedetected.Ifweidentifyfuturematerialweaknessesinourinternalcontrolsoverfinancial
reporting,ifweareunabletocomplywiththerequirementsofSection404oftheSarbanesOxleyActinatimelymanner,ifweareunabletoassertthatourinternal
controloverfinancialreportingareeffective,orifourindependentregisteredpublicaccountingfirmisunabletoexpressanopinionastotheeffectivenessofour
internalcontroloverfinancialreporting,ifandwhenrequired,investorsmayloseconfidenceintheaccuracyandcompletenessofourfinancialreportsandthemarket
priceofourClassAcommonstockcouldbenegativelyaffected,andwecouldbecomesubjecttoinvestigationsbythestockexchangeonwhichoursecuritiesare
listed,theSECorotherregulatoryauthorities.
Wehaveexperiencedrapidgrowthinrecentperiods.Ifwefailtomanageourgrowtheffectively,ourfinancialperformancemaysuffer.
Wehaveexperiencedrapidgrowthoverthelastseveralyears,whichhasplacedastrainonourmanagerial,operational,researchanddevelopment,salesand
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financialinfrastructure.Forexample,weincreasedourtotalnumberoffulltimeemployeesfrom49asofDecember31,2010to718asofMarch31,2014.Wehave
alsoestablishedoperationsinothercountries.Ourexpansionhasplaced,andourexpectedfuturegrowthwillcontinuetoplace,asignificantstrainonourmanagerial,
operational,researchanddevelopment,salesandmarketing,administrative,financialandotherresources.
Oursuccesswilldependinpartuponourabilitytomanageourgrowtheffectively.Todoso,wemustcontinuetoincreasetheproductivityofourexistingemployees
andtohire,trainandmanagenewemployeesasneeded.Tomanagedomesticandinternationalgrowthofouroperationsandpersonnel,wewillneedtocontinueto
improveouroperational,financialandmanagementcontrolsandourreportingprocessesandprocedures,andimplementmoreextensiveandintegratedfinancialand
businessinformationsystems.Theseadditionalinvestmentswillincreaseouroperatingcosts,whichwillmakeitmoredifficultforustooffsetanyfuturerevenue
shortfallsbyreducingexpensesintheshortterm.Moreover,ifwefailtoscaleouroperationsormanageourgrowthsuccessfully,ourbusiness,financialconditionand
operatingresultscouldbeadverselyaffected.
Consumersmaybeinjuredwhileengaginginactivitiesthattheyselfcapturewithourproducts,andwemaybeexposedtoclaims,orregulationscouldbe
imposed,whichcouldadverselyaffectourbrand,operatingresultsandfinancialcondition.
Consumersuseourcamerasandaccessoriestoselfcapturetheirparticipationinawidevarietyofphysicalactivities,includingextremesports,whichinmanycases
carrytheriskofsignificantinjury.Wemaybesubjecttoclaimsifconsumersareinjuredwhileusingourproducts.Althoughwemaintaininsurancetohelpprotectus
fromtheriskofanysuchclaims,suchinsurancemaynotbesufficientormaynottoapplytoallsituations.Similarly,proprietorsofestablishmentsatwhich
consumersengageinchallengingphysicalactivitiescouldseektobantheuseofourproductsintheirfacilitiestolimittheirownliability.Inaddition,iflawmakersor
governmentalagenciesweretodeterminethattheuseofourproductsincreasedtheriskofinjurytoallorasubsetofourcustomers,theymaypasslawsoradopt
regulationsthatlimittheuseofourproductsorincreaseourliabilityassociatedwiththeuseofourproducts.Anyoftheseeventscouldadverselyaffectourbrand,
operatingresultsorfinancialcondition.
Ifourestimatesorjudgmentsrelatingtoourcriticalaccountingpoliciesprovetobeincorrect,ouroperatingresultscouldbeadverselyaffected.
ThepreparationoffinancialstatementsinconformitywithGAAPrequiresmanagementtomakeestimatesandassumptionsthataffecttheamountsreportedinthe
consolidatedfinancialstatementsandaccompanyingnotes.Webaseourestimatesonhistoricalexperienceandonvariousotherassumptionsthatwebelievetobe
reasonableunderthecircumstances,asprovidedinthesectiontitledManagementsdiscussionandanalysisoffinancialconditionandresultsofoperations.The
resultsoftheseestimatesformthebasisformakingjudgmentsaboutthecarryingvaluesofassets,liabilitiesandequity,andtheamountofrevenueandexpenses
thatarenotreadilyapparentfromothersources.Ouroperatingresultsmaybeadverselyaffectedifourassumptionschangeorifactualcircumstancesdifferfrom
thoseinourassumptions,whichcouldcauseouroperatingresultstofallbelowtheexpectationsofsecuritiesanalystsandinvestors,resultinginadeclineinourstock
price.Significantassumptionsandestimatesusedinpreparingourconsolidatedfinancialstatementsincludethoserelatedtorevenuerecognition,salesincentives,
stockbasedcompensationexpense,POPdisplays,excessandobsoleteinventorywritedowns,warrantyreserves,longlivedassetsandaccountingforincometaxes
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Ourcreditfacilityprovidesourlenderswithafirstprioritylienagainstsubstantiallyallofourassetsandcontainsfinancialcovenantsandotherrestrictions
onouractionsthatmaylimitouroperationalflexibilityorotherwiseadverselyaffectourfinancialcondition.
InDecember2012,weenteredintoaseniorsecuredcreditagreement,includinga$120.0milliontermloanthatweexpecttorepaywiththeproceedsofthisoffering
anda$50.0millionrevolvingcreditfacilitythatweexpecttoretain.Ourcreditagreementcontainsanumberofrestrictivecovenants,andthetermsofourcredit
facilitymayrestrictourcurrentandfutureoperations,particularlyourabilitytorespondtocertainchangesortotakefutureactions.
Afailurebyustocomplywiththecovenantsorpaymentrequirementsspecifiedinourcreditagreementcouldresultinaneventofdefaultundertheagreement,which
wouldgivethelenderstherighttoterminatetheircommitmentstoprovideadditionalloansunderourrevolvingcreditfacilityandtodeclareallborrowingsoutstanding,
togetherwithaccruedandunpaidinterestandfees,tobeimmediatelydueandpayable.Inaddition,thelenderswouldhavetherighttoproceedagainstthecollateral
wegrantedtothem,whichconsistsofsubstantiallyallourassets.Ifthedebtunderourcreditfacilityweretobeaccelerated,wemaynothavesufficientcashorbe
abletosellsufficientcollateraltorepaythisdebt,whichwouldhaveanimmediatematerialadverseaffectonourbusiness,resultsofoperationsandfinancial
condition.
Weareexposedtoincreasedregulatoryoversightandincurincreasedcostsasaresultofbeingapubliccompany.
Asapubliccompany,wearerequiredtosatisfythelistingrequirementsandrulesoftheNASDAQStockMarketandincursignificantlegal,accountingandother
expensesthatwedidnotincurasaprivatecompany.Currently,ourauditcommitteeiscomprisedoftwoindependentdirectors.Thelistingrequirementsandrulesof
theNASDAQStockMarketrequirethattheauditcommitteebecomposedofatleastthreeindependentmemberswithinoneyearoftheissuerslistingdate.Ifwefail
tofindandelectanadditionalindependentboardmembertoserveontheauditcommittee,wewouldnotbeincompliancewiththelistingrequirementsandrulesofthe
NASDAQStockMarket.Wewillalsoincurcostsassociatedwithourpubliccompanyreportingrequirementsandcorporategovernancerequirements,including
additionaldirectorsandofficersliabilityinsuranceandrequirementsundertheSarbanesOxleyAct,aswellasrulesimplementedbytheSECandtheNASDAQStock
Market.Theserulesandregulationshaveincreased,andwillcontinuetoincrease,ourlegalandfinancialcompliancecostsandhavemade,andwillcontinuetomake,
certainactivitiesmoretimeconsumingandcostly.Further,wehaveincurredcostsinconnectionwithhiringadditionalaccounting,financialandcompliancestaffwith
appropriatepubliccompanyexperienceandtechnicalaccountingknowledge.Anyoftheseexpensescouldharmourbusiness,operatingresultsandfinancial
condition.
Weuseopensourcesoftwareinourplatformthatmaysubjectourtechnologytogeneralreleaseorrequireustoreengineeroursolutions,whichmay
causeharmtoourbusiness.
Weuseopensourcesoftwareinconnectionwithourservices.Fromtimetotime,companiesthatincorporateopensourcesoftwareintotheirproductshavefaced
claimschallengingtheownershipofopensourcesoftwareand/orcompliancewithopensourcelicenseterms.Therefore,wecouldbesubjecttosuitsbyparties
claimingownershipofwhatwebelievetobeopensourcesoftwareornoncompliancewithopensourcelicensingterms.Someopensourcesoftwarelicensesrequire
userswhodistributeormakeavailableopensourcesoftwareaspartoftheirsoftwaretopubliclydiscloseallorpartofthesourcecodetosuchsoftwareand/ormake
availableany
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ouruseofopensourcesoftwareandtrytoensurethatnoneisusedinamannerthatwouldrequireustodisclosethesourcecodeorthatwouldotherwisebreachthe
termsofanopensourceagreement,suchusecouldneverthelessoccurandwemayberequiredtoreleaseourproprietarysourcecode,paydamagesforbreachof
contract,reengineerourapplications,discontinuesalesintheeventreengineeringcannotbeaccomplishedonatimelybasisortakeotherremedialactionthatmay
divertresourcesawayfromourdevelopmentefforts,anyofwhichcouldadverselyaffectourbusiness,financialconditionoroperatingresults.
Anysignificantdisruptiontoourecommercebusinesscouldresultinlostsales.
Oursalesthroughourecommercechannelhavebeengrowing.SalesthroughGoPro.comgenerallyhavehigherprofitmarginsandprovideususefulinsightonthe
salesimpactofcertainofourmarketingcampaigns.Onlinesalesaresubjecttoanumberofrisks.Systeminterruptionsordelayscouldcausepotentialcustomersto
failtopurchaseourproductsandcouldharmourbrand.TheoperationofourdirecttoconsumerecommercebusinessthroughGoPro.comdependsontheabilityto
maintaintheefficientanduninterruptedoperationofonlineordertakingandfulfillmentoperations.Ourecommerceoperationssubjectustocertainrisksthatcould
haveanadverseeffectonouroperatingresults,includingrisksrelatedtothecomputersystemsthatoperateourwebsiteandrelatedsupportsystems,suchas
systemfailures,viruses,computerhackersandsimilardisruptions.Ifweareunabletocontinuallyaddsoftwareandhardware,effectivelyupgradeoursystemsand
networkinfrastructureandtakeotherstepstoimprovetheefficiencyofoursystems,systeminterruptionsordelayscouldoccurthatadverselyaffectouroperating
results.
Weutilizethirdpartyvendorsforourcustomerfacingecommercetechnology,ordermanagementsystemandfulfillmentintheUnitedStatesandinternationally.We
dependonourtechnologyvendorstomanageuptimeofthefrontendecommercestore,managetheintakeofourorders,andexportordersforfulfillment.Inthe
future,wecouldbegintorunalloragreaterportionofourecommercecomponentsourselvesratherthanusethirdpartyvendors.Anyfailureonthepartofourthird
partyecommercevendorsorinourabilitytotransitionthirdpartyserviceseffectivelycouldresultinlostsalesandharmourbusiness.
Failuretoadequatelyprotectcustomerdatacouldharmourbrandandourreputationinthemarketplace.
ChangingregulationsandlawsgoverningtheInternet,dataprivacy,dataprotectionandecommercetransactions(includingtaxation,pricingandelectronic
communications)couldimpedethegrowthofourecommercebusiness,increaseourcostofdoingbusinessandlimitourabilitytocollectanduseinformation
collectedfromourcustomers.Further,newregulationslimitingourabilitytocollect,useanddisclosecustomerdata,orimposingadditionalrequirementswithrespect
totheretentionandsecurityofcustomerdata,couldlimitourmarketingactivitiesandcouldadverselyaffectourbusinessandfinancialcondition.
Inourecommerceservices,weprocess,storeandtransmitcustomerdata.Wealsocollectcustomerdatathroughcertainmarketingactivities.Failuretopreventor
mitigatedatalossorothersecuritybreaches,includingbreachesofourvendorstechnologyandsystems,couldexposeusorourcustomerstoariskoflossor
misuseofsuchinformation,adverselyaffectouroperatingresults,resultinlitigationorpotentialliabilityforusandotherwiseharmourbusiness.Further,weare
subjecttogeneralbusinessregulationsandlaws,aswellasregulationsandlawsspecificallygoverningtheInternet,ecommerceandelectronicdevices.Existingand
futurelawsandregulations,ornewinterpretationsoftheselaws,mayadverselyaffectourabilitytoconductourecommercebusiness.

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Ifwefailtocomplywithenvironmentalrequirements,ourbusiness,financialcondition,operatingresultsandreputationcouldbeadverselyaffected.
Wearesubjecttovariousenvironmentallawsandregulationsincludinglawsgoverningthehazardousmaterialcontentofourproductsandlawsrelatingtothe
collectionofandrecyclingofelectricalandelectronicequipment.ExamplesoftheselawsandregulationsincludetheEURestrictionsofHazardousSubstances
Directive,ortheRoHSDirective,andtheEUWasteElectricalandElectronicEquipmentDirective,ortheWEEEDirective,aswellastheimplementinglegislationof
theEUmemberstates.SimilarlawsandregulationshavebeenpassedorarependinginChina,SouthKorea,NorwayandJapanandmaybeenactedinotherregions,
includingintheUnitedStates,andweare,ormayinthefuturebe,subjecttotheselawsandregulations.
TheRoHSDirectiveandthesimilarlawsofotherjurisdictionsbantheuseofcertainhazardousmaterialssuchaslead,mercuryandcadmiuminthemanufactureof
electricalequipment,includingourproducts.Althoughwehavepoliciesandproceduresinplacerequiringourcontractmanufacturersandmajorcomponentsuppliersto
complywiththeRoHSDirectiverequirements,wecannotassureyouthatourmanufacturersandsuppliersconsistentlycomplywiththeserequirements.Inaddition,if
therearechangestotheseorotherlaws(ortheirinterpretation)orifnewsimilarlawsarepassedinotherjurisdictions,wemayberequiredtoreengineerourproducts
tousecomponentscompatiblewiththeseregulations.Thisreengineeringandcomponentsubstitutioncouldresultinadditionalcoststousordisruptouroperationsor
logistics.
TheWEEEDirectiverequireselectronicgoodsproducerstoberesponsibleforthecollection,recyclingandtreatmentofsuchproducts.Changesininterpretationof
thedirectivemaycauseustoincurcostsorhaveadditionalregulatoryrequirementstomeetinthefutureinordertocomplywiththisdirective,orwithanysimilarlaws
adoptedinotherjurisdictions.Ourfailuretocomplywithpast,presentandfuturesimilarlawscouldresultinreducedsalesofourproducts,substantialproduct
inventorywriteoffs,reputationaldamage,penaltiesandothersanctions,whichcouldharmourbusinessandfinancialcondition.Wealsoexpectthatourproductswill
beaffectedbynewenvironmentallawsandregulationsonanongoingbasis.Todate,ourexpendituresforenvironmentalcompliancehavenothadamaterialimpact
onourresultsofoperationsorcashflowsand,althoughwecannotpredictthefutureimpactofsuchlawsorregulations,theywilllikelyresultinadditionalcostsand
mayincreasepenaltiesassociatedwithviolationsorrequireustochangethecontentofourproductsorhowtheyaremanufactured,whichcouldhaveamaterial
adverseeffectonourbusinessandfinancialcondition.
Newregulationsrelatedtoconflictmineralsmaycauseustoincuradditionalexpensesandcouldlimitthesupplyandincreasethecostsofcertainmetals
usedinthemanufacturingofourproducts.
Asapubliccompany,wewillbesubjecttonewrequirementsundertheDoddFrankWallStreetReformandConsumerProtectionActof2010,ortheDoddFrankAct,
thatwillrequireustodiligence,discloseandreportwhetherornotourproductscontainconflictminerals.Theimplementationofthesenewrequirementscould
adverselyaffectthesourcing,availabilityandpricingofthematerialsusedinthemanufactureofcomponentsusedinourproducts.Inaddition,wewillincuradditional
coststocomplywiththedisclosurerequirements,includingcostsrelatedtoconductingdiligenceprocedurestodeterminethesourcesofconflictmineralsthatmaybe
usedornecessarytotheproductionofourproductsand,ifapplicable,potentialchangestoproducts,processesorsourcesofsupplyasaconsequenceofsuch
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activities.Itisalsopossiblethatwemayfacereputationalharmifwedeterminethatcertainofourproductscontainmineralsnotdeterminedtobeconflictfreeorifwe
areunabletoalterourproducts,processesorsourcesofsupplytoavoidsuchmaterials.
AsanemerginggrowthcompanyundertheJOBSAct,wearepermittedto,andintendto,relyonexemptionsfromcertaindisclosurerequirements.
AsanemerginggrowthcompanyundertheJOBSAct,wearepermittedto,andintendto,relyonexemptionsfromcertaindisclosurerequirements.Inparticular,we
havenotincludedalloftheexecutivecompensationrelatedinformationthatwouldberequiredinthisprospectusifwewerenotanemerginggrowthcompany.In
addition,forsolongasweareanemerginggrowthcompany,whichcanlast,atmost,untilthefirstfiscalyearfollowingthefifthanniversaryofthisoffering,wewillnot
berequiredto:

haveanauditorreportonourinternalcontroloverfinancialreportingpursuanttoSection404(b)oftheSarbanesOxleyAct

complywithanyrequirementthatmaybeadoptedbythePublicCompanyAccountingOversightBoardregardingmandatoryauditfirmrotationorasupplementto
theauditorsreportprovidingadditionalinformationabouttheauditandthefinancialstatements(auditordiscussionandanalysis)and

submitcertainexecutivecompensationmatterstoshareholderadvisoryvotes,suchassayonpayandsayonfrequency.
AlthoughweintendtorelyoncertainexemptionsprovidedintheJOBSAct,theexactimplicationsoftheJOBSActforusarestillsubjecttointerpretationsand
guidancebytheSECandotherregulatoryagencies.Also,asourbusinessgrows,wemaynolongersatisfytheconditionofanemerginggrowthcompany.Wewill
remainanemerginggrowthcompanyuntilthefirstfiscalyearfollowingthefifthanniversaryofthisoffering,althoughifthemarketvalueofourClassAandClassB
commonstockthatisheldbynonaffiliatesexceeds$700.0millionasofJune30thofanyyearbeforetheendofthatfiveyearperiod,wewouldceasetobean
emerginggrowthcompanyasofthefollowingDecember31st.Ifwehavemorethan$1.0billioninannualrevenueinafiscalyear,wewouldceasetobeanemerging
growthcompanyasoftheendofthatfiscalyear,andifweissuemorethan$1.0billioninnonconvertibledebtoverathreeyearperiod,wewouldalsoceasetobean
emerginggrowthcompanyimmediately.Wearecurrentlyevaluatingandmonitoringdevelopmentswithrespecttothesenewrulesandwecannotassureyouthatwe
willbeabletoenjoypartorallofthebenefitsfromtheJOBSAct.WehaveirrevocablyelectednottoavailourselvesoftheJOBSActaccommodationallowingfor
delayedadoptionofneworrevisedaccountingstandards,and,therefore,wewillbesubjecttothesameneworrevisedaccountingstandardsasotherpublic
companiesthatarenotemerginggrowthcompanies.
Wemaynotbeabletosecureadditionalfinancingonfavorableterms,oratall,tomeetourfuturecapitalneeds.
Inthefuture,wemayrequireadditionalcapitaltorespondtobusinessopportunities,challenges,acquisitionsorunforeseencircumstancesandmaydetermineto
engageinequityordebtfinancingsorenterintocreditfacilitiesforotherreasons.Wemaynotbeabletotimelysecureadditionaldebtorequityfinancingonfavorable
terms,oratall.Ifweraiseadditionalfundsthroughtheissuanceofequityorconvertibledebtorotherequitylinkedsecurities,ourexistingstockholderscouldsuffer
significantdilution.Anydebtfinancingobtainedbyusinthefuture

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couldinvolverestrictivecovenantsrelatingtoourcapitalraisingactivitiesandotherfinancialandoperationalmatters,whichmaymakeitmoredifficultforustoobtain
additionalcapitalandtopursuebusinessopportunities,includingpotentialacquisitions.Ifweareunabletoobtainadequatefinancingorfinancingontermssatisfactory
tous,whenwerequireit,ourabilitytocontinuetogroworsupportourbusinessandtorespondtobusinesschallengescouldbesignificantlylimited.
Catastrophiceventsorpoliticalinstabilitycoulddisruptandcauseharmtoourbusiness.
OurheadquartersislocatedintheSanFranciscoBayAreaofCalifornia,anareasusceptibletoearthquakes.Amajorearthquakeorothernaturaldisaster,fire,actof
terrorismorothercatastrophiceventinCaliforniaorelsewherethatresultsinthedestructionordisruptionofanyofourcriticalbusinessoperationsorinformation
technologysystemscouldseverelyaffectourabilitytoconductnormalbusinessoperationsand,asaresult,ourfutureoperatingresultscouldbeharmed.
Ourkeymanufacturing,supplyanddistributionpartnershaveglobaloperationsincludinginChina,SingaporeandtheNetherlandsaswellastheUnitedStates.
Politicalinstabilityorcatastrophiceventsinanyofthosecountriescouldadverselyaffectourbusinessinthefuture,ourfinancialconditionandoperatingresults.
Risksrelatedtothisoffering
TherehasbeennopriormarketforourClassAcommonstock,ourstockpricemaybevolatileormaydeclineregardlessofouroperatingperformance,an
activepublictradingmarketmaynotdeveloporbesustainedfollowingthisoffering,andyoumaynotbeabletoresellyoursharesatorabovetheinitial
publicofferingprice.
TherehasbeennopublicmarketforourClassAcommonstockpriortothisoffering.TheinitialpublicofferingpriceforourClassAcommonstockwillbedetermined
throughnegotiationsbetweentheunderwritersandusandmayvaryfromthemarketpriceofourClassAcommonstockfollowingthisoffering.Ifyoupurchaseshares
ofourClassAcommonstockinthisoffering,youmaynotbeabletoresellthosesharesatorabovetheinitialpublicofferingprice.AnactivemarketforourClassA
commonstockmaynotdevelopupontheclosingofthisofferingor,ifitdoesdevelop,itmaynotbesustainable.Thetradingpricesofthesecuritiesofnewlypublic
companieshavehistoricallybeenhighlyvolatile.ThemarketpriceofourClassAcommonstockmayfluctuatesignificantlyinresponsetonumerousfactors,manyof
whicharebeyondourcontrol,including:

actualoranticipatedfluctuationsinourrevenueandotheroperatingresults

thefinancialprojectionswemayprovidetothepublic,anychangesintheseprojectionsorourfailuretomeettheseprojections

failureofsecuritiesanalyststoinitiateormaintaincoverageofus,changesinfinancialestimatesbyanysecuritiesanalystswhofollowourcompany,orourfailure
tomeettheseestimatesortheexpectationsofinvestors

announcementsbyusorourcompetitorsofsignificanttechnicalinnovations,acquisitions,strategicpartnerships,jointventuresorcapitalcommitments

changesinoperatingperformanceandstockmarketvaluationsofonlinemarketingorothertechnologycompanies,orthoseinourindustryinparticular

lawsuitsthreatenedorfiledagainstusand

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othereventsorfactors,includingthoseresultingfromwar,incidentsofterrorismorresponsestotheseevents.
Inaddition,thestockmarketshaveexperiencedextremepriceandvolumefluctuationsthathaveaffectedandcontinuetoaffectthemarketpricesofequitysecurities
ofmanycompanies.Stockpricesofmanycompanieshavefluctuatedinamannerunrelatedordisproportionatetotheoperatingperformanceofthosecompanies.In
thepast,stockholdershaveinstitutedsecuritiesclassactionlitigationfollowingperiodsofmarketvolatility.Ifweweretobecomeinvolvedinsecuritieslitigation,it
couldsubjectustosubstantialcosts,divertresourcesandtheattentionofmanagementfromourbusinessandadverselyaffectourbusiness.
SalesofsubstantialamountsofourClassAcommonstockinthepublicmarkets,ortheperceptionthattheymightoccur,couldreducethepricethatour
ClassAcommonstockmightotherwiseattainandmaydiluteyourvotingpowerandyourownershipinterestinus.
Afterthecompletionoftheoffering,wewillhaveoutstandingsharesofourClassAandClassBcommonstock(sharesofClassAandClass
Bcommonstockiftheunderwritersexerciseinfulltheiroptiontopurchaseadditionalshares).ThisnumberincludesallthesharesofourClassAcommonstockthat
wearesellinginthisoffering,whichmayberesoldimmediatelyinthepublicmarket.
Subjecttocertainexceptions,we,allofourdirectorsandofficersandsubstantiallyallofourstockholdersandoptionholdershaveagreednottooffer,selloragreeto
sell,directlyorindirectly,anysharesofClassAorClassBcommonstockwithoutthepermissionoftheunderwritersforaperiodof180daysfromthedateofthis
prospectus,subjecttoextensioninsomecircumstances.SeeShareseligibleforfuturesaleLockupagreementsforadditionalinformation.Afterthelockup
agreementspertainingtothisofferingexpire,weandourlockedupsecurityholderswillbeabletoselloursharesinthepublicmarket,subjecttovolumelimitations
underRule144undertheSecuritiesActandvariousvestingagreements.Salesofasubstantialnumberofsuchsharesuponexpiration,orearlyrelease,ofthelock
up(ortheperceptionthatsuchsalesmayoccur)couldcauseoursharepricetofall.
ThemarketpriceofthesharesofourClassAcommonstockcoulddeclineasaresultofsalesofasubstantialnumberofoursharesinthepublicmarketorthe
perceptioninthemarketthattheholdersofalargenumberofsharesintendtoselltheirshares.
ThedualclassstructureofourcommonstockwillhavetheeffectofconcentratingvotingcontrolwithourChiefExecutiveOfficerandotherdirectorsand
theiraffiliatesthiswilllimitorprecludeyourabilitytoinfluencecorporatematters.
OurClassBcommonstockhas10votespershare,andourClassAcommonstock,whichisthestockweareofferinginthisoffering,hasonevotepershare.
StockholderswhoholdsharesofClassBcommonstockwillholdapproximately%ofthevotingpowerofouroutstandingcapitalstockfollowingthisoffering.
Ourexecutiveofficersanddirectorsandtheiraffiliateswillholdapproximately%oftheoutstandingvotingpower,withMr.Woodman,ourChiefExecutive
Officer,holdingapproximately%,and,therefore,assumingnomaterialsalesofsuchshares,theywillbeabletocontrolallmatterssubmittedtoour
stockholders,includingtheelectionofdirectors,amendmentsofourorganizationaldocumentsandanymerger,consolidation,saleofallorsubstantiallyallofour
assetsorothermajorcorporatetransaction.Thisconcentratedcontrolwilllimitorprecludeyourabilitytoinfluencecorporatemattersfortheforeseeablefuture.In
addition,

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thismaypreventordiscourageunsolicitedacquisitionproposalsoroffersforourcapitalstockthatyoumayfeelareinyourbestinterestasoneofourstockholders.
Wehavebroaddiscretionintheuseofthenetproceedsfromthisofferingandmaynotusethemeffectively.
Ourmanagementwillhavebroaddiscretionintheapplicationofthenetproceedsthatwereceivefromthisoffering,includingapplicationsforworkingcapital,possible
acquisitionsandothergeneralcorporatepurposes,andtherepaymentofourtermloanunderoursyndicatedsecuredcreditfacility,whichhadanoutstandingbalance
of$111.0millionasofMarch31,2014,andwemayspendorinvesttheseproceedsinawaywithwhichourstockholdersdisagree.Thefailurebyourmanagementto
applythesefundseffectivelycouldharmourbusinessandfinancialcondition.Pendingtheiruse,wemayinvestthenetproceedsfromthisofferinginamannerthat
doesnotproduceincomeorthatlosesvalue.Theseinvestmentsmaynotyieldafavorablereturntoourinvestors.
Ifsecuritiesanalystsdonotpublishresearchorpublishinaccurateorunfavorableresearchaboutourbusiness,ourstockpriceandtradingvolumecould
decline.
ThetradingmarketforourClassAcommonstockwilldependinpartontheresearchandreportsthatsecuritiesorindustryanalystspublishaboutusorourbusiness.
Wecurrentlydonothaveandmayneverobtainresearchcoveragebysecuritiesanalysts.Ifnosecuritiesanalystscommencecoverageofourcompany,thetrading
priceforourstockwouldbenegativelyimpacted.Intheeventweobtainsecuritiesanalystcoverage,ifoneormoreoftheanalystswhocoverusdowngradeourstock
orpublishinaccurateorunfavorableresearchaboutourbusiness,ourstockpricewouldlikelydecline.Ifoneormoreoftheseanalystsceasecoverageofour
companyorfailtopublishreportsonusregularly,demandforourstockcoulddecrease,whichmightcauseourstockpriceandtradingvolumetodecline.
Wedonotintendtopaydividendsfortheforeseeablefuture.
Wecurrentlyintendtoretainanyfutureearningstofinancetheoperationandexpansionofourbusiness,andwedonotexpecttodeclareorpayanydividendsinthe
foreseeablefuture.Asaresult,youmayonlyreceiveareturnonyourinvestmentinourClassAcommonstockifthemarketpriceofourClassAcommonstock
increases.Ourcreditagreementcontainsaprohibitiononthepaymentofcashdividendsonourcapitalstock.
IfyoupurchasesharesofourClassAcommonstockinthisoffering,youwillexperiencesubstantialandimmediatedilution.
IfyoupurchasesharesofourClassAcommonstockinthisoffering,youwillexperiencesubstantialandimmediatedilutioninthenettangiblebookvaluepershare
aftergivingeffecttothisofferingof$asof,2014,basedonanassumedinitialpublicofferingpriceof$pershare,whichisthemidpointof
therangesetforthonthecoverpageofthisprospectus,becausethepricethatyoupaywillbesubstantiallygreaterthanthenettangiblebookvaluepershareofthe
ClassAcommonstockthatyouacquire.Thisdilutionisdueinlargeparttothefactthatourearlierstockholderspaidsubstantiallylessthantheinitialpublicoffering
pricewhentheypurchasedtheirsharesofourcapitalstock.YouwillexperienceadditionaldilutionuponexerciseofoptionstopurchaseClassAorClassBcommon
stockunderourequityincentiveplansorunderequityawardsgrantedoutsideourequityincentiveplan,ifweissueClassAorClassBcommonstocktoour
employeesunderourequityincentiveplansorifweotherwiseissueadditionalsharesofourcapitalstock.SeeDilutionforfurtherinformation.

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Delawarelawandprovisionsinourrestatedcertificateofincorporationandamendedandrestatedbylawsthatwillbeineffectattheclosingofthisoffering
couldmakeamerger,tenderofferorproxycontestdifficult,therebydepressingthetradingpriceofourClassAcommonstock.
Followingtheclosingofthisoffering,ourstatusasaDelawarecorporationandtheantitakeoverprovisionsoftheDelawareGeneralCorporationLawmaydiscourage,
delayorpreventachangeincontrolbyprohibitingusfromengaginginabusinesscombinationwithaninterestedstockholderforaperiodofthreeyearsafterthe
personbecomesaninterestedstockholder,evenifachangeofcontrolwouldbebeneficialtoourexistingstockholders.Inaddition,ourrestatedcertificateof
incorporationandamendedandrestatedbylawsthatwillbeineffectattheclosingofthisofferingwillcontainprovisionsthatmaymaketheacquisitionofour
companymoredifficultwithouttheapprovalofourboardofdirectors,orotherwiseadverselyaffecttherightsoftheholdersofourClassAandClassBcommon
stock,includingthefollowing:

initiallyourboardofdirectorswillnotbeclassified,butatsuchtimeasallsharesofourClassBcommonstockhavebeenconvertedintosharesofourClassA
commonstock,ourboardofdirectorswillbeclassifiedintothreeclassesofdirectorswithstaggeredthreeyearterms

solongasanysharesofourClassBcommonstockareoutstanding,specialmeetingsofourstockholdersmaybecalledbytheholdersof10%oftheoutstanding
votingpowerofallthenoutstandingsharesofstock,amajorityofourboardofdirectors,thechairmanofourboardofdirectors,ourchiefexecutiveofficeorour
president,andthereafteronlythechairmanofourboardofdirectors,ourchiefexecutiveofficer,ourpresidentoramajorityofourboardofdirectorswillbe
authorizedtocallaspecialmeetingofstockholders

ourstockholderswillonlybeabletotakeactionatameetingofstockholdersandnotbywrittenconsent

vacanciesonourboardofdirectorswillbeabletobefilledonlybyourboardofdirectorsandnotbystockholders

directorsmayberemovedfromofficewithorwithoutcausesolongasourboardofdirectorsisnotclassified,andthereafterdirectorsmayberemovedfromoffice
onlyforcause

ourrestatedcertificateofincorporationprovidesforadualclasscommonstockstructureinwhichholdersofourClassBcommonstockwillhavetheabilityto
controltheoutcomeofmattersrequiringstockholderapproval,eveniftheyownsignificantlylessthanamajorityoftheoutstandingsharesofourClassAand
ClassBcommonstock,includingtheelectionofdirectorsandsignificantcorporatetransactions,suchasamergerorothersaleofourcompanyoritsassets

ourrestatedcertificateofincorporationwillauthorizeundesignatedpreferredstock,thetermsofwhichmaybeestablished,andsharesofwhichmaybeissued,by
ourboardofdirectorswithoutstockholderapprovalandwhichmaycontainvoting,liquidation,dividendandotherrightssuperiortothoseofourClassAandClassB
commonstockand

advancenoticeprocedureswillapplyforstockholderstonominatecandidatesforelectionasdirectorsortobringmattersbeforeanannualmeetingofstockholders.
Forinformationregardingtheseandotherprovisions,seeDescriptionofcapitalstock.

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Specialnoteregardingforwardlookingstatementsandindustrydata
Thisprospectuscontainsforwardlookingstatementsthatarebasedonourbeliefsandassumptionsregardingfutureeventsandcircumstances,includingstatements
regardingourstrategies,ouropportunities,developmentsinthemarketsinwhichweareactive,ourrelationshipswithourcustomers,contractmanufacturers,
componentsuppliersanddistributorsandothermatters.ThesestatementsareprincipallycontainedinthesectionstitledProspectussummary,Riskfactors,Use
ofproceeds,Managementsdiscussionandanalysisoffinancialconditionandresultsofoperations,Business,andShareseligibleforfuturesale.Forwardlooking
statementsincludestatementsthatarenothistoricalfactsandcanbeidentifiedbywordssuchasproject,believe,anticipate,plan,expect,estimate,intend,
continue,should,would,could,potentially,willormay,orothersimilarwordsandphrases.
Forwardlookingstatementsaresubjecttoknownandunknownrisks,uncertaintiesandotherfactorsthatcouldcauseactualresultstodiffermateriallyfromtheresults
anticipatedbytheseforwardlookingstatements.Theserisks,uncertaintiesandfactorsincludethosewediscussinthisprospectusinthesectiontitledRiskfactors.
Youshouldreadtheseriskfactorsandtheothercautionarystatementsmadeinthisprospectusasbeingapplicabletoallrelatedforwardlookingstatementswherever
theyappearinthisprospectus.Itisnotpossibleforustopredictallrisksthatcouldaffectus,norcanweassesstheimpactofallfactorsonourbusinessorthe
extenttowhichanyfactororcombinationoffactorsmaycauseactualresultstodiffermateriallyfromthosecontainedinanyforwardlookingstatementswemay
make.Moreover,newrisksemergefromtimetotime.
Theforwardlookingstatementsmadeinthisprospectusrelateonlytoeventsasofthedateonwhichthestatementsaremade.Weundertakenoobligationtoupdate
publiclyanyforwardlookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise,exceptasrequiredbylaw.
Youshouldreadthisprospectusandthedocumentswereferenceinthisprospectus,andhavefiledwiththeSECasexhibitstotheregistrationstatementofwhich
thisprospectusisapart,withtheunderstandingthatouractualfutureresults,levelsofactivity,performanceandeventsandcircumstancesmaybematerially
differentfromwhatweexpect.
Inthisprospectus,werefertometricsrelatedtoourpresenceonthirdpartysocialmediaservices,suchasthenumberoflikesonourFacebookpageandthe
numberofuserswhohavesharedvideosonYouTubewithGoProinthetitle.Thesesocialmediaservicesgenerallyhavepoliciesinplacetodiscourageduplicative
useraccountsorartificialactivitydesignedtoinflatesuchmetrics.Weareunabletoindependentlyverifythemetricsprovidedbythesesocialmediaservices.Weare
alsounabletodeterminewhetherthesefiguresincludeindividualswithmultipleaccountsononeservice,deactivatedorinactiveaccounts,ormultipleviews,likesor
similaractionsbythesameuser.Wehavereliedonthecalculationsandanalysisconductedbytheseservicestopresentmetricsthat,ascloselyaspossible,reflect
genuineusersandlegitimateuseractivityontheirsocialmediaservices.
Thisprospectusalsocontainsestimatesandotherstatisticaldatathatweobtainedfromindustrypublications,surveys,forecastsandreports.Theseindustry
publicationsgenerallyindicatethattheyhaveobtainedtheirinformationfromsourcesbelievedtobereliable,butdonotguaranteetheaccuracyandcompletenessof
theirinformation.Thisinformationinvolvesanumberof

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assumptionsandlimitations,andyouarecautionednottogiveundueweighttotheseestimates.Althoughwehavenotindependentlyverifiedtheaccuracyor
completenessofthedatacontainedintheseindustrypublicationsandreports,basedonourindustryexperiencewebelievethatthepublicationsarereliableandthe
conclusionscontainedinthepublicationsandreportsarereasonable.

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Useofproceeds
WeestimatethatwewillreceivenetproceedsfromthesaleofthesharesofClassAcommonstockthatwearesellinginthisofferingofapproximately
$million,basedonanassumedinitialpublicofferingpriceof$pershare,themidpointofthepricerangesetforthonthecoverpageofthisprospectus,
afterdeductingtheestimatedunderwritingdiscountsandcommissionsandestimatedofferingexpensespayablebyus.Iftheunderwritersexercisetheiroptionto
purchaseadditionalsharesinfull,weestimatethatournetproceedswillbeapproximately$million,afterdeductingestimatedunderwritingdiscountsand
commissionsandestimatedofferingexpensespayablebyus.WewillnotreceiveanyproceedsfromthesaleofsharesofourClassAcommonstockbytheselling
stockholders.
Each$1.00increaseordecreaseintheassumedinitialpublicofferingpricewouldincreaseordecrease,asapplicable,thenetproceedstousby$million,
assumingthenumberofsharesClassAcommonstockofferedbyus,assetforthonthecoverpageofthisprospectus,remainsthesameandafterdeducting
estimatedunderwritingdiscountsandcommissions.
Theprincipalpurposesofthisofferingareforgeneralcorporatepurposes,includingworkingcapital,andtorepayourtermloanunderourcreditfacility,tocreatea
publicmarketforourClassAcommonstockandtofacilitateourfutureaccesstothepublicequitymarkets.AtMarch31,2014,theoutstandingbalanceoftheterm
loanwas$111.0millionandboreinterestattherateof2.75%perannum.Thetermloanhasscheduledquarterlyprincipalrepaymentswiththeremainingbalancedue
onDecember21,2015.SeeManagementsdiscussionandanalysisoffinancialconditionandresultsofoperationsLiquidityandcapitalresourcesCreditfacility
foradditionalinformationregardingourtermloan.
Wemayalsouseaportionofthenetproceedstoacquireorinvestincomplementarybusinesses,technologiesorassets.However,wehavenopresentcommitments
oragreementstoenterintoanyacquisitionsormakeanyinvestments.
Ourmanagementwillhavesignificantflexibilityinapplyingthenetproceedsfromthisoffering,andinvestorswillberelyingonthejudgmentofourmanagement
regardingtheapplicationofthesenetproceeds.Pendingtheusesdescribedabove,weintendtoinvestthenetproceedsfromthisofferinginshortterm,
interestbearingobligations,investmentgradeinstruments,certificatesofdepositordirectorguaranteedobligationsoftheU.S.government.Thegoalwithrespectto
theinvestmentofthesenetproceedswillbecapitalpreservationandliquiditysothatthesefundsarereadilyavailabletofundouroperations.
Dividendpolicy
OnDecember19,2012,wedeclaredacashdividendpursuanttowhicheachholderofourcommonstockandredeemableconvertiblepreferredstockasof
December21,2012received$1.050965foreveryshareofourcommonstockthenheldbysuchstockholder(witheachstockholderofredeemableconvertible
preferredstockbeingtreatedasholdingthenumberofsharesofcommonstockthenissuableuponconversionofallsharesofredeemableconvertiblepreferredstock
heldbysuchstockholder).WedonotcurrentlyintendtopayanycashdividendsonourClassAcommonstockorClassBcommonstockfortheforeseeablefuture.
Weexpecttoretainfutureearnings,ifany,tofundthedevelopmentandgrowthofourbusiness.AnyfuturedeterminationtopaydividendsonourClassAcommon
stockorClassBcommonstockwillbeatthediscretionofourboardofdirectorsandwilldependupon,amongotherfactors,ourfinancialcondition,operatingresults,
currentandanticipatedcashneeds,plansforexpansionandotherfactorsthatourboardofdirectorsmaydeemrelevant.Inaddition,ourcreditagreementrestrictsour
abilitytopaydividends.

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Capitalization
ThefollowingtablesetsforthourcapitalizationasofMarch31,2014:

onanactualbasis

onaproformabasistoreflecttheconversionofalloutstandingsharesofourredeemableconvertiblepreferredstockinto30,523,036sharesofourClassB
commonstockinconnectionwiththeclosingofthisoffering

onaproformaasadjustedbasistofurtherreflect(i)theapplicationofaportionoftheproceedsofthisofferingtorepayinfulltheoutstandingbalanceofourterm
loan,whichwas$111.0millionatMarch31,2014,(ii)theconversionbythesellingstockholdersofsharesofourClassBcommonstockintothesame
numberofsharesofourClassAcommonstockinconnectionwiththeclosingofthisoffering,(iii)thesalebyusofsharesofClassAcommonstockin
thisofferingatanassumedinitialpublicofferingpriceof$pershare,themidpointofthepricerangesetforthonthecoverpageofthisprospectus,after
deductingtheestimatedunderwritingdiscountsandcommissionsandestimatedofferingexpensespayablebyusand(iv)thefilingandeffectivenessofour
restatedcertificateofincorporationinconnectionwiththeclosingofthisoffering.
Theunauditedproformaandproformaasadjustedinformationbelowisillustrativeonly,andtotalstockholdersequityandtotalcapitalizationfollowingthecompletion
ofthisofferingwillbeadjustedbasedontheactualofferingpriceandothertermsofourofferingdeterminedatpricing.Youshouldreadthistabletogetherwiththe
sectiontitledManagementsdiscussionandanalysisoffinancialconditionandresultsofoperationsandourfinancialstatements,relatednotesandotherfinancial
informationappearingelsewhereinthisprospectus.

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AsofMarch31,2014
(inthousands,exceptshareamounts)(unaudited) Actual Proforma
Proforma
asadjusted(1)
Longtermdebt,includingcurrentportion 110,666 110,666
Redeemableconvertiblepreferredstock,$0.0001parvalue,36,000,000sharesauthorized,30,523,036
sharesissuedandoutstandingnosharesauthorized,issuedoroutstanding,proformaorproforma
asadjusted 77,213
Stockholdersequity(deficit):
Preferredstock,$0.0001parvaluenosharesauthorized,issuedoroutstanding,actual5,000,000
sharesauthorized,nosharesissuedoroutstanding,proformaandproformaasadjusted
Commonstock,$0.0001parvalue,150,000,000sharesauthorized,81,899,442sharesissuedand
outstanding,actual112,422,478sharesissuedandoutstanding,proformanosharesissuedand
outstanding,proformaasadjusted 8 11
ClassAcommonstock,$0.0001parvalue,500,000,000sharesauthorized,nosharesissuedand
outstanding,actualnosharesissuedandoutstanding,proforma,sharesissuedand
outstanding,proformaasadjusted
ClassBcommonstock,$0.0001parvalue,150,000,000sharesauthorized,nosharesissuedand
outstanding,actualnosharesissuedandoutstanding,proforma,sharesissuedand
outstanding,proformaasadjusted
Additionalpaidincapital 19,218 96,428
Accumulateddeficit (8,835) (8,835)

Totalstockholdersequity(deficit) 10,391 87,604

Totalcapitalization $198,270 $ 198,270 $

(1) Each$1.00increaseordecreaseintheassumedinitialpublicofferingpriceof$pershare,themidpointofthepricerangesetforthonthecoverpageofthisprospectus,wouldincreaseor
decrease,respectively,ourcash,workingcapital,totalassetsandtotalstockholdersequityby$million,assumingthenumberofsharesofferedbyus,assetforthonthecoverpageofthis
prospectus,remainsthesameandafterdeductingestimatedunderwritingdiscountsandcommissions.Iftheunderwritersexerciseinfulltheiroptiontopurchaseadditionalshares,theamountofpro
formaasadjustedadditionalpaidincapital,totalstockholdersequityandtotalcapitalizationwouldincreasebyapproximately$millionandwewouldhavesharesofClassAcommon
stockissuedandoutstanding.
ThenumberofsharesofourClassAandClassBcommonstocktobeoutstandingafterthisofferingisbasedon112,422,478sharesofcommonstockoutstanding
asofMarch31,2014andexcludes:

27,798,919sharesofClassBcommonstockissuableupontheexerciseofstockoptionsoutstandingasofMarch31,2014withaweightedaverageexerciseprice
of$3.24pershareand570,000sharesofClassBcommonstockissuablepursuanttooutstandingRSUsunderour2010Plan

TheeffectofthecontributionbacktousofanumberofsharesofClassBcommonstockequaltothenumberofsharesweissueuponexerciseofanoutstanding
optionforthepurchaseof6,584,427sharesofClassBcommonstockseeCertainrelationshipsandrelatedpersontransactionsEquitygrantsandcontribution
agreement

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sharesofClassBcommonstockissuableupontheexerciseofoptionswithanexercisepriceof$pershareandsharesofClassB
commonstockissuableuponsettlementofRSUsgrantedafterMarch31,2014

398,121sharesofClassBcommonstocksubjecttoarightofrepurchasebyusoutstandingasofMarch31,2014

sharesofClassBcommonstocksubjecttoarightofrepurchasebyusissuedafterMarch31,2014

sharestobereservedforfutureissuanceunderour2014Plan,whichwillbecomeeffectiveonthedateimmediatelypriortothedateofthisprospectus.
Uponcompletionofthisoffering,anyremainingsharesavailableforissuanceunderour2010Planwillbeaddedtothesharesreservedunderof2014Planandwe
willceasegrantingawardsunderour2010Planand

sharestobereservedforfutureissuanceunderourESPP,whichwillbecomeeffectiveonthedateofthisprospectus.
Our2014PlanandESPPalsoprovideforautomaticannualincreasesinthenumberofsharesreservedundertheplanseachyear,asmorefullydescribedin
ExecutivecompensationEmployeebenefitplans.

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Dilution
IfyouinvestinourClassAcommonstockinthisoffering,yourinterestwillbedilutedtotheextentofthedifferencebetweentheinitialpublicofferingpricepershare
ofourClassAcommonstockandthenettangiblebookvalueofourClassAandClassBcommonstockpershareimmediatelyafterthisoffering.AsofMarch31,
2014,ourproformanettangiblebookvaluewas$67.5million,or$0.60pershare.Proformanettangiblebookvaluepersharerepresentstheamountofourtotal
tangibleassetslessourtotalliabilities,dividedbythenumberofouroutstandingsharesofClassAandClassBcommonstock,aftergivingeffecttotheconversion
ofalloutstandingsharesofourredeemableconvertiblepreferredstockintosharesofourClassBcommonstockinconnectionwiththeclosingofthisoffering.
Aftergivingfurthereffectto(i)theapplicationofaportionoftheproceedsofthisofferingtorepayinfulltheoutstandingbalanceofourtermloan,whichwas$111.0
millionasofMarch31,2014,(ii)theconversionbythesellingstockholdersofsharesofourClassBcommonstockintothesamenumberofsharesofour
ClassAcommonstockimmediatelypriortothecompletionofthisoffering,(iii)thesalebyusofsharesofClassAcommonstockinthisofferingatan
assumedinitialpublicofferingpriceof$pershare,themidpointofthepricerangesetforthonthecoverpageofthisprospectus,afterdeductingestimated
underwritingdiscountsandcommissionsandestimatedofferingexpensespayablebyusand(iv)thefilingandeffectivenessofourrestatedcertificateofincorporation
inconnectionwiththeclosingofthisoffering,ourproformaasadjustednettangiblebookvalueasofMarch31,2014wouldhavebeen$millionor$per
share.Thisrepresentsanimmediateincreaseinproformanettangiblebookvalueof$persharetoexistingstockholdersandanimmediatedilutionof
$persharetonewinvestorspurchasingsharesofClassAcommonstockattheinitialpublicofferingprice.Thefollowingtableillustratesthispersharedilution:

AssumedinitialpublicofferingpricepershareofourClassAcommonstock $
ProformanettangiblebookvaluepershareasofMarch31,2014 $
Increaseinproformanettangiblebookvaluepershareattributabletonewinvestors

Proformaasadjustednettangiblebookvaluepershareafterthisoffering

Dilutionpersharetonewinvestors $
A$1.00increaseordecreaseintheassumedinitialpublicofferingpriceof$pershare,themidpointofthepricerangesetforthonthecoverpageofthis
prospectus,wouldincreaseordecreaseourproformaasadjustednettangiblebookvaluepershareafterthisofferingby$pershareandthedilutiontonew
investorsby$pershare,assumingthenumberofsharesofferedbyus,assetforthonthecoverpageofthisprospectus,remainsthesameandafterdeducting
theestimatedunderwritingdiscountsandcommissionsandestimatedofferingexpensespayablebyus.Iftheunderwritersexerciseinfulltheiroptiontopurchase
additionalsharesofClassAcommonstockfromus,theproformaasadjustednettangiblebookvaluepershareaftergivingeffecttothisofferingwouldbe
$pershare,representinganimmediateincreasetoexistingstockholdersof$,andimmediatedilutiontonewinvestorsinthisofferingof$per
share.

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Thefollowingtablesummarizes,asofMarch31,2014,ontheproformaasadjustedbasisdescribedabove,thedifferencebetweenourexistingstockholdersandthe
purchasersofsharesofClassAcommonstockinthisofferingwithrespecttothenumberofsharesofClassAcommonstockpurchasedfromus,thetotal
considerationpaidtousandtheaveragepricepaidpersharepaidtous,basedonanassumedinitialpublicofferingpriceof$pershare,themidpointoftheprice
rangesetforthonthecoverpageofthisprospectus,beforedeductingtheestimatedunderwritingdiscountsandcommissionsandestimatedofferingexpenses
payablebyus:

Sharespurchased Totalconsideration Averageprice
pershare Number Percent Amount Percent
Existingstockholders % $ % $
Newinvestors

Total 100.0% $ 100.0% $
A$1.00increaseordecreaseintheassumedinitialpublicofferingpriceof$persharewouldincreaseordecrease,totalconsiderationpaidbynewinvestorsby
$millionandincreaseordecreasethepercentoftotalconsiderationpaidtousbynewinvestorsby%,assumingthatthenumberofsharesofferedbyus,
assetforthonthecoverpageofthisprospectus,remainsthesame.
ThesaleofsharesofClassAcommonstocktobesoldbythesellingstockholdersinthisofferingwillreducethenumberofsharesheldbyexisting
stockholderstoshares,or%ofthetotalsharesoutstanding,andwillincreasethenumberofsharesheldbyinvestorsparticipatinginthis
offeringtoshares,or%ofthetotalsharesoutstanding.
IftheunderwritersexerciseinfulltheiroptiontopurchaseadditionalsharesofClassAcommonstockfromus,thefollowingwilloccur:

thepercentageofsharesofClassAandClassBcommonstockheldbyexistingstockholdersafterthecompletionofthisoffering,andaftergivingeffecttothe
salebythesellingstockholdersofsharesofClassAcommonstockinthisoffering,willbeapproximately%ofthetotalnumberofsharesofour
ClassAandClassBcommonstockoutstandingafterthisoffering

thenumberofsharesofClassAcommonstockheldbynewinvestorsaftertheclosingofthisofferingwillbe,orapproximately%ofthetotal
numberofsharesofourClassAandClassBcommonstockoutstandingafterthisoffering.
ThenumberofsharesofourClassAandClassBcommonstocktobeoutstandingafterthisofferingarebasedon112,422,478sharesofcommonstockoutstanding
asofMarch31,2014andexcludes:

27,798,919sharesofClassBcommonstockissuableupontheexerciseofstockoptionsoutstandingasofMarch31,2014withaweightedaverageexerciseprice
of$3.24pershareand570,000sharesofClassBcommonstockissuablepursuanttooutstandingRSUs,underour2010Plan

theeffectofthecontributionbacktousofanumberofsharesofClassBcommonstockequaltothenumberofsharesweissueuponexerciseofanoutstanding
optionforthepurchaseof6,584,427sharesofClassBcommonstockseeCertainrelationshipsandrelatedpersontransactionsEquitygrantsandcontribution
agreement

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sharesofClassBcommonstockissuableupontheexerciseofoptionswithanexercisepriceof$pershareandsharesofClassB
commonstockissuableuponsettlementofRSUsgrantedafterMarch31,2014

398,121sharesofClassBcommonstocksubjecttoarightofrepurchasebyusoutstandingasofMarch31,2014

sharesofClassBcommonstocksubjecttoarightofrepurchasebyusissuedafterMarch31,2014

sharesofClassAcommonstocktobereservedforfutureissuanceunderour2014Plan,whichwillbecomeeffectiveonthedateimmediatelypriortothe
dateofthisprospectus.Uponcompletionofthisoffering,anyremainingsharesavailableforissuanceunderour2010Planwillbeaddedtothesharesreserved
underof2014Planandwewillceasegrantingawardsunderour2010Planand

sharesofClassAcommonstocktobereservedforfutureissuanceunderourESPP,whichwillbecomeeffectiveonthedateofthisprospectus.
Our2014PlanandESPPalsoprovideforautomaticannualincreasesinthenumberofsharesreservedundertheplanseachyear,asmorefullydescribedin
ExecutivecompensationEmployeebenefitplans.
TheabovediscussionandtablesassumenoexerciseofourstockoptionsorsettlementofRSUsoutstandingasofMarch31,2014.Ifalloftheseoptionswere
exercisedandRSUssettled,theninvestorswouldexperiencefurtherdilution.

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Selectedconsolidatedfinancialdata
YoushouldreadtheselectedconsolidatedfinancialdatabelowinconjunctionwithManagementsdiscussionandanalysisoffinancialconditionandresultsof
operationsandtheconsolidatedfinancialstatements,relatednotesandotherfinancialinformationincludedelsewhereinthisprospectus.Theselectedconsolidated
financialdatainthissectionarenotintendedtoreplacetheconsolidatedfinancialstatementsandarequalifiedintheirentiretybytheconsolidatedfinancial
statementsandrelatednotesincludedelsewhereinthisprospectus.
Thefollowingtablepresentsselectedconsolidatedfinancialdata.Wederivedtheconsolidatedstatementsofoperationsdatafor2011,2012and2013andthebalance
sheetdataasofDecember31,2012and2013fromourauditedconsolidatedfinancialstatementsincludedelsewhereinthisprospectus.Wederivedtheconsolidated
statementsofoperationsdatafor2010fromourauditedconsolidatedfinancialstatementsthatarenotincludedinthisprospectus,andhavereclassifiedcertain
operatingexpensesfor2010andhavenowincluded$0.7million(unaudited)insalesandmarketingexpensesthatwaspreviouslyclassifiedingeneraland
administrativeexpenses,toconformwithcurrentpresentation.TheconsolidatedstatementsofoperationsdataforthethreemonthsendedMarch31,2013and2014
andtheconsolidatedbalancesheetdataasofMarch31,2014havebeenderivedfromourunauditedconsolidatedfinancialstatementsincludedelsewhereinthis
prospectus.Wehavepreparedtheunauditedconsolidatedfinancialstatementsonthesamebasisastheauditedconsolidatedfinancialstatementsandhaveincluded,
inouropinion,alladjustments,consistingonlyofnormalrecurringadjustmentsthatweconsidernecessarytostatefairlythefinancialinformationsetforthinthose
financialstatements.Ourhistoricalresultsarenotnecessarilyindicativeoftheresultstobeexpectedinthefuture,andourinterimresultsshouldnotnecessarilybe
consideredindicativeofresultsweexpectforthefullyear.

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Consolidatedstatementsofoperationsdata: YearendedDecember31,
Threemonthsended
March31,
(inthousands,exceptpershareamounts) 2010 2011 2012 2013 2013 2014
Revenue $ 64,464 $ 234,238 $ 526,016 $ 985,737 $ 255,057 $ 235,716
Costofrevenue(1) 31,719 111,683 298,530 623,953 165,628 139,202

Grossprofit 32,745 122,555 227,486 361,784 89,429 96,514

Operatingexpenses:
Researchanddevelopment(1) 1,394 8,644 36,115 73,737 12,012 28,739
Salesandmarketing(1) 13,860 64,375 116,855 157,771 35,673 41,341
Generalandadministrative(1) 5,634 10,757 20,899 31,573 6,988 9,878

Totaloperatingexpenses 20,888 83,776 173,869 263,081 54,673 79,958

Operatingincome 11,857 38,779 53,617 98,703 34,756 16,556
Otherincome(expense),net (29) 12 (407) (7,374) (1,694) (1,625)

Incomebeforeincometaxes 11,828 38,791 53,210 91,329 33,062 14,931
Incometaxexpense 248 14,179 20,948 30,751 10,027 3,882

Netincome $ 11,580 $ 24,612 $ 32,262 $ 60,578 $ 23,035 $ 11,049

Weightedaveragesharesusedtocomputenetincomepershareattributabletocommon
stockholders(2):
Basic 67,207 73,481 74,226 81,018 80,768 81,582

Diluted 73,160 78,551 74,226 98,941 98,457 100,783

Netincomepershareattributabletocommonstockholders(2):
Basic $ 0.17 $ 0.26 $ 0.07 $ 0.54 $ 0.21 $ 0.10

Diluted $ 0.16 $ 0.24 $ 0.07 $ 0.47 $ 0.18 $ 0.08

Proformanetincomepershareattributabletocommonstockholders(unaudited)(2):
Basic $ 0.54 $ 0.10

Diluted $ 0.47 $ 0.08

Proformaweightedaveragesharesusedtocomputenetincomepershareattributabletocommon
stockholders(unaudited)(2):
Basic 111,541 112,105

Diluted 129,464 131,306

Supplementalproformanetincomepershareattributabletocommonstockholders(unaudited)(2):
Basic

Diluted

Supplementalproformaweightedaveragesharesusedtocomputenetincomepershareattributableto
commonstockholders(unaudited)(2):
Basic

Diluted

Otherfinancialinformation:
AdjustedEBITDA(3) $ 12,748 $ 52,873 $ 75,288 $ 133,726 $ 40,923 $ 28,627

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(1) Includesstockbasedcompensationexpenseasfollows:

YearendedDecember31,
Threemonthsended
March31,
2010 2011 2012 2013 2013 2014

Costofrevenue $ 10 $ 122 $ 333 $ 690 $ 220 $ 168
Researchanddevelopment 73 261 1,452 3,003 441 1,401
Salesandmarketing 323 7,690 6,335 5,670 1,204 1,414
Generalandadministrative 268 902 1,036 1,524 230 1,054

Totalstockbasedcompensationexpense $674 $8,975 $9,156 $10,887 $ 2,095 $ 4,037


(2) SeeNote8ofourconsolidatedfinancialstatementsincludedelsewhereinthisprospectusforanexplanationofthecalculationsofourhistoricalbasicanddilutednetincomepershareattributableto
commonstockholdersandourproformaandsupplementalproformaunauditedbasicanddilutednetincomepershare.

December31, March31,
(inthousands) 2012 2013 2014

Consolidatedbalancesheetdata:
Cash $ 36,485 $ 101,410 $ 111,215
Workingcapital 69,618 57,446 66,999
Totalassets 246,665 439,671 355,200
Totalindebtedness 129,395 113,612 110,666
Redeemableconvertiblepreferredstock 77,138 77,198 77,213
Totalstockholdersequity(deficit) (79,741) (5,366) 10,391


(3) SeeProspectussummarySummaryconsolidatedfinancialdataAdjustedEBITDAforadditionalinformationandareconciliationofnetincometoadjustedEBITDA.

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Managementsdiscussionandanalysisoffinancialconditionandresultsof
operations
Thefollowingdiscussionandanalysisofourfinancialconditionandresultsofoperationsshouldbereadinconjunctionwithourconsolidatedfinancialstatements,
relatednotesandotherfinancialinformationappearingelsewhereinthisprospectus.Inadditiontohistoricalconsolidatedfinancialinformation,thefollowingdiscussion
containsforwardlookingstatementsthatreflectourplans,estimatesandbeliefs.Ouractualresultscoulddiffermateriallyfromthosediscussedintheforwardlooking
statementsasaresultofavarietyoffactors,includingbutnotlimitedto,thosediscussedinRiskfactorsandelsewhereinthisprospectus.
Overview
GoProistransformingthewayconsumerscapture,manage,shareandenjoymeaningfullifeexperiences.Wedothisbyenablingpeopletocapturecompelling,
immersivephotoandvideocontentofthemselvesparticipatingintheirfavoriteactivities.
Wewerefoundedin2004toaddressthelimitationsoftraditionalcameras.In2004,weshippedourfirstproduct,awristmounted,waterproof,filmbasedcapture
device,andin2006weshippedourfirstdigitalcapturedevice,theDigitalHERO.WeintroducedourfirstHDcapturedevicein2009,theHDHERO,andweintroduced
ourcurrentHERO3+familyofcapturedevicesinlate2013.Wealsosellmountableandwearableaccessoriesthatenableprofessionalqualitycaptureataffordable
prices.
Wehavecontinuedtoenhanceourproductofferingbyprovidingsoftwaresolutionsthataddressthepainpointsofmanaging,editingandsharingcontent.GoPro
Studioenablesourcustomerstoeasilyeditandsharesimpleorcomplexvideos.TheGoProAppenablescustomerstoeasilyandwirelesslymanageandshare
contentfromourHEROcapturedevices.
SincewelaunchedourfirstHDcamerain2009,wehaveexperiencedrapidgrowth.In2011,2012,2013andthethreemonthsendedMarch31,2014,wegenerated
revenueof$234.2million,$526.0million,$985.7millionand$235.7millionandreportednetincomeof$24.6million,$32.3million,$60.6millionand$11.0million,
respectively.Substantiallyallofourrevenuehasbeengeneratedfromthesaleofcamerasandaccessories.
Oursalesstrategyinitiallytargetedindependentspecialtyretailersfocusedonactionsportsmarkets,whichwebelievehelpedtoestablishtheauthenticityofour
brand.Wenowsellourproductsbothdirectlyandthroughdistribution.Ourdirectchannelincludesbigbox,midmarketandindependentspecialtyretailers,aswellas
ourwebsite.Weuseourdistributionchanneltosellinternationallyandintocertainspecialtymarkets.AsofMarch31,2014,ourproductsweresoldtocustomersin
morethan100countriesandthroughmorethan25,000retailoutlets.SalesoutsideoftheUnitedStatesrepresented35%,47%,49%and53%ofourrevenuefor
2011,2012,2013andthethreemonthsendedMarch31,2014,respectively.
Webelieveconsumerdemandforcompellingcontent,combinedwithourselfcapturetechnologyandthepopularityofsocialmedia,createasignificantmedia
opportunityforGoPro.GoProprogramming,acombinationofGoProoriginallyproducedcontentandbestofUGC,hasdevelopedagrowingaudience.Toscalethis,
wehavebuiltateamofproductionprofessionalswhoregularlyproducecontentbasedoninspiringstoriesfromaroundtheworld,capturedexclusivelywithourcapture
devices.Inaddition,weactivelycurateandredistribute,

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withpermission,UGCasGoProbrandedcontentthroughtheGoProNetwork,whichincludestheGoProChannelsonFacebook,Instagram,Twitter,VirginAmerica,
XboxLiveandYouTube.
Wefacepotentialchallengesthatcouldlimitourabilitytotakeadvantageoftheseopportunities,includingtheriskthatwemaynotbeabletocontinuetodevelopand
introducenewproductsandattractnewcustomers.Wedonotexpecttosustainorincreaseourrevenuegrowthrates.Inaddition,werelyonasmallnumberofretailer
anddistributorcustomersforasignificantportionofourrevenue.For2011,2012,2013andthethreemonthsendedMarch31,2014,oneretaileraccountedfor15%,
15%,17%and13%ofourrevenue,respectively.
Werelyoncontractmanufacturersfortheproductionofourcamerasandaccessories.Allofthecomponentsthatgointothemanufactureofourcamerasand
accessoriesaresourcedfromthirdpartysuppliers,andsomeofthesesuppliersarethesolesourceforimportantcomponents.Weutilizethirdpartylogisticsproviders
forproductfulfillment.
Keybusinessmetrics
Inadditiontothemeasurespresentedinourconsolidatedfinancialstatements,weusethefollowingkeymetricstoevaluateourbusiness,measureourperformance,
developfinancialforecastsandmakestrategicdecisions.

YearendedDecember31,
Threemonthsended
March31,
(inthousands) 2011 2012 2013 2013 2014

Keybusinessmetrics:
Unitsshipped 1,145 2,316 3,849 954 852
AdjustedEBITDA $52,873 $75,288 $133,726 $ 40,923 $ 28,627

Unitsshipped.Unitsshippedrepresentsthenumberofindividualpackagedcameraunitsthatareshippedduringareportingperiod,netofanyreturns.Packaged
cameraunitsincludeawaterproofhousing,abattery,selectedmountsandotheraccessorieswhichvarybymodel.Wemonitorunitsshippedonadailybasisasit
isakeyindicatorofrevenuetrendsforareportingperiod.Weuseunitsshippedtohelpoptimizeourfulfillmentoperationsandshipmentallocationsinorderto
bettermaintainoperatingefficienciesandimprovecustomersatisfaction.

AdjustedEBITDA.AdjustedEBITDAisanonGAAPfinancialmeasurethatwecalculateasnetincome(loss),adjustedafterexcludingtheimpactof:provision
(benefit)forincometaxes,interestincome,interestexpense,depreciationandamortization,POPdisplayamortizationandstockbasedcompensation.Weuse
adjustedEBITDAasakeymeasuretounderstandandevaluateourcoreoperatingperformanceandtrends,toprepareandapproveourannualbudgetandto
developshortandlongtermoperationalplans.Inparticular,theexclusionofcertainexpensesincalculatingadjustedEBITDAcanprovideausefulmeasurefor
periodtoperiodcomparisonsofourbusiness.Accordingly,webelievethatadjustedEBITDAprovidesusefulinformationtoinvestorsandothersinunderstanding
andevaluatingouroperatingresultsinthesamemannerasourmanagementandboardofdirectors.SeeProspectussummarySummaryconsolidatedfinancial
dataAdjustedEBITDAforadditionalinformationandareconciliationofnetincometoadjustedEBITDA.

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Factorsaffectingperformance
Webelievethatourfuturesuccesswillbedependentonmanyfactors,includingthosefurtherdiscussedbelow.Whiletheseareasrepresentopportunitiesforus,they
alsorepresentchallengesandrisksthatwemustsuccessfullyaddressinordertocontinuethegrowthofourbusinessandimproveourresultsofoperations.

Investinginresearchanddevelopment.Webelievethatourperformanceissignificantlydependentontheinvestmentswemakeinresearchanddevelopment
andthatwemustcontinuallydevelopandintroduceinnovativenewproducts,enhanceexistingproductsandeffectivelystimulatecustomerdemandforexisting
andfutureproducts.Ifwefailtoinnovateandenhanceourproductofferings,ourbrand,marketpositionandrevenuemaybeadverselyaffected.Furtherifour
researchanddevelopmenteffortsarenotsuccessful,wewillnotrecovertheinvestmentsthatwemakeinthisaspectofourbusiness.

Investinginsalesandmarketing.Weintendtocontinuetoinvestsignificantresourcesinourmarketing,advertisingandbrandmanagementefforts.Salesand
marketinginvestmentswilloftenoccurinadvanceofanysalesbenefitsfromtheseactivities,anditmaybedifficultforustodetermineifweareefficiently
allocatingourresourcesinthisarea.

Leveragingmediacontent.WeexpecttoincreaseourinvestmentinthedevelopmentoftheGoProNetworkanditsrelatedcontent.Webelievewehave
significantopportunitiestoestablishnewrevenuestreamsfromtheseinvestments.However,wedonothavesignificantexperiencederivingrevenuefromthe
distributionofGoProcontent,andwecannotbeassuredthattheseinvestmentswillresultinincreasedrevenueorprofitability.

Expandingintonewverticalmarketsandgrowinginternationally.Ourlongtermgrowthwilldependinpartonourcontinuedabilitytoexpandourcustomerbase
andincreaserevenuefrominternationalmarkets.Weintendtoexpandintonewverticalmarketsandtoincreaseourpresencegloballythroughtheactivepromotion
ofourbrand,theformationofstrategicpartnerships,theintroductionofnewproductsandthegrowthofourinternationalsaleschannel.

Seasonality.Historically,wehaveexperiencedthehighestlevelsofrevenueinthefourthquarteroftheyear,coincidingwiththeholidayshoppingseasoninthe
UnitedStatesandEurope.Accordingly,wehavehistoricallyintroducedournewestgenerationofproductofferingsjustpriortothispeakseason.Giventhe
significantseasonalityofoursales,timelyandeffectiveproductintroductionsandforecastingforthisseasonarecriticaltoouroperations.
Componentsofourresultsofoperationsandfinancialcondition
Revenue
Ourrevenueiscomprisedofproductrevenue,netofreturnsandsalesincentives:

Productrevenue.ProductrevenueisderivedfromthesaleofourHEROlineofcamerasandaccessoriesdirectlytoretailersandthroughGoPro.com,aswellas
throughournetworkofdomesticandinternationaldistributors.

Returnsandsalesincentives.Ourstandardtermsandconditionsofsaledonotallowforproductreturnsandwegenerallydonotallowproductreturnsotherthan
underwarranty.However,wehaveenteredintocontractswithcertainlargeretailersanddistributorswithtermsandconditionsthatallowforlimitedproductreturns
rights.Uponshipmentofour

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producttocustomerswithsuchrights,wereducerevenueequaltotheestimatedfuturereturnsrelatedtothecurrentperiodproductrevenue.Additionally,weoffer
priceprotectiondiscountstocertaincustomerswhennewcapturedevicesarereleased.Werecordpriceprotectiondiscounts,asareductioninrevenue,basedon
shipmentssubjecttopriceprotection.Discountsrecordedarebasedonanevaluationofinventoryheldbythecustomeratthetimethepriceprotectionofferis
extended.
SeeCriticalaccountingpoliciesforamoredetaileddiscussionofourrevenuerecognitionpolicy.
Costofrevenue
Ourcostofrevenueiscomprisedofthefollowing:

manufacturingcostsofourproductspayabletothirdpartycontractmanufacturers

thirdpartylogisticscosts

coststoprocurecomponentsdirectlyfromoursuppliers

inboundandoutboundfreightcostsandduties

costsassociatedwiththerepairofproductsunderwarranty

writedownsofinventorycarryingvaluetoadjustforexcessandobsoleteinventoryandperiodicphysicalinventorycountsand

certainallocatedcostsrelatedtomanufacturingmanagement,facilities,informationtechnologysupportandotherexpensesassociatedwithinternallogistics
support,includingstockbasedcompensation.
Weoutsourceourmanufacturing,warehouseoperationsandorderfulfillmentactivitiestothirdparties.Ourproductcostswillvarydirectlywithvolumeandbasedon
thecostsofunderlyingproductcomponentsaswellasthepricesweareabletonegotiatewithourcontractmanufacturers.Shippingcostswillfluctuatewithvolume
aswellaswiththemethodofshippingchoseninordertomeetcustomerdemand.AsaglobalcompanywithsupplierscenteredinAsiaandcustomerslocated
worldwide,wehaveused,andmayinthefutureuse,airshippingtodeliverourproductsdirectlytoretailstoresanddistributioncenters.Airshippingismorecostly
thanseaorgroundshippingorotherdeliveryoptions.Weprimarilyuseairshippingtomeetthedemandofourproductsduringpeakshoppingseasonsandnew
productlaunches.
Grossprofitandgrossprofitmargin
Ourgrossprofitandgrossprofitmarginhavebeen,andmayinthefuturebe,influencedbyseveralfactorsincluding:product,channelandgeographicalrevenuemix
changesinproductcostsrelatedtothereleaseofdifferentcameramodelscomponent,contractmanufacturingandsupplierpricingandforeigncurrencyexchange.
AlthoughweprimarilyprocureandsellourproductsinU.S.dollars,oursuppliersincurmanycosts,includinglaborcosts,inothercurrencies.Totheextentthat
exchangeratesmoveunfavorablyforoursuppliers,theymayseektopasstheseadditionalcostsontous,whichcouldhaveamaterialimpactonourfutureaverage
sellingpricesandunitcosts.Grossprofitandgrossprofitmarginmayfluctuateovertimebasedonthefactorsdescribedabove.

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Operatingexpenses
Weclassifyouroperatingexpensesintothreecategories:researchanddevelopment,salesandmarketingandgeneralandadministrative.

Researchanddevelopment.Researchanddevelopmentexpenseconsistsprimarilyofpersonnelrelatedcosts,whichincludesalariesandstockbased
compensation,inadditiontocostsattributabletoproductdesign,test,patent,facilitiesandinformationtechnology.Overtime,weexpectourresearchand
developmentexpensetoincreaseinabsolutedollarsaswecontinuetomakesignificantinvestmentsindevelopingnewproducts,applications,functionalityand
otherofferings.Researchanddevelopmentexpensemayfluctuateasapercentageofrevenue,notablyinthefourthquarterofourfiscalyearwhenwehave
historicallyexperiencedourhighestlevelsofrevenue.

Salesandmarketing.Salesandmarketingexpenseconsistsprimarilyofadvertisingandmarketingpromotionsofourproducts,includingPOPdisplay
amortization,personnelrelatedcosts,whichincludesalariesandstockbasedcompensation,commissions,tradeshowandeventcosts,sponsorshipcosts,
professionalservices,facilities,informationtechnologyandtravel.Overtime,weexpectoursalesandmarketingexpensetoincreaseinabsolutedollarsaswe
continuetoactivelypromoteourproducts.Salesandmarketingexpensemayfluctuateasapercentageofrevenue,notablyinthefourthquarterofourfiscalyear
whenwehavehistoricallyexperiencedourhighestlevelsofrevenue.

Generalandadministrative.Generalandadministrativeexpenseconsistsofpersonnelrelatedcosts,whichincludesalariesandstockbasedcompensation,as
wellasthecostsofprofessionalservices,facilities,informationtechnologyandotheradministrativeexpenses.Weexpectourgeneralandadministrativeexpense
toincreaseinabsolutedollarsfollowingthecompletionofthisofferingduetotheanticipatedgrowthofourbusinessandrelatedinfrastructureaswellas
accounting,insurance,investorrelationsandothercostsassociatedwithbecomingapubliccompany.Generalandadministrativeexpensemayfluctuateasa
percentageofrevenue,notablyinthefourthquarterofourfiscalyearwhenwehavehistoricallyexperiencedourhighestlevelsofrevenue.
Otherincome(expense),net
Otherincome(expense),netconsistsofinterestexpenseassociatedwithourdebtfinancingarrangementsandsalesofaccountsreceivable,amortizationofdebt
issuancecosts,interestincomeearnedonourcashbalances,foreigncurrencyexchangegains(losses)relatedtotheremeasurementofcertainassetsandliabilities
ofourforeignsubsidiariesthataredenominatedincurrenciesotherthanthefunctionalcurrencyofthesubsidiaryandforeignexchangetransactionsgainsandlosses.
Wedonotutilizederivativestohedgeourforeignexchangeriskaswebelievetherisktobeimmaterialtoourresultsofoperations.
Incometaxexpense
WearesubjecttoincometaxesintheUnitedStatesandforeignjurisdictionsinwhichwedobusiness.Theseforeignjurisdictionshavestatutorytaxratesdifferent
fromthoseintheUnitedStates.Additionally,certainofourinternationalearningsarealsotaxableintheUnitedStates.Accordingly,oureffectivetaxrateswillvary
dependingontherelativeproportionofforeigntoU.S.income,theabsorptionofforeigntaxcredits,changesinthevaluationofourdeferredtaxassetsandliabilities
andchangesintaxlaws.Weregularlyassessthelikelihoodof

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adverseoutcomesresultingfromtheexaminationofourtaxreturnsbytheU.S.InternalRevenueService,orIRS,andothertaxauthoritiestodeterminetheadequacy
ofourincometaxreservesandexpense.Shouldactualeventsorresultsdifferfromourcurrentexpectations,chargesorcreditstoourincometaxexpensemay
becomenecessary.Anysuchadjustmentscouldhaveasignificantimpactonourresultsofoperations.
Statementsofoperations
Thefollowingtablesetsforththecomponentsofourconsolidatedstatementsofoperationsforeachoftheperiodspresented:

YearendedDecember31,
Threemonthsended
March31,
(inthousands) 2011 2012 2013 2013 2014
Revenue $234,238 $ 526,016 $ 985,737 $ 255,057 $ 235,716
Costofrevenue(1) 111,683 298,530 623,953 165,628 139,202

Grossprofit 122,555 227,486 361,784 89,429 96,514

Operatingexpenses:
Researchanddevelopment(1) 8,644 36,115 73,737 12,012 28,739
Salesandmarketing(1) 64,375 116,855 157,771 35,673 41,341
Generalandadministrative(1) 10,757 20,899 31,573 6,988 9,878

Totaloperatingexpenses 83,776 173,869 263,081 54,673 79,958

Operatingincome 38,779 53,617 98,703 34,756 16,556
Otherincome(expense),net 12 (407) (7,374) (1,694) (1,625)

Incomebeforeincometaxes 38,791 53,210 91,329 33,062 14,931
Incometaxexpense 14,179 20,948 30,751 10,027 3,882

Netincome $ 24,612 $ 32,262 $ 60,578 $ 23,035 $ 11,049


(1)Includesstockbasedcompensationexpenseasfollows:


Costofrevenue $ 122 $ 333 $ 690 $ 220 $ 168
Researchanddevelopment 261 1,452 3,003 441 1,401
Salesandmarketing 7,690 6,335 5,670 1,204 1,414
Generalandadministrative 902 1,036 1,524 230 1,054

Totalstockbasedcompensationexpense

$
8,975

$
9,156

$ 10,887
$ 2,095 $ 4,037

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Thefollowingtablesetsforththecomponentsofourconsolidatedstatementsofoperationsforeachoftheperiodspresentedasapercentageofrevenue:

YearendedDecember31,
Threemonthsended
March31,
2011 2012 2013 2013 2014
Revenue 100% 100% 100% 100% 100%
Costofrevenue 48% 57% 63% 65% 59%

Grossprofit 52% 43% 37% 35% 41%

Operatingexpenses:
Researchanddevelopment 4% 7% 7% 5% 12%
Salesandmarketing 27% 22% 16% 13% 18%
Generalandadministrative 4% 4% 4% 3% 4%

Totaloperatingexpenses 35% 33% 27% 21% 34%

Operatingincome 17% 10% 10% 14% 7%
Otherincome(expense),net (1)% (1)% (1)%

Incomebeforeincometaxes 17% 10% 9% 13% 6%
Incometaxexpense 6% 4% 3% 4% 1%

Netincome 11% 6% 6% 9% 5%
ComparisonofthethreemonthsendedMarch31,2013and2014
Revenue


Threemonthsended
March31, Change
(dollarsinthousands) 2013 2014 $ %
Revenue $ 255,057 $ 235,716 $(19,341) (8)%
RevenueforthethreemonthsendedMarch31,2014decreased8%to$235.7millionfrom$255.1millionforthethreemonthsendedMarch31,2013.Unitsshippedin
thethreemonthsendedMarch31,2014decreased11%to0.9millionfrom1.0millionin2013.RevenueandunitsshippedforthethreemonthsendedMarch31,2013
wereimpactedbyproductiondelaysofourHERO3Blackeditioncapturedeviceinthefourthquarterof2012.Theseproductiondelayscorrespondinglydelayed
shipmentsuntilthefirstquarterof2013,whichresultedinrevenuesinthefirstquarterof2013thatdidnotreflectthetraditionalseasonalityinourbusiness.Thethree
monthsendedMarch31,2014werenotsimilarlyaffected.Partiallyoffsettingthedecreaseinrevenueduetothedecreaseinunitsshippedinthethreemonthsended
March31,2014wasa3%increaseintheaveragesellingpriceofunitsshipped.OurrevenuedecreasedineachofourprimarygeographicalregionsoftheAmericas,
AsiaPacificandEMEA(Europe,theMiddleEastandAfrica)inthethreemonthsendedMarch31,2014comparedtothethreemonthsendedMarch31,2013.
Costofrevenue,grossprofitandgrossprofitmargin


Threemonthsended
March, Change
(dollarsinthousands) 2013 2014 $ %
Costofrevenue

$ 165,628

$ 139,202

$ (26,426)

(16)%
Grossprofit $ 89,429 $ 96,514 $ 7,085 8%
Grossprofitmargin 35% 41%

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Grossprofitmarginincreasedto41%inthethreemonthsendedMarch31,2014from35%inthethreemonthsendedMarch31,2013primarilyduetolowerproduct
costsforourHERO3+capturedevicesintroducedinthefourthquarterof2013comparedtoourpreviousgenerationHERO3capturedevices,coupledwitha3%
increaseinaveragesellingpricesofunitsshipped.HERO3+productcostswereapproximately10%lessthanthoseoftheHERO3inthethreemonthsended
March31,2013.Thiswaspartiallyoffsetbyanincreaseinothercostsofrevenue,whichcontributedtoa1%reductioninmarginprimarilyduetohigherfreight,duty
andreworkcosts.Weexpectgrossprofitmargintofluctuateovertimebasedonproductmix,changesinproductcostsrelatedtothereleaseofdifferentcapture
devicemodelsandchangesinaveragesellingprice.
Operatingexpenses


Threemonthsended
March31, Change
(dollarsinthousands) 2013 2014 $ %
Researchanddevelopment $ 12,012 $ 28,739 $16,727 139%
Salesandmarketing 35,673 41,341 5,668 16%
Generalandadministrative 6,988 9,878 2,890 41%

Totaloperatingexpenses $ 54,673 $ 79,958 $25,285 46%
Researchanddevelopmentexpenseincreased$16.7million,or139%,forthethreemonthsendedMarch31,2014comparedtothethreemonthsendedMarch31,
2013,dueprimarilytoa$8.3millionincreaseinpersonnelrelatedcostsassociatedwithanincreaseinheadcountof139employeestosupportourbroadenedproduct
portfolio,a$5.1millionincreaseinconsultingandoutsideprofessionalservicecosts,a$1.5millionincreaseinfacilityandinformationtechnologysupportcoststo
supportouroverallgrowthanda$1.1millionincreaseinequipmentcosts.
Salesandmarketingexpenseincreased$5.7million,or16%,forthethreemonthsendedMarch31,2014comparedtothethreemonthsendedMarch31,2013,due
primarilytoa$3.8millionincreaseinpersonnelrelatedcostsassociatedwithanincreaseinheadcountof99employeesanda$1.6millionincreaseinadvertisingand
promotionalactivitycosts.
Generalandadministrativeexpenseincreased$2.9million,or41%,forthethreemonthsendedMarch31,2014comparedtothethreemonthsendedMarch31,2013,
dueprimarilytoa$2.7millionincreaseinpersonnelrelatedcostsassociatedwithanincreaseinheadcountof58employees.
Otherincome(expense),net


Threemonthsended
March31, Change
(dollarsinthousands) 2013 2014 $ %
Interestexpense $ (1,333) $ (1,348) $(15) 1%
Interestincome 1 12 11 1,100%
Otherexpense (276) (262) 14 (5)%
Realizedforeignexchangeloss,net (86) (27) 59 (69)%

Totalotherincome(expense),net $ (1,694) $ (1,625) $ 69 (4)%
InterestexpenseforthethreemonthsendedMarch31,2014remainedrelativelyflatcomparedtothethreemonthsendedMarch31,2013.

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Table of Contents
Incometaxexpense


Threemonthsended
March31, Change
(dollarsinthousands) 2013 2014 $ %
Incometaxexpense $ 10,027 $ 3,882 $(6,145) (61)%
Effectivetaxrate 30.3% 26.0%
IncometaxexpenseforthethreemonthsendedMarch31,2014was$3.9millioncomparedto$10.0millionforthethreemonthsendedMarch31,2013.Oureffective
taxrateforthethreemonthsendedMarch31,2014waslowerthanforthethreemonthsendedMarch31,2013andthefederalstatutoryrateof35%,primarilydueto
theexpansionofouroperationsintointernationaljurisdictionsthathaveloweroverallstatutorytaxrates.
ComparisonoftheyearsendedDecember31,2011,2012and2013
Revenue

YearendedDecember31,
Change2012
vs.2011
Change2013
vs.2012
(dollarsinthousands) 2011 2012 2013 $ % $ %
Revenue $ 234,238 $ 526,016 $ 985,737 $ 291,778 125% $ 459,721 87%
2013comparedto2012
Revenuefor2013increased87%to$985.7millionfrom$526.0millionfor2012.Unitsshippedin2013increased66%to3.8millionfrom2.3millionin2012,primarily
duetoanincreaseindemandforourHERO3productsreleasedinthefourthquarterof2012andourHERO3+productsreleasedinthefourthquarterof2013.Further
contributingtotheincreaseinrevenuein2013wasa19%increaseintheaveragesellingpriceofunitsshipped.Theincreaseinaveragesellingpricefrom2012to
2013wasprimarilydrivenbyashiftinproductmixtotheHERO3andHERO3+Blackeditioncapturedevices,whichhavehigherpricepointscomparedtoourHERO2
capturedevices.Our2013revenuealsoincreasedcomparedto2012asaresultofanincreaseinaccessoriesweshippedoutsideofunitsshipped.Ourrevenuegrew
ineachofourprimarygeographicalregionsoftheAmericas,AsiaPacificandEMEAin2013.
2012comparedto2011
Revenuefor2012increased125%to$526.0millionfrom$234.2millionfor2011.Unitsshippedin2012increased102%to2.3millionunitsfrom1.1millionin2011
primarilyduetoanincreaseindemandforourHERO2capturedevicesreleasedinthefourthquarterof2011andourHERO3capturedevicesreleasedinthefourth
quarterof2012.Revenuefor2012alsoincreasedcomparedto2011duetoanincreaseinaccessoriesweshippedoutsideofunitsshipped.Furthercontributingtothe
increaseinrevenuein2012wasa14%increaseinouraveragesellingpriceofunitsshippedfor2012comparedto2011duetohigheraveragesellingpriceforour
HERO3Blackeditioncapturedevices.Ourrevenuegrewineachofourprimarygeographicregionsin2012.

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Table of Contents
Costofrevenue,grossprofitandgrossprofitmargin

YearendedDecember31,
Change2012
vs.2011
Change2013
vs.2012
(dollarsinthousands) 2011 2012 2013 $ % $ %
Costofrevenue $ 111,683 $ 298,530 $ 623,953 $ 186,847 167% $ 325,423 109%
Grossprofit $ 122,555 $ 227,486 $ 361,784 $ 104,931 86% $ 134,298 59%
Grossprofitmargin 52% 43% 37%
2013comparedto2012
Grossprofitmargindecreasedto37%in2013from43%in2012dueprimarilytohigherproductcostsforourHERO3capturedevicesintroducedinthefourthquarter
of2012comparedtoourpreviousgenerationHERO2capturedevices.HERO3productcostswereapproximately67%greaterthanthoseoftheHERO2,whileaverage
sellingpricesofunitsshippedincreasedapproximately19%.Thisincreaseinproductcostswasdueprimarilytotheinclusionofadditionalfeaturesandfunctionalityin
ourHERO3capturedevices.OurHERO3+capturedevices,introducedinOctober2013,includedlowerproductcostsandpartiallyoffsettheHERO3costincreasein
thefourthquarterof2013ascustomerstransitionedtoournewproductline.TheaveragecostfortheHERO3+capturedevicedecreasedapproximately3%compared
totheHERO3capturedevice.
2012comparedto2011
Grossprofitmargindecreasedto43%in2012from52%in2011,primarilyduetohigherproductcostsassociatedwithadditionalfeaturesandfunctionalityincludedin
ourHERO3capturedevicesintroducedinthefourthquarterof2012.TheaverageproductcostsofourHERO3capturedevice,introducedinthefourthquarterof2012,
representedmorethana60%increaseintheaveragecostoftheHEROandHERO2capturedevicessoldin2011.Thisincreaseinproductcostswaspartiallyoffset
bythe14%increaseintheaveragesellingpriceofunitsshippedfor2012comparedto2011.
Operatingexpenses

YearendedDecember31,
Change2012
vs.2011
Change2013
vs.2012
(dollarsinthousands) 2011 2012 2013 $ % $ %
Researchanddevelopment $ 8,644 $ 36,115 $ 73,737 $ 27,471 318% $ 37,622 104%
Salesandmarketing 64,375 116,855 157,771 52,480 82% 40,916 35%
Generalandadministrative 10,757 20,899 31,573 10,142 94% 10,674 51%

Totaloperatingexpenses $ 83,776 $ 173,869 $ 263,081 $ 90,093 108% $ 89,212 51%
2013comparedto2012
Researchanddevelopmentexpenseincreased$37.6million,or104%,for2013comparedto2012,dueprimarilytoa$20.3millionincreaseinpersonnelrelatedcosts
associatedwithanincreaseinheadcountof127employees,a$9.7millionincreaseinfacilityandinformationtechnologysupportcostsassociatedwithanexpansion
ofourcorporateofficesanda$6.1millionincreaseinconsultingandoutsideprofessionalservicecosts.

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Salesandmarketingexpenseincreased$40.9million,or35%,for2013comparedto2012,dueprimarilytoa$21.3millionincreaseinadvertisingandpromotional
activities,a$6.8millionincreaseinpersonnelrelatedcostsassociatedwithanincreaseinheadcountof95employees,a$5.0millionincreaseinfacilityand
informationtechnologysupportcostsassociatedwithanexpansionofourcorporateoffices,a$3.9millionincreaseinconsultingandoutsideprofessionalservices
costsanda$1.0millionincreaseinsalescommissions.
Generalandadministrativeexpenseincreased$10.7million,or51%,for2013comparedto2012,dueprimarilytoa$5.2millionincreaseinpersonnelrelatedcosts
associatedwithanincreaseinheadcountof62employees,a$2.6millionincreaseinprofessional,consultingandtemporaryservicestosupportouroverallgrowthand
a$2.3millionincreaseinfacilityandinformationtechnologysupportcostsassociatedwithanexpansionofourcorporateoffices.
2012comparedto2011
Researchanddevelopmentexpenseincreased$27.5million,or318%,for2012comparedto2011,primarilyduetoa$11.7millionincreaseinpersonnelrelatedcosts
associatedwithanincreaseinheadcountof87employees,an$8.2millionincreaseinconsultingandoutsideprofessionalservices,a$5.4millionincreaseinfacility
andinformationtechnologysupportcostsassociatedwithanexpansionofourcorporateofficesanda$1.8millionincreaseinprototypematerialcosts.
Salesandmarketingexpenseincreased$52.5million,or82%,for2012comparedto2011,primarilyduetoa$33.4millionincreaseinadvertisingandpromotional
activitiestoincreasebrandawareness,a$13.6millionincreaseinpersonnelrelatedcostsassociatedwithanincreaseinheadcountof61employeesanda$6.9
millionincreaseinconsultingandoutsideprofessionalservicecosts,largelyinconnectionwithmarketingandcustomersupportactivities.Wealsoincreasedour
facilityandinformationtechnologysupportcostsassociatedwithanexpansionofourcorporateofficesby$6.5million.Sellingexpense,whichprincipallyconsistsof
internalandexternalsalescommissions,increased$4.1millionfrom2011.Partiallyoffsettingtheseincreasesin2012wasa$13.0millionchargeincludedinsales
andmarketingexpensefor2011relatedtoanagreementbetweenourChiefExecutiveOfficerandanemployee,toshareproceedsfromasaleofequitysecurities.
SeeCertainrelationshipsandrelatedpersontransactionsShareofproceedsfromsaleofequitysecuritiesforfurtherdescriptionofthistransaction.
Generalandadministrativeexpenseincreased$10.1million,or94%,for2012comparedto2011,dueprimarilytoa$3.1millionincreaseinpersonnelrelatedcosts
associatedwithanincreaseinheadcountof29employees,a$3.1millionincreaseinfacilityandinformationtechnologysupportcostsassociatedwithanexpansion
ofourcorporateofficesanda$3.0millionincreaseinconsultingandoutsideprofessionalservicecoststosupportourgrowth.
Otherincome(expense),net


Yearended
December31,
Change2012vs.
2011
Change2013vs.
2012
(dollarsinthousands) 2011 2012 2013 $ % $ %
Interestexpense $ (32) $ (392) $ (6,020) $ (360) 1,125% $ (5,628) 1,436%
Interestincome 44 46 2 2 5% (44) (96)%
Realizedforeignexchangeloss,net (61) (322) (61) 100% (261) 428%
Otherincome(expense),net (1,034) (1,034) 100%

Totalotherincome(expense),net $ 12 $ (407) $ (7,374) $ (419) (3,492)% $ (6,967) 1,712%

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2013comparedto2012
Interestexpensefor2013was$6.0millioncomparedto$0.4millionfor2012,primarilyduetoincreaseddebtbalancesunderourcreditfacility.Otherexpensein2013
consistedprimarilyofbankingandcommissionfeesrelatedtoourstandbyletterofcredit.SeeLiquidityandcapitalresourcesCreditfacility.
2012comparedto2011
Otherincome(expense),net,was($0.4million)for2012comparedto$12,000in2011.Theincreaseinnetexpensewasprimarilyduetointerestexpenseassociated
withourcreditfacilityenteredintoinDecember2012.
Incometaxexpense

YearendedDecember31,
Change2012
vs.2011
Change2013
vs.2012
(dollarsinthousands) 2011 2012 2013 $ % $ %

Incometaxexpense $ 14,179 $ 20,948 $ 30,751 $ 6,769 48% $9,803 47%
Effectivetaxrate 36.6% 39.4% 33.7%

2013comparedto2012
Incometaxexpensefor2013was$30.8millioncomparedto$20.9millionfor2012.Oureffectiveincometaxratewas33.7%for2013comparedto39.4%for2012.
Oureffectivetaxratefor2013waslowerthanfor2012andthefederalstatutoryrateof35%primarilyduetotheexpansionofouroperationsintointernational
jurisdictionsthathaveloweroverallstatutorytaxratesandtheextensionofour2012federalresearchcreditin2013of$0.7million.
2012comparedto2011
Ourincometaxexpensewas$20.9millionfor2012comparedto$14.2millionfor2011.Oureffectiveincometaxratewas39.4%for2012comparedto36.6%for
2011.Oureffectivetaxrateincreasedin2012comparedto2011primarilyduetotaxbenefitsrelatedtoourScorporationstatusduringthefirsttwomonthsof2011.
Backlog
Wedonotbelievethatourbacklogismeaningfulasofanyparticulardateorindicativeoffuturesales,asourcustomerscanchangeorcancelorderswithlimitedor
nopenaltyandlimitedadvancenoticepriortoshipment.

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Unauditedquarterlyresultsofoperations
ThefollowingtablesetsforthourunauditedquarterlyconsolidatedresultsofoperationsforeachoftheninequarterlyperiodsendedMarch31,2014.Theseunaudited
quarterlyresultsofoperationshavebeenpreparedonthesamebasisasourauditedconsolidatedfinancialstatementsand,inouropinion,reflectallnormalrecurring
adjustmentsnecessaryforthefairstatementoftheresultsofoperationsfortheseperiods.Youshouldreadthefollowingtablesinconjunctionwithourconsolidated
financialstatementsandtherelatednotesincludedelsewhereinthisprospectus.Theresultsofoperationsforanyquarterarenotnecessarilyindicativeoftheresults
ofoperationsforafullyearoranyfutureperiods.

Threemonthsended
(inthousands)
March31,
2012
June30,
2012
Sept.30,
2012(2)
Dec.31,
2012(3)
March31,
2013
June30,
2013
Sept.30,
2013
Dec.31,
2013(4)
March31,
2014
Consolidatedstatementofoperationsdata:
Revenue $ 87,642 $122,290 $ 82,055 $234,029 $ 255,057 $177,082 $ 192,146 $ 361,452 $ 235,716
Costofrevenue(1) 43,463 58,847 46,580 149,640 165,628 120,242 128,135 209,948 139,202
Grossprofit 44,179 63,443 35,475 84,389 89,429 56,840 64,011 151,504 96,514
Operatingexpenses:
Researchanddevelopment(1) 5,567 7,329 10,929 12,290 12,012 16,687 19,587 25,451 28,739
Salesandmarketing(1) 21,436 23,947 26,764 44,708 35,673 39,065 37,413 45,620 41,341
Generalandadministrative(1) 3,812 5,156 5,009 6,922 6,988 7,044 7,683 9,858 9,878
Totaloperatingexpenses 30,815 36,432 42,702 63,920 54,673 62,796 64,683 80,929 79,958
Operatingincome(loss) 13,364 27,011 (7,227) 20,469 34,756 (5,956) (672) 70,575 16,556
Otherincome(expense),net (32) (83) (68) (224) (1,694) (1,697) (1,759) (2,224) (1,625)
Income(loss)beforeincometaxes 13,332 26,928 (7,295) 20,245 33,062 (7,653) (2,431) 68,351 14,931
Incometax(benefit)expense 5,293 11,697 (4,586) 8,544 10,027 (2,568) (1,330) 24,622 3,882
Netincome(loss) $ 8,039 $ 15,231 $ (2,709) $ 11,701 $ 23,035 $ (5,085) $ (1,101) $ 43,729 $ 11,049

(1)Includesstockbasedcompensationexpenseasfollows:

Costofrevenue $ 67 $ 73 $ 83 $ 110 $ 220 $ 157 $ 153 $ 160 $ 168

Researchanddevelopment 213 212 338 689 441 556 740 1,266 1,401
Salesandmarketing 745 920 1,880 2,790 1,204 1,454 1,419 1,593 1,414
Generalandadministrative 81 93 115 747 230 365 408 521 1,054
Totalstockbasedcompensationexpense $ 1,106 $ 1,298 $ 2,416 $ 4,336 $ 2,095 $ 2,532 $ 2,720 $ 3,540 $ 4,037

(2) Includesachargeof$1.0millionrelatedtothemodificationofstockoptions,whichwasrecordedtosalesandmarketingexpense.
(3) Includescompensationcostsof$2.6millionrecognizeduponasaleofsharesfromseveralemployeestotheChiefExecutiveOfficer,ofwhich$0.3millionwasrecordedtoresearchanddevelopment,
$1.7millionwasrecordedtosalesandmarketingand$0.6millionwasrecordedtogeneralandadministrativeexpense.
(4) Includesacashchargeof$0.3millionrelatedtocertainprovisionsandbenefitsintheseparationagreementofourformerChiefFinancialOfficer,whoresignedinDecember2013duetohealthreasons
whichwasrecordedtogeneralandadministrativeexpense.

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Table of Contents
Thefollowingtablesetsforththecomponentsofourunauditedconsolidatedstatementsofoperationsforeachoftheperiodspresentedasapercentageofrevenue:

Threemonthsended
(percentageofrevenue)
March31,
2012
June30,
2012
Sept.30,
2012
Dec.31,
2012
March31,
2013
June30,
2013
Sept.30,
2013
Dec.31,
2013
March31,
2014

Revenue 100% 100% 100% 100% 100% 100% 100% 100% 100%
Costofrevenue 50% 48% 57% 64% 65% 68% 67% 58% 59%
Grossprofit 50% 52% 43% 36% 35% 32% 33% 42% 41%
Operatingexpenses:
Researchanddevelopment 6% 6% 13% 5% 5% 9% 10% 7% 12%
Salesandmarketing 24% 20% 33% 19% 13% 22% 19% 12% 18%
Generalandadministrative 5% 4% 6% 3% 3% 4% 4% 3% 4%
Totaloperatingexpenses 35% 30% 52% 27% 21% 35% 33% 22% 34%
Operatingincome(loss) 15% 22% (9)% 9% 14% (3)% % 20% 7%
Otherincome(expense),net % % % % (1)% (1)% (1)% (1)% (1)%
Income(loss)beforeincometaxes 15% 22% (9)% 9% 13% (4)% (1)% 19% 6%
Incometax(benefit)expense 6% 10% (6)% 4% 4% (1)% % 7% 1%
Netincome(loss) 9% 12% (3)% 5% 9% (3)% (1)% 12% 5%
Quarterlytrends
Ouroveralloperatingresultsfluctuatefromquartertoquarterasaresultofavarietyoffactors,includingseasonalfactorsandeconomiccyclesthatinfluence
consumerretailproductpurchasetrends.
Generally,wehaveexperiencedthehighestlevelsofrevenueinthefourthquarteroftheyear,whichcoincideswiththewinterholidayshoppingseasonintheUnited
StatesandEuropeandtheperiodinwhichwehavehistoricallyintroducedthenewestgenerationofourproductofferings.Revenueinthefirstquarterof2013was
greaterthanthefourthquarterof2012duetothedelayintheintroductionofourHERO3Blackeditioncapturedeviceinthefourthquarterof2012.
Grossprofitmargindecreasedfromthethirdquarterof2012throughthesecondquarterof2013primarilyduetohigherproductcostsofourHERO3capturedevices
comparedtoourHERO2capturedevices.Grossprofitmarginwashigherinthefourthquarterof2013andthefirstquarterof2014primarilyduetoadecreaseinthe
productcostsofourHERO3+capturedevicescomparedtoourHERO3capturedevicesand,toalesserextent,anincreaseintheaveragesellingpriceofunits
shippedcomparedtopriorperiods.
Operatingexpenseincreasedforthequarterlyperiodspresenteddueprimarilytoincreasedpersonnelrelatedexpenses,advertisingandpromotionalexpensesand
corporateinfrastructurecoststosupportthegrowthofthecompany.ForthethreemonthsendedDecember31,2012,salesandmarketingexpensereflected
advertisingandpromotionalactivitiestoincreaseawarenessoftheGoProbrandandourproductofferingsassociatedwiththelaunchofourHERO3capturedevices.
ForthethreemonthsendedMarch31,2014,researchanddevelopmentexpenseincreaseddueprimarilytoanincreaseinpersonnelrelatedcostsassociatedwithan
increaseinheadcountandtoanincreaseinconsultingandoutsideprofessionalservicecosts.
Ourbusinessisbothpositivelyandnegativelyaffectedbythebehaviorofconsumers,economicconditions,competitivepressuresandouroperationaldecisionsand
relatedtimelines,which

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Table of Contents
includesthereleaseofnewproductsandaccessories,aswellasnewergenerationsofourproductofferings.Consequently,theresultsofanypriorquarterlyorannual
periodsshouldnotberelieduponasindicationsofourfutureoperatingperformance.
Thefollowingtablesetsforththekeybusinessmetricsforeachoftheperiodspresented:

Threemonthsended
(inthousands)
March31,
2012
June30,
2012
Sept.30,
2012
Dec.31,
2012
March31,
2013
June30,
2013
Sept.30,
2013
Dec.31,
2013
March31,
2014
AdjustedEBITDA(1) $ 17,353 $32,469 $(2,544) $28,010 $ 40,923 $ 2,341 $ 8,606 $ 81,856 $ 28,627
Unitsshipped 425 549 335 1,007 954 653 822 1,420 852

(1) ThefollowingisareconciliationofadjustedEBITDA.

Threemonthsended
(inthousands)
March31,
2012
June30,
2012
Sept.30,
2012
Dec.31,
2012
March31,
2013
June30,
2013
Sept.30,
2013
Dec.31,
2013
March31,
2014
Netincome(loss) $ 8,039 $ 15,231 $ (2,709) $ 11,701 $ 23,035 $ (5,085) $ (1,101) $ 43,729 $ 11,049
Incometax(benefit)expense 5,293 11,697 (4,586) 8,544 10,027 (2,568) (1,330) 24,622 3,882
Interestincomeandexpense 32 67 43 204 1,332 1,369 1,428 1,889 1,335
Depreciationandamortization 545 699 1,136 1,595 2,209 3,207 3,092 3,526 3,811
POPdisplayamortization 2,338 3,477 1,156 1,630 2,225 2,886 3,797 4,550 4,513
Stockbasedcompensation 1,106 1,298 2,416 4,336 2,095 2,532 2,720 3,540 4,037
AdjustedEBITDA $ 17,353 $ 32,469 $ (2,544) $ 28,010 $ 40,923 $ 2,341 $ 8,606 $ 81,856 $ 28,627
Liquidityandcapitalresources

December31, March31,
(inthousands) 2012 2013 2014

Cash $36,485 $ 101,410 $ 111,215

AsofMarch31,2014,ourprincipalsourcesofliquiditywereourcashbalancestotaling$111.2millionand$30.0millionavailableunderourcreditfacilitytermloanand
revolvingcreditfacility,respectively.Ouroperationshavebeenfinancedprimarilythroughcashflowfromoperatingactivities,theprivatesaleofequitysecurities,and
shortandlongtermborrowings.Sinceinception,wehaveraised$20.0millioninequitycapitalandatMarch31,2014had$111.0millionofprincipalamountof
indebtednessoutstanding.
Webelieveourexistingcashbalances,cashflowfromoperationsandliquidityavailablefromourcreditfacilitywillbesufficienttomeetourworkingcapitalandcapital
expenditureneedsforatleastthenext12monthsandtheforeseeablefuture.Ourfuturecapitalrequirementsmayvarymateriallyfromthosecurrentlyplannedandwill
dependonmanyfactors,includingourrateofrevenuegrowth,thetimingandextentofspendingonresearchanddevelopmenteffortsandotherbusinessinitiatives,
theexpansionofsalesandmarketingactivities,thetimingofnewproductintroductions,marketacceptanceofourproductsandoveralleconomicconditions.Tothe
extentthatcurrentandanticipatedfuturesourcesofliquidityareinsufficienttofundourfuturebusinessactivitiesandrequirements,wemayberequiredtoseek
additionalequityordebtfinancing.Intheeventadditionalfinancingisrequiredfromoutsidesources,wemaynotbeabletoraiseitontermsacceptabletousoratall.

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Creditfacility
OnDecember21,2012,inordertoeffectadividendtoourstockholders,weenteredintoa$170.0millioncreditfacilityconsistingofa$120.0millionthreeyearterm
loanfacility,ortermloan,anda$50.0millionfouryearrevolvingcreditfacility,orourrevolvingcreditfacility.Attheclosingofourcreditfacility,theentireamountof
thetermloanand$10.0millionofourrevolvingcreditfacilityweredrawndown,and$20.0millionwascommittedtoastandbyletterofcredit.Wereceivednet
proceedsof$127.6million,netof$2.4millionofdebtissuanceandlendercosts.Thedebtissuanceandlendercostsallocatedtothetermloanarebeingamortizedto
interestexpenseoverthecontractualtermofourtermloanusingtheeffectiveinterestmethod.Costsallocatedtoourrevolvingcreditfacilityaredeferredand
amortizedusingthestraightlinemethodoverthefouryearcontractualtermofourrevolvingcreditfacility.Borrowingsunderourcreditfacilityarecollateralizedby
substantiallyallofourassetsandaresubjecttocustomaryrepresentations,warrantiesandcovenants.Proceedsfromthisofferingwillbeutilizedtofullypayoff
outstandingbalancesunderourtermloan.
Our$120.0milliontermloanhasscheduledquarterlyprincipalrepayments,dueonthelastdayofeachquarter,of$1.5millionperquarterin2013,$3.0millionper
quarterin2014and$6.0millionperquarterforthefirstthreequartersof2015,withtheremainingbalancedueonDecember21,2015.Ourexcesscashflow,as
definedinthecreditfacility,for2013triggeredacontractualprincipalprepaymentobligationof$48.5million,whichamounthasbeenclassifiedasacurrentliabilityas
ofDecember31,2013andMarch31,2014.InApril2014,weamendedthecreditfacilityagreementtoextendtheduedateforthiscontractualprincipalprepayment
fromApril2014toDecember2014.Our$50.0millionrevolvingcreditfacilitymaturesonDecember21,2016,andwecanrepayandreborrowprincipalamountsunder
andduringthetermofourrevolvingcreditfacility.Ofthe$50.0millionavailableunderourrevolvingcreditfacility,asofDecember31,2013andMarch31,2014,$20.0
millioniscommittedtoastandbyletterofcredit,andtherewasnobalanceoutstanding.InApril2014,the$20.0millionstandbyletterofcreditwasterminated.
Borrowingsunderthecreditfacilitybearinterestatarateperannumequaltoanapplicablemarginplus,atouroption,either:(i)abaseratedeterminedbyreferenceto
thehighestof:(a)arateofinterestpubliclyannouncedbyJPMorganChaseBank,N.A.asitsprimerate(b)0.5%perannumabovethefederalfundseffectiverate
and(c)theLIBORrateforaninterestperiodofonemonthplus1.00%or(ii)aLIBORratedeterminedbyreferencetothecostsoffundsforEurodollardepositsforthe
interestperiodrelevanttosuchborrowingadjustedforcertainreserverequirements.Theapplicablemarginforborrowingsrangesfrom3.00%to3.75%withrespectto
baserateloansandfrom2.00%to2.75%withrespecttoLIBORrateloans,ineachcase,basedonourconsolidatedleverageratio.AsofMarch31,2014,theinterest
rateonourtermloanwas2.75%.
Ourshorttermliquiditycouldbeimpactedinpartbyourabilitytomaintaincompliancewithcovenantsinthecreditagreement.Theagreementcontainsan
accelerationclauseforcertaineventsrelatedtoourcreditworthiness,including,amongotherthings,ourfailuretomaintainafinancialleverageratiobelowcertain
thresholdsspecifiedintheagreementandmaintainaconsolidatedinterestcoverageratio.AsofDecember31,2012and2013andMarch31,2014,wewerein
compliancewithallfinancialcovenants.

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Thefollowingtablesetsforththemajorcomponentsofourconsolidatedstatementsofcashflowsdatafortheperiodspresented:

YearendedDecember31,
Threemonthsended
March31,
(inthousands) 2011 2012 2013 2013 2014
Netcashprovidedbyoperatingactivities $15,229 $ 8,366 $102,477 $ 31,125 $ 17,714
Netcashusedforinvestingactivities (9,909) (17,795) (21,237) (5,844) (4,701)
Netcashprovidedby(usedfor)financingactivities 20,343 16,816 (16,315) (11,516) (3,208)

Netincreaseincash $25,663 $ 7,387 $ 64,925 $ 13,765 $ 9,805
Cashflowsfromoperatingactivities
Cashflowsfromoperatingactivitiesconsistofnetincomeadjustedforcertainnoncashitems,includingdepreciationandamortization,deferredincometaxes,stock
basedcompensationexpenseandexcesstaxbenefitsfromstockbasedcompensation,aswellastheeffectofchangesinworkingcapitalandotheractivities.
Cashprovidedbyoperatingactivitiesof$17.7millioninthethreemonthsendedMarch31,2014decreasedfrom$31.1millioninthethreemonthsendedMarch31,
2013,dueprimarilytoa$12.0milliondecreaseinnetincomeanda$2.7milliondecreaseincashrelatedtochangesinoperatingassetsandliabilities,partiallyoffset
bya$1.3millionincreaseinnoncashexpenseitems,primarilyconsistingofdepreciationandamortizationandstockbasedcompensationexpense.Changesincash
flowsrelatedtooperatingassetsandliabilitiesprimarilyconsistedofa$111.6milliondecreaseincashduetothetimingofpaymentsassociatedwithouraccounts
payableandaccruedliabilities,partiallyoffsetbya$54.0millionincreaseincashduetotimingofaccountsreceivablecollectionsandthefactoringofcertain
receivablesinthethreemonthsended2014anda$48.6millionincreaseincashduetoutilizationofinventoryinthethreemonthsendedMarch31,2014comparedto
anincreaseininventoryinthethreemonthsendedMarch31,2013.
Cashprovidedbyoperatingactivitiesof$102.5millionin2013increasedfrom$8.4millioncashprovidedbyoperatingactivitiesin2012,duetoa$54.9million
increaseincashrelatedtochangesinoperatingassetsandliabilities,a$28.3millionincreaseinnetincomeanda$10.9millionincreaseinnoncashexpenseitems,
primarilyconsistingofdepreciationandamortization,stockbasedcompensationexpense,excesstaxbenefitsfromstockbasedcompensationandinventoryrelated
writeoffs.Changesincashflowsrelatedtooperatingassetsandliabilitiesprimarilyconsistedofa$67.4millionincreaseincashduetothetimingofpayments
associatedwithouraccountspayableandaccruedliabilities,aswellasa$10.4millionincreaseincashduetotimingofaccountsreceivablecollectionsandthe
factoringofcertainreceivablesin2013.Thiswaspartiallyoffsetbya$11.9milliondecreaseincashduetoincreasedinventorypurchasesinpreparationofthelaunch
ofourHERO3+capturedevicesanda$6.8milliondecreaseincashduetoincreasedexpendituresforotherassets.
Cashprovidedbyoperatingactivitiesof$8.4millionfor2012decreasedfrom$15.2millionin2011.Thedecreaseincashprovidedbyoperatingactivitiesresultedfrom
a$19.5milliondecreaseincashrelatedtochangesinoperatingassetsandliabilitiespartiallyoffsetbyincreasesinnetincomeof$7.7millionandnoncashexpense
itemsof$5.0million,primarilyconsistingofdepreciationandamortization,stockbasedcompensationexpense,inventoryrelatedwriteoffsanddeferredtaxes.
Changesincashflowsrelatedtooperatingassetsandliabilitiesprimarily

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consistedofa$33.9milliondecreaseincashduetotimingofaccountsreceivablecollectionsanda$31.0milliondecreaseincashduetoincreasedinventory
purchasestomeetthegrowingdemandforourproducts.Thesewerepartiallyoffsetbya$42.9millionincreaseincashduetothetimingofpaymentsassociatedwith
ouraccountspayableandaccruedexpensesrelatedtoinventorypurchasesanda$2.7millionincreaseindeferredrevenue.
Cashflowsfrominvestingactivities
Cashusedininvestingactivitiesof$4.7millioninthethreemonthsendedMarch31,2014decreasedfromcashusedforinvestingactivitiesof$5.8millioninthethree
monthsendedMarch31,2013dueto$1.1millionofreducedexpendituresonpropertyandequipment.
Cashusedininvestingactivitiesof$21.2millionin2013increased$4.0millionfromcashusedforinvestingactivitiesof$17.8millionin2012.Theincreasewas
primarilyduetopurchasesofpropertyandequipmentof$18.3millionandcashusedintheacquisitionofGeneralThings,Inc.netofcashacquiredof$2.9million.
Cashusedininvestingactivitiesof$17.8millionin2012increased$7.9millionfromcashusedforinvestingactivitiesof$9.9millionin2011.Thisincreasewas
comprisedofincreasesinpurchasesofpropertyandequipmentof$15.8millionoffsetbyareductioninacquisitionspendingof$8.0million.
Cashflowsfromfinancingactivities
Ourfinancingactivitiesusedcashof$3.2millioninthethreemonthsendedMarch31,2014.Cashflowusedinfinancingactivitiesinthethreemonthsended
March31,2014consistedprimarilyofrepaymentsoflongtermdebtof$3.0million.
Ourfinancingactivitiesusedcashof$16.3millionin2013.Cashflowusedinfinancingactivitiesin2013consistedprimarilyofrepaymentsoflongtermdebtand
repaymentsofourrevolvingcreditfacilityof$46.0million,partiallyoffsetbyborrowingsundertherevolvingcreditfacilityof$30.0million.
Ourfinancingactivitiesprovidedcashof$16.8millionduring2012.Cashflowprovidedbyfinancingactivitiesconsistedprimarilyoftheissuanceofanaggregateof
$137.6millionoflongtermandrevolvingcreditfacility(netofissuancecosts),ataxbenefitof$4.2millionuponexerciseofnonqualifiedstockoptionsandproceeds
fromtheissuanceofcommonstockuponexerciseofstockoptionsof$2.8million.Thesewerepartiallyoffsetbyacashdividendof$117.4millionandrepaymentof
$10.4millionofindebtednessunderourrevolvingcreditfacilityandnotespayable.
Ourfinancingactivitiesprovidednetcashof$20.3millionduring2011.Cashflowprovidedbyfinancingactivitiesconsistedprimarilyofissuanceofpreferredstockof
$19.7millionandastockholdercashcontributionof$6.1million,partiallyoffsetbycashdistributionsof$5.1milliontostockholderstocoverincometaxesarisingfrom
Scorporationearnings.

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Contractualobligations
ThefollowingtablesummarizesourcontractualobligationsasofDecember31,2013.

(inthousands) Total
1year
(fiscal
2014)
23years
(fiscal
2015
and
2016)
45years
(fiscal
2017and
2018)
Morethan
5years
(beyond
fiscal
2018)
Termloanprincipalandinterest(1) $118,606 $63,652 $ 54,954 $ $
Operatingleases(2) 32,243 7,681 13,368 10,614 580
Sponsorshipcommitments(3) 34,423 18,526 15,596 301
Licensefinancingarrangement(4) 3,600 3,600
Othercontractualcommitments(5) 4,365 1,896 2,469
Capitalequipmentpurchasecommitments(6) 3,607 3,607

Totalcontractualcashobligations $196,844 $98,962 $ 86,387 $ 10,915 $ 580

(1) InterestpaymentswerecalculatedusingtheapplicablerateasofDecember31,2013.SeeNote9ofourconsolidatedfinancialstatementsincludedelsewhereinthisprospectus.

(2) Weleaseourfacilitiesunderlongtermoperatingleases,whichexpireatvariousdatesthroughMay2019.Theleaseagreementsfrequentlyincludeleaseholdimprovementincentives,escalatinglease
payments,renewalprovisionsandotherprovisionswhichrequireustopaytaxes,insurance,maintenancecostsordefinedrentincreases.
(3) Wesponsorsportingeventsandathletesaspartofourmarketingefforts.Inmanycases,weenterintomultiyearagreementswitheventorganizersandathletes.

(4) InAugust2013,weenteredintoalicenseagreementwiththeSantaClaraStadiumAuthoritywhichgaveusrightsduringtheagreementtermtoseasonticketsforaNationalFootballLeagueteam.The
costofthelicensewas$4.0million,ofwhich$3.6millionremainstobepaidasofDecember31,2013andwasrecordedasashorttermliability.
(5) In2013,wepurchasedsoftwarelicensesandengagedoutsideconsultantstoassistwithupgradingorimplementingourfinancialandITsystems,whichrequirepaymentsovermultipleyears.

(6) Weenterintocontractstoacquireequipmentfortoolingandmoldsaspartofourmanufacturingoperations.Inaddition,weincurpurchasecommitmentsrelatedtothemanufacturingofourPOPdisplays
bythirdparties.WehaverevisedthepreviouslydisclosedamountforcapitalequipmentpurchasecommitmentsasofDecember31,2013tocorrectthisamount.
AsofMarch31,2014,oursponsorshipcommitmentsdecreasedto$22.1million,asweamendedasponsorshipagreementthatwouldhaveexpiredin2015,toexpire
in2014.Ourcapitalequipmentpurchasecommitmentsincreasedto$8.3millionasofMarch31,2014.Inaddition,asofMarch31,2014,wefullyrepaidthelicense
financingarrangementwiththeSantaClaraStadiumAuthority.
Wesubcontractwithothercompaniestomanufactureourproducts.Duringthenormalcourseofbusiness,weandourcontractmanufacturersprocurecomponents
baseduponaforecastedproductionplan.Ifwecancelallorpartoftheorders,wemaybeliabletooursuppliersandcontractmanufacturersforthecostofthe
unutilizedcomponentordersorcomponentspurchasedbyourcontractmanufactures.Ourconsolidatedfinancialpositionandresultsofoperationscouldbenegatively
impactedifwearerequiredtocompensateoursuppliersorcontractmanufacturersforanyliabilitiesincurredduetothesepurchasecontractcommitments.
Thetableaboveexcludestheliabilityforuncertaintaxpositionsof$8.6millionasofDecember31,2013,duetotheuncertaintyofwhentherelatedtaxsettlements
willbecomedue.AsofMarch31,2014,theliabilityforuncertaintaxpositionswas$9.1million.
Saleofreceivables
During2013andthethreemonthsendedMarch31,2014,wesoldaccountsreceivable,withoutrecourse,of$71.1millionand$31.3million,respectively,fromaretail
customertoathirdparty

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bankinginstitution.Factoringfeesof$0.6millionand$0.3millionin2013andthethreemonthsendedMarch31,2014,respectively,relatedtothissalewereincluded
ininterestexpense.
Offbalancesheetarrangements
Duringtheperiodspresented,wedidnothaveanyrelationshipswithunconsolidatedorganizationsorfinancialpartnerships,suchasstructuredfinanceorspecial
purposeentities,whichwouldhavebeenestablishedforthepurposeoffacilitatingoffbalancesheetarrangementsorothercontractuallynarroworlimitedpurposes.
Criticalaccountingpolicies
WeprepareourconsolidatedfinancialstatementsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates.Thepreparationofthese
consolidatedfinancialstatementsrequiresustomakeestimates,assumptionsandjudgmentsthatcansignificantlyimpacttheamountswereportasassets,
liabilities,revenue,costsandexpensesandtherelateddisclosures.Webaseourestimatesonhistoricalexperienceandotherassumptionsthatwebelieveare
reasonableunderthecircumstances.Ouractualresultscoulddiffersignificantlyfromtheseestimatesunderdifferentassumptionsandconditions.Webelievethatthe
accountingpoliciesdiscussedbelowarecriticaltounderstandingourhistoricalandfutureperformanceasthesepoliciesinvolveagreaterdegreeofjudgmentand
complexity.
Revenuerecognition
Revenueisderivedfromthesaleofourcapturedevices,aswellastherelatedimpliedpostcontractsupport,orPCS.Werecognizerevenuewhenpersuasive
evidenceofanarrangementexists,deliveryhasoccurred,thesalespriceisfixedordeterminableandcollectabilityisreasonablyassured.Evidenceofan
arrangementconsistsofanorderfromourretailers,onlinecustomersordistributors.Weconsiderdeliverytohaveoccurredoncetitleandriskoflosshasbeen
transferred.CustomerdepositsareincludedinaccruedliabilitiesontheConsolidatedbalancesheetsandarerecognizedasrevenuewhenallthecriteriafor
recognitionofrevenuearemet.
Ourstandardtermsandconditionsofsaledonotallowforproductreturnsotherthanunderwarranty.However,wegrantlimitedrightstoreturnproductforcertainlarge
retailersanddistributors.Estimatesofexpectedfutureproductreturnsarerecognizedatthetimeofsalebasedonanalysesofhistoricalreturntrendsbycustomer
class.Uponrecognition,wereducerevenueandcostofsalesfortheestimatedreturns.Returntrendsareinfluencedbyproductlifecyclestatus,newproduct
introductions,marketacceptanceofproducts,saleslevels,productsellthrough,thetypeofcustomer,seasonality,productqualityissues,operationalpoliciesand
proceduresandotherfactors.Returnratescanfluctuateovertime,butaresufficientlypredictabletoallowustoestimateexpectedfutureproductreturns.Actual
returnsinanyfutureperiodcoulddifferfromourestimates,whichcouldimpacttherevenuethatwereport.
Forcustomerswhopurchaseproductsdirectlyfromourwebsite,transferofriskoflossisdeterminedtobeupondeliverytothecustomersaddress.Wedeferthose
salesmadetocustomerswhopurchaseproductsfromourwebsiteinthelastfourdaysofthereportingperiodforwhichweestimatedeliverytooccurinthefollowing
period.Weuseestimatestodeterminewhenshipmentsaredeliveredbasedonthirdpartymetricsforaveragetransittime.Additionally,weprovidea30daymoney
backguaranteeforwebbasedsalesforwhichwereducerevenuebyanestimateofpotentialfutureproductreturnsrelatedtothewebbasedsales,basedonanalyses
ofhistoricalreturntrendsandseasonality.Estimatesforwebbasedsalereturnsandestimatestoderivewebsaleshipmentdeliverydatesmaydifferfromactual
results.

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Ourproductsincludemultipleelements.Wehavedeterminedourmultipleelementarrangementsgenerallyincludetwoseparateunitsofaccounting:thefirstelement
isthehardwarecomponent(cameraandaccessories)andtheembeddedfirmwareessentialtothefunctionalityofthecameradeliveredatthetimeofsale.The
secondelementistheimpliedrightforthecustomertoreceivePCSincludedwiththepurchaseofourproducts.PCSincludestherighttoreceive,onawhenandif
availablebasis,futureunspecifiedfirmwareupgradesandfeaturesaswellasbugfixes,emailandtelephonesupport.
Weaccountforeachelementseparatelyandallocatefeesfromthearrangementbasedontherelativesellingpriceofeachelement.Revenueallocatedtoan
undeliveredelementisrecognizedoveranestimatedserviceperiod.Werecognizerevenuefordeliveredelementsonlywhenallcontractualobligationshavebeen
completed.
Weusebestestimateofthesellingprice,orBESP,todetermineallocationofrevenue.BESPreflectsourbestestimatesofwhatthesellingpricesofelementswould
beiftheyweresoldregularlyonastandalonebasis.WebelievethatBESPisthemostappropriatemethodologyfordeterminingtheallocationofrevenueformultiple
elementarrangements.
WehaveallocatedrevenuebetweenourmultipleelementsusingtherelativesellingpricemethodwhichisbasedontheBESPforalldeliverables.Revenueallocated
tothedeliveredhardwareandtherelatedessentialsoftwareisrecognizedatthetimeofsaleprovidedtheconditionsforrecognitionofrevenuehavebeenmet.
RevenueallocatedtoPCSisdeferredandrecognizedonastraightlinebasisovertheestimatedtermofthesupportperiod,whichisestimatedtobeoneyearbased
onhistoricalexperience.AsofDecember31,2012and2013andMarch31,2014,deferredimpliedPCSrevenuewas$3.8million,$6.4millionand$7.4million,
respectively.
Salesincentives
Weoffersalesincentivesthroughvariousprograms,consistingprimarilyofcooperativeadvertisingandmarketingdevelopmentfundprograms.Werecordcooperative
advertisingandmarketingdevelopmentfundprogramswithcustomersasareductiontorevenueunlesswereceiveanidentifiablebenefitinexchangeforcredits
claimedbythecustomerandcanreasonablyestimatethefairvalueoftheidentifiablebenefitreceived,inwhichcasewewillrecorditasamarketingexpense.In
addition,weofferpriceprotectiondiscountstocertaincustomerswhennewcapturedevicemodelsarereleasedandthecustomerhasremaininginventoryoftheolder
models.Weestimatepriceprotectiondiscounts,whicharerecordedasareductionofrevenue,byevaluatinginventoryheldbythecustomersubjecttoprice
protection.Werecordreductionstorevenueforsalesincentiveswhentherelatedrevenueisrecognized.
Inventories
Inventoriesconsistoffinishedgoodsandcomponentparts,whicharepurchasedfromcontractmanufacturers.Inventoriesarestatedatthelowerofaveragecostor
marketonafirstin,firstoutbasis.Ourassessmentofmarketvaluerequirestheuseofestimatesregardingthenetrealizablevalueofourinventorybalances,
includinganassessmentofexcessorobsoleteinventories.Wedetermineexcessandobsoleteinventoriesbasedonanestimateofthefuturedemandforour
productswithinaspecifiedtimehorizon,generally12months.Theestimatesusedforfuturedemandarealsousedforneartermcapacityplanningandinventory
purchasesandareconsistentwithrevenueforecastassumptions.Ifourdemandforecastisgreaterthanactualdemand,wemayberequiredtorecordanexcess
inventorycharge,whichwoulddecrease

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grossprofit.Anywritedownstakenestablishanewcostbasisfortheunderlyinginventory.Forallperiodspresented,inventorieswerepredominantlycomprisedof
finishedgoods.
POPdisplays
WesponsoraprogramtoprovideretailerswithPOPdisplaysinordertofacilitatethemarketingofourproductswithinretailstores.ThePOPdisplayscontainavideo
displaythatbroadcastvideoimagestakenbyGoProcameraswithproductplacementavailableonthePOPdisplayforourcamerasandaccessories.Wegenerally
providethesePOPdisplaystocustomersfreeofcharge.ThecostsofthePOPdisplays,lessanyfeeschargedtocustomers,arecapitalizedasalongtermasset,
andthenetcostisrecognizedovertheexpectedperiodofthebenefitprovidedbytheseassets,whichisgenerally24months.POPdisplayamortizationincludedin
salesandmarketingexpensewere$3.6million,$8.6million,$13.5millionand$4.5millionfor2011,2012,2013andthethreemonthsendedMarch31,2014,
respectively.
Warranty
Wegenerallyprovide12monthwarrantycoverageonallofourproductsexceptintheEUwhereweprovideatwoyearwarranty.Ourwarrantyprovidesforrepairor
replacementoftheassociatedproductsduringthewarrantyperiod.Weestablishaliabilityforestimatedproductwarrantycostsatthetimeproductrevenueis
recognized.Thewarrantyobligationisaffectedbyproductfailureratesandtherelateduseofmaterials,laborcostsandfreightincurredincorrectinganyproduct
failure.Shouldactualproductfailurerates,useofmaterialsorothercostsdifferfromourestimates,additionalwarrantyliabilitiescouldberequired,whichwould
reduceourgrossprofit.
Incometaxes
Weutilizetheassetandliabilitymethodofaccountingforincometaxes,whichrequirestherecognitionofdeferredtaxassetsandliabilitiesforexpectedfuture
consequencesoftemporarydifferencesbetweenthefinancialreportingandincometaxbasesofassetsandliabilitiesusingenactedtaxrates.Wemakeestimates,
assumptionsandjudgmentstodetermineourprovisionforincometaxesandalsofordeferredtaxassetsandliabilitiesandanyvaluationallowancesrecordedagainst
ourdeferredtaxassets.Weassessthelikelihoodthatourdeferredtaxassetswillberecoveredfromfuturetaxableincomeand,totheextentwebelievesthat
recoveryisnotlikely,weestablishavaluationallowance.
Thecalculationofourcurrentprovisionforincometaxesinvolvestheuseofestimates,assumptionsandjudgmentswhiletakingintoaccountcurrenttaxlaws,our
interpretationofcurrenttaxlawsandpossibleoutcomesoffuturetaxaudits.Wehaveestablishedreservestoaddresspotentialexposuresrelatedtotaxpositionsthat
couldbechallengedbytaxauthorities.Althoughwebelieveourestimates,assumptionsandjudgmentstobereasonable,anychangesintaxlaworourinterpretation
oftaxlawsandtheresolutionsofpotentialtaxauditscouldsignificantlyimpacttheamountsprovidedforincometaxesinourconsolidatedfinancialstatements.
Thecalculationofourdeferredtaxassetbalanceinvolvestheuseofestimates,assumptionsandjudgmentswhiletakingintoaccountestimatesoftheamountsand
typeoffuturetaxableincome.Actualfutureoperatingresultsandtheunderlyingamountandtypeofincomecoulddiffermateriallyfromourestimates,assumptions
andjudgmentstherebyimpactingourfinancialpositionandresultsofoperations.

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Weincludeinterestandpenaltiesrelatedtounrecognizedtaxbenefitswithinincometaxexpense.Wehavenotincurredanyinterestorpenaltiesrelatedto
unrecognizedtaxbenefitsinanyoftheperiodspresented.
WehaveadoptedASC74010AccountingforUncertaintyinIncomeTaxesthatprescribesarecognitionthresholdandmeasurementattributeforthefinancial
statementrecognitionandmeasurementofuncertaintaxpositionstakenorexpectedtobetakeninourincometaxreturn,andalsoprovidesguidanceon
derecognition,classification,interestandpenalties,accountingininterimperiods,disclosureandtransition.
Goodwill,acquiredintangibleassetsandotherlonglivedassets
Goodwillrepresentstheexcessofthepurchasepriceoverthefairvalueofthenettangibleandintangibleassetsacquiredinabusinesscombination.Goodwillisnot
amortizedbutweperformanannualqualitativeassessmentofourgoodwillduringthefourthquarterofeachcalendaryeartodetermineifanyeventsorcircumstances
exist,suchasanadversechangeinbusinessclimateoradeclineintheoverallindustrydemand,thatwouldindicatethatitwouldmorelikelythannotreducethefair
valueofareportingunitbelowitscarryingamount,includinggoodwill.Ifeventsorcircumstancesdonotindicatethatthefairvalueofareportingunitisbelowits
carryingamount,thengoodwillisnotconsideredtobeimpairedandnofurthertestingisrequired.Iffurthertestingisrequired,weperformatwostepprocess.Thefirst
stepinvolvescomparingthefairvalueofourreportingunittoitscarryingvalue,includinggoodwill.Ifthecarryingvalueofthereportingunitexceedsitsfairvalue,the
secondstepofthetestisperformedbycomparingthecarryingvalueofthegoodwillinthereportingunittoitsimpliedfairvalue.Animpairmentchargeisrecognized
fortheexcessofthecarryingvalueofgoodwilloveritsimpliedfairvalue.Forthepurposeofimpairmenttesting,wehavedeterminedthatwehaveonereportingunit.
Therehasbeennoimpairmentofgoodwillforanyperiodspresented.
Ourlonglivedassetsconsistofpropertyandequipmentandacquiredintangibleassets.Acquiredintangibleassetswithdefinitelivesareamortizedonastraightline
basisovertheremainingestimatedeconomiclifeoftheunderlyingproductsandtechnologies.Wereviewourdefinitelivedlonglivedassetsforimpairmentwhenever
eventsorchangesincircumstancesindicatethatthecarryingamountofalonglivedassetmaynotberecoverable.Recoverabilityofanassetgroupismeasuredby
comparingitscarryingamounttotheexpectedfutureundiscountedcashflowsthattheassetgroupisexpectedtogenerate.Ifitisdeterminedthatanassetgroupis
notrecoverable,animpairmentlossisrecordedintheamountbywhichthecarryingamountoftheassetgroupexceedsitsfairvalue.Therehasbeennoimpairment
oflonglivedassetsforanyperiodspresented.
Stockbasedcompensation
Weaccountforstockbasedcompensationactivityusingthefairvaluemethod,whichrequiresthemeasurementandrecognitionofcompensationexpenseforall
sharebasedpaymentawardsbasedonestimatedfairvalues.Thismethodrequirescompaniestoestimatethefairvalueofstockbasedcompensationonthedateof
grantusinganoptionpricingmodel.WeusetheBlackScholesoptionpricingmodeltomeasurestockbasedcompensation.TheBlackScholesmodeldeterminesthe
fairvalueofsharebasedpaymentawardsbasedonthefairvalueoftheunderlyingcommonstockonthedateofgrantandisaffectedbyassumptionsregardinga
numberofhighlycomplexandsubjectivevariables.Thesevariablesinclude,butarenotlimitedto,thefairvalueoftheunderlyingcommonstock,expectedvolatility
overthetermoftheawardsandactualandprojectedemployeestockoptionexercisebehaviors.Inaddition,weare

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requiredtoestimatetheexpectedforfeiturerateandonlyrecognizeexpenseforthosesharesexpectedtovest.Theassumptionsusedincalculatingthefairvalueof
thestockbasedawardsrepresentmanagementjudgment.Asaresult,iffactorschangeanddifferentassumptionareused,thestockbasedcompensationexpense
couldbemateriallydifferentinthefuture.Compensationexpenserelatingtoemployeestockawardsisrecordedonastraightlinebasis.
Stockawardsissuedtononemployeesareaccountedforatfairvalue.Webelievethatthefairvalueoftheawardsismorereliablymeasuredthanthefairvalueof
servicesreceived.Werecordcompensationexpensebasedonthethencurrentfairvaluesofthestockawardsateachfinancialreportingdate.Compensation
recordedduringtheserviceperiodisadjustedinsubsequentperiodsforchangesinthestockawardsfairvalueuntiltheearlierofthedateatwhichthenon
employeesperformanceiscompleteoraperformancecommitmentisreached,whichisgenerallywhenthestockoptionawardvests.Compensationexpenserelating
tononemployeestockawardsisrecordedonastraightlinebasis.
Determiningthefairvalueofstockbasedawardsonthegrantdaterequirestheuseofestimatesandassumptions,includingthefairvalueofourcommonstock,
exercisepriceofthestockoption,expectedvolatility,expectedlife,riskfreeinterestrateanddividendrate.Weestimatetheexpectedvolatilityofourstockoptions
bytakingtheaveragehistoricalvolatilityofagroupofcomparablepubliclytradedcompaniesoveraperiodequaltotheexpectedlifeoftheoptions.Sincewehave
undergonesignificantoperationalandstructuralchanges,thehistoricalexercisedatadonotprovideareasonablebasisuponwhichtoestimateexpectedlife.Asa
result,weusedthesimplifiedmethod,asprovidedunderSABTopic14.D,ShareBasedPayment,tocalculatetheexpectedtermestimatebasedontheoptions
vestingtermandcontractualterms.TheriskfreeinterestrateistheestimatedaverageinterestratebasedonU.S.Treasuryzerocouponnoteswithtermsconsistent
withtheexpectedlifeoftheawards.Theexpecteddividendyieldiszeroaswedonotanticipatepayinganyrecurringcashdividendsintheforeseeablefutureandthe
priordividendeventisviewedasaonetimecapitalevent.Weestimatetheforfeiturerateofourstockbasedawardsbasedonananalysisofouractualforfeitures,
analysisofemployeeturnoverandotherfactors.Theimpactfromaforfeiturerateadjustmentwouldberecognizedinfullintheperiodinwhichtheforfeiturerate
changesand,iftheactualnumberoffutureforfeituresdiffersfromourpriorestimates,wemayberequiredtorecordadjustmentstostockbasedcompensation
expenseinfutureperiods.
AsofMarch31,2014,theaggregateintrinsicvalueofvestedoptions,unvestedoptionsandrestrictedstockoutstandingwasmillion,millionand
million,respectively,basedonanassumedinitialpublicofferingpriceofpershare,whichisthemidpointoftheestimatedofferingpricerangesetforthonthe
coverpageofthisprospectus.TheamountofunearnedstockbasedcompensationrelatedtounvestedsharebasedpaymentawardsatDecember31,2013and
March31,2014was$22.8millionand$32.6million,respectively.AsofeachofDecember31,2013andMarch31,2014,theweightedaverageperiodoverwhichthe
unearnedstockbasedcompensationisexpectedtoberecognizedwas1.0year.

YearsendedDecember31,
Threemonthsended
March31,
2011 2012 2013 2013 2014

Expectedlife(years) 5.06.1 5.16.1 5.36.1 5.96.1 5.46.3
Riskfreeinterestrate 1.1%2.4% 0.8%2.4% 0.8%2.4% 1.0%1.2% 1.8%2.0%
Volatility 56%59% 56%60% 56%60% 56% 55%56%
Dividendyield 0% 0% 0% 0% 0%

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Wehavegrantedoptionstopurchasesharesofcommonstockasfollows:

Grantdate
Number
ofoptions
granted
Option
exercise
price
Fairvalueof
commonstock
pershare(1)
Fairvalueof
commonstock
optionsper
share(2)
Grantdate
fairvalue
(inthousands)
February2012 171,450 $ 1.90 $ 3.16 $ 2.08 $ 357
June2012 608,550 2.96 8.30 6.27 3,817
October2012 531,700 8.30 8.30 4.44 2,361
November2012 76,650 8.30 12.13 7.57 580
February2013 782,950 13.72 13.72 7.22 5,653
March2013 126,000 13.72 15.40 8.51 1,072
April2013 162,650 15.40 15.40 8.36 1,359
June2013 499,200 15.40 15.59 8.31 4,310
July2013 143,300 15.59 15.59 8.71 1,248
September2013 338,300 15.59 16.19 9.28 3,139
October2013 499,200 16.19 16.19 9.01 4,498
December2013 354,800 16.19 16.22 9.10 3,228
January2014 1,148,650 16.22 16.22 8.84 10,151
March2014 422,209 16.39 16.39 8.68 3,666

(1) Thefairvalueofcommonstockpershareutilizedforfinancialreportingpurposes.

(2) TheweightedaveragegrantdatefairvalueoftheoptionsgranteddeterminedbyutilizingtheBlackScholesoptionpricingmodelusedtorecordstockbasedcompensationexpense.
Commonstockvaluations
Giventheabsenceofapublictradingmarketofourcommonstock,andinaccordancewiththeAmericanInstituteofCertifiedPublicAccountantsPracticeGuide,
ValuationofPrivatelyHeldCompanyEquitySecuritiesIssuedasCompensation,ourboardofdirectorsexercisedreasonablejudgmentandconsiderednumerousand
subjectivefactorstodeterminethebestestimateoffairvalueofourcommonstock,includingthefollowing:
Companyspecificfactors

actualandforecastedoperatingandfinancialperformancebasedonmanagementsestimate

thestatusofresearchanddevelopment

independentthirdpartyvaluations

marketadoptionandsuccessofourproducts

thedevelopmentofcustomerrelationships

consumerandindustryrecognition

thehiringofkeypersonnel

theamountandpricingofpreferredstockfinancingswithoutsideinvestorsinarmslengthtransactions

therightsandpreferencesofpreferredstockrelativetocommonstock

theamountandpricingofcommonstocktransactionswithoutsideinvestorsinarmslengthtransactions

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thehistoricallackofapublicmarketofourcommonandpreferredstockand

thelikelihoodofachievingaliquidityevent,suchasaninitialpublicofferingorasaleofourcompanygiventheprevailingmarketconditionsandthenatureand
historyofourbusiness.
Generaleconomicfactors

industrytrendsandcompetitiveenvironment

trendsinconsumerspending,includingconsumerconfidence

overalleconomicindicators,includinggrossdomesticproduct,employment,inflationandinterestratesand

thegeneraleconomicoutlook.
OurcommonstockvaluationsutilizeamarketapproachwhichbasesthevaluationofourcommonstockonmultiplesofrevenueorEBITDAforagroupofpublicly
tradedcompaniesthatwebelievearesimilartousintermsofsize,productmarket,liquidity,financialleverage,revenue,profitability,growthandotherfactors.
MultiplesofrevenueorEBITDAfromtheselectgroupofpubliclytradedcompaniesarecalculatedandappliedtoourbusinessmetrics,typicallyoneyearforward
lookingrevenueorEBITDA.Priorsalesofthecompanysharesareincludedinthemarketapproachandinvolveexamininganyhistoricaltransactionsrelatedtothe
saleofourredeemableconvertiblepreferredstock.Themarketvalueapproachhasbeenappliedconsistentlyoverthevaluationperiodsnotedbelow.
Onceatotalequityvalueiscomputed,weallocatevaluetoeachclassofstockusingeithertheOptionPricingModel,orOPM,ortheProbabilityWeightedExpected
ReturnMethod,orPWERM.TheOPMtreatscommonstockandconvertiblepreferredstockascalloptionsonanenterprisevalue,withexercisepricesbasedonthe
liquidationpreferenceofthepreferredstock.Thecommonstockismodeledasacalloptionwithaclaimontheenterpriseatanexercisepriceequaltotheremaining
valueimmediatelyafterthepreferredstockisliquidated.TheOPMisappropriatetousewhentherangeofpossiblefutureoutcomesisdifficulttopredictandthus
createshighlyspeculativeforecasts.PWERMinvolvesaforwardlookinganalysisofthepossiblefutureoutcomesoftheenterprise.Thismethodisparticularlyuseful
whendiscretefutureoutcomescanbepredictedatarelativelyhighconfidencelevelwithaprobabilitydistribution.Discretefutureoutcomesconsideredunderthe
PWERMincludeaninitialpublicoffering,orIPO,aswellasnonIPOmarketbasedoutcomes.DeterminingthefairvalueoftheenterpriseusingthePWERMrequires
ustodevelopassumptionsandestimatesforboththeprobabilityofanIPOliquidityeventandnonIPOoutcomes,aswellasthevaluesweexpectthoseoutcomes
couldyield.Weapplysignificantjudgmentindevelopingtheseassumptionsandestimates,primarilybasedupontheenterprisevaluewedeterminedusingthemarket
approach,ourknowledgeofthebusinessandourreasonableexpectationsofdiscreteoutcomesoccurring.
Overtime,ascertaintydevelopedregardingpossiblediscreteevents,includinganIPO,wetransitionedthemethodologyweusedtoallocateourenterprisevaluefrom
anOPMtoaPWERM.WeusedanOPMthroughthevaluationsasofMarch31,2012,andaPWERMsincethevaluationasofJune30,2012.
Abriefnarrativeofthespecificfactorsconsideredbyourboardofdirectorsindeterminingthefairvalueofourcommonstockasofthedateofgrant,issetforth
below.

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February2012.OurboardofdirectorsgrantedstockoptionsinFebruary2012withanexercisepriceof$1.90pershare.Forthesestockoptiongrants,ourboardof
directorsdeterminedthefairvalueofourcommonstockonthedateofgranttobe$1.90persharebasedonanumberoffactors,includingmarketacceptanceofthe
HERO2andourcontinuedprofitabilityandrevenuegrowth.OurboardofdirectorsalsoconsideredacontemporaneousthirdpartyvaluationasofDecember31,2011.
Thevaluationutilizedamarketapproachofcomparablecompaniesinourindustry.ItappliedthemarketfactorstoourforwardlookingrevenueandadjustedEBITDA
andallocatedenterprisevaluebetweeneachclassofstockbasedonanOPM.TheaggregateenterprisevaluewasallocatedtoeachclassofstockutilizinganOPM
withthefollowingassumptions:atimetoaliquidityeventoftwoyears,avolatilityof57%andariskfreeinterestrateof0.25%.Thetimetoaliquidityeventwas
determinedbasedupontheexpectedtimeframeforustoachieveourbusinessstrategy,thevolatilitywasbasedonthehistoricalvolatilityofagroupofcomparable
publiclytradedcompaniesoveratwoyearperiodandtheriskfreeinterestratewasbasedontheyieldofaU.S.Treasurybondatthetimeofgrantoveratwoyear
period.A25%discountforlackofmarketabilitywasappliedtotheresultingvalueofourcommonstock,whichwasbasedonaliquidityeventhappeningintwoyears.
SubsequenttoJune2012,weutilizedinternalvaluationmodelstocalculatethefairvalueoftheseoptionsforfinancialreportingpurposes.Weevaluatedandadjusted
themarketfactorsappliedtoourforwardlookingrevenueandadjustedEBITDA.Asaresultofourevaluation,wedeterminedthefairvalueofourcommonstockfor
financialreportingpurposestobe$3.16.
June2012.OurboardofdirectorsgrantedstockoptionsinJune2012withanexercisepriceof$2.96pershare.Forthesestockoptiongrants,ourboardofdirectors
determinedthefairvalueofourcommonstockonthedateofgranttobe$2.96persharebasedonanumberoffactors,includingimprovementsintheU.S.economy,
andourresearchanddevelopmentefforts.OurboardofdirectorsalsoconsideredacontemporaneousthirdpartyvaluationasofMarch31,2012.Thevaluationutilized
amarketapproachofcomparablecompaniesinourindustry.ItappliedmarketfactorstoourforwardlookingrevenueandadjustedEBITDAandallocatedenterprise
valuebetweeneachclassofstockbasedonanOPM.TheaggregateenterprisevaluewasallocatedtoeachclassofstockutilizinganOPMwiththefollowing
assumptions:atimetoaliquidityeventoftwoyears,avolatilityof59%andriskfreeinterestrateof0.33%.Thetimetoaliquidityeventremainedconsistentwiththe
December31,2011valuationbasedoninformationknownasofMarch31,2012,volatilitywasbasedonthehistoricalvolatilityofagroupofcomparablepublicly
tradedcompaniesoveratwoyearperiodandtheriskfreeinterestratewasbasedontheyieldofaU.S.Treasurybondatthetimeofgrantoveratwoyearperiod.A
25%discountforlackofmarketabilitywasappliedtotheresultingvalueofourcommonstock,whichwasconsistentwiththevaluationasofDecember31,2011.
Forfinancialreportingpurposes,thefairvalueofthecommonstockforpurposesofcalculatingtherelatedstockbasedcompensationexpensewasbasedona
numberoffactors,includingthecontemporaneousthirdpartyvaluationasofJune30,2012andotherfactorsthatexistedatthedateofgrant.Duetotheproximityof
theJune2012grantstothevaluationasofJune30,2012,thefairvalueoftheunderlyingcommonstockusedtocalculatethefairvalueoftheseoptionsonthegrant
dateforfinancialstatementpurposeswasdeterminedtobe$8.30pershare.
OctoberandNovember2012.OurboardofdirectorsgrantedstockoptionsinOctoberandNovember2012withanexercisepriceof$8.30pershare.Forthesestock
optiongrants,ourboardofdirectorsdeterminedthefairvalueofourcommonstockonthedateofgranttobe$8.30persharebasedonanumberoffactors,including
continuedgrowthintheU.S.economy

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andanimprovedfinancialoutlookduetorecordrevenueinthesecondquarterof2012andourcontinuedprogressondevelopmentofournextgenerationofcapture
devices.OurboardofdirectorsalsoconsideredacontemporaneousthirdpartyvaluationasofJune30,2012.Thevaluationusedamarketapproachandchangedour
groupofcomparablecompaniesfromthoseinourindustrytotechnologyandretailcompanieswithsimilarrevenueandearningsgrowththathadrecentlycompletedan
initialpublicofferingofstocktothepublic,whichwerefertoasourgroupofcomparablecompanies.Itappliedthenewcomparablegroupmarketfactorstoourforward
lookingrevenueandEBITDAtodetermineourenterprisevalue.Asaresult,thesetofcomparablecompaniesutilizedinthevaluationhadaslightlyhigherrevenue
multiple.Duringthistime,ascertaintydevelopedregardingpossiblediscreteevents,includinganIPO,themethodofallocatingenterprisevaluebetweeneachclass
ofstockwaschangedtoaPWERMfromanOPM.ThePWERMestimatescommonequityvaluebasedoncurrentestimatesofanIPOormergerorsalescenario.
TheexpectedequityvaluesforthedifferentscenariosinthePWERMmodelwereweightedasfollows:30%probabilityofIPOinthesecondquarterof2013,60%
probabilityofIPOinthefourthquarterof2013anda10%probabilityofmergerorsaleinlate2013.A20%discountforlackofmarketabilitywasappliedtothe
resultingvalueofourcommonstock,whichwasbasedonaliquidityeventhappeningin1.4years.
Forfinancialreportingpurposes,thefairvalueofthecommonstockforpurposesofcalculatingtherelatedstockbasedcompensationexpensewasbasedona
numberoffactors,includingthecontemporaneousthirdpartyvaluationasofNovember30,2012andotherfactorsthatexistedatthedateofgrant.Duetothe
proximityoftheNovember2012grantstothevaluationasofNovember30,2012,thefairvalueoftheunderlyingcommonstockusedtocalculatethefairvalueof
theseoptionsonthegrantdateforfinancialstatementpurposeswasdeterminedtobe$12.13pershare.ThevaluationasofNovember30,2012wasdeterminedusing
themarketapproachofcomparablehightechcompanieswithsimilarrevenueandearningsgrowththathadrecentlyhadaninitialpublicofferingofstocktothepublic.
ItappliedthecomparablegroupmarketfactorstoourforwardlookingrevenueandallocatedtheenterprisevaluetoeachclassofstockusingthePWERMmethod.
TheexpectedequityvaluesforthedifferentscenariosinthePWERMmodelwereweightedasfollows:30%probabilityofIPOinthesecondquarterof2013,60%
probabilityofIPOinthefourthquarterof2013anda10%probabilityofmergerorsaleinlate2013.A15%discountforlackofmarketabilitywasappliedtothe
resultingvalueofourcommonstock,whichwasbasedonaliquidityeventhappeningin0.9years.
FebruaryandMarch2013.OurboardofdirectorsgrantedstockoptionsinFebruaryandMarch2013withanexercisepriceof$13.72pershare.Forthesestock
optiongrants,ourboardofdirectorsdeterminedthefairvalueofourcommonstockonthedateofgranttobe$13.72persharebasedonanumberoffactors,including
marketacceptanceoftheHERO3,acquisitionofacreditfacilityandissuanceofacashdividendinDecember2012,asaleofstockbystockholderstoathirdparty
investorinanarmslengthtransactionforapproximately$200.0millioninDecember2012,aswellashighrevenuegrowthinthefourthquarterof2012.Ourboardof
directorsalsoconsideredacontemporaneousthirdpartyvaluationasofDecember31,2012.Thevaluationusedamarketapproachofourgroupofcomparable
companies.Itappliedthecomparablegroupmarketfactorstoourforwardlookingrevenueandallocatedenterprisevaluebetweeneachclassofstockusingthe
PWERMmethod.TheexpectedequityvaluesforthedifferentscenariosinthePWERMmodelwereweightedasfollows:30%probabilityofIPOinthesecondquarter
of2013,60%probabilityofIPOinthefourthquarterof2013anda10%probabilityofmergerorsaleinlate2013.A15%discountforlackofmarketabilitywasapplied
totheresultingvalueofourcommonstock,whichwasbasedonaliquidityeventhappeningin0.8years.

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Forfinancialreportingpurposes,thefairvalueofthecommonstockforpurposesofcalculatingtherelatedstockbasedcompensationexpensewasbasedona
numberoffactors,includingthecontemporaneousthirdpartyvaluationasofMarch31,2013andotherfactorsthatexistedatthedateofgrant.Duetotheproximityof
theMarch2013grantstothevaluationasofMarch31,2013,thefairvalueoftheunderlyingcommonstockusedtocalculatethefairvalueoftheseoptionsonthe
grantdateforfinancialstatementpurposeswasdeterminedtobe$15.40pershare.
AprilandJune2013.OurboardofdirectorsgrantedstockoptionsinAprilandJune2013withanexercisepriceof$15.40pershare.Forthesestockoptiongrants,
ourboardofdirectorsdeterminedthefairvalueofourcommonstockonthedateofgranttobe$15.40persharebasedonanumberoffactors,includingourresearch
anddevelopmentefforts.OurboardofdirectorsalsoconsideredacontemporaneousthirdpartyvaluationasofMarch31,2013.Thevaluationusedamarketapproach
ofourgroupofcomparablecompanies.Itappliedthecomparablegroupmarketfactorstoourforwardlookingrevenueandallocatedenterprisevaluebetweeneach
classofstockusingthePWERMmethod.TheexpectedequityvaluesforthedifferentscenariosinthePWERMmodelwereweightedasfollows:90%probabilityof
IPOinthefourthquarterof2013anda10%probabilityofmergerorsaleinlate2013.A12%discountforlackofmarketabilitywasappliedtotheresultingvalueofour
commonstock,whichwasbasedonaliquidityeventoccurringin0.8years.
Forfinancialreportingpurposes,thefairvalueofthecommonstockforpurposesofcalculatingtherelatedstockbasedcompensationexpensefortheJune2013
grantswasbasedonanumberoffactors,includingthecontemporaneousthirdpartyvaluationasofJune30,2013andotherfactorsthatexistedatthedateofgrant.
DuetotheproximityoftheJune2013grantstothevaluationasofJune30,2013,thefairvalueoftheunderlyingcommonstockusedtocalculatethefairvalueof
theseoptionsonthegrantdateforfinancialstatementpurposeswasdeterminedtobe$15.59pershare.
JulyandSeptember2013.OurboardofdirectorsgrantedstockoptionsinJulyandSeptember2013withanexercisepriceof$15.59pershare.Forthesestock
optiongrants,ourboardofdirectorsdeterminedthefairvalueofourcommonstockonthedateofgranttobe$15.59persharebasedonanumberoffactors,including
ourresearchanddevelopmenteffortsandourupdatedassessmentoftimingtoliquidity.Ourboardofdirectorsalsoconsideredacontemporaneousthirdparty
valuationasofJune30,2013.Thevaluationusedamarketapproachofourgroupofcomparablecompanies.Itappliedthecomparablegroupmarketfactorstoour
forwardlookingrevenueandallocatedenterprisevaluebetweeneachclassofstockusingthePWERMmethod.Theexpectedequityvaluesforthedifferentscenarios
inthePWERMmodelwereweightedasfollows:45%probabilityofIPOinthefourthquarterof2013,50%probabilityofIPOinthefirstquarterof2014anda5%
probabilityofmergerorsaleinlate2013.A5%discountforlackofmarketabilitywasappliedtotheresultingvalueofourcommonstock,whichwasbasedona
liquidityeventhappeningin0.6years.
Forfinancialreportingpurposes,thefairvalueofthecommonstockforpurposesofcalculatingtherelatedstockbasedcompensationexpenseforSeptember2013
grantswasbasedonanumberoffactors,includingthecontemporaneousthirdpartyvaluationasofSeptember30,2013andotherfactorsthatexistedatthedateof
grant.DuetotheproximityoftheSeptember2013grantstothevaluationasofSeptember30,2013,thefairvalueoftheunderlyingcommonstockusedtocalculate
thefairvalueoftheseoptionsonthegrantdateforfinancialstatementpurposeswasdeterminedtobe$16.19pershare.

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ThevaluationasofSeptember30,2013wasdeterminedusingthemarketapproachofourgroupofcomparablecompanies.Itappliedthecomparablegroupmarket
factorstoourforwardlookingrevenueandallocatedtheenterprisevaluetoeachclassofstockusingthePWERMmethod.Theexpectedequityvaluesforthe
differentscenariosinthePWERMmodelwereweightedasfollows:55%probabilityofIPOinthefirstquarterof2014,30%probabilityofIPOinthesecondquarterof
2014,anda15%probabilityofmergerorsaleinearly2014.A5%discountforlackofmarketabilitywasappliedtotheresultingvalueofourcommonstock,which
wasbasedonaliquidityeventhappeningin0.6years.
OctoberandDecember2013.OurboardofdirectorsgrantedstockoptionsinOctoberandDecember2013withanexercisepriceof$16.19pershare.Forthese
stockoptiongrants,ourboardofdirectorsdeterminedthefairvalueofourcommonstockonthedateofgranttobe$16.19persharebasedonanumberoffactors,
includingourresearchanddevelopmenteffortsandourupdatedassessmentoftimingtoliquidity.Ourboardofdirectorsalsoconsideredacontemporaneousthird
partyvaluationasofSeptember30,2013.
Forfinancialreportingpurposes,thefairvalueofthecommonstockforpurposesofcalculatingtherelatedstockbasedcompensationexpensefortheDecember2013
grantswasbasedonanumberoffactors,includingthecontemporaneousthirdpartyvaluationasofDecember31,2013andotherfactorsthatexistedatthedateof
grant.DuetotheproximityoftheDecember2013grantstothevaluationasofDecember31,2013,thefairvalueoftheunderlyingcommonstockusedtocalculate
thefairvalueoftheseoptionsonthegrantdateforfinancialstatementpurposeswasdeterminedtobe$16.22pershare.ThevaluationasofDecember31,2013was
determinedusingthemarketapproachofourgroupofcomparablecompanies.Itappliedthecomparablegroupmarketfactorstoourforwardlookingrevenueand
allocatedtheenterprisevaluetoeachclassofstockusingthePWERMmethod.TheexpectedequityvaluesforthedifferentscenariosinthePWERMmodelwere
weightedasfollows:25%probabilityofIPOinthesecondquarterof2014,55%probabilityofIPOinthethirdquarterof2014,anda20%probabilityofmergerorsale
inearly2014.A5%discountforlackofmarketabilitywasappliedtotheresultingvalueofourcommonstock,whichwasbasedonaliquidityeventhappeningin0.7
years.
January2014.OurboardofdirectorsgrantedstockoptionsinJanuary2014withanexercisepriceof$16.22pershare.Forthesestockoptiongrants,ourboardof
directorsdeterminedthefairvalueofourcommonstockonthedateofgranttobe$16.22persharebasedonanumberoffactors,includingourrecentperformance,
researchanddevelopmenteffortsandourupdatedassessmentoftimingtoliquidity.Ourboardofdirectorsalsoconsideredacontemporaneousthirdpartyvaluation
asofDecember31,2013.
Forfinancialreportingpurposes,thefairvalueofthecommonstockforpurposesofcalculatingtherelatedstockbasedcompensationexpensefortheJanuary2014
grantswasbasedonanumberoffactors,includingthecontemporaneousthirdpartyvaluationasofDecember31,2013andotherfactorsthatexistedatthedateof
grant.DuetotheproximityoftheJanuary2014grantstothevaluationasofDecember31,2013,thefairvalueoftheunderlyingcommonstockusedtocalculatethe
fairvalueoftheseoptionsonthegrantdateforfinancialstatementpurposeswasdeterminedtobe$16.22pershare.
March2014.OurboardofdirectorsgrantedstockoptionsinMarch2014withanexercisepriceof$16.39pershare.Forthesestockoptiongrants,ourboardof
directorsdeterminedthefairvalueofourcommonstockonthedateofgranttobe$16.39persharebasedonanumberoffactors,includingourresearchand
developmenteffortsandourupdatedassessmentoftimingto

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liquidity.OurboardofdirectorsalsoconsideredacontemporaneousthirdpartyvaluationasofFebruary28,2014.Thevaluationusedamarketapproachofourgroup
ofcomparablecompanies.Itappliedthecomparablegroupmarketfactorstoourforwardlookingrevenueandallocatedenterprisevaluebetweeneachclassofstock
usingthePWERMmethod.TheexpectedequityvaluesforthedifferentscenariosinthePWERMmodelwereweightedasfollows:60%probabilityofIPOinthe
secondquarterof2014,30%probabilityofIPOinthethirdquarterof2014anda10%probabilityofmergerorsaleinlate2014.A5%discountforlackofmarketability
wasappliedtotheresultingvalueofourcommonstock,whichwasbasedonaliquidityeventhappeningin0.6years.
Forfinancialreportingpurposes,thefairvalueofthecommonstockforpurposesofcalculatingtherelatedstockbasedcompensationexpensefortheMarch2014
grantswasbasedonanumberoffactors,includingthecontemporaneousthirdpartyvaluationasofFebruary28,2014andotherfactorsthatexistedatthedateof
grant.DuetotheproximityoftheMarch2014grantstothevaluationasofFebruary28,2014,thefairvalueoftheunderlyingcommonstockusedtocalculatethefair
valueoftheseoptionsonthegrantdateforfinancialstatementpurposeswasdeterminedtobe$16.39pershare.
Uponcompletionofthisoffering,ourcommonstockwillbepubliclytradedandwillthereforebesubjecttopotentiallysignificantfluctuationsinthemarketprice.Such
fluctuations,iftheyoccur,couldimpactthevolatilityusedinthefairvaluecalculationswhichcouldalsoimpactourfuturestockbasedcompensation,asincreased
volatilitywouldincreasethefairvalueoftherelatedawardsgrantedinthefutureperiods.Inaddition,increasesanddecreasesinmarketpriceofourcommonstock
willalsoincreaseanddecreasethefairvalueofourstockbasedawardsgrantedinfutureperiods.
Recentaccountingpronouncements
InJuly2013,theFinancialAccountingStandardsBoardissuedanewaccountingstandardupdateonthefinancialstatementpresentationofunrecognizedtax
benefits.Thenewguidanceprovidesthataliabilityrelatedtoanunrecognizedtaxbenefitwouldbepresentedasareductionofadeferredtaxassetforanetoperating
losscarryforward,asimilartaxlossorataxcreditcarryforwardifsuchsettlementisrequiredorexpectedintheeventtheuncertaintaxpositionisdisallowed.The
newguidancebecomeseffectiveforusonJanuary1,2014anditshouldbeappliedprospectivelytounrecognizedtaxbenefitsthatexistattheeffectivedatewith
retrospectiveapplicationpermitted.WeadoptedtheguidanceonJanuary1,2014.Theguidancehadnomaterialimpacttoourfinancialpositionorresultsof
operationsinthefirstquarterof2014.
Weareanemerginggrowthcompany,and,foraslongaswecontinuetobeanemerginggrowthcompany,wemaychoosetotakeadvantageofexemptionsfrom
variousreportingrequirementsapplicabletootherpubliccompaniesbutnottoemerginggrowthcompanies,including,butnotlimitedto,notbeingrequiredtohave
ourindependentregisteredpublicaccountingfirmauditourinternalcontroloverfinancialreportingunderSection404oftheSarbanesOxleyAct,reduceddisclosure
obligationsregardingexecutivecompensationinourperiodicreportsandproxystatements,andexemptionsfromtherequirementsofholdinganonbindingadvisory
voteonexecutivecompensationandstockholderapprovalofanygoldenparachutepaymentsnotpreviouslyapproved.UndertheJOBSAct,emerginggrowth
companiescanalsodelayadoptingneworrevisedaccountingstandardsuntilsuchtimeasthosestandardsapplytoprivatecompanies.Wehaveirrevocablyelected
nottoavailourselvesofthisaccommodationallowingfordelayedadoptionofneworrevisedaccountingstandards,and,

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therefore,wewillbesubjecttothesameneworrevisedaccountingstandardsasotherpubliccompaniesthatarenotemerginggrowthcompanies.
Quantitativeandqualitativedisclosuresaboutmarketrisk
Weareexposedtomarketrisksintheordinarycourseofourbusiness.Theserisksprimarilyincludeforeigncurrencyandinterestraterisksasfollows:
Foreigncurrencyrisk
Todate,allofourproductsalesandinventorypurchaseshavebeendenominatedinU.S.dollars.Wethereforehavenothadanyforeigncurrencyriskassociatedwith
thesetwoactivities.ThefunctionalcurrencyofallofourentitiesistheU.S.dollar.OuroperationsoutsideoftheUnitedStatesincuraportionoftheiroperating
expensesinforeigncurrencies,principallytheHongKongDollar.Ourresultsofoperationsandcashflowsare,therefore,subjecttofluctuationsduetochangesin
foreigncurrencyexchangerates.However,webelievethattheexposuretoforeigncurrencyfluctuationfromoperatingexpensesisimmaterialatthistimeasthe
relatedcostsdonotconstituteasignificantportionofourtotalexpenses.Aswegrowouroperations,ourexposuretoforeigncurrencyriskcouldbecomemore
significant.Todate,wehavenotenteredintoanyforeigncurrencyexchangecontractsandcurrentlydonotexpecttoenterintoforeigncurrencyexchangecontracts
fortradingorspeculativepurposes.
Interestraterisk
Wehadcashtotaling$36.5million,$101.4millionand$111.2millionatDecember31,2012and2013andMarch31,2014,respectively.Ourcashconsistsofcashin
bankaccounts.Theprimaryobjectivesofourinvestmentactivitiesaretopreserveprincipalandprovideliquiditywithoutsignificantlyincreasingrisk.Ourcashisheld
forworkingcapitalpurposes.Wedonotenterintoinvestmentsfortradingorspeculativepurposes.
Wehadoutstandingtermdebtof$120.0million,$114.0millionand$111.0millionatDecember31,2012and2013andMarch31,2014,respectively.Theinterestrate
isbasedonthesixmonthadjustedLIBORplus2.5%.Theinitialcontractualinterestrateis3.06%andadjustseverysixmonths.Thetermloanhadscheduled
quarterlyprincipalrepaymentsdueonthelastdayofeachquarterof$1.5millionperquarterin2013,andprovidesforpaymentsof$3.0millionperquarterin2014and
$6.0millionforthefirstthreequartersof2015,withtheremainingbalancedueonDecember21,2015.Ourexcesscashflowsfor2013triggeredacontractualprincipal
prepaymentobligationof$48.5million,whichamounthasbeenclassifiedasacurrentliabilityasofDecember31,2013andMarch31,2014.InApril2014,we
amendedourcreditfacilitytoextendtheduedateforthiscontractualprincipalprepaymentfromApril2014toDecember2014.Ahypothetical50basispointincrease
intheLIBORrateasofMarch31,2014,appliedtoouroutstandingdebtbalanceasofMarch31,2014,wouldhaveresultedinanapproximately$0.4millionincrease
inourinterestexpenseandadeclineof4%inournetincomeforthethreemonthsendedMarch31,2014.

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Business
Companyoverview

GoProistransformingthewayconsumerscapture,manage,shareandenjoymeaningfullifeexperiences.Wedothisbyenablingpeopletocapturecompelling,
immersivephotoandvideocontentofthemselvesparticipatingintheirfavoriteactivities.Ourcustomersincludesomeoftheworldsmostactiveandpassionate
people.ThevolumeandqualityoftheirsharedGoProcontent,coupledwiththeirenthusiasmforourbrand,arevirallydrivingawarenessanddemandforourproducts.
Todate,wehavegeneratedsubstantiallyallofourrevenuefromthesaleofourcamerasandaccessoriesandwebelievethatthegrowingadoptionofourcapture
devicesandtheengagingcontenttheyenable,positionGoProtobecomeanexcitingnewmediacompany.
Whatbeganasanideatohelpathletesdocumentthemselvesengagedintheirsporthasbecomeawidelyadoptedsolutionforpeopletodocumentthemselves
engagedintheirinterests,whatevertheymaybe.Fromextremetomainstream,professionaltoconsumer,GoProhasenabledtheworldtocaptureandshareits
passions,andtheworld,inturn,isenablingGoProtobecomeoneofthemostexcitingandaspirationalcompaniesofourtime.
Ourbusinessfocus
Enablingengagingcontentisatthecoreofourbusiness.Wedevelophardwareandsoftwaresolutionstoalleviateconsumerpainpointsassociatedwithcapturing,
managing,sharingandenjoyingengagingcontent.
Capture
Ourcapturedevicesenableprofessionalqualitycaptureandexceptionalversatilityataffordableprices.Ourproductssmall,lightweight,yetdurabledesignsmake
themeasytouseeveninhighlychallengingsituations.Inaddition,ourremotecontrolsolutionsandourseamlessintegrationwithmobiledevicesviatheGoProApp,
enableengagingselfcaptureduringvirtuallyanyactivity.AsofMarch31,2014,therehavebeenapproximately6.5milliondownloadsoftheGoProApp.
SincelaunchingourfirstHDcapturedeviceinJuly2009,wehavesoldmorethan8.5millionHDcameras,includingmorethan3.8millionin2013.Wesellour
productsinover100countriesandthroughmorethan25,000retailstores.AccordingtoTheNPDGroupsRetailTrackingService,

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GoProwasthe#1sellingcamcorder(bydollarsandunits)andatopsixsellingcameraaccessorycompany(bydollarsandunits)intheUnitedStatesin2013.Also
accordingtoTheNPDGroup,ourHEROcamerasrepresenteda45%shareoftheU.S.camcordermarket(bydollars)in2013,upfroman11%shareduringDecember
2011andourcameraaccessoriesrepresenteda4%shareoftheU.S.cameraaccessorymarket(bydollars)in2013.
Manage
Weseektoeliminatethepainpointofmanagingcontentbymakingiteasyforourcustomerstotransferfootagefromtheircamerastoasystemthatefficiently
organizestheircontentandfacilitatesconvenienteditingandsharing.GoProStudioandtheGoProAppreflecttheearlystagesofourcontentmanagementplatform
strategy.
GoProStudioenablesourcustomerstoquicklyeditsimpleorcomplexvideosandcreatevideosfromtimelapsephotosequences.In2013,weintroducedGoProEdit
Templates,whicharebasedonGoProsownoriginalvideoproductions,toenableourcustomerstoquicklyproduceengaging,professionalqualityvideosusingtheir
ownfootage.AsofMarch31,2014,therehadbeenmorethan4.3milliondownloadsofGoProStudio.Duringthefirstquarterof2014,ourcustomersintheaggregate
exported,onaverage,morethan20,000videosperdayusingGoProStudio.
Inadditiontofacilitatingfullcameracontrolfromamobiledevice,theGoProAppenablesacustomertoeasilyandwirelesslycopyfootagefromaGoProcameratoa
mobiledeviceforstorageandsharingwithoutacomputer.
Share
Byfacilitatingthecapture,managementandeditingofengagingphotosandvideos,weareultimatelyhelpingourcustomerssharemorecompellingpersonalcontent.
GoProStudioandtheGoProAppfacilitatethepostingofphotosandvideosdirectlytoleadingsocialnetworksandcontentplatforms,includingFacebook,Instagram,
Twitter,VimeoandYouTube.ThousandsofGoProcustomerphotosandvideosareshareddaily,drivingawarenessandenthusiasmforourcustomerscontent,as
wellasforGoProsownbrandandproducts.In2013,ourcustomersuploadedtoYouTubeapproximately2.8yearsworthofvideofeaturingGoProinthetitle.Alsoon
YouTube,inthefirstquarterof2014,therewasanaverageof6,000dailyuploadsandmorethan1.0billionviewsrepresentingover50.0millionwatchedhoursof
videoswithGoProinthetitle,filename,tagsordescription.
Enjoy
GoProenablestheproductionofentertainingandinspiringcontent,bothintheformofourcustomersUGC,aswellasGoProoriginallyproducedcontent,thatwe
collectivelyrefertoasGoProprogramming.Thisoftenfeaturesprofessionalathletes,celebritiesandentertainers,aswellaseverydaypeopleengagedintheirfavorite
activities.


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Webelievethatincreasingourcustomersenjoymentoftheircontentenhancesthevaluepropositionofcapturingandsharingtheirliveswithourproducts.Also,
havingrecognizedtheroleGoProcontentplaysinattractingandexcitingconsumers,weareexpandingthedistributionofGoProprogrammingtoengageandbuild
relationshipswitheventhoseconsumerswhodonotownaGoProcapturedevice.
WedistributeGoProprogrammingthroughwhatwerefertoastheGoProNetwork,acollectionofGoProChannelshostedonavarietyofplatforms,includingthe
following:

Facebook:over7.2millionlikes

Instagram:over2.0millionfollowers

Twitter:over950,000followersand

YouTube:over450millionvideoviews,over1.8millionsubscribersandranked#1ontheBrandChannelLeaderboardforJanuarythroughMarch2014.

AsofDecember31,2013,wehadnotderivedrevenuefromthedistributionof,orsocialengagementwith,ourcontentontheGoProNetwork.However,weplanto
pursuenewrevenueopportunitiesfromthedistributionofengagingGoProcontentinthenearterm.Forexample,inthefirstquarterof2014,weenteredintoan
agreementwithMicrosofttodevelopandlaunchtheGoProChannelonXboxLive,aleadingdeliverysystemforIPvideostreamsonconnectedtelevisions,thatwill
provideuswithaccesstoadvertisingrevenue,feesfromthirdpartysponsorshipoftheGoProChannelandtheabilitytosellourcapturedevicesdirectlytoconsumers
astheywatchGoProprogramming.WeexpecttobeginearningrevenuefromGoProChanneladvertisingandsponsorshipopportunitiesonXboxLiveandGoPro
ChanneladvertisingonYouTubeandVirginAmericainthesecondquarterof2014.WedonotexpecttherevenueearnedfromtheseGoProChannelstobematerialto
usin2014.

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Thevirtuouscycle
Webelieveourbusinessfocusresultsinavirtuouscycleandaselfreinforcingconsumeracquisitionmodelthatfuelsourgrowth.Ourproductsinthehandsofour
customersenablecompelling,authenticcontentthatorganicallyincreasesawarenessforGoProanddrivesdemandforourproducts.
Asaresult,wehaveachievedsignificantgrowthinrecentperiods.In2011,2012,2013andthethreemonthsendedMarch31,2014,wegeneratedrevenueof$234.2
million,$526.0million,$985.7millionand$235.7millionandreportednetincomeof$24.6million,$32.3million,$60.6millionand$11.0million,respectively.Todate,
substantiallyallofourrevenuehasbeengeneratedfromthesaleofourcapturedevices.
TheGoProopportunity
WebelievethefollowingcreateanattractivemarketopportunityforGoPro.
Consumerswantaneasywaytoselfcaptureengagingcontent
BeforeGoPro,ifpeoplewantedfootageofthemselvesengagedinactivities,theyneededanotherpersontoholdandoperateacamera.Furthermore,thecamera
operatorneededtobeskilledinordertoobtaincompellingcontent.Additionally,capturinghighqualitycontentoftenrequiredexpensive,fragileandcumbersome
cameraequipmentthatwasnotaccessibletoeveryone.Accordingly,itwasnotpracticalforpeopletodocumenttheirexperiencesduringtheirlivesmostenjoyable
moments.
Byeliminatingtheneedforathirdpartycameraoperator,GoProhasenabledaneweraofconvenientselfdocumentation.Ourproductshighperformancefeatures,
easeofuseandversatility,madeavailableataffordablepricepoints,provideapremiumqualityselfcapturesolutionthatappealstobothconsumersand
professionals.
Consumerswantaquick,easywaytomanage,editandsharetheircontent
TheproliferationofsocialmediaandcontentsharingoutletslikeFacebook,Instagram,Twitter,VimeoandYouTubereflectsagrowingconsumerinterestinsharing
personalexperiences.AccordingtoaPewResearchsurveyfromOctober2013,thepercentageofAmericanadultInternetuserswhouploadorpostvideosonline
morethandoubledfrom14%in2009to31%in2013,and71%ofadultswhopostvideosonlinedosoonsocialnetworkingsites.However,

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managing,editingandsharingengaging,highqualitycontentoftenrequiressubstantialtime,resourcesandskill.GoProStudioandtheGoProAppbegintoaddress
thesepainpointsbyofferingintuitive,easytousetoolsformanaging,editingandsharingprofessionalgradefootage.Weseeanopportunitytofurtherdevelopthese
currentlyseparatesoftwaresolutionsintoanintegratedandenhancedGoProcontentmanagementplatform.
Consumerscontinuetoreplacetraditionalcameraswithmobiledevices
Therapidadoptionofsmartphonesandtabletswithphotoandvideocapabilitieshaschangedthecameralandscapeandnegativelyimpactedthesalesoftraditional
camerasanddigitalvideocamcorders.AccordingtoIDC,globalshipmentsofdigitalcamerasfellfrom142.7millionunitsin2011to76.2millionunitsin2013,a
declineof47%,andglobalshipmentsofdigitalcamcordersfellfrom21.1millionunitsin2011to14.1millionunitsin2013,adeclineof33%.
WebelievethattheemergenceofphotoandvideoenabledmobiledevicesiscreatingfurtheropportunitiesforGoPro.Asmobiledevicescontinuetodisplace
traditionalcamerasandcamcorders,webelieveconsumerswillseekcapturedevicesthatofferdifferentiatedcapabilities,likeGoProproducts.
Moreover,webelievemobiledevicescomplementourproducts.WiththeGoProApp,mobiledevicescanbeusedtoremotelycontrolGoProcameras,thereby
optimizingcustomersabilitytoselfcapturehighqualitycontentofthemselvesandtheiractivities.TheGoProAppalsoenablescustomerstomanageandsharetheir
capturedcontentwithouttheneedforacomputer.Furthermore,smartphonesandtabletsexpandconsumersabilitytoaccessandenjoyGoProcontentonline.
Consumerswantcompellingcontentondemand
AccordingtocomScore(US,December2012),thereareover38.5billionvideosstreamedpermonthand,accordingtoIDCs1H13research,by2017,over2.2billion
usersworldwidewillbewatchingstreamingvideoovertheInternet.
WebelieveconsumerdemandforcompellingcontentcombinedwithGoProsselfcapturetechnologyandtheexplosivepopularityofsocialmediacreateasignificant
mediaopportunityforGoPro.GoProprogramminghasdevelopedadedicatedandgrowingaudience.Tocontinuetoscalethisaudience,wehavebuiltateamof
productionprofessionalswhoregularlyproducecontentbasedoninspiringstoriesfromaroundtheworld,capturedexclusivelywithourproducts.Inaddition,we
activelycurateandredistribute,withpermission,ourcustomersmostcompellingcontentasGoProbrandedcontent.WebelieveGoProiswellpositionedtobecome
thefirstmediacompanywhosecontentiscapturedexclusivelyusingitsownhardware.
Todate,theGoProChannelsonYouTube,exclusiveofourcustomersownsharedcontentontheirpersonalYouTubechannels,havegeneratedover450million
cumulativevideoviews.
WewillcontinuetoexpandourdistributionofGoProprogrammingandthereachoftheGoProNetworktonewplatformssuchasXboxLive.Ouragreementwith
MicrosoftprovidesuswithaccesstoadvertisingrevenuestreamsandtheabilitytosellourcapturedevicesdirectlytoconsumersastheyarewatchingGoPro
programmingand,inexchange,Microsoftisentitledtoreceiveashareoftherevenueswegeneratefromtheseactivities.Inaddition,undertheagreement,Microsoft
willprovidefundstowardsourdevelopmentoftheapplicationthroughwhichXboxLivewillstreamtheGoProChannel.

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Further,in2014,webeganprovidingVirginAmericawithcontentforadedicatedGoProChannelavailabletopassengersonVirginAmericaflights.Weprovidethis
contentwithoutcharge.
WhatmakesGoProunique
Byenablingtheworldtocaptureandshareitspassions,theworld,inturn,hasenabledGoProtobecomeoneofthemostexcitingandaspirationalcompaniesofour
time.
Categorydefiningselfcapturedevices
Ourcapturedevicesofferourcustomers,bothconsumersandprofessionals,exceptionalcapabilitiesthathaveearnedusmultipleawards,includinga2013technical
EmmyAward.Ourcamerassmall,lightweight,yetdurabledesignsmakethemeasytouseeveninhighlychallengingsituations,andalongwiththeiraffordableprices
encourageadoptionandexperimentationthatoftenleadstointerestingcontent.Inaddition,ourbroadportfolioofmountableandwearableaccessoriesenablesmultiple
usecasesandfacilitatesadifferentiatedselfcaptureexperiencethanthatoftraditionalcamerasandsmartphones.
OurproductshavebeenembracedbymediaprofessionalsandareusedinproductionbyTheDiscoveryChannel,ESPNandothernetworks.Webelievethisvisible
professionaluseofourcapturedevicesfurthervalidatesthequalityofourproductsandappealofourbrandtoconsumers.Wefurtherbelieveweareincreasingly
loweringthebarriersthatseparateprofessionalfromamateurcapture.
Manyofourcustomerspurchasemultipleunitsofourproducts.Unliketraditionalcamerasorsmartphones,owningmultipleGoProcapturedevicesenablesour
customerstocapturetheirexperiencesfrommultipleperspectivessimultaneouslyandcreatemoreinterestingandprofessionalqualitycontent.

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Professionalmediaproductionteamenhancesproductdevelopment
Inadditiontoourcoreproductdevelopmentteam,weleverageinputfromourinhousemediaproductionteamtorefineexistingproductsandinfluencefutureproduct
design.OurinternalmediaproductionteamregularlytravelstheworldcapturingGoProoriginallyproducedcontentexclusivelyusingourcapturedevices.Webelieve
consistentuseofourproductsanddevelopmentalfeedbackgivesusacompetitiveadvantage.
Passionateconsumerandcontentsupportedbusinessmodel
OurbusinessmodelissupportedbysomeoftheworldsmostactiveandinfluentialconsumerswhouseGoProtocaptureandsharetheirlifeexperiencesand
interests.Theirsharedcontentexcitesandinspiresothersaroundtheworldtodothesame,whichwebelieve,leadstohighercameraandaccessorysalesand,in
turn,amassivevolumeofUGC.Webelievethisvirtuouscycle,inwhichourcustomerscontentincreasesawarenessofGoProanddemandforourproducts,isa
meaningfuldifferentiatorforus.
Bestinclassmarketingrelationships
GoProhasestablishedmarketingrelationshipswithmorethan120athletes,celebritiesandentertainers,andsponsorsmorethan90sportingeventsannually,
includingtheXGames,SupercrossandASPworldsurfingchampionshipevents.WepartnerwithathletessuchasOlympicgoldmedalwinningsnowboarderShaun
Whiteand11timeworldchampionsurferKellySlater,aswellasentertainers,suchasFooFighters,JanesAddiction,GuyFieriandAltonBrown,andproducersof
populartelevisionshows.AnincreasingnumberofprofessionalsarerecognizingthatGoProallowsthemtocaptureperformancesinuniqueandcompellingwaysthat
engageandentertaintheirfans.Thisfurthervalidatesourbrandtoconsumers.
Wealsohavepromotionalagreementswithrecreationaldestinationresorts,suchasallVailCompanyresortsandtheWhistlerBlackcombresort.
Validatingthequalityofourproductsandourgrowingroleasamediabrand,weareapproachedbyprofessionalsandorganizationsseekingtoleverageGoProasa
mediaplatformtodistributetheirownbrandedcontentcapturedwithourproducts.Forexample,weregularlycollaboratewithRedBulltocapturecontentatRedBull
sponsoredevents,whichwethendistributeacrosstheGoProNetworktopromotebothRedBullanditsuseofourproducts.Anotherexampleincludesaproduction
companywishingtopromoteanupcomingfeaturelengthfilmbydistributingtrailersshowcasingitsfilmsuseofGoProcapturedevicesinproduction.
Differentiatedsalesstrategywithspecialtyretailers
Sinceourfirstsalein2004,ourdistributionstrategyhasfocusedonspecialtyretailers,includingsurf,skiandmotorsportsoutlets,wherewebelieveGoProisoften
theonlycapturedevicesold.Ourearly,firstmoverrelationshipswiththeseretailersandtheircustomershelpedusestablishabrandauthenticitythatremainsa
cornerstoneofourbusiness.Thisfocusonthespecialtyretailchannelhasalsoenabledustodevelopahightouch,differentiatedsalesnetworkofmorethan25,000
storesgloballythatwebelieveisdifficulttoreplicate.
Strong,globalbrand
Overthepast10years,wehavebuiltapowerfulbrandthatisemblematicofthepursuitandcelebrationofhumanpassion.WebelieveconsumersrecognizeGoProas
muchfortheexperientialcontentsharingweenableasfortheproductswemake.

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Indefiningthecategoryofselfcapture,GoProhasbecomeaglobalstandard.Ourtrademarks,GoProandBeaHero,arerelevantandaspirationaltoconsumers,
asreflectedinthevarietyofourcustomerssharedcontentwhichspansfromourrootsinactionsportstonowincludefamily,travel,music,scienceandotherareas
ofhumaninterest.Thestrengthofourbrandisfurtherevidencedbyourcustomersfrequenttagging,titlinganddescribingoftheirfootageasGoProcontent.
Acompanyculturebuiltaroundourvision
GoProwasfoundedbydedicatedsportsenthusiastswhowantedabetterwaytodocumentandsharetheirpersonalpassions.Aswehavegrown,wehaveremained
focusedonhiringemployeeswhosharethissameethos,whatevertheirpersonalinterestsmaybe.Wehavebuiltateamfocusedondevelopinginnovativesolutions
totheproblemsweencounterduringourownselfcapturepursuits,andwebelieveouremployeessharedpassion,experienceandvisionrepresentanincreasingly
importantcompetitiveadvantage.
Ourstrategy
Weintendtoexpandourexistingcapturebusinessandbroadenourportfoliowithcontentmanagement,editingandsharingsolutionstoprovideincreasedvaluetoour
customers,introducenewrevenuestreamsandfurtherdifferentiateusfromcompetitors.Keycomponentsofourstrategyincludethefollowing.
Continuetointroduceinnovativecapturedevices
Werelentlesslypursueourgoalofdevelopingtheworldsmostversatilecapturedevicesandenablingselfcaptureduringanyactivity.Tostayattheforefrontofour
industry,wearefocusedoncontinuedproductinnovationandleadership.Forexample,wearedevelopingcustomsensoranddigitalsignalprocessingtechnologies
withoursuppliers.Otherareasofinnovationincludecustomlens,audio,batteryandaccessorydesign.Wemayalsoleverageourbrandstrengthandproduct
expertisetoopportunisticallyenternewdevicecategories.
Developseamlesscontentmanagement,editingandsharingsolutions
Webelieveitisimportanttosimplifytheorganizing,editingandsharingofengagingcontentand,tothatend,wearedevelopinganintegratedcontentmanagement
platform.OurOctober2013acquisitionofGeneralThings,awebdevelopmentfirm,hasprovideduswithadditionalsoftwarecompetenciestoacceleratethisprocess.
Further,wemayconsideradditionalacquisitionsofcomplementarytechnologiesorbusinessesinthefuture.Inaddition,wemayseektoleverageourcontent
managementplatformasanewrevenuestream.
Scaleasamediabrand
GoProprogrammingisapotentmarketingtoolwhichwebelieve,onitsown,hassignificantvalueasagrowingmediaasset.WeareinvestingtoscaleGoProasa
mediaentityanddevelopnewrevenueopportunitiesbyincreasingproductionofGoProoriginallyproducedcontentwhilesimultaneouslyincreasingtheaggregationand
redistributionofourcustomersbestofUGC.Additionally,weareinvestingtodevelop,distributeandpromoteGoProprogrammingonadditionalpartnerplatforms
suchasVirginAmericaandXboxLive.

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Expandintonewverticalmarkets
Leveragingtheproductdevelopmentandsalesandmarketingstrategiesthathaveenabledustobealeaderinverticalmarketssuchasskiing,surfingand
motorsports,wearetargetingnewverticalmarketsincludingmusicandhuntingandfishing.WecontinuetoexploreadditionalmarketswherewebelieveGoProcan
authenticallydelivermeaningfulsolutionstoconsumers.
Growinternationally
Webelievethatinternationalmarketsrepresentasignificantgrowthopportunityforus.AsofDecember31,2013,ourproductsweresoldinover100countriesthrough
morethan25,000retailoutlets.Weplantocapitalizeonthestrengthofourbrandtoincreaseourpresenceworldwidethroughadditionalretailersandstrategic
distributionpartnerships.
Expandinstorebrandandsalesfootprint
WeinvestheavilytoproduceGoProbranded,videoenabledPOPmerchandisingdisplaysthatwemakeavailabletonearlyalloftheretailoutletsthroughwhichour
productsaresold.ThesedisplaysshowcaseengagingGoProcontentandattractivelypresentourcamerasandaccessories.Havingrecognizedoursuccessinthese
stores,coupledwithourexpandingproductportfolio,weareworkingwithourretailerstofurtherexpandthefootprintofourPOPdisplays.
Extendstrategicmarketingrelationships
Weformrelationshipswithmarketingpartnersthatuseourproductsandservicestopromotetheirownbrandsandproperties.Forexample,certainASPworldsurfing
championshipeventshaveusedGoProproductstocapturesurfingcompetitionfromperspectivessuchasthesurfersboardandbody,whichenabledtheASPto
provideitsfansamoreimmersiveandengagingviewingexperience.SupercrosssimilarlymountsGoProcapturedevicestoprofessionaldirtbikeracershelmetsand
usesthefirstpersonperspectivestoenhanceitstelevisionbroadcasts.Asaresult,GoProbenefitsnotonlyfromtheexpandedbrandawarenessthattraditionally
comeswithsuchmarketingpartnerships,butalsobeingrecognizedasourpartnerstechnologyenabler.Wewillcontinuedevelopingandleveragingstrategic
marketingrelationshipstoincreaseGoProbrandawareness.
Expandbrandawarenessthroughincreasedadvertising
Notwithstandingthevisibilitywehavegarneredintheconsumermarketswherewehavehistoricallyfocused,webelieveconsumersinmanyothermarketsarenot
familiarwithourbrandandproducts.WebelievethisunderscoresasignificantopportunityforGoProtoexpandawarenessthroughincreasedadvertisingontelevision,
inprint,online,andonbillboardsandotheroutofhomeadvertisingwhilecontinuingtoscaleourpromotionalmarketingeffortsandtradeshowpresence.
Products
Cameras
OurcorecaptureproductistheHEROlineofcameras,thefirstHDversionofwhichweintroducedin2009.Sincethen,wehavefocusedoncontinuedinnovationand
developmentofourproductsandsubsequentlylaunchedtheHERO2camerain2011,theHERO3camerain2012andtheHERO3+camerain2013.OurHERO3+
camerascapturevideoandphotosinasmall,

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easytouseformfactor.TheycomebundledwithaprotectivewaterproofhousingandselectmountingaccessoriesandhavebuiltinWiFi,providingconnectivitywith
asmartphoneortablettoenableremotecontrolandcontentviewingandsharingfunctionality.WeoffertheHERO3andHERO3+camerasinWhite,SilverandBlack
editionsthatwepositionasagood,better,bestproductlinewithincreasinglybetterimagequality,enhancedcapturefeaturesandaccessorybundlesfrommodelto
modelatdifferentpricepoints.ThefollowingtableshowsthekeyfeaturesandspecificationsofourHERO3andHERO3+cameras:

Wealsosellaccessories,bothbundledandseparately,thatenhancethefunctionalityandversatilityofourcamerasandenableourcustomerstoselfcapturetheir
experiencesduringavarietyofactivitiesandfromdifferentviewpoints.Inadditiontoourstandardpackages,weoffertheHERO3+Blackeditioncamerainmusicand
surfspecificbundles,whicheachcomepackagedwithaccessoriestailoredfortheirrespectivemarkets.
Premiumaccessories
OurpremiumaccessoriesincludetheBatteryBacPac,WiFiRemoteandLCDTouchBacPac,whichexpandthefeatures,versatilityandconvenienceofourcameras.

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Mounts
Weofferalargeselectionofmountsdesignedtoenableconsumerstocapturecontentwhileengagedinawiderangeofactivities.Thisincludesequipmentbased
mounts,suchasthehelmet,handlebar,rollbarandtripodmounts,aswellasmountsthatenablecustomerstowearthemountontheirbodies,suchasthewrist
housing,chestharnessandheadstrap.MostofourmountsarebackwardcompatiblewithourHERO,HERO2andHERO3cameras.
Otheraccessories
Otheraccessoriesincludesparebatteries,chargingaccessories,cablestoconnectourGoProcamerastotelevisionsandmonitors,videotransmitters,external
microphones,flotationdevices,divefilters,antifoggingsolutionsandaccessoriesfortheWiFiRemote.
Thefollowingtablehighlightsselectproductsinouraccessoriesportfolio:

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Webelievethatprovidingsoftwaretoolsthathelpourcustomersmanage,editandsharetheirGoProcontentimprovesourvaluepropositionandincreasessalesof
ourcapturedevices.Wecurrentlyprovidetoconsumersthefollowingsoftwareapplicationsatnocharge:
GoProStudio
GoProStudioisapowerfulvideoeditingtoolthatallowsourcustomerstocreateprofessionalqualityvideosfromtheirGoProcontent.GoProStudioincludesGoPro
EditTemplates,whicharebasedonourownoriginalvideoproductionsandenableourcustomerstoquicklyproduceengaging,professionalqualityvideosusingtheir
ownfootage.Additionalfeaturesincludeeasyplaybackandtrimmingofvideoclips,framerateandimagequalityadjustments,conversionoftimelapsephotosinto
videosandtheabilitytoexportvideosforconvenientwebsharing.

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GoProApp
TheGoProAppallowscustomerstocontroltheirGoProcamerasremotelyusingasmartphoneortablet.Featuresincludefullcontrolofallcamerasettings,content
previewandplaybackdirectlyfromthecameraonasmartphoneortablet,andaccesstoGoProsPhotooftheDay,VideooftheDayandcontentfeeds.TheGoPro
Appenablescustomerstoeasilyandwirelesslycopyfootagefromtheircamerastomobiledevicesforstorageandsharingwithoutacomputer.
Researchanddevelopment
Wearepassionateaboutdevelopingnewandinnovativeproductsthatinspireourconsumersandenhanceourbrand.Weareconstantlyinnovatingtodeliverbetter
performance,expandedfunctionalityandincreasedconveniencetoenhancetheappealofourproducts.Ourcapturedeviceshaveearnedusmultipleawards,
includinga2013technicalEmmyAward.Wealsohaveteamsfocusedonsoftwareapplicationdevelopmenttofacilitateconvenientcontentmanagement,editingand
sharing.Westrivetoremainamarketleaderbyconsistentlyintroducinginnovativeproductsthatoffersuperiorperformanceataffordablepricepoints.
WehaveauserexperiencedrivenapproachtoproductdevelopmentandourChiefExecutiveOfficerleadsproductdesign.Byengagingwithcustomersandopinion
leadersinourcoremarketsaroundtheworld,ourdevelopmentteamstrivestointroducemeaningfulandempoweringnewfeaturesthatexpandtheversatilityand
performanceofourproducts.
Inadditiontoourcoreproductdevelopmentteam,webenefitfrominputreceivedfromourinhousemediaproductionteamthatregularlytravelstheworldcapturing
GoProoriginallyproducedcontentexclusivelyusingourcapturedevices.Webelieveleveragingthiscontentteamtohelprefineexistingproductsandinfluencefuture
productsgivesusacompetitiveadvantage.
Ourengineeringteam,whichsupportsthedevelopmentofourcapturedevices,firmwareandsoftware,hasgrownfromtwoto176engineersfrom2010to2013.Our
engineeringteamisdividedintotwomaingroups.Thearchitecturegroupisresponsiblefordevelopingtechnologies

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tosupporttheconceptsproposedbyourproductteam.ThesecoretechnologiesincludenewImageSiliconProcessors,orISPs,newimagesensorsandlenses,as
wellasthecorealgorithmsthatenablethesystemstooperateandprovidetheperformanceandfeatures.Theimplementationgroupintegratestheseinnovationsfrom
thearchitecturegroupintoourproducts.
Partofourdevelopmentstrategyinvolvescodevelopingthemostsignificantcomponentsofourcameraswithatechnologypartner.Tofurthertheseefforts,someof
ourpartnershavededicatedemployeestosupportourresearchanddevelopmentinitiatives.
WithouracquisitionofCineForm,Inc.in2011,webegantobuildcapabilitiesinsoftwareapplications.InOctoberof2013,weacquiredGeneralThings,adigitaldesign
andsoftwarestudiobasedinSanFrancisco,California.Priortotheacquisition,GeneralThingshadbeenourstrategicpartnersince2010,andwasinstrumentalin
helpingusadvanceourbusinessbackendandconsumerfacingwebdevelopment.Withthecombinationoftheseacquisitionsandorganicgrowth,theGoProsoftware
teamhasgrowntomorethan72employeesdevelopingdesktop,mobileandwebbasedapplications.
Ourresearchanddevelopmentexpensewas$8.6million,$36.1million,$73.7millionand$28.7millionfor2011,2012,2013andthethreemonthsendedMarch31,
2014,respectively.
Manufacturing,logisticsandfulfillment
WhileourproductsaredesignedinCalifornia,wecurrentlyoutsourcemanufacturingtotwomanufacturers,ChiconyandSkyLight.Bothmanufacturersarelocatedin
Shenzhen,China.OuroperationsteamincludesmanagersbasedinSanMateo,California,Shenzen,China,andHongKongwhocoordinatewithourmanufacturers
engineering,manufacturingandqualitycontrolpersonneltodeveloptherequisitetestandmanufacturingprocessesandoverseemanufacturingactivities.Webelieve
thatusingoutsourcedmanufacturingenablesgreaterscaleandflexibilitythanestablishingourownmanufacturingfacilities.Weperiodicallyevaluatetheneedand
advisabilityofaddingmanufacturerstosupportouroperations.
Ourrelationshipswithourmanufacturershaveevolvedovertimefromanoriginaldesignmanufacturer,orODM,arrangement,inwhichthemanufacturerprovidedthe
firmwareanddesignsupport,toanarrangementinwhichwedesigntheproductsanddevelopthestrategictestprocessesandfirmwareourselves.Webelievethis
transitionhasallowedusmorecontrolovertheperformanceandqualityofourproducts.
Todate,wehavederivedmostofourrevenuethroughproductsmanufacturedbyChicony,thoughweregularlyassessourmanufacturingoptionsandengagenew
contractmanufacturerswhereappropriate.UnderouragreementwithChicony,weownalltoolingandequipmentthatwefund,productdesignsandotherdeliverables
thatareproducedinaccordancewiththeagreement.TheChiconyagreementhasaninitialthreeyeartermthatendsinAugust2014,andautomaticallyrenews
annuallyunlesseitherpartyprovides90dayspriornotice.Additionally,theagreementmaybeterminatedbyeitherpartyintheeventofbreach,Chiconyisentitledto
terminateifwefailtosubmitapurchaseorderduringanythreemonthperiodandwearepermittedtoterminateforconvenienceuponproviding180dayspriorwritten
notice.
Wehaveestablishedastrategiccommodityteamthatmanagesthepricingandsupplyofthekeycomponentsofourcapturedevices,includingsensors,digitalsignal
processorsandlenses.Afewkeystrategicpartsarepurchasedfromthesupplierbyusandthenconsignedtoourmanufacturers,

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whilethevastmajorityofpartsareprocureddirectlybyourcontractmanufacturers.Weseektouseourcommodityteamtoachievecompetitivepricingonthelargest
valueaddcomponents,andleverageourcontractmanufacturersvolumepurchasesforbestpricingoncommonparts.
WehavethirdpartyfulfillmentcentersinRiversideandFremont,California,Singapore,HongKongandVenray,Netherlands.Thesefacilitiesareeitherfullservice
postponementcenters(bothlightassemblyandwarehouse/fulfillment)orwarehouse/fulfillmentonlycenters.Camerasaretypicallyairfreightedwhileaccessoriesand
packagingaretypicallyshippedviaoceanfreighterfromourmanufacturersinChinatothesefulfillmentcenters,wheretheproductsarepackagedforretailsale.This
postponementstrategyallowsustoreduceshippingcosts,reducecustomlevies,customizeproductsforlocallanguagesandimproveinventoryflexibility.
Saleschannelsandcustomers
Wesellourproductsthroughmorethan25,000retailersinover100countriesdirectlyandthroughdistributors.Wearefocusedonbuildingcloserelationshipswithour
retailersanddistributors,educatingourpartnerssalesforcesaboutourproducts,workingwiththemtomerchandiseourproductsinacompellingmannerinstore,as
wellasprovidingconsumerswithinformativeandconvenientecommerceexperiencesatretailpartnerwebsites.
Directsales
WeselldirectlytolargeandsmallretailersintheUnitedStates,anddirectlytoconsumersaroundtheworldthroughourretailandecommercechannels,asfollows.In
2013andthethreemonthsendedMarch31,2014,ourdirectsaleschannelaccountedfor52%and47%ofourrevenue,respectively.

IndependentspecialtyretailersWeuseanetworkoflocationbasedindependentmanufacturerrepresentativestosellourproductstoindependentspecialty
retailersfocusedonactionsportsmarkets.Ourrepresentativesprovidehighlypersonalizedservicetotheseretailers,includingassistingwithproductmixplanning,
channelmarketingandinstoremerchandising,takingordersandprovidingclinicstoeducateretailsalespersonnelaboutGoProproducts.Wealsohavean
internal,regionallyfocusedsalesteamthatprovidesasecondarylevelofservicetoboththemanufacturerrepresentativesandtheindependentspecialtyretailers.
Independentspecialtyretailersgenerallycarryourhigherendproducts,targetingtheircorecustomerswhowebelievetendtobeearlyadoptersofnew
technologies.Oursaleseffortsbeganinthespecialtyretailchannelandwebelievewecontinuetooftenbetheonlycapturedevicesoldinthesetypesofstores.
IndependentspecialtyretailersoutsideoftheUnitedStatesrepresentasimilarlyimportantsaleschannelforus,andwereachthesecustomersindirectlythrough
ournetworkofinternationaldistributors.

BigboxretailersWeselltolargeretailerswithanationalpresence,includingAmazon.com,Inc.,BestBuy,TargetCorporationandWalMart,Inc.Wesupport
theseretailerswithadedicatedandexperiencedsalesmanagementteam.Webelievethisenablesustobuildcloserelationshipswiththeseretailersandtoreduce
channelconflict.Theseretailersgenerallycarryavariedsubsetofourproductstargetingtheirparticularendusercustomers.Thishelpsusmaintaininstore
productdifferentiationbetweensaleschannelsandprotectsourbrandimageinourcorespecialtyretailmarkets.Oneretailer,BestBuy,accountedfor15%,15%,
17%and13%ofourrevenuein2011,2012,2013andthethreemonthsendedMarch31,2014,respectively.

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MidmarketretailersWeselltoretailerswithalargeregionalornationalpresence,oftenfocusedonspecificverticalssuchasconsumerelectronics,sporting
goods,military,huntingandfishingandmotorsports.Werefertotheseretailersasourmidmarketchannel,whichincludesApple,Army&AirForceExchange
Service,B&HFoto&ElectronicsCorp.,CabelasInc.,InMotionEntertainment,RecreationEquipmentInc.andTheSportsAuthorityInc.Weselldirectlytothese
retailersthroughourexperiencedsalesteamsassignedtoparticularaccountsandregions.Midmarketretailersgenerallycarryasmallersubsetofourproducts
targetedtowardtheirendusercustomers.

EcommercechannelWesellourfulllineofproductsdirectlytoconsumersaroundtheworldthroughouronlinestoreatGoPro.com.Wedriveconsumerstoour
websitethroughonlineandofflineadvertising,aswellasmarketingpromotionscarriedoutattradeshowsandsponsoredevents.Customersmayalsoorderover
thephone.
Wemanageourdiversechannelsbydifferentiatingourproductsamongthevariousretailchannels.Forexample,certainbigboxretailerssuchasTargetandWalmart
onlycarryWhiteandSilvereditioncapturedeviceswhilespecialtyretailersfocusonSilverandBlackeditions.Additionally,weleverageclubretailerssuchasCostco
WholesaleCorporationtosellthroughlegacyproductsinkeysellingseasons(springandholiday),whileexpandingoursalesreachtoentrylevelcustomers.
Distributors
Weselltoover50distributorswhoresellourproductstoretailersininternationalmarketsandtocertainspecificverticalsintheUnitedStates.Allofoursalesoutside
oftheUnitedStatesaregeneratedthroughdistributorswhosellGoProproductstoindependentspecialtyretailers,midmarketretailersandbigboxretailers.In2013
andthethreemonthsendedMarch31,2014,ourdistributorsaccountedfor48%and53%ofourrevenue,respectively.InthethreemonthsendedMarch31,2014,
onedistributor,XtremeVideoaccountedfor10%ofourrevenue.
IntheUnitedStates,ourdistributorssellintopowersports,telecommunications,collegebookstoresandpremiumincentivemarkets.Ourcontractswithdistributors
generallyhaveatermofoneortwoyearsandprohibitthedistributorsfromsellingcompetingproducts.
Wehavededicatedsalespersonnelfocusedonprovidingahighlevelofservicetothesedistributors,includingassistingwithproductmixplanning,channelmarketing
andinstoremerchandising,developmentofmarketingmaterials,orderassistanceandeducatingthedistributorssalespersonnelaboutGoProproducts.
Instoremerchandising
OurinstoremerchandisingstrategyfocusesonourPOPdisplaysthatcontinuouslyshowGoProcontentandpresentourproductsinanattractivemanner.Weprovide
ourPOPdisplayinsizesrangingfromtwotofourfeetwidebyfivefeettalltoretailersatnocost.InlargerstoreswearetestmarketingPOPdisplaysthatare12feet
widebysevenfeettall.Ourcapturedevicesareattractivelyarrangedonthedisplaysandthebreadthofourofferings,combinedwiththeassociatedcontent,
communicatethewiderangeofusesforourproducts.AsofDecember31,2013,wehadover25,000POPdisplaysinretailoutlets.

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Marketingandadvertising
OurmarketingandadvertisingprogramsarefocusedonengagingconsumersbyexposingthemtocompellingGoProcontent.Webelievethisapproachenhancesour
brandwhiledemonstratingtheperformance,durabilityandversatilityofourproducts.Ourmarketingandadvertisingeffortsspanawiderangeofconsumerinterests
andleveragebothtraditionalconsumermarketingandlifestylemarketingstrategies.
Consumermarketing
Socialmediaplaysanimportantroleinourconsumermarketingstrategy.OurcustomerscaptureandsharepersonalGoProcontentonsocialmediaandcontent
sharingplatformslikeFacebook,Instagram,Twitter,VimeoandYouTube.
WepromoteourcustomersbestofUGContheGoProNetwork,suchasthroughourVideooftheDayandPhotooftheDay.Wealsoleverageourinternalmedia
productionteamtoproduceaspirationalGoProbrandedcontentthatwedistributethroughtheGoProNetwork.
WealsointegrateUGCandGoProoriginallyproducedcontentintoadvertisingcampaignsacrossvariousplatformsincludingtelevisioncommercials,print,online,
billboardsandotheroutofhomeadvertising,andatconsumerandtradefacingevents.Thiscontentalsosupportsourinstorechannelmarketingefforts,appearingon
ourPOPdisplaysandotherinstoremarketingmaterials.
Lifestylemarketing
OurlifestylemarketingprogramsfocusonexpandingGoProbrandawarenessbyengagingconsumersthroughrelationshipswithkeyinfluencers,eventpromotions
andothercustomeroutreachefforts.Wecultivatestrongrelationshipswithinfluentialathletes,celebrities,entertainersandbrands,allofwhichuseourproductsto
createandshareengagingcontentwiththeirownfansandconsumers.Wealsoworkdirectlywiththesepartnerstocreatecompellingcontentthatweleveragetoour
mutualbenefitacrosstheGoProNetwork.
Webelieveitisimportanttoestablishongoing,authenticrelationshipswithinthevariousmarketsthatweaddress.Weemployateamoflifestylemarketingmanagers
whofoster

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relationshipswithineachofourmarketsandcreatemarketingopportunitiesforourbrandanddelivermarketfeedbacktoourproductdevelopmentteamsinorderto
refineexistingproductsandinfluencefutureproductdesign.
Consumerfacingeventsareanotherimportantaspectofourlifestylemarketingprogram.WeregularlyhostproductdemonstrationsinaGoProbrandedenvironment
thatwecalltheGoProExperience.WehosttheGoProExperienceatover90consumereventssuchastheXGames,Supercrossandfilmfestivals,aswellasat
recreationdestinationresortssuchasVailCompanyresortsandtheWhistlerBlackcombresort.TheGoProExperienceincreasesbrandawarenessandbuilds
personalrelationshipswithconsumersandkeyinfluencers.Wedistributespecialcouponsandpromotionsatmanyoftheseevents,whichdriveconsumerstoour
websiteandalsohelpusmeasuretheefficacyofoureventmarketingefforts.BelowisaphotooftheGoProtradeshowbooth.

Competition
Themarketforcamerasandcamcordersishighlycompetitive.Wecompeteagainstestablished,wellknowncameramanufacturerssuchasCanon,Nikon,Olympus,
PolaroidandVivitar,large,diversifiedelectronicscompaniessuchasJVC,Panasonic,Samsung,SonyandToshiba,andspecialtycompaniessuchasGarmin.Many
ofthesecompanieshavesubstantialmarketshare,diversifiedproductlines,wellestablishedsupplyanddistributionsystems,strongworldwidebrandrecognitionand
significantfinancial,marketing,researchanddevelopmentandotherresources.
Webelievewecompetefavorablywiththesecompaniesproducts.Ourdurableandversatileproductdesignfacilitatesincreasedfunctionalityandwearability.In
addition,byofferingavarietyofmountsandotheraccessories,weenableawiderangeofconsumerusecasesthataredifficultforothercompetingproductsto
address.Further,weoffermanyprofessionalgrade

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featuresatattractiveconsumerpricepoints,includingourSuperViewmode,whichallowsausertocaptureanimmersivewideangleperspective,andsuperhigh
resolutionvideocapability.Moreover,webelievewehaveachievedsignificantbrandrecognitioninourtargetverticalmarkets.Wealsobelieveouryearsofexperience
workingwithactiveandinfluentialconsumerscontributestoourabilitytodevelopattractiveproductsandestablishestheauthenticityofourbrand,thereby
differentiatingusfromcurrentandpotentialcompetitors.
Smartphonesandtabletswithphotoandvideofunctionalityhavesignificantlydisplacedtraditionalcamerasales.Webelievethatourcapturedevicesenable
differentiatedusecasesfrommobiledevices.Inparticular,weallowconsumerstoselfcapturetheirexperiencesineventhemostchallengingofenvironments,such
asonandinwaterandinotherenvironmentswheremobiledeviceswouldbedamaged,andtodosowiththeirhandsfreetofocusontheactivityandnotthecapture
device.However,itispossiblethatinthefuturethemanufacturersofthesedevicesmaydesignthemforuseinarangeofscenariosandconditions.Inadditionnew
companiesmayemergeandoffercompetitiveproductsdirectlyinourcategory.
Intellectualproperty
Intellectualpropertyisanimportantaspectofourbusiness,andourpracticeistoseekprotectionforourintellectualpropertyasappropriate.
Ourtrademarks,includingGoProandBeaHero,areacriticalcomponentofthevalueofourbusiness.Inaddition,weholdmanyissuedandpendingutilityand
designpatentsforvariousaspectsofourcapturedevicesandthesoftwarethathelpsourcustomersmanage,shareandenjoytheircontent.Ourpatentscoverareas
thatincludephysicalstructures,imageprocessing,operationalfirmwareandsoftware,postprocessingsoftware,distributionsoftware,mountandaccessory
structures,aswellastheornamentalaspectsofourcapturedevices.Asofthedateofthisfiling,wehad42issuedpatentsand68patentapplicationspendinginthe
UnitedStates,and15correspondingissuedpatentsand12patentapplicationspendinginforeigncountries.Wecannotbecertainthatourpatentapplicationswillbe
issuedorthatanyissuedpatentswillprovideuswithanycompetitiveadvantageorwillnotbechallengedbythirdparties.OurissuedU.S.patentswillexpirebetween
2024and2032andourissuedforeignpatentswillexpirebetween2022and2038.Wecontinuallyreviewourdevelopmentseffortstoassesstheexistenceand
patentabilityofnewintellectualproperty.
Inadditiontotheforegoingprotections,wegenerallycontrolaccesstoanduseofourproprietaryandotherconfidentialinformationthroughtheuseofinternaland
externalcontrols,includingcontractualprotectionswithemployees,contractmanufacturers,distributorsandothers.Despitetheseprotections,wemaybeunableto
preventthirdpartiesfromusingourintellectualpropertywithoutourauthorization,breachinganynondisclosureagreementswithus,orindependentlydeveloping
productsthataresimilartoours,particularlyinthosecountrieswherethelawsdonotprotectourproprietaryandintellectualpropertyrightsasfullyasintheUnited
States.
Employees
AsofDecember31,2011,2012and2013andMarch31,2014,wehad147,347,646and718employees,respectively.IntheUnitedStates,asofMarch31,2014,
wehad661employees,including283inresearchanddevelopment,232insalesandmarketing,31inmanufacturing/logistics/fulfillmentand115ingeneraland
administrative.AdditionallyasofMarch31,2014,wehad44employeessupportingfinance,productdevelopmentandmanufacturingfromShenzhen,

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ChinaandHongKong.WeopenedourfirstEuropeanofficeinMunich,Germanyinlate2013,andasofMarch31,2014wehad13employeesbasedinthatoffice.
Noneofouremployeesiscurrentlycoveredbyacollectivebargainingagreement,andwehaveexperiencednoworkstoppages.Weconsiderourrelationshipwithour
employeestobegood.
Facilities
OurexecutiveandadministrativeofficesarelocatedinSanMateo,California,whereweleaseapproximately200,000squarefeetofspacepursuanttoseveralleases
thatexpireatvariousschedulesthroughFebruary2019.WealsohaveotherofficesinCalifornia,Shenzhen,China,HongKongandMunich,Germany.
Legalproceedings
OnDecember5,2012,e.DigitalCorporationfiledalawsuitagainstusintheUnitedStatesDistrictCourtfortheSouthernDistrictofCaliforniawhichalleges
infringementofUnitedStatesPatentNo.5,742,737,orthe737patent,entitledMethodforrecordingvoicemessagesonflashmemoryinahandheldrecorder,by
certainofourcameras.WeansweredthecomplaintonFebruary4,2013,denyinginfringementandvalidity,andassertingcounterclaimsfordeclaratoryjudgmentof
noninfringementandinvalidity.e.DigitalfiledanamendedcomplaintonJune4,2013,addingallegationsthatweinfringeU.S.PatentNo.5,491,774,orthe774patent,
entitledHandheldRecordandPlaybackDevicewithFlashMemory.WeansweredtheamendedcomplaintonJune18,2013,againdenyinginfringementandvalidity,
andassertingcounterclaimsfordeclaratoryjudgmentofnoninfringementandinvalidity.e.Digitalalsosuedanumberofadditionalpartiesunrelatedtousandour
productsassertingclaimsregardingthepatentsassertedagainstusandinsomecases,twootherpatents.
We,alongwithanumberofotherdefendantssuedbye.Digital,movedtolimitthescopeofthe774patentbasedoncollateralestoppelresultingfromanunfavorable
claimconstructionrulinge.Digitalreceivedinanearlieraction.OnAugust22,2013,thecourtgranteddefendantsmotionandheldthate.Digitalwascollaterally
estoppedfromrelitigatingtheclaimconstructionofthe774patent.Inlightofthatruling,e.Digitalagreedtostipulatetononinfringementofthe774patent.The
partiesenteredintoapartialstipulatedjudgmentofnoninfringementastothe774patent,whichwassubsequentlyamendedasaFederalRuleofCivilProcedure
54(b)judgmenttoallowanimmediateappealtotheU.S.CourtofAppealsfortheFederalCircuitastotheCourtscollateralestoppelruling.Theremainderofthecase
hasbeenstayedpendingtheappeal.Underthestay,thecaseagainstuswillnotproceeduntiltheappealiscompleted.Ifthedistrictcourtscollateralestoppelruling
isreversedonappeal,thecaseagainstuswillproceedonlyastothe737patent.e.DigitalfileditsappealonJanuary15,2014.OnMarch10,2014,theU.S.Courtof
AppealsfortheFederalCircuitconsolidatedtheappealwithseveralotherpendingappealsinvolvingotherdefendants.e.DigitalfileditsopeningbriefonApril9,2014.
OurresponsivebriefisdueMay22,2014.
Wearecurrentlyandinthefuturemaycontinuetobesubjecttolitigation,claimsandassertionsincidentaltoourbusiness,includingpatentinfringementlitigationand
productliabilityclaims,aswellasotherlitigationofanonmaterialnatureintheordinarycourseofbusiness.Webelievethattheoutcomeofanyexistinglitigation,
eitherindividuallyorintheaggregate,willnothaveamaterialimpactonourbusiness,financialcondition,resultsofoperationsorcashflows.

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Management
Executiveofficers,otherexecutivemanagementanddirectors
Thefollowingtableprovidesinformationregardingourexecutiveofficers,otherexecutivemanagementanddirectorsasofMarch31,2014:

Name Age Position(s)
ExecutiveOfficers
NicholasWoodman 38 ChiefExecutiveOfficer,PresidentandChairman
JackLazar 48 ChiefFinancialOfficer
NinaRichardson 55 ChiefOperatingOfficer
PaulCrandell 45 VicePresidentofMarketing
SharonZezima 49 GeneralCounselandSecretary
OtherExecutiveManagement
FabriceBarbier 48 SeniorVicePresidentofProductDevelopment
StephenBaumer 41 SeniorVicePresident,TechnologyFellowforSpecialProjects
GeorgeJeffBrown 55 VicePresidentofCommunications
JonathanHarris 49 SeniorVicePresidentofSales
RonaldLaValley 48 SeniorVicePresidentofOperations
NonEmployeeDirectors
JohnBall 51 Director
EdwardGilhuly(1)(2)(3) 54 Director
KennethGoldman(3) 64 Director
MichaelMarks(1)(2) 63 Director

Leadindependentdirector.

(1) Memberofthegovernanceandnominatingcommittee.

(2) Memberofthecompensationcommittee.

(3) Memberoftheauditcommittee.
Executiveofficers
NicholasWoodmanfoundedourcompanyandhasservedasourChiefExecutiveOfficer,Presidentandamemberoftheboardofdirectorssinceinceptionandas
ChairmansinceJanuary2014.Mr.WoodmanholdsaB.A.inVisualArtsfromtheUniversityofCalifornia,SanDiego.WebelieveMr.Woodmansexperienceasthe
founderofGoProandhisknowledgeofourproductsandcustomersgivehimtheexperienceandleadershipcapabilitiesthatqualifyhimtoserveasmemberofour
boardofdirectors.
JackLazarhasservedasourChiefFinancialOfficersinceJanuary2014.FromJanuary2013toJanuary2014,hewasanindependentbusinessandfinancial
consultant.Mr.LazarpreviouslyservedasSeniorVicePresident,CorporateDevelopmentandGeneralManagerofQualcomm

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Atheros,Inc.,awirelesstechnologycompany,fromMay2011toJanuary2013.FromSeptember2003untilitsacquisitionbyQualcommIncorporated,adigital
wirelesscommunicationsproductsandservices,inMay2011,Mr.LazarservedasChiefFinancialOfficerandSecretaryofAtherosCommunications,Inc.,aprovider
ofcommunicationssemiconductorsolutions,aswellasotherexecutiveroles.FromAugust1999toMay2002,Mr.Lazarservedinavarietyofpositionsat
NetRatings,Inc.,anInternetaudiencemeasurementandanalysiscompany,mostrecentlyasExecutiveVicePresidentofCorporateDevelopment,ChiefFinancial
OfficerandSecretary.HecurrentlyservesasamemberoftheboardofdirectorsatSiliconLaboratoriesInc.Mr.LazarisaCertifiedPublicAccountantandholdsa
B.S.inCommercewithanemphasisinAccountingfromSantaClaraUniversity.
NinaRichardsonhasservedasourChiefOperatingOfficersinceFebruary2013.FromMarch2006toJanuary2013,Ms.Richardsonprovidedoperationsconsulting
andinterimoperationsmanagementservicesforavarietyofcompaniesasaselfemployedindependentconsultant.FromOctober2008toJuly2009,Ms.Richardson
wastheChiefAdministrativeOfficerofRiverwoodSolutions,asupplychainsolutionsprovider.FromOctober1999toMarch2005,Ms.Richardsonheldvarious
executivepositionsatFlextronicsInternational,Ltd.,amanufacturingservicescompany,includingVicePresidentofWorldwideDesignforImagingandPrinting,Vice
PresidentandGlobalAccountManageroftheHewlettPackardAccountandVicePresidentandGeneralManagerofFlextronicsCiscoBusinessUnit.InNovember
2003,Ms.RichardsoncofoundedThreeRiversEnergy,Inc.,anenergyservicescompany,whereshecontinuestoserveasamanagingdirector.Ms.Richardson
holdsaB.S.inIndustrialEngineeringfromPurdueUniversityandanExecutiveM.B.A.fromPepperdineUniversity.
PaulCrandellhasservedasourVicePresidentofMarketingsinceAugust2011.FromJanuary2009toAugust2011,Mr.CrandellwastheCofounderofQSport
Architects,amarketingconsultingfirm.FromNovember2007toNovember2008,Mr.CrandellwastheVicePresidentofMarketingatICONAircraft,anaircraftdesign
andproductioncompany.FromNovember1998toOctober2007,Mr.CrandellservedinvariouspositionsatRedBullNorthAmerica,abeveragemanufacturer,
includingastheDirectorofSportsMarketingfromDecember2005toOctober2007.Mr.CrandellholdsaB.A.inLawandSocietyfromtheUniversityofCalifornia,
SantaBarbara.
SharonZezimahasservedasourGeneralCounselsinceSeptember2013andasourCorporateSecretarysinceOctober2013.FromFebruary2012toSeptember
2013,Ms.ZezimawastheVicePresidentandGeneralCounselatMarketo,Inc.,acloudbasedmarketingsoftwarecompany.PriortojoiningMarketo,Ms.Zezima
servedinvariouspositionsatElectronicArtsInc.,adeveloperanddistributorofinteractiveentertainmentcontentandservices,fromSeptember2000toFebruary
2012,mostrecentlyasVicePresidentandDeputyGeneralCounsel.Ms.ZezimaholdsaJ.D.fromtheUniversityofChicagoandanA.B.inAmericanStudiesfrom
SmithCollege.
Otherexecutivemanagement
FabriceBarbierhasservedasourSeniorVicePresidentofProductDevelopmentsinceMay2013,andservedasourVicePresidentofEngineeringfromFebruary
2011toFebruary2013.FromFebruary2009toFebruary2011,Mr.BarbierwastheSeniorDirectorofTechnologyTouchandDisplayatFlextronicsandfromJuly2007
toJanuary2009,hewasitsSeniorDirectorofProductManagement.Since2006,Mr.BarbierhasbeenadirectorofBarbierEbelmann,aprecisionmechanics
company.Mr.BarbierholdsaB.S.inMechanicalEngineeringandaMastersinMechanicalEngineeringfromEcoleNationaleSuperieuredeMecaniqueetdes
Microtechniques.
StephenBaumerhasservedasourSeniorVicePresident,TechnologyFellowforSpecialProjectssinceMay2014,andservedasourChiefTechnologyOfficersince
January2009.FromNovember

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2007toJanuary2009,Mr.BaumerwastheHeadofBusinessDevelopmentinEuropeforOpSource,Inc.,aninfrastructureproviderforsoftwareasaservice
companies.FromOctober2005toOctober2007,hewastheVicePresidentofMarketingatPanTerraNetworks,adeveloperofcloudbasedunifiedcommunications
solutions.From2001to2004,Mr.BaumerwastheDirectorofTechnologyatIntermixMedia,Inc.,anInternetbasedmarketingcompanythatownedanddeveloped
MySpaceuntilthecompanysacquisitionbyNewsCorp.in2005.From1999until2001hewastheChiefTechnologyOfficerandcofounderoffunBug.com,Inc.,an
onlinegaming,rewardsandloyaltyservice.Mr.BaumerholdsaB.S.inLinguisticsfromGeorgetownUniversity.
GeorgeJeffBrownhasservedasourVicePresidentofCommunicationssinceJanuary2014.FromApril2010toOctober2013,Mr.BrownwastheSeniorVice
PresidentofCommunicationsandPublicAffairsforElectronicArts,wherehewasalsotheVicePresidentofCommunicationsandPublicAffairsfromDecember1999
toApril2010.Mr.BrownalsoservedinavarietyofrolesatPepsiCoInc.,afoodandbeveragecompany,mostrecentlyasDirectorofPublicRelationsinDecemberof
1999.Mr.BrownholdsaB.A.inJournalismfromtheUniversityofMinnesota.
JonathanHarrishasservedasourSeniorVicePresidentofSalessinceJanuary2014,andservedasourVicePresidentofSalesfromJune2010toJanuary2014.
FromFebruary2009toJune2010,Mr.HarriswastheVicePresidentofBusinessDevelopmentatSugarSync,Inc.,acloudbaseddocumentstoragecompany.From
January2007toFebruary2009,Mr.HarriswastheVicePresidentofSalesatAliph,Inc.,aproviderofwearabletechnologyandaudiodevices.FromOctober2005to
May2007,Mr.HarriswastheDirectorofSalesatCheckPointSoftwareTechnologiesLtd.,anInternetsecurityservicesprovider.Mr.HarrisholdsaB.A.inMarketing
fromtheSouthernMethodistUniversity.
RonaldLaValleyhasservedasourSeniorVicePresidentofOperationssinceDecember2011.From2000toDecember2011,Mr.LaValleyservedinvariouspositions
atFlextronics,includingtheVicePresidentofLogisticsandVicePresidentofSupplyChainSolutions,andmostrecentlyastheVicePresidentandGeneralManager
oftheMilpitasOperations.Mr.LaValleyholdsaB.S.inMechanicalEngineeringandAeronauticalEngineeringfromtheUniversityofCalifornia,DavisandanM.B.A.
fromSantaClaraUniversity.
Boardofdirectors
JohnBallhasservedonourboardofdirectorssinceDecember2011.Mr.BallistheFounderandhasservedasManagingPartnerofSteamboatVentures,aventure
capitalfirm.Mr.BallwasaseniorexecutiveintheCorporateDevelopmentgroupforTheWaltDisneyCompany,afamilyentertainmentandmediacompany,from
June1996toSeptember2000andservedasDirectorofMergers&AcquisitionsatDames&Moore,aglobalengineeringservicescompany,fromSeptember1992to
June1996.Mr.BallholdsaB.A.inBiologicalSciencesfromTuftsUniversityandanM.B.A.fromHarvardBusinessSchool.WebelieveMr.Ballisqualifiedtoserve
asamemberofourboardofdirectorsbasedonhisexperienceontheboardsofdirectorsofnumerouscompaniesandbasedonhisextensivecorporatemanagement
experience.
EdwardGilhulyhasservedonourboardofdirectorssinceMarch2011.Mr.GilhulyistheFounderandhasservedasManagingPartneratSageviewCapital,aprivate
investmentfirmsinceMay2006.PriortoformingSageviewCapital,Mr.Gilhulyworkedfor19yearsatKohlbergKravisRoberts&Co.,aprivateequityfirm,wherehe
wasaPartnerfrom1994to2005andamemberofthefirmsinvestmentcommitteefromitsformationin2000untilhisdeparturein2005.Mr.Gilhulycurrentlyserves
ontheboardofdirectorsofEnvivio,Inc.andtwoprivatecompanies

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aswellastheboardoftrusteesofDukeUniversity.Mr.GilhulyholdsaB.A.inEconomicsandHistoryfromDukeUniversityandanM.B.A.fromStanfordUniversity.
WebelieveMr.Gilhulyisqualifiedtoserveasamemberofourboardofdirectorsbasedonhisexperienceontheboardsofdirectorsofnumerouscompanies,his
extensivecorporatemanagementexperienceandhissignificantexperienceinprivateequityandfinance.
KennethGoldmanhasservedonourboardofdirectorssinceDecember2013.SinceOctober2012,Mr.GoldmanhasservedastheChiefFinancialOfficerofYahoo!
Inc.,anInternetcommercewebsite.FromSeptember2007toOctober2012,hewasChiefFinancialOfficerofFortinetInc.,aproviderofthreatmanagement
technologies.FromNovember2006toAugust2007,Mr.GoldmanservedasExecutiveVicePresidentandChiefFinancialOfficerofDexterra,Inc.,amobile
enterprisesoftwarecompany.FromAugust2000untilMarch2006,Mr.GoldmanservedasSeniorVicePresidentofFinanceandAdministrationandChiefFinancial
OfficerofSiebelSystems,Inc.,asupplierofcustomersoftwaresolutionsandservices.Mr.GoldmancurrentlyservesontheboardofdirectorsofNXP
SemiconductorN.V.,GigamonInc.andYahoo!Japan,aswellastheTrusteeEmeritusofCornellUniversity.Mr.GoldmanholdsaB.A.inElectricalEngineeringfrom
CornellUniversityandanM.B.A.fromHarvardBusinessSchool.WebelieveMr.Goldmanisqualifiedtoserveasamemberofourboardofdirectorsbasedonhis
experienceontheboardsofdirectorsofnumerouscompanies,hisextensiveexecutiveexperienceandhisserviceasamemberoftheFinancialAccounting
StandardsBoardAdvisoryCouncil.Heprovidesahighlevelofexpertiseandsignificantleadershipexperienceintheareasoffinance,accountingandauditoversight.
MichaelMarkshasservedonourboardofdirectorssinceFebruary2011.Mr.MarkshasbeenaFoundingPartnerofRiverwoodCapital,LLC,aprivateequityfirm,
sinceMarch2007.FromAugust2007toNovember2007,Mr.MarkswasinterimChiefExecutiveOfficerofTeslaMotors,Inc.,anelectricvehicledesignerand
manufacturer.Mr.MarkswasasenioradviserfromJanuary2007toJanuary2008andamemberfromJanuary2006toJanuary2007atKohlbergKravisRoberts&
Co.,aprivateequityfirm.FromJanuary1994toJanuary2006,Mr.MarkswasChiefExecutiveOfficerofFlextronics.Mr.Markscurrentlyservesasamemberofthe
boardofdirectorsofSchlumbergerLimitedandSanDiskCorporation,whereheiscurrentlyChairman.Mr.MarksholdsaB.A.andanM.A.inPsychologyfromOberlin
CollegeandanM.B.A.fromHarvardBusinessSchool.WebelieveMr.Marksisqualifiedtoserveasamemberofourboardofdirectorsbasedonhissignificant
experienceasthechiefexecutiveofficerandmemberoftheboardsofdirectorsofvariouscompanies,hisexpertiseinfinancialandaccountingmattersandhis
expertiseinprivateequitymatters.
Boardofdirectors
PursuanttoavotingagreementdatedFebruary25,2011,asamended,Messrs.Ball,Gilhuly,Goldman,MarksandWoodmanweredesignatedtoserveasmembers
ofourboardofdirectors.Messrs.MarksandGilhulywereelectedastherepresentativesoftheSeriesApreferredstock,Messrs.WoodmanandGoldmanwere
electedbytheholdersofamajorityofthesharesofourcommonstockandMr.Ballwaselectedbytheholdersofamajorityofthesharesofourpreferredstockand
commonstock,votingtogetherasasingleclass.Thevotingagreementwillterminateupontheclosingofthisofferingandnoneofourstockholderswillhaveany
specialrightsregardingtheelectionordesignationofmembersofourboardofdirectors.Eachofthecurrentmembersofourboardofdirectors,otherthanMr.Ball,will
continuetoserveonourboardofdirectorsfollowingtheclosingoftheofferinguntiltheearlierofhisorherresignationorhisorhersuccessorisdulyelectedor
appointed.Mr.Ballhasadvisedusofhisintentiontoresignasadirectorupontheclosingofthisoffering.

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Inconnectionwiththeclosingofthisoffering,wewillfileourrestatedcertificateofincorporation.Althoughinitiallyourboardofdirectorswillnotbeclassified,our
restatedcertificateofincorporationwillprovidethatatsuchtimeasallsharesofourClassBcommonstockhavebeenconvertedintosharesofClassAcommon
stock,ourboardofdirectorswillbedividedintothreeclasses,withstaggeredthreeyearterms.Onlyoneclassofdirectorswillbeelectedateachannualmeetingof
ourstockholders,withtheotherclassesofdirectorscontinuingfortheremainderoftheirrespectivethreeyearterms.
Inaddition,ouramendedandrestatedbylawsandrestatedcertificateofincorporationwillprovidethatonlytheboardofdirectorsmayfillvacanciesontheboardof
directorsuntilthenextannualmeetingofstockholders.Afterourboardofdirectorsisclassified,anyadditionaldirectorshipsresultingfromanincreaseinthenumber
ofdirectorswillbedistributedamongthethreeclassessothat,asnearlyaspossible,eachclasswillconsistofonethirdofthetotalnumberofdirectors.
Thisclassificationoftheboardofdirectorsandtheprovisionsdescribedabovemayhavetheeffectofdelayingorpreventingchangesinourcontrolormanagement.
SeeDescriptionofcapitalstockAntitakeoverprovisionsRestatedcertificateofincorporationandamendedandrestatedbylawprovisions.
Boardleadershipstructureandriskoversight
Ourboardofdirectorsdoesnothaveapolicyonwhethertheroleofthechairmanandchiefexecutiveofficershouldbeseparateandbelievesthatitshouldmaintain
flexibilitytoselectachairmanandboardleadershipstructurefromtimetotime.Currently,theboardofdirectorsbelievesthatitisinthebestinterestofthecompany
anditsstockholdersforMr.Woodmantoserveinbothrolesgivenhisknowledgeofourcompanyandindustry.BecauseMr.WoodmanisourChiefExecutiveOfficer
andChairman,ourboardofdirectorsappointedMr.Markstoserveasourleadindependentdirector.Asleadindependentdirector,Mr.Markswill,amongother
responsibilities,presideoverregularlyscheduledmeetingsatwhichonlyourindependentdirectorsarepresent,serveasaliaisonbetweenthechairpersonandthe
independentdirectors,andperformsuchadditionaldutiesasourboardofdirectorsmayotherwisedetermineanddelegate.
Ourboardofdirectorsisprimarilyresponsibleforoverseeingourriskmanagementprocesses.Ourboardofdirectors,asawhole,determinestheappropriatelevelof
riskforourcompany,assessesthespecificrisksthatwefaceandreviewsmanagementsstrategiesforadequatelymitigatingandmanagingtheidentifiedrisks.
Althoughourboardofdirectorsadministersthisriskmanagementoversightfunction,ourauditcommittee,governanceandnominatingcommitteeandcompensation
committeesupportourboardofdirectorsindischargingitsoversightdutiesandaddressrisksinherentintheirrespectiveareas.Webelievethisdivisionof
responsibilitiesisaneffectiveapproachforaddressingtheriskswefaceandthatourboardleadershipstructuresupportsthisapproach.
Directorindependence
Ourboardofdirectorshasundertakenareviewoftheindependenceofeachdirectorandconsideredwhethereachdirectorhasamaterialrelationshipwithusthat
couldcompromisehisorherabilitytoexerciseindependentjudgmentincarryingouthisorherresponsibilities.Asaresultofthisreview,ourboardofdirectors
determinedthatMessrs.Ball,Gilhuly,GoldmanandMarks,representingfourofourfivedirectors,areindependentdirectorsasdefinedunderthe

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applicablerulesandregulationsoftheSECandthelistingrequirementsandrulesoftheNASDAQStockMarket.Inmakingthesedeterminations,ourboardof
directorsreviewedanddiscussedinformationprovidedbythedirectorsanduswithregardtoeachdirectorsbusinessandpersonalactivitiesandrelationshipsasthey
mayrelatetousandourmanagement,includingthebeneficialownershipofourcapitalstockbyeachnonemployeedirectorandthetransactionsinvolvingthem
describedinthesectiontitledCertainrelationshipsandrelatedpartytransactions.
Committeesoftheboardofdirectors
Ourboardofdirectorshasestablishedanauditcommittee,acompensationcommitteeandanominatingandgovernancecommittee.Thecompositionand
responsibilitiesofeachcommitteearedescribedbelow.Immediatelypriortotheclosingofthisoffering,copiesofthechartersforeachcommitteewillbeavailableon
theinvestorrelationsportionofourwebsiteatwww.gopro.com.Membersserveonthesecommitteesuntiltheirresignationsorremoval.
Auditcommittee
OurauditcommitteeiscomprisedofMr.Goldman,whoservesasthechairman,andMr.Gilhuly,eachofwhom,ourboardofdirectorshasdetermined,meetsthe
requirementsforindependenceunderthecurrentrulesoftheSECandtheNASDAQStockMarket.Eachmemberofourauditcommitteeisfinanciallyliterate.In
addition,ourboardofdirectorshasdeterminedthatMr.GoldmanisanauditcommitteefinancialexpertwithinthemeaningofItem407(d)ofRegulationSKofthe
SecuritiesAct.Weintendtoappointathirdindependentdirectortoourauditcommitteewithinoneyearfromthedateofthisprospectuspursuanttothetransition
provisionsoftherulesoftheNASDAQStockMarket.
Allauditservicestobeprovidedtousandallpermissiblenonauditservices,otherthandeminimisnonauditservices,tobeprovidedtousbyourindependent
registeredpublicaccountingfirmwillbeapprovedinadvancebyourauditcommittee.Ourauditcommittee,amongotherthings:

selectsafirmtoserveasindependentregisteredpublicaccountingfirmtoauditourfinancialstatements

helpstoensuretheindependenceoftheindependentregisteredpublicaccountingfirm

discussesthescopeandresultsoftheauditwiththeindependentregisteredpublicaccountingfirm,andreviews,withmanagementandtheindependent
accountants,ourinterimandyearendoperatingresults

developsproceduresforemployeestoanonymouslysubmitconcernsaboutquestionableaccountingorauditmatters

considerstheadequacyofourinternalaccountingcontrolsandauditproceduresand

approvesallauditandnonauditservicestobeperformedbytheindependentregisteredpublicaccountingfirm.
Compensationcommittee
OurcompensationcommitteeiscomprisedofMr.Marks,whoservesasthechairman,andMr.Gilhuly.Ourboardofdirectorshasdeterminedthateachmemberof
ourcompensation

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committeemeetstherequirementsforindependenceunderthecurrentrulesoftheNASDAQStockMarket.Thepurposeofourcompensationcommitteeisto
dischargetheresponsibilitiesofourboardofdirectorsrelatingtocompensationofourexecutiveofficers.Ourcompensationcommittee,amongotherthings:

reviewsanddeterminesthecompensationofourexecutiveofficers

administersourstockandequityincentiveplans

reviewsandmakesrecommendationstoourboardwithrespecttoincentivecompensationandequityplansand

establishesandreviewsgeneralpoliciesrelatingtocompensationandbenefitsofouremployees.
Nominatingandgovernancecommittee
ThenominatingandgovernancecommitteeiscomprisedofMr.Gilhuly,whoservesasthechairman,andMr.Marks.Ourboardofdirectorshasdeterminedthat
immediatelypriortotheeffectivenessofthisoffering,thecompositionofournominatingandgovernancecommitteewillmeettherequirementsforindependenceunder
thecurrentrulesoftheNASDAQStockMarket.Ournominatingandgovernancecommittee,amongotherthings:

identifies,evaluatesandrecommendsnomineestoourboardofdirectorsandcommitteesofourboardofdirectors

conductssearchesforappropriatedirectors

evaluatestheperformanceofourboardofdirectorsandofindividualdirectors

considersandmakesrecommendationstotheboardofdirectorsregardingthecompositionoftheboardanditscommitteesandrelatedcompensation

reviewsrelatedpartytransactionsandproposedwaiversofthecodeofconduct

reviewsdevelopmentsincorporategovernancepractices

evaluatestheadequacyofourcorporategovernancepracticesandreportingand

makesrecommendationstoourboardofdirectorsconcerningcorporategovernancematters.
Codeofbusinessconductandethics
Inconnectionwiththisoffering,wewilladoptacodeofbusinessconductandethicsthatappliestoallofouremployees,officersanddirectors.Immediatelypriorto
theeffectivenessofthisoffering,thefulltextofourcodeofbusinessconductandethicswillbepostedontheinvestorrelationssectionofourwebsiteat
www.gopro.com.
Compensationcommitteeinterlocksandinsiderparticipation
Noneofthemembersofourcompensationcommitteehasatanytimebeenoneofourofficersoremployees.Noneofourexecutiveofficerscurrentlyserves,orinthe
pasthasserved,asamemberoftheboardofdirectorsorcompensationcommittee(orotherboardcommittee

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performingequivalentfunctions)ofanyentitythathasoneormoreofitsexecutiveofficersservingonourboardofdirectorsorourcompensationcommittee.
Directorcompensation
Wehavenoformalpolicyrelatingtothegrantingofequityawardstoourdirectors,however,thenonemployeemembersofourboardofdirectorswhoarenotaffiliated
withourinstitutionalinvestorsgenerallyreceivestockoptionawardsuponcommencementoftheirserviceasdirectors.Thefollowingtablepresentsthetotal
compensationearnedintheyearendedDecember31,2013foreachnonemployeememberofourboardofdirectors.Otherthandescribedbelow,wedidnotpayany
feesto,reimburseanyexpensesof,makeanyequityawardsornonequityawardsto,orpayanyothercompensationtothenonemployeemembersofourboardof
directors.NicholasWoodman,ourChiefExecutiveOfficer,receivednocompensationforhisserviceasadirector.
Thefollowingtableprovidesinformationregardingcompensationofournonemployeedirectorsfor2013.

Nameandprincipalposition
Feesearned
orpaidin
cash($)
Option
awards($)(1)(2)
Allother
compensation($) Total($)
KennethGoldman $ $ 911,427 $ $911,427
JohnBall
EdwardGilhuly
MichaelMarks
JillWoodman(3)


(1) Theamountsreportedinthiscolumnrepresenttheaggregategrantdatevalueofoptionawardsmadetodirectorsin2013computedinaccordancewithFASBASCTopic718.

(2) Theoptionvestsasto1/4 ofthesharesofClassBcommonstockunderlyingtheoptiononthefirstanniversaryofthevestingcommencementdateandasto1/48 ofthesharesunderlyingtheoption
eachmonththereafter.Inaddition,intheeventofaqualifiedacquisition,theoptionshallvestastoanadditional1/4 ofthetotalsharesunderlyingtheoption.
(3) JillWoodmanresignedasamemberofourboardofdirectorseffectiveasof[].
Wehavenotyetdeterminedourdirectorcompensationarrangementstobeineffectfollowingtheclosingofthisoffering.However,inthenearfutureweintendto
developapolicytoprovidecustomarycompensationtoournonemployeedirectorsfortheirservicesinthatcapacityfollowingthecompletionofthisoffering.

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Executivecompensation
2013summarycompensationtable
Thefollowingtableprovidesinformationregardingcompensationreceivedbyournamedexecutiveofficersfor2013.

NameandPrincipalPosition
Salary
($)(1) Bonus($)(2)
Option
awards
($)(3)
Allother
compensation
($) Total($)
NicholasWoodman $800,000 $1,003,200 $ $ 49,591(4) $1,852,791
ChiefExecutiveOfficer
NinaRichardson 287,986 120,649 3,253,337 $3,661,972
ChiefOperationsOfficer
PaulCrandell 267,981 116,909 542,628 $ 927,518
VicePresident,Marketing

(1) Theamountsinthiscolumnincludeanysalarycontributedbythenamedexecutiveofficertoour401(k)plan.

(2) Theamountsreportedinthiscolumnrepresentthenamedexecutiveofficersbonusawards,whichweawardedonadiscretionarybasisbasedonthecompensationcommitteesdeterminationof
individualandoverallcompanyperformance.
(3) Theamountsreportedinthiscolumnrepresenttheaggregategrantdatevalueofoptionawardsmadetothenamedexecutiveofficerin2013computedinaccordancewithFASBASCTopic718and
excludingtheeffectofestimatedforfeitures.
(4) TheamountreportedinthiscolumnrepresentsthecostofMr.Woodmanspersonaluseofcarsprovidedbyus,includingdepreciationattributedtohispersonaluseofthecars,maintenanceandrepair
costs,insurancepremiumsandregistrationfees.
OutstandingequityawardsatDecember31,2013
ThefollowingtableprovidesinformationregardingeachunexercisedstockoptionheldbyeachofournamedexecutiveofficersasofDecember31,2013.


Numberofsecurities
underlyingunexercised
options(1)
Option
exercise
price(2)

Option
expiration
date Name Exercisable Unexercisable
NicholasWoodman
NinaRichardson 0 450,000(3) $13.7200 02/18/2023
PaulCrandell 171,700 125,000 $ 1.5167 10/25/2021
PaulCrandell 0 75,000 $13.7200 02/18/2023

(1) Exceptasotherwisedescribedinthesefootnotes,alloptionsvestasto1/4 ofthesharesofClassBcommonstockunderlyingtheoptionsonthefirstanniversaryofthevestingcommencementdate
andasto1/48 ofthesharesunderlyingtheoptioneachmonththereafter.ThevestingcommencementdateforMs.RichardsonsoptiongrantisFebruary12,2013andthevestingcommencementdate
forMr.CrandellsoptiongrantsareAugust15,2011andFebruary19,2013,respectively.Anyoptionsexercisedpriortotheirvestingdatewouldbesubjecttoforfeitureasspecifiedinthe2010Plan.In
addition,iftheexecutiveissubjecttoaqualifiedterminationinconnectionwithachangeincontrol,thenthesharesunderlyinganyunvestedequityawardshallvestimmediatelypriortotheterminationof
theexecutive,pursuanttotheseveranceandchangeincontrolpolicyadoptedinJanuary2014(describedbelow).
(2) RepresentsthefairmarketvalueofashareofourClassBcommonstock,asdeterminedbyourboardofdirectors,onthegrantdate.SeethesectiontitledManagementsdiscussionandanalysisof
financialconditionandresultsofoperationsCriticalaccountingpoliciesandestimatesStockbasedcompensationforadiscussionofthevaluationofourClassBcommonstock.
(3) Inadditiontothetimebasedvestingindicatedinfootnote(1),ifweachievethegoalsapprovedbyourboardofdirectorsunderour2014OperatingPlan,thenanadditional25,000oftheshareswill
th
th
becomevestedandexercisableonFebruary12,2015.
Pensionbenefits
Noneofournamedexecutiveofficersisaparticipantinanydefinedbenefitplans.

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Nonqualifieddeferredcompensation
Wedonotofferanynonqualifieddeferredcompensationplans.
Employment,severanceandchangeincontrolagreements
NinaRichardson
InFebruary2013,weenteredintoanofferletterwithNinaRichardsonforherservicesasourChiefOperatingOfficer.TheofferletterprovidedthatMs.Richardsons
optiontopurchase450,000sharesofClassBcommonstockwouldvest25%onthe12monthanniversaryofhercommencementofemploymentandinequal
monthlyinstallmentsoverthe36monthsthereaftersubjecttohercontinuousservice.Inaddition,theofferletterprovidesthat25,000optionshareswouldvestonthe
twoyearanniversaryofhercommencementofemploymentintheeventthatweachieveour2014OperatingPlanasapprovedandcertifiedbyourboardofdirectors
subjecttohercontinuousservice.Inaddition,theofferletterprovidesthatintheeventofaqualifiedterminationwithin12monthsfollowingachangeofcontrol,
Ms.Richardsonsstockoptionwouldreceive12monthsofacceleratedvesting.Subsequenttotheexecutionoftheofferletter,weenteredintoaChangeinControl
SeveranceAgreementwithMs.Richardson.ThetermsoftheChangeinControlSeveranceAgreementaredescribedindetailbelowanditprovidesthatintheeventof
aqualifiedterminationfollowingachangeofcontrol,Ms.Richardsonshallbeentitledtoaccelerationinfullofallofherunvestedoptionshares.
PaulCrandell
InJuly2011,weenteredintoanofferletterwithPaulCrandellforhisservicesasVicePresident,BrandMarketing.TheofferletterprovidedthatMr.Crandellsoption
topurchase300,000sharesofClassBcommonstockwouldbesubjecttothetermsandconditionsapplicabletooptionsgrantedunderthe2010Plan,asdescribedin
the2010Plan,andtheapplicablestockoptionagreementmadeavailabletoMr.Crandellatthetimeofhisgrant.Subsequenttotheexecutionoftheofferletter,we
enteredintoaChangeinControlSeveranceAgreementwithMr.Crandell.ThetermsoftheChangeinControlSeveranceAgreementaredescribedindetailbelowand
itprovidesthatintheeventofaqualifiedterminationfollowingachangeofcontrol,Mr.Crandellshallbeentitledtoaccelerationinfullofallofhisoutstanding
unvestedoptionshares.
Potentialpaymentsuponterminationorchangeincontrol
InJanuary2014,weadoptedaseveranceandchangeincontrolpolicyapplicabletoourexecutiveofficersandcertainotheremployeespursuanttowhicheach
executiveofficerenteredintoaseveranceagreement.TheseveranceagreementwitheachofournamedexecutiveofficershasatermendingDecember31,2016with
automaticthreeyearrenewalsunlesswegiveatleastthreemonthsnoticeofnonrenewalandrequiresustopaycertainbenefitsuponaqualifyingtermination,which
occurswhentheemployeesemploymentisterminatedbyuswithoutcause,orheorsheresignswithgoodreason,withinthreemonthsprecedingor12months
followingachangeincontrol.Underhisagreement,Mr.Woodmanwouldbeeligibleforseverancebenefitsof18monthsofhisthencurrentbasepay,150%ofthe
greaterofhistargetbonusorhismostrecentannualbonus,and$3,000permonthfor18monthsinlieuofemployeebenefitsuponaqualifyingtermination.Underher
orhisrespectiveagreement,eachofMs.RichardsonandMr.Crandellwouldbeeligibleforseverancebenefitsof12monthsofthencurrentbasepay,100%ofheror
histargetbonusor,ifgreater,herorhismostrecentannualbonus,and$3,000permonthfor12monthsinlieuofemployeebenefitsuponaqualifyingtermination.

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Inaddition,uponaqualifyingterminationofMs.RichardsonorMr.Crandell,thesharesunderlyingallunvestedequityawardsheldbysuchofficerwillbecomevested
andexercisableinfullimmediatelypriortosuchtermination.Theseverancepaymentsunderthechangeofcontrolseveranceagreementswitheachofourexecutive
officersarecontingentuponsuchexecutiveofficersexecution,deliveryandnonrevocationofareleaseandwaiverofclaimssatisfactorytouswithin45daysofsuch
executiveofficersseparationfromservice.
Employeebenefitplans
2010equityincentiveplan
Ourboardofdirectorsapproved,andourstockholdersadopted,our2010PlaninAugust2010.Our2010Planprovidesforthegrantofincentivestockoptions,within
themeaningofSection422oftheCode,toouremployeesoranyparentorsubsidiarysemployees,andforthegrantofnonstatutorystockoptions,stockappreciation
rights,restrictedstockandRSUstoouremployees,directorsandconsultantsandanyparentorsubsidiarysemployeesandconsultants.Stockappreciationrights,
restrictedstockandRSUsmayalsobegrantedunderthe2010Plan.AsofDecember31,2013,anaggregateof32,420,000sharesofourClassBcommonstockare
reservedforissuanceunderour2010Plan.Uponthesigningoftheunderwritingagreementrelatingtothisoffering,nofurtherequitygrantswillbemadeunderour
2010Plan.Weintendtograntallfutureequityawardsunderthe2014PlanandtheESPP.However,allstockoptionsandRSUsgrantedunderour2010Planwill
continuetobegovernedbythetermsofour2010Plan.Thepurposesofthe2010Planaretoattract,retainandmotivateeligiblepersonswhosepresentandpotential
contributionsareimportanttoourgrowthbyofferingsucheligiblepersonsanopportunitytoparticipateinourfutureperformancethroughthegrantofawards.
Administration.Subjecttothetermsofthe2010Plan,ourboardofdirectorsoranauthorizedcommittee,referredtoasthecompensationcommittee,hasthe
discretiontomakealldecisionsimplementingthe2010Planincludingthepowertodeterminerecipients,datesofgrant,thenumbersandtypesofstockawardstobe
grantedandthetermsandconditionsofthestockawards,includingtheperiodoftheirexercisabilityandvesting.Subjecttothelimitationssetforthbelow,the
compensationcommitteewillalsodeterminetheexercisepriceofoptionsgranted,andtheconsideration(ifany)tobepaidforrestrictedstockawards.
Stockoptions.Incentiveandnonstatutorystockoptionsaregrantedpursuanttostockoptionagreementsadoptedbythecompensationcommittee.Generally,the
exercisepriceforanincentivestockoptionoranonstatutorystockoptioncannotbelessthan100%ofthefairmarketvalueoftheClassBcommonstocksubjectto
theoptiononthedateofgrant.Noincentivestockoptionmaybegrantedtoanypersonwho,atthetimeofthegrant,ownsorisdeemedtoownstockcomprising
morethan10%ofourtotalcombinedvotingpowerorthatofanyofouraffiliatesunless(a)theoptionexercisepriceisatleast110%ofthefairmarketvalueofthe
stocksubjecttotheoptiononthedateofgrantand(b)thetermoftheincentivestockoptiondoesnotexceedfiveyearsfromthedateofgrant.Optionsgrantedunder
the2010Plangenerallyvestoverafouryearperiod.Astockoptionagreementmayprovideforearlyexercisepriortovestingandrightsofrepurchase.
Thetermofstockoptionsgrantedunderthe2010Planmaynotexceed10years.Unlessthetermsofanoptionholdersstockoptionagreementprovidesforearlieror
latertermination,ifanoptionholdersservicerelationshipwithus,oranyaffiliateofours,ceasesduetodisabilityordeath,theoptionholder,orhisorherbeneficiary,
mayexerciseanyvestedoptionsuptothe

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12monthsafterthedatetheservicerelationshipends.Unlessthetermsofanoptionholdersstockoptionagreementprovidesforearlierorlatertermination,ifan
optionholdersservicerelationshipwithus,oranyaffiliateofours,ceaseswithoutcauseforanyreasonotherthandisabilityordeath,theoptionholdermayexercise
anyvestedoptionsforuptothreemonths.Innoeventmayanoptionbeexercisedafteritsexpirationdate.
TheformsofconsiderationforthepurchaseofourClassBcommonstockunderthe2010Planthatthecompensationcommitteemayapproveincludecash,check,
fullrecoursepromissorynote,cancellationofindebtedness,waiverofaccruedcompensation,sharesofstockalreadyowned,considerationpaidthroughaformal
cashlessexerciseprogramorsamedaysaleprogram,anyotherformofconsiderationapprovedbythecompensationcommitteeoranycombinationofsuch
consideration.
Limitations.Theaggregatefairmarketvalue,determinedatthetimeofgrant,ofsharesofourClassBcommonstockwithrespecttoincentivestockoptionsthat
areexercisableforthefirsttimebyanoptionholderduringanycalendaryearunderallofourstockplansmaynotexceed$100,000.Theoptionsorportionsofoptions
thatexceedthislimitaretreatedasnonstatutorystockoptions.
Stockappreciationrights.Our2010Planalsopermitstheissuanceofstockappreciationrightsthatprovideforapayment,orpayments,incashorsharesofour
ClassBcommonstock,totheholderbasedupontheincreaseinthefairmarketvalueofourClassBcommonstockonthedateofexercisefromthestatedexercise
price(subjecttoanymaximumnumberofsharesasmaybespecifiedintheapplicableawardagreement).Stockappreciationrightsexpireunderthesamerulesthat
applytostockoptions.
Restrictedstock.Our2010Planalsopermitstheissuanceofrestrictedstock.RestrictedstockrepresentsthepurchaseofourClassBcommonstockthatis
subjecttoourrightofrepurchaseintheeventofaterminationofthestockholdersservicerelationshipwithus.
Restrictedstockunits.Our2010Planalsopermitstheissuanceofrestrictedstockunits,orRSUs,toourserviceproviders.RSUsgrantedunderour2010Plan
representtherighttoreceivesharesofourClassBcommonstockorcashpaymentataspecifiedfuturedateandmaybesubjecttovestingrequirements.
Transferability.Unlessthecompensationcommitteepermitsotherwise,stockmaynotbetransferred,exceptbywillorbythelawsofdescentordistribution.
However,nonstatutorystockoptionsmaybetransferredtoimmediatefamilymembersorcertaintrusts.
Changestocapitalization.Intheeventthatthereisaspecifiedtypeofchangeinourcapitalstructurenotinvolvingthereceiptofconsiderationbyus,suchasa
stocksplit,stockdividendorotherrecapitalization,the2010Planprovidesfortheproportionaladjustmentofthenumberofsharesreservedunderthe2010Planand
thenumberofsharesandexerciseorpurchaseprice,ifapplicable,ofalloutstandingstockawards.
Corporatetransactions.Unlessotherwiseprovidedintheawardagreement,intheeventofcertaincorporatetransactions,anyoralloutstandingstockawardsunder
the2010Planmaybeassumedorsubstitutedforbyanysurvivingentity.Ifthesurvivingentityelectsnottoassumeorsubstituteforsuchawards,suchstock
awardswillterminatewithoutvestingacceleration.Intheeventofourdissolutionorliquidation,alloutstandingoptionsandstockappreciationrightsunderthe2010
Planwillterminateimmediatelypriortosucheventwithoutacceleratingvesting.

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Additionalprovisions.Ourboardofdirectorshastheauthoritytoamend,alter,suspendorterminatethe2010Plan.However,noamendmentorterminationofthe
planmayadverselyaffectanyrightsunderawardsalreadygrantedtoaparticipantwithouttheaffectedparticipantsconsent.Noequityawardswillbemadeunderthe
2010Planaftertheeffectivedateofthisofferingandour2014Plan.
2014equityincentiveplan
Weexpectourboardofdirectorstoadoptour2014Plan,subjecttostockholderapproval,tobecomeeffectivethedaybeforetheeffectivedateofthisprospectus.
The2014Planwillterminatein2024,unlesssoonerterminatedbyourboardofdirectors.Thepurposeofthe2014Planistoattract,retainandmotivateselected
employees,consultantsanddirectorsthroughthegrantingofstockbasedcompensationawardsandcashbasedperformancebonusawards.The2014Planisalso
designedtopermitustomakecashbasedawardsandequitybasedawardsintendedtoqualifyasperformancebasedcompensationunderSection162(m)ofthe
Code.
Stockawards.The2014Planprovidesforthegrantofincentivestockoptions,nonstatutorystockoptions,stockappreciationrights,restrictedstockawards,RSUs,
performancebasedstockawardsandotherformsofequitycompensation,orcollectively,stockawards.Inaddition,the2014Planprovidesforthegrantof
performancecashawards.Incentivestockoptionsmaybegrantedonlytoemployees,subjecttocertainlimitationdescribedbelow.Allotherawardsmaybegranted
toemployees,includingofficers,aswellasdirectorsandconsultants.
Theprincipalfeaturesofthe2014Planaresummarizedbelow.Thissummaryisqualifiedinitsentiretybyreferencetothetextofthe2014Plan,whichisfiledasan
exhibittotheregistrationstatementofwhichthisprospectusisapart.
Sharereserve.WereservedsharesofourClassAcommonstocktobeissuedunderour2014Plan.Thenumberofsharesreservedforissuanceunderour
2014PlanwillincreaseautomaticallyonJanuary1ofeachofourfiscalyearsbeginningJanuary1,2015throughtheterminationoftheplanbythenumberofshares
equalto3%ofthetotaloutstandingsharesofourClassAcommonstockasoftheimmediatelyprecedingDecember31.However,ourboardofdirectorsor
compensationcommitteemayreducetheamountoftheincreaseinanyparticularyear.Inaddition,sharesreservedbutnotissuedorsubjecttooutstandinggrants
underour2010Planonthedateofthisprospectuswillbeavailableforgrantandissuanceunderour2014PlanasClassAcommonstockandthefollowingshareswill
againbeavailableforgrantandissuanceunderour2014PlanasClassAcommonstock:

sharessubjecttooptionsorstockappreciationrightsgrantedunderour2014Planthatceasetobesubjecttotheoptionorstockappreciationrightforanyreason
otherthanexerciseoftheoptionorstockappreciationright

sharessubjecttoawardsgrantedunderour2014Planthataresubsequentlyforfeitedorrepurchasedbyusattheoriginalissueprice

sharessubjecttoawardsgrantedunderour2014Planthatotherwiseterminatewithoutsharesbeingissued

sharessurrendered,cancelled,orexchangedforcashoradifferentaward(orcombinationthereof)

sharesissuableupontheexerciseofoptionsorsubjecttootherawardsunderour2010Planpriortothedateofthisprospectusthatceasetobesubjecttosuch
optionsorotherawardsbyforfeitureorotherwiseafterthedateofthisprospectus

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sharesissuedunderour2010Planthatareforfeitedorrepurchasedbyusafterthedateofthisprospectusand

sharessubjecttoawardsunderour2010Planthatareusedtopaytheexercisepriceofanoptionorwithheldtosatisfythetaxwithholdingobligationsrelatedto
anyaward.
Asofthedatehereof,nosharesofourClassAcommonstockhavebeenissuedunderthe2014Plan.Nopersonmaybegrantedstockawardscoveringmorethan
500,000sharesofourClassAcommonstockunderthe2014Planduringanycalendaryearpursuanttostockoptionsorstockappreciationrightsotherthananew
employeeofours,whowillbeeligibletoreceivenomorethan1,000,000sharesofourClassAcommonstockunderthe2014Planinthecalendaryearinwhichthe
employeecommencesemployment.Suchlimitationsaredesignedtohelpassurethatanydeductionstowhichwewouldotherwisebeentitledwithrespecttosuch
stockawardswillnotbesubjecttothe$1,000,000limitationontheincometaxdeductibilityofcompensationpaidpercoveredexecutiveofficerimposedby
Section162(m)oftheCode.
Administration.Our2014Planwillbeadministeredbyourcompensationcommittee,allofthemembersofwhichareoutsidedirectorsasdefinedunderapplicable
federaltaxlaws,orbyourboardofdirectorsactinginplaceofourcompensationcommittee.Thecompensationcommitteewillhavetheauthoritytoconstrueand
interpretour2014Plan,grantawardsandmakeallotherdeterminationsnecessaryoradvisablefortheadministrationoftheplan.
Thecompensationcommitteehastheauthoritytorepriceanyoutstandingstockaward(byreducingtheexercisepriceofanyoutstandingoption,cancelinganoption
inexchangeforcashoranotherequityawardoranyotheractionthatmaybedeemedarepricingundergenerallyacceptedaccountingprovisions)underthe2014Plan
withouttheapprovalofourstockholders.
Stockoptions.Incentiveandnonstatutorystockoptionsaregrantedpursuanttoincentiveandnonstatutorystockoptionagreementsadoptedbythecompensation
committee.Thecompensationcommitteedeterminestheexercisepriceforastockoption,withinthetermsandconditionsofthe2014Plan,providedthatthe
exercisepriceofastockoptioncannotbelessthan100%ofthefairmarketvalueofourClassAcommonstockonthedateofgrant,exceptwhereahigherexercise
priceisrequiredinthecaseofcertainincentivestockoptions,asdescribedbelow.
Weanticipatethatingeneral,optionswillvestoverafouryearperiod.Optionsmayvestbasedontimeorachievementofperformanceconditions.Ourcompensation
committeemayprovideforoptionstobeexercisedonlyastheyvestortobeimmediatelyexercisablewithanysharesissuedonexercisebeingsubjecttoourrightof
repurchasethatlapsesasthesharesvest.Themaximumtermofoptionsgrantedunderour2014Planis10years.Thecompensationcommitteedeterminestheterm
ofstockoptionsgrantedunderthe2014Plan,uptoamaximumof10years,exceptinthecaseofcertainincentivestockoptions,asdescribedbelow.Unlessthe
termsofanoptionholdersstockoptionagreementprovideotherwise,ifanoptionholdersrelationshipwithus,oranyofouraffiliates,ceasesforanyreasonotherthan
forcause,disabilityordeath,theoptionholdermayexerciseanyvestedoptionsforaperiodofthreemonthsfollowingthecessationofservice.Ifanoptionholders
servicerelationshipwithusisterminatedforcause,thentheoptionterminatesimmediately.Ifanoptionholdersservicerelationshipwithusoranyofouraffiliates
ceasesduetodisabilityordeath,oranoptionholderdieswithintheperiod(ifany)specifiedintheawardagreementfollowingcessationofservice,theoptionholderora
beneficiarymayexerciseanyvestedoptionsforaperiodofatleastsixmonthsintheeventofdisabilityordeath.Theoptiontermmaybeextendedintheeventthat
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followingterminationofserviceisprohibitedbyapplicablesecuritieslaws.Innoevent,however,mayanoptionbeexercisedbeyondtheexpirationofitsmaximum
term.
AcceptableconsiderationforthepurchaseofClassAcommonstockissuedupontheexerciseofastockoptionwillbedeterminedbythecompensationcommittee
andmayinclude(a)cash,check,bankdraftormoneyorder,(b)abrokerassistedcashlessexercise,(c)thetenderofClassAcommonstockorClassBcommon
stockpreviouslyownedbytheoptionholder,(d)cancellationofourindebtednesstotheoptionholder,(e)waiverofcompensationduetotheoptionholderforservices
renderedand(f)otherlegalconsiderationapprovedbythecompensationcommittee.
Unlessthecompensationcommitteeprovidesotherwise,optionsgenerallyarenottransferableexceptbywill,thelawsofdescentanddistribution,orpursuanttoa
domesticrelationsorder.Anoptionholdermay,however,designateabeneficiarywhomayexercisetheoptionfollowingtheoptionholdersdeath.
Limitationsonincentivestockoptions.Incentivestockoptionsmaybegrantedonlytoouremployees.Theaggregatefairmarketvalue,determinedatthetimeof
grant,ofsharesofourClassAcommonstockwithrespecttoincentivestockoptionsthatareexercisableforthefirsttimebyanoptionholderduringanycalendaryear
underallofourstockplansmaynotexceed$100,000.Noincentivestockoptionmaybegrantedtoanypersonwho,atthetimeofthegrant,ownsorisdeemedto
ownstockcomprisingmorethan10%ofourtotalcombinedvotingpowerorthatofanyofouraffiliatesunless(a)theoptionexercisepriceisatleast110%ofthefair
marketvalueofthestocksubjecttotheoptiononthedateofgrantand(b)thetermoftheincentivestockoptiondoesnotexceedfiveyearsfromthedateofgrant.
Restrictedstockawards.Restrictedstockawardsaregrantedpursuanttorestrictedstockawardagreementsadoptedbyourcompensationcommittee.Arestricted
stockawardisanofferbyustosellsharesofourClassAcommonstocksubjecttorestrictions.Theprice,ifany,ofarestrictedstockawardwillbedeterminedby
ourcompensationcommittee.Restrictedstockawardsmaybegrantedinconsiderationfor(a)cash,check,bankdraftormoneyorder,(b)pastorfutureservices
renderedtousorouraffiliates,or(c)anyotherformoflegalconsiderationdeterminedbythecompensationcommittee.SharesofClassAcommonstockacquired
underarestrictedstockawardmay,butneednot,besubjecttoasharerepurchaseoptionorforfeiturerestrictioninourfavorinaccordancewithavestingscheduleto
bedeterminedbythecompensationcommittee.Rightstoacquiresharesunderarestrictedstockawardmaybetransferredonlyuponsuchtermsandconditionsas
setbythecompensationcommittee.Exceptasotherwiseprovidedintheapplicableawardagreement,restrictedstockawardsthathavenotvestedwillbeforfeitedor
subjecttorepurchaseupontheparticipantscessationofcontinuousserviceforanyreason.
Restrictedstockunitawards.RSUawardsaregrantedpursuanttorestrictedstockunitawardagreementsadoptedbyourcompensationcommittee.RSUsrepresent
therighttoreceivesharesofourClassAcommonstockataspecifieddateinthefuture,subjecttoforfeitureofthatrightbecauseofterminationoftheholders
servicestousortheholdersfailuretoachievecertainperformanceconditions.IfaRSUhasnotbeenforfeited,thenonthedatespecifiedintheRSUagreement,we
maydelivertotheholderoftheRSUwholesharesofourClassAcommonstock,whichmaybesubjecttoadditionalrestrictions,cashoracombinationofour
ClassAcommonstockandcash.OurcompensationcommitteemayalsopermittheholdersoftheRSUstodeferpaymenttoadateordatesaftertheRSUisearned,
providedthatthetermsoftheRSUandanydeferralsatisfytherequirementsofSection409AoftheCode.

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Stockappreciationrights.Stockappreciationrightsaregrantedpursuanttostockappreciationrightsagreementsadoptedbythecompensationcommittee.Stock
appreciationrightsprovideforapayment,orpayments,incashorsharesofourClassAcommonstock,totheholderbasedupontheincreaseinthefairmarketvalue
ofourClassAcommonstockonthedateofexercisefromthestatedexerciseprice(subjecttoanymaximumnumberofsharesasmaybespecifiedintheapplicable
awardagreement).Thepaymentmayoccurupontheexerciseofastockappreciationrightordeferredwithsuchinterestordividendequivalent,ifany,asour
compensationcommitteedetermines,providedthatthetermsofthestockappreciationrightandanydeferralsatisfytherequirementsofSection409AoftheCode.
Thecompensationcommitteedeterminestheexercisepriceforastockappreciationrightwhichgenerallycannotbelessthan100%ofthefairmarketvalueofour
ClassAcommonstockonthedateofgrant.Stockappreciationrightsmayvestbasedontimeorachievementofperformanceconditions.Stockappreciationrights
expireunderthesamerulesthatapplytostockoptions.
Performanceawards.The2014Planpermitsthegrantofperformancestockawardsandperformancecashawardsthatmayqualifyasperformancebased
compensationthatisnotsubjecttothe$1,000,000limitationontheincometaxdeductibilityofcompensationpaidpercoveredexecutiveofficerimposedby
Section162(m)oftheCode.Toassurethatthecompensationattributabletoperformancebasedawardswillsoqualify,ourcommitteecanstructuresuchawardsso
thatstockwillbeissuedorpaidpursuanttosuchawardonlyupontheachievementofcertainpreestablishedperformancegoalsduringadesignatedperformance
period.Themaximumbenefitthatmaybegrantedtoaparticipantinanycalendaryearmaynotexceed$1,000,000.
Otherstockawards.OurcompensationcommitteemaygrantotherawardsbasedinwholeorinpartbyreferencetoourClassAcommonstock.Thecompensation
committeewillsetthenumberofsharesundertheawardandallothertermsandconditionsofsuchawards.
Changestocapitalstructure.Intheeventthatthereisaspecifiedtypeofchangeinourcapitalstructure,suchasastocksplit,appropriateadjustmentswillbe
madeto(a)theclassandmaximumnumberofsharesreservedunderthe2014Plan,(b)theclassandmaximumnumberofsharessubjecttooptions,stock
appreciationrightsandperformancestockawardsthatcanbegrantedinacalendaryear,(c)theclassandmaximumnumberofsharesthatmaybeissuedupon
exerciseofincentivestockoptions,(d)themaximumnumberofsharesthatmaybeawardedtoamemberofourboardofdirectors,and(e)thenumberofsharesand
exerciseprice,ifapplicable,ofalloutstandingstockawards.
Corporatetransactions.The2014Planprovidesthat,intheeventofasale,leaseorotherdispositionofallorsubstantiallyalloftheassetsofusorspecifiedtypes
ofmergersorconsolidations(each,acorporatetransaction),outstandingawardsunderour2014Planmaybeassumedorreplacedbyanysurvivingoracquiring
corporationthesurvivingoracquiringcorporationmaysubstitutesimilarawardsforthoseoutstandingunderthe2014Planoutstandingawardsmaybesettledforthe
fullvalueofsuchoutstandingaward(whetherornotthenvestedorexercisable)incashorsecuritiesofthesuccessorentitywithpaymentdeferreduntilthedateor
datestheawardwouldhavebecomeexercisableorvestedoroutstandingawardsmaybeterminatedfornoconsideration.Ourboardofdirectorshasthediscretionto
providethatastockawardunderthe2014Planwillimmediatelyvestastoalloranyportionofthesharessubjecttothestockawardatthetimeofacorporate
transactionorintheeventaparticipantsservicewithusorasuccessorentityisterminatedactuallyorconstructivelywithinadesignatedperiodfollowingthe
occurrenceofthetransaction.Stockawardsheldbyparticipants

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underthe2014Planwillnotvestautomaticallyonsuchanacceleratedbasisunlessspecificallyprovidedintheparticipantsapplicableawardagreement.
Plansuspensionortermination.Ourboardofdirectorshastheauthoritytosuspendorterminatethe2014Planatanytimeprovidedthatsuchactiondoesnotimpair
theexistingrightsofanyparticipant.
Securitieslawsandfederalincometaxes.The2014Planisdesignedtocomplywithvarioussecuritiesandfederaltaxlawsasfollows:

Securitieslaws.The2014PlanisintendedtoconformtoallprovisionsoftheSecuritiesActof1933,asamended,andtheExchangeActandanyandall
regulationsandrulespromulgatedbytheSECthereunder,including,withoutlimitation,Rule16b3.The2014Planwillbeadministered,andoptionswillbegranted
andmaybeexercised,onlyinsuchamannerastoconformtosuchlaws,rulesandregulations.

Section409AoftheCode.Certainawardsunderthe2014PlanmaybeconsiderednonqualifieddeferredcompensationforpurposesofSection409Aofthe
Code,whichimposescertainadditionalrequirementsregardingthepaymentofdeferredcompensation.Generally,ifatanytimeduringataxableyearanonqualified
deferredcompensationplanfailstomeettherequirementsofSection409A,orisnotoperatedinaccordancewiththoserequirements,allamountsdeferredunder
the2014Planandallotherequityincentiveplansforthetaxableyearandallprecedingtaxableyears,byanyparticipantwithrespecttowhomthefailurerelates,
areincludibleingrossincomeforthetaxableyeartotheextentnotsubjecttoasubstantialriskofforfeitureandnotpreviouslyincludedingrossincome.Ifa
deferredamountisrequiredtobeincludedinincomeunderSection409A,theamountalsoissubjecttointerestandanadditionalincometax.Theinterestimposed
isequaltotheinterestattheunderpaymentrateplusonepercentagepoint,imposedontheunderpaymentsthatwouldhaveoccurredhadthecompensationbeen
includibleinincomeforthetaxableyearwhenfirstdeferred,oriflater,whennotsubjecttoasubstantialriskofforfeiture.Theadditionalfederalincometaxisequal
to20%ofthecompensationrequiredtobeincludedingrossincome.Inaddition,certainstates,includingCalifornia,havelawssimilartoSection409A,which
imposeadditionalstatepenaltytaxesonsuchcompensation.

Section162(m)oftheCode.Ingeneral,underSection162(m)oftheCode,incometaxdeductionsofpubliclyheldcorporationsmaybelimitedtotheextenttotal
compensation(including,butnotlimitedto,basesalary,annualbonus,andincomeattributabletostockoptionexercisesandothernonqualifiedbenefits)for
certainexecutiveofficersexceeds$1,000,000(lesstheamountofanyexcessparachutepaymentsasdefinedinSection280GoftheCode)inanytaxableyear
ofthecorporation.However,underSection162(m),thedeductionlimitdoesnotapplytocertainperformancebasedcompensationestablishedbyanindependent
compensationcommitteethatisadequatelydisclosedto,andapprovedby,stockholders.Inparticular,stockoptionsandstockappreciationrightswillsatisfythe
performancebasedcompensationexceptioniftheawardsaremadebyaqualifyingcompensationcommittee,the2014Plansetsthemaximumnumberofshares
thatcanbegrantedtoanypersonwithinaspecifiedperiodandthecompensationisbasedsolelyonanincreaseinthestockpriceafterthegrantdate.Specifically,
theoptionexercisepricemustbeequaltoorgreaterthanthefairmarketvalueofthestocksubjecttotheawardonthegrantdate.
Wehaveattemptedtostructurethe2014Planinsuchamannerthatthecompensationattributabletostockoptions,stockappreciationrightsandotherperformance
basedawardswhichmeetthe

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otherrequirementsofSection162(m)willnotbesubjecttothe$1,000,000limitation.Wehavenot,however,requestedarulingfromtheIRSoranopinionofcounsel
regardingthisissue.
2014employeestockpurchaseplan
WeexpectourboardofdirectorstoadoptourESPP,subjecttostockholderapproval,tobecomeeffectiveupontheeffectivenessofthisoffering.Thepurposeofthe
ESPPistoassistusinretainingtheservicesofnewemployeesandsecuringtheservicesofnewandexistingemployeeswhileprovidingincentivesforsuch
individualstoexertmaximumeffortstowardoursuccess.
Sharereserve.Followingthisoffering,theESPPauthorizestheissuanceofsharesofourClassAcommonstockpursuanttopurchaserightsgrantedto
ouremployeesortoemployeesofoursubsidiaries.ThenumberofsharesofourClassAcommonstockreservedforissuancewillautomaticallyincreaseon
January1ofeachcalendaryear,fromJanuary1,2015throughJanuary1,2024,bythelesserof1%ofthetotalnumberofsharesofourClassAcommonstock
outstandingonDecember31oftheprecedingcalendaryearoranumberdeterminedbyourboardofdirectors.TheESPPisintendedtoqualifyasanemployeestock
purchaseplanwithinthemeaningofSection423oftheCode.Asofthedatehereof,nosharesofourClassAcommonstockhavebeenpurchasedundertheESPP.
NomorethansharesofourClassAcommonstockmaybeissuedunderourESPP,andnoothersharesmaybeaddedtothisplanwithouttheapprovalof
ourstockholders.
Administration.OurboardofdirectorshasdelegateditsauthoritytoadministertheESPPtoourcompensationcommittee.TheESPPisimplementedthrougha
seriesofofferingsofpurchaserightstoeligibleemployees.UndertheESPP,wemayspecifyofferingswithdurationsofnotmorethan27months,andmayspecify
shorterpurchaseperiodswithineachoffering.Eachofferingwillhaveoneormorepurchasedatesonwhichnotmorethan2,500sharesofourClassAcommonstock
willbepurchasedforemployeesparticipatingintheoffering.Anofferingmaybeterminatedundercertaincircumstances.
Payrolldeductions.Generally,allregularemployees,includingexecutiveofficers,employedbyusorbyanyofourdesignatedaffiliates,mayparticipateinthe
ESPPandmaycontribute,normallythroughpayrolldeductions,upto15%oftheirearningsforthepurchaseofourClassAcommonstockundertheESPP.Unless
otherwisedeterminedbyourboardofdirectors,ClassAcommonstockwillbepurchasedforaccountsofemployeesparticipatingintheESPPatapricepershare
equaltothelowerof(a)85%ofthefairmarketvalueofashareofourClassAcommonstockonthefirstdateofanofferingor(b)85%ofthefairmarketvalueofa
shareofourClassAcommonstockonthedateofpurchase.
Limitations.EmployeesmayhavetosatisfyoneormoreofthefollowingservicerequirementsbeforeparticipatingintheESPP,asdeterminedbyourboardof
directors:(a)customarilyemployedformorethan20hoursperweek,(b)customarilyemployedformorethanfivemonthspercalendaryearor(c)continuous
employmentwithusoroneofouraffiliatesforaperiodoftimenottoexceedtwoyears.Noholderwillhavetherighttopurchaseoursharesataratewhich,when
aggregatedwithpurchaserightsunderallouremployeestockpurchaseplansthatarealsooutstandinginthesamecalendaryear(s),haveafairmarketvalueofmore
than$25,000,determinedinaccordancewithSection423oftheCode,foreachcalendaryearinwhichthatrightisoutstanding.Finally,noemployeewillbeeligiblefor
thegrantofanypurchaserightsundertheESPPifimmediatelyaftersuchrightsaregranted,suchemployeehasvotingpowerover5%ormoreofouroutstanding
capitalstockmeasuredbyvoteorvaluepursuanttoCodeSection424(d).

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Changestocapitalstructure.Intheeventthatthereoccursachangeinourcapitalstructurethroughsuchactionsasastocksplit,merger,consolidation,
reorganization,recapitalization,reincorporation,stockdividend,dividendinpropertyotherthancash,liquidatingdividend,combinationofshares,exchangeofshares,
changeincorporatestructureorsimilartransaction,theboardofdirectorswillmakeappropriateadjustmentsto(a)thenumberofsharesreservedundertheESPP,
(b)themaximumnumberofsharesthatmaybeissuedundertheESPPand(c)thenumberofsharesandpurchasepriceofalloutstandingpurchaserights.
Corporatetransactions.Intheeventofachangeincontroltransaction,eachoutstandingrighttopurchasesharesunderourESPPmaybeassumedorsubstituted
byoursuccessor.Intheeventthatthesuccessorrefusestoassumeorsubstitutetheoutstandingpurchaserights,anyofferingperiodsthatcommencedpriortothe
closingoftheproposedchangeincontroltransactionwillbeshortenedandterminatedonanewpurchasedate.Thenewpurchasedatewilloccurpriortotheclosing
oftheproposedchangeincontrolandourESPPwillthenterminateontheclosingoftheproposedchangeincontrol.
Planamendmentortermination.OurboardofdirectorshastheauthoritytoamendorterminatetheESPPatanytime.Ifourboardofdirectorsdeterminesthatthe
amendmentorterminationofanofferingisinourbestinterestsandthebestinterestsofourstockholders,thenourboardofdirectorsmayterminateanyofferingon
anypurchasedate,establishanewpurchasedatewithrespecttoanyofferingtheninprogress,terminateanyofferingandreturnanymoneycontributedby
participantsthathasnotbeenusedtopurchasesharesbacktotheparticipants.WewillobtainstockholderapprovalofanyamendmenttotheESPPasrequiredby
applicablelaw.
401(k)plan
WemaintainadefinedcontributionemployeeretirementplanforourU.S.employees.Theplanisintendedtoqualifyasataxqualified401(k)plansothatcontributions
tothe401(k)plan,andincomeearnedonsuchcontributions,arenottaxabletoparticipantsuntilwithdrawnordistributedfromthe401(k)plan.Participantsmaymake
pretaxcontributionstothe401(k)planfromtheireligibleearningsuptothestatutorilyprescribedannuallimitonpretaxcontributionsundertheCode.The401(k)plan
providesthateachparticipantmaycontributeupto100%ofeligiblecompensationonapretaxor,inthecaseoftheRoth401(k),aftertaxbasisintotheiraccounts.
Participantswhoareatleast50yearsoldmayalsocontributeadditionalamountsbasedonthestatutorylimitsforcatchupcontributions.Underthe401(k)plan,
eachemployeeisfullyvestedinhisorherdeferredsalarycontributions.Employeecontributionsareheldandinvestedbytheplanstrustee.Althoughthe401(k)plan
providesforadiscretionaryemployerprofitsharingcontributionandadiscretionaryemployermatchingcontribution,wehavenotmadeanysuchcontributionson
behalfofparticipatingemployeestodate.
Limitationofliabilityandindemnificationofdirectorsandofficers
Ourrestatedcertificateofincorporation,whichwillbecomeeffectiveupontheclosingofthisoffering,willcontainprovisionsthatlimittheliabilityofourdirectorsfor
monetarydamagestothefullestextentpermittedbyDelawarelaw.Consequently,ourdirectorswillnotbepersonallyliabletousorourstockholdersformonetary
damagesforanybreachoffiduciarydutiesasdirectors,exceptliabilityforthefollowing:

anybreachoftheirdutyofloyaltytoourcompanyorourstockholders

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anyactoromissionnotingoodfaithorthatinvolvesintentionalmisconductoraknowingviolationoflaw

unlawfulpaymentsofdividendsorunlawfulstockrepurchasesorredemptionsasprovidedinSection174oftheDelawareGeneralCorporationLawor

anytransactionfromwhichtheyderivedanimproperpersonalbenefit.
Ouramendedandrestatedbylaws,whichwillbecomeeffectiveupontheclosingofthisoffering,willprovidethatweshallindemnify,tothefullestextentpermittedby
law,anypersonwhoisorwasapartyoristhreatenedtobemadeapartytoanyaction,suitorproceeding,byreasonofthefactthatheorsheisorwasoneofour
directorsorofficersorisorwasservingatourrequestasadirectororofficerofanothercorporation,partnership,jointventure,trustorotherenterprise.Ouramended
andrestatedbylawswillprovidethatwemayindemnifytothefullestextentpermittedbylawanypersonwhoisorwasapartyoristhreatenedtobemadeapartyto
anyaction,suitorproceeding,byreasonofthefactthatheorsheisorwasoneofouremployeesoragentsorisorwasservingatourrequestasanemployeeor
agentofanothercorporation,partnership,jointventure,trustorotherenterprise.Ouramendedandrestatedbylawswillalsoprovidethatwemustadvanceexpenses
incurredbyoronbehalfofadirectororofficerinadvanceofthefinaldispositionofanyactionorproceeding,subjecttoverylimitedexceptions.
Priortotheclosingofthisoffering,weintendtoobtaininsurancepoliciesunderwhich,subjecttothelimitationsofthepolicies,coverageisprovidedtoourdirectors
andofficersagainstlossarisingfromclaimsmadebyreasonofbreachoffiduciarydutyorotherwrongfulactsasadirectororofficer,includingclaimsrelatingto
publicsecuritiesmatters,andtouswithrespecttopaymentsthatmaybemadebyustotheseofficersanddirectorspursuanttoourindemnificationobligationsor
otherwiseasamatteroflaw.
Priortotheclosingofthisoffering,weintendtoenterintoindemnificationagreementswitheachofourdirectorsandexecutiveofficersthatmaybebroaderthanthe
specificindemnificationprovisionscontainedintheDelawareGeneralCorporationLaw.Theseindemnificationagreementsmayrequireus,amongotherthings,to
indemnifyourdirectorsandexecutiveofficersagainstliabilitiesthatmayarisebyreasonoftheirstatusorservice.Theseindemnificationagreementsmayalsorequire
ustoadvanceallexpensesincurredbythedirectorsandexecutiveofficersininvestigatingordefendinganysuchaction,suitorproceeding.Webelievethatthese
agreementsarenecessarytoattractandretainqualifiedindividualstoserveasdirectorsandexecutiveofficers.
Atpresent,wearenotawareofanypendinglitigationorproceedingforwhichindemnificationissoughtinvolvinganypersonwhoisorwasoneofourdirectors,
officers,employeesorotheragentsorisorwasservingatourrequestasadirector,officer,employeeoragentofanothercorporation,partnership,jointventure,trust
orotherenterprise,andwearenotawareofanythreatenedlitigationthatmayresultinclaimsforindemnification.
Theunderwritingagreementprovidesforindemnificationbytheunderwritersofusandourofficers,directorsandemployeesforcertainliabilitiesarisingunderthe
SecuritiesAct,orotherwise.
InsofarasindemnificationforliabilitiesarisingundertheSecuritiesActmaybepermittedtodirectors,officersorpersonscontrollingourcompanypursuanttothe
foregoingprovisions,wehavebeeninformedthat,intheopinionoftheSEC,suchindemnificationisagainstpublicpolicyasexpressedintheSecuritiesActandis
thereforeunenforceable.

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Certainrelationshipsandrelatedpersontransactions
Otherthancompensationarrangements,thefollowingisadescriptionofeachtransactionsinceJanuary1,2011andeachcurrentlyproposedtransactioninwhich:

wehavebeenoraretobeaparticipant

theamountinvolvedexceeds$120,000and

anyofourdirectors,executiveofficersorholdersofmorethan5%ofourcapitalstock,oranyimmediatefamilymemberoforpersonsharingthehouseholdwith
anyoftheseindividuals,hadorwillhaveadirectorindirectmaterialinterest.
Compensationarrangementsforourdirectorsandnamedexecutiveofficersaredescribedelsewhereinthisprospectus.
SeriesApreferredstockdividendandfinancing
InFebruary2011,wedeclaredastockdividendpursuanttowhicheachholderofourcommonstockasofsuchdatereceived0.078946sharesofourSeriesA
preferredstockforeachshareofourcommonstockthenheld.InMarch2011,wedeclaredasecondstockdividendpursuanttowhicheachholderofourcommon
stockasofsuchdatereceived0.205689sharesofourSeriesApreferredstockforeachshareofourcommonstockthenheld.Asoftherecorddateofbothstock
dividends,NicholasWoodmanandDeanWoodman,NicholasWoodmansfather,weretheonlyholdersofourcommonstock.NicholasWoodmanhasservedasour
ChiefExecutiveOfficerandasadirectorsinceFebruary2004andeachofNicholasWoodmanandDeanWoodmanbeneficiallyownmorethan5%ofourcapital
stock.
InFebruary2011,weissuedandsoldtoaccreditedinvestorsanaggregateof7,894,632sharesofSeriesApreferredstock,atapurchasepriceof$2.533367per
share,foraggregateconsiderationof$20.0millionpursuanttotheSeriesAPreferredStockPurchaseAgreementdatedFebruary19,2011.Inconnectionwiththe
SeriesApreferredstockfinancing,NicholasWoodmanandDeanWoodmansold24,155,730and2,683,977sharesofSeriesApreferredstock,respectively,which
constitutedallofthesharesofSeriesApreferredstocktheyreceivedinconnectionwiththestockdividenddescribedabove,atapurchasepriceof$2.533367per
share,foraggregateconsiderationof$61.2millionand$6.8million,respectively.Further,inconnectionwiththisSeriesApreferredstockfinancing,Nicholas
WoodmanandDeanWoodmancontributed24,155,730and2,683,977sharesofcommonstock,respectively,tousatnocostandasaninducementtoinvestorsto
participateinthispreferredstockfinancing.
InconnectionwiththeSeriesApreferredstockfinancing,(i)RWCameraHoldingsLLC,orRWCameraacquired7,894,632sharesofSeriesApreferredstockfromus
foraggregateconsiderationof$20.0millionand12,994,494sharesofSeriesApreferredstockfromNicholasWoodmanandDeanWoodmanforaggregate
considerationof$32.9million,and(ii)SageviewCapitalMaster,L.P.,orSageviewMaster,acquired7,894,635sharesofSeriesApreferredstockfromNicholas
WoodmanandDeanWoodmanforaggregateconsiderationof$20.0million.RWCameraandSageviewMastereachholdmorethan5%ofourcapitalstock.Michael
Marks,oneofourdirectors,isanaffiliateofRWCamera.EdwardGilhuly,oneofourdirectors,isanaffiliateofSageviewMaster.

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Investorsrightsagreement
InconnectionwithourSeriesApreferredstockfinancing,weenteredintoaninvestorsrightsagreement,datedFebruary25,2011andamendedonMarch10,2011,
withtheholdersofourredeemableconvertiblepreferredstock,includingentitiesaffiliatedwithcertainofourdirectors.Pursuanttosuchinvestorsrightsagreement,
theholdersofourredeemableconvertiblepreferredstockareentitledtorightswithrespecttotheregistrationoftheirsharesfollowingthisofferingundertheSecurities
Act.ForamoredetaileddescriptionoftheseregistrationrightsseethesectiontitledDescriptionofcapitalstockRegistrationrights.
Dividend
OnDecember19,2012,wedeclaredcashdividendsof$117.4millionpursuanttowhicheachholderofourcommonstockasofDecember21,2012received
$1.050965foreachsharethenheldbysuchstockholder(onanasconvertedtocommonstockbasis).Thefollowingdirectors,executiveofficersandholdersofmore
than5%ofourcapitalstock,ortheiraffiliates,receivedthedividendpaymentslistedbelow:


Directors,ExecutiveOfficersand5%Stockholders(orAffiliates)
Total
Dividend
Received
NicholasWoodmanandJillR.Woodman,asCoTrusteesoftheWoodmanFamilyTrustunderTrustAgreementdatedMarch11,2011(1) $ 57,114,689
RWCameraHoldingsLLC(2) 19,291,998
FoxteqHoldingsInc. 12,306,093
SageviewCapitalMaster,L.P.(3) 7,291,032
DeanWoodman(4) 7,625,825
JohnBall(5) 3,645,515
AndreaMoody 446,204
PilarWoodman 446,204
ConcepcionFederman 315,290
IrwinFederman 315,290

(1) NicholasWoodmanisourChiefExecutiveOfficerandChairmanandMs.Woodmanisaformermemberofourboardofdirectors.

(2) Mr.Marks,amemberofourboardofdirectors,isanaffiliateofRWCameraHoldingsLLC.

(3) Mr.Gilhuly,amemberofourboardofdirectors,isanaffiliateofSageviewCapitalMaster,L.P.

(4) IncludesdividendpaymentstoDeanWoodman,aholderof5%ormoreofourcapitalstockashissoleandseparatepropertyandascertaincommunityproperty,andtheDeanS.Woodman2010
IrrevocableTrustdatedDecember3,2010ofwhichfamilymembersofMr.Woodmanarebeneficiaries.
(5) SteamboatVenturesHoldingsV,L.P.isanaffiliateofMr.Ball.
Offerlettersandchangeincontrolagreements
Wehaveenteredintoofferlettersandchangeincontrolseveranceagreementswithourexecutiveofficersthat,amongotherthings,provideforseveranceandchange
incontrolbenefits.SeeExecutivecompensationEmployment,severanceandchangeincontrolagreementsforinformationabouttheseagreements.
Shareofproceedsfromsaleofequitysecurities
Duringourdevelopmentstage,Mr.Woodman,ourChiefExecutiveOfficer,enteredintoaverbalagreementwithNeilDana,anemployeesinceOctober2004,pursuant
towhichMr.Woodman

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agreedtoshare10%ofanyproceedshereceivedfromthesaleofourequitysecuritiesheldbyMr.Woodman.PursuanttoMr.WoodmansagreementwithMr.Dana,
inMarch2011,wepaidMr.Danaacashpaymentof$6.1million,andMr.Woodmanreimbursedusintheamountof$6.1million.Werecordedthepaymentto
Mr.Danaascompensationexpense.InreleaseofanyclaimMr.DanahadtofurtherpaymentsunderhisagreementwithMr.Woodman,inJune2011weissued
Mr.Danafullyvestedoptionstopurchase6,584,427sharesofClassBcommonstockunderour2010Planatanexercisepriceof$0.763pershare,andinDecember
2011issuedtohim270,000RSUsunderour2010Planthatwillbesettleduponaqualifiedacquisition.Werecordedcompensationexpenseof$6.8millionin
connectionwiththeissuanceoftheseoptions.InconnectionwithourequityawardstoMr.Dana,Mr.Woodmanenteredintoaseparateagreementwithusin
December2011pursuanttowhichheagreedtocontributebacktousthesamenumberofsharesofClassBcommonstockasareissuedpursuanttotheexerciseof
Mr.Danasoptions.
Mr.DanahasbeenemployedbyussinceOctober2004.During2011,2012and2013,Mr.Danahadtotalcashcompensation,includingbasesalary,bonusandother
compensation,of$6.3million(inclusiveofthe$6.1millionpaymentdescribedabove),$245,499and$240,982,respectively.
Employmentarrangementswithandequitygrantstoimmediatefamilymembersofourexecutiveofficersanddirectors
AndreaMoody,thesisterofNicholasWoodman,hasbeenemployedbyussinceMarch2009.During2011,2012and2013,Ms.Moodyhadtotalcashcompensation,
includingbasesalary,bonusandothercompensation,of$109,107,$139,062and$102,638,respectively.
PilarWoodman,thesisterofNicholasWoodman,hasbeenemployedbyussinceJanuary2011.During2011,2012and2013,Ms.Woodmanhadtotalcash
compensation,includingbasesalary,bonusandothercompensation,of$83,961,$89,741and$86,100,respectively.
InconnectionwiththeirexerciseofstockoptionsandtheirsaleofsharesofcommonstocktoourChiefExecutiveOfficerin2012,eachofMs.MoodyandMs.
WoodmanhadreportableincomeundertheCodeof$1,970,844.Associatedwiththistransactionwerecordedaggregatecompensationexpenseof$806,400asthe
cashproceedsreceivedbyMs.MoodyandMs.Woodmanwereinexcessofthefairvalueofthesharessold.
InJune2011,wegrantedtoConcepcionFedermanandIrwinFederman,themotherandstepfatherofNicholasWoodman,anaggregateof600,000sharesofcommon
stockatapurchasepriceof$0.0033pershareforconsultingservices,allofwhicharefullyvested.
Indemnificationofdirectors
Priortotheclosingofthisofferingweintendtoenterintoindemnificationagreementswitheachofourdirectorsandexecutiveofficers.Theseindemnification
agreementsandourrestatedcertificateofincorporationandamendedandrestatedbylawswillprovideforindemnificationofeachofourdirectorsandexecutive
officerstothefullestextentpermittedbyDelawarelaw.Foramoredetaileddescriptionofourindemnificationarrangements,seeManagementLimitationofliability
andindemnificationofdirectorsandofficers.

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Othertransactions
BeginninginApril2013,weenteredintoagreementsforcertaincontractmanufacturingandengineeringserviceswithacompanyaffiliatedwithFoxteqHoldingsInc.,a
beneficialownerofmorethan5%ofourcapitalstock.AsofMarch31,2014,theaggregateamountinvoicedtousundertheseagreementswas$14.1million.
InJuly2013,weloanedtoPaulCrandell,oneofournamedexecutiveofficers,$150,000,pursuanttoademandpaymentloanthatdidnotbearinterest,whichwas
repaidinMarch2014.
InAugust2013,weenteredintoanagreementwithMooresvilleMotorplex,LLC,acompanyownedbythesonofMichaelMarks,oneofourdirectors,toacquire
certainnamingrightstoasprintkarttrack.Asconsiderationforthesenamingrights,wewillpayatotalof$525,000ininstallmentsbeginninginOctober2013overthe
namingrightsperiod.Inadditiontocashpaymentforthenamingrights,wearealsocontractuallyobligatedtoprovideMooresvilleMotorplexwith300capturedevices
atnocostoverthelifeoftheagreement.
InNovember2013,webecameapartytoasettlementagreementbetweenNicholasWoodmanandDeanWoodmanrelatedtoanoutstandinglegalmatter.Pursuantto
thesettlementagreement,wereimbursedDeanWoodmanslegalexpensesof$175,000.
InDecember2013,weenteredintoaseparationagreementwithKurtAmundson,ourformerChiefFinancialOfficer,pursuanttowhichwepaidhimcashseveranceof
$290,306.
Infiscalyear2013andthefirstquarteroffiscalyear2014,weincurredandexpensedcharteredaircraftfeesfortheuseofMr.Woodmansprivateplane,forwhich
$185,000wasaccruedasofMarch31,2014.
Review,approvalorratificationoftransactionswithrelatedparties
Ourpolicyandthecharterofthegovernanceandnominatingcommitteerequirethatanytransactionwitharelatedpartythatmustbereportedunderapplicablerulesof
theSEC(otherthancompensationrelatedmatters)andmustbereviewedandapprovedbythegovernanceandnominatingcommittee(otherthantransactionsthatare
subjecttoreviewbyourboardofdirectorsasawholeoranyothercommitteeofourboardofdirectors),unlesstherelatedpartyis,orisassociatedwith,amemberof
suchcommittee,inwhicheventsuchtransactionmustbereviewedandapprovedbytheauditcommittee.Thesecommitteeshavenotyetadoptedpoliciesor
proceduresforreviewof,orstandardsforapprovalof,suchtransactions.

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Principalandsellingstockholders
ThefollowingtablepresentsinformationastothebeneficialownershipofourClassBcommonstockasofMarch31,2014,asadjustedtoreflectthesaleofour
ClassAcommonstockinthisoffering,by:

eachstockholderknownbyustobethebeneficialownerofmorethan5%ofourClassBcommonstock

eachofourdirectors

eachofournamedexecutiveofficers

allofourdirectorsandexecutiveofficersasagroupand

eachsellingstockholder.
BeneficialownershipisdeterminedinaccordancewiththerulesoftheSECandthusrepresentsvotingorinvestmentpowerwithrespecttooursecurities.Unless
otherwiseindicatedbelow,toourknowledge,thepersonsandentitiesnamedinthetablehavesolevotingandsoleinvestmentpowerwithrespecttoallshares
beneficiallyowned,subjecttocommunitypropertylawswhereapplicable.SharesofourClassBcommonstocksubjecttooptionsthatarecurrentlyexercisableor
exercisablewithin60daysofMarch31,2014aredeemedtobeoutstandingandtobebeneficiallyownedbythepersonholdingtheoptionsforthepurposeof
computingthepercentageownershipofthatpersonbutarenottreatedasoutstandingforthepurposeofcomputingthepercentageownershipofanyotherperson.
PercentageownershipofourClassBcommonstockbeforethisofferingisbasedon112,820,599sharesofourClassBcommonstockoutstandingonMarch31,
2014,whichincludes30,523,036sharesofClassBcommonstockresultingfromtheconversionofalloutstandingsharesofourredeemableconvertiblepreferred
stockinconnectionwiththeclosingofthisoffering,asifthisconversionhadoccurredasofMarch31,2014.NosharesofourClassAcommonstockwillbe
outstandingpriortotheeffectivedateofthisprospectus.PercentageownershipofourClassAandClassBcommonstockaftertheofferingalsoassumesoursaleof
sharesofClassAcommonstockinthisoffering(assumingnoexerciseoftheunderwritersoptiontopurchaseadditionalshares).Unlessotherwiseindicated,the
addressofeachoftheindividualsandentitiesnamedbelowisc/oGoPro,Inc.,3000ClearviewWay,SanMateo,California94402.

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Numberofshares
beneficiallyowned
beforethis
offering
Numberofshares
beneficiallyowned
afterthisoffering
Name ClassB
%oftotal
voting
power
before
offering(1)
Numberof
shares
offered ClassA ClassB
%oftotal
voting
power
after
offering(1)
5%stockholders:
NicholasWoodmanandJillR.Woodman,asCoTrusteesof
TheWoodmanFamilyTrustunderTrustAgreementdated
March11,2011(2) 55,100,496 48.84
RWCameraHoldingsLLC(3) 18,356,461 16.27
FoxteqHoldingsInc.(4) 11,709,327 10.38
DeanWoodman(5) 7,256,022 6.43
SageviewCapitalMaster,L.P.(6) 6,937,464 6.15
NeilDana(7) 6,584,427 5.51
Directorsandnamedexecutiveofficers:
NicholasWoodman(8) 55,100,496 48.84
JillWoodman(8) 55,100,496 48.84
MichaelMarks(9) 18,356,461 16.27
EdwardGilhuly(10) 6,937,464 6.15
JohnBall(11) 3,468,731 3.07
KennethGoldman *
PaulCrandell(12) 229,687 *
NinaRichardson(13) 140,625 *
Allexecutiveofficersanddirectorsasagroup(15
persons)(14) 86,972,837 75.27

* Representsbeneficialownershipoflessthan1%ofouroutstandingsharesofcommonstock.

(1) PercentageoftotalvotingpowerrepresentsvotingpowerwithrespecttoallsharesofourClassAandClassBcommonstock,asasingleclass.TheholdersofourClassBcommonstockareentitledto
tenvotespershare,andholdersofourClassAcommonstockareentitledtoonevotepershare.SeeDescriptionofcapitalstockCommonstockformoreinformationaboutthevotingrightsofour
ClassAandClassBcommonstock.
(2) AsCoTrustees,eachofMr.WoodmanandMs.Woodmanmaybedeemedtohavesharedvotingandinvestmentpowerovertheseshares.TheaddressfortheWoodmanFamilyTrustis3000Clearview
Way,SanMateo,CA94402.
(3) Consistsof18,356,461sharesheldbyRWCameraHoldingsLLC.RiverwoodCapitalL.P.isthemanagerofRWCameraHoldingsLLCandRiverwoodCapitalGPLtd.isthegeneralpartnerofRiverwood
CapitalL.P.Mr.Marks,amemberofourboardofdirectors,isChiefExecutiveOfficerandDirectorofRiverwoodCapitalGPLtd.,andNicholasBrathwaite,FranciscoAlvarezDemaldeandJeffParksare
themanagingdirectorsofRiverwoodCapitalGPLtd.,allofwhommaybedeemedtosharevotingandinvestmentpowerovertheseshares.TheaddressforRWCameraHoldingsis70WillowRoad,Suite
100,MenloPark,CA94025.
(4) Consistsof11,709,327sharesheldbyFoxteqHoldingsInc.Foxconn(FarEast)Ltd.(Cayman),anexemptcompany,isthemanagerofFoxteqHoldingsInc.HonHaiPrecisionIndustryCo.,Ltd.,a
companylimitedbyshares,isthemanagerofFoxconn(FarEast)Ltd.(Cayman).TheaddressforFoxteqHoldingsInc.isNo2ZiyouStreet,TuchengDistrictNewTaipeiCity236Taiwan,Republicof
China.
(5) Consistsof(i)120,000sharesheldbyDeanWoodmanashissoleandseparateproperty,(ii)5,336,022sharesheldbyDeanWoodmanascertaincommunitypropertyand(iii)1,800,000sharesheldby
TheodoreH.Swindells,TrusteeoftheDeanS.Woodman2010IrrevocableTrustdatedDecember3,2010.TheaddressforDeanWoodmanisc/oMorganStanleyPrivateWealthManagement,555
th
CaliforniaStreet,35 Floor,SanFrancisco,CA94104,Attn:MichaelBaumer.
(6) Consistsof6,937,464sharesheldbySageviewCapitalMaster,L.P.(SageviewMaster).SageviewCapitalPartners(A),L.P.(SageviewA),SageviewCapitalPartners(B),L.P.(SageviewB)and
SageviewPartners(C)(Master),L.P.(SageviewC)arethesoleshareholdersofSageviewMaster.SageviewCapitalGenPar,Ltd.(SageviewLtd)isthesolegeneralpartnerofeachofSageview
Master.SageviewA,SageviewBandSageviewC.SageviewCapitalGenPar,L.P.(SageviewGenPar)isthesoleshareholderofSageviewLtd.SageviewCapitalMGP,LLCisthesolegeneralpartner
ofSageviewGenPar.ScottStuartand

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EdwardGilhuly,oneofourdirectors,aremanagingmembersandcontrollingpersonsofSageviewCapitalMGP,LLC.AsmanagingmembersofSageviewCapitalMGP,LLC,eachofMessrs.Stuartand
Gilhulymaybedeemedtosharevotingandinvestedpowerovertheseshares.TheaddressforMr.Gilhulyisc/oSageviewCapitalLP,245LyttonAvenue,Suite250,PaloAlto,CA94301.Theaddress
forMr.Stuartisc/oSageviewCapitalLP,55RailroadAvenue,Greenwich,CT06830.
(7) Consistsof6,584,427sharessubjecttooptionsheldbyMr.Danathatareexercisablewithin60daysofMarch31,2014.TheaddressforMr.Danais3000ClearviewWay,SanMateo,CA94402.

(8) Consistsof55,100,496sharesheldbytheWoodmanFamilyTrustunderTrustAgreementdatedMarch11,2011ofwhichNicholasWoodmanandJillWoodmanarecotrustees.JillWoodmanresignedas
amemberofourboardofdirectorsinMay2014.
(9) Consistsofthesharesreferredtoinfootnote(3)above.TheaddressforMr.Marksisc/oRiverwoodCapital,70WillowRoad,Suite100,MenloPark,CA94025.

(10) Consistsofthesharesreferredtoinfootnote(6)above.TheaddressforMr.Gilhulyisc/oSageviewCapitalLP,245LyttonAvenue,Suite250,PaloAlto,CA94301.

(11) Consistsof3,468,731sharesheldbySteamboatVenturesV,L.P.,onitsownbehalfandasnomineeforthebenefitofcertainotherentitiesaffiliatedwithSteamboatVenturesV,L.P.Steamboat
VenturesHoldingsVManager,L.P.isthegeneralpartnerofSteamboatVenturesV,L.P.SteamboatVenturesHoldingsVGP,Ltd.isthegeneralpartnerofSteamboatVenturesHoldingsVManager,
L.P.Mr.Ball,amemberofourboardofdirectors,isamanagingpartnerofSteamboatVenturesHoldingsVGP,Ltd.andmaybedeemedtohavesharedvotingandinvestmentpowerovertheseshares.
TheaddressforMr.Ballis3601WestOliveAvenue,Suite650,Burbank,CA91505.
(12) Consistsof:(i)80,300sharesand(ii)149,387sharessubjecttooptionsheldbyMr.Crandellthatareexercisablewithin60daysofMarch31,2014.

(13) Consistsof140,625sharessubjecttooptionsheldbyMs.Richardsonthatareexercisablewithin60daysofMarch31,2014.

(14) Consistsof(i)84,250,018sharesand(ii)2,722,819sharessubjecttooptionsthatareexercisablewithin60daysofMarch31,2014.

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Descriptionofcapitalstock
Uponthecompletionofthisoffering,ourauthorizedcapitalstockwillconsistofsharesofClassAcommonstock,$0.0001parvaluepershare,
sharesofClassBcommonstock,$0.0001parvaluepershareand5,000,000sharesofundesignatedpreferredstock,$0.0001parvaluepershare.Thefollowing
descriptionsummarizesthemostimportanttermsofourcapitalstock.Becauseitisonlyasummary,itdoesnotcontainalltheinformationthatmaybeimportantto
you.Foracompletedescription,youshouldrefertoourrestatedcertificateofincorporationandamendedandrestatedbylawsthatwillbeineffectuponthe
completionofthisoffering,whichwillbeincludedasexhibitstotheregistrationstatementofwhichthisprospectusformsapart,andtotheprovisionsofapplicable
Delawarelaw.
Commonstock
AsofMarch31,2014,therewere112,820,599sharesofourClassBcommonstockoutstanding,heldby190stockholdersofrecord,assumingtheconversionofall
oftheoutstandingsharesofredeemableconvertiblepreferredstockinto30,523,036sharesofClassBcommonstockinconnectionwiththeclosingofthisoffering.
NosharesofourClassAcommonstockwillbeoutstandingpriortotheeffectivedateofthisprospectus.Afterthisoffering,therewillbesharesofour
ClassAcommonstockoutstandingandsharesofourClassBcommonstockoutstanding,orsharesofClassAcommonstockoutstandingif
theunderwritersexerciseinfulltheiroptiontopurchaseadditionalsharesofClassAcommonstockinthisoffering.
Dividendrights
Subjecttopreferencesthatmayapplytosharesofpreferredstockoutstandingatthetime,theholdersofoutstandingsharesofourClassAandClassBcommon
stockareentitledtoreceivedividendsoutoffundslegallyavailableatthetimesandintheamountsthatourboardofdirectorsmaydetermine.
Votingrights
HoldersofourClassAandClassBcommonstockhaveidenticalrights,exceptthatholdersofourClassAcommonstockareentitledtoonevoteforeachshareof
ClassAcommonstockheldonallmatterssubmittedtoavoteofstockholdersandholdersofourClassBcommonstockareentitledto10votesforeachshareof
ClassBcommonstockheldonallmatterssubmittedtoavoteofstockholders.HoldersofsharesofourClassAcommonstockandClassBcommonstockwillvote
togetherasasingleclassonallmatters(includingtheelectionofdirectors)submittedtoavoteofstockholders,unlessotherwiserequiredbylaw.Cumulativevoting
fortheelectionofdirectorsisnotprovidedforinourrestatedcertificateofincorporationthatwillbeineffectupontheclosingofthisoffering,whichmeansthatthe
holdersofamajorityofourvotingsharescanelectallofthedirectorsthenstandingforelection.
Nopreemptiveorsimilarrights
NeitherourClassAnorourClassBcommonstockisentitledtopreemptiveorredemptionrights.
Conversion
OurClassAcommonstockisnotconvertibleintoanyothersharesofourcapitalstock.EachshareofourClassBcommonstockisconvertibleatanytimeatthe
optionoftheholderintooneshare

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ofourClassAcommonstock.Inaddition,eachshareofourClassBcommonstockwillconvertautomaticallyintooneshareofourClassAcommonstockuponany
transfer,whetherornotforvalue,exceptforestateplanning,intercompanyandothersimilartransfers.Followingthecompletionofthisoffering,eachshareofour
ClassBcommonstockwillconvertautomaticallyintooneshareofClassAcommonstockonthedatethatthetotalnumberofsharesofClassBcommonstock
outstandingrepresentslessthan10%ofthetotalnumberofsharesofClassAandClassBcommonstockoutstanding.EachshareofourClassBcommonstockwill
alsoconvertintooneshareofClassAcommonstockifsuchconversionisapprovedbytheholdersofamajorityofthethenoutstandingsharesofClassBcommon
stock.OnceconvertedintoClassAcommonstock,theClassBcommonstockmaynotbereissued.Noclassofourcommonstockmaybesubdividedorcombined
unlesstheotherclassofourcommonstockconcurrentlyissubdividedorcombinedinthesameproportionandinthesamemanner.
Righttoreceiveliquidationdistributions
Uponourliquidation,dissolutionorwindingup,theassetslegallyavailablefordistributiontoourstockholderswouldbedistributableratablyamongtheholdersofour
ClassAandClassBcommonstockandanyparticipatingpreferredstockoutstandingatthattimeafterpaymentofliquidationpreferences,ifany,onanyoutstanding
sharesofpreferredstockandpaymentofotherclaimsofcreditors.
Fullypaidandnonassessable
AlloutstandingsharesofourClassBcommonstockare,andthesharesofourClassAcommonstocktobeissuedpursuanttothisofferingwillbe,fullypaidand
nonassessable.
Preferredstock
Followingthisoffering,ourboardofdirectorswillbeauthorized,subjecttolimitationsprescribedbyDelawarelaw,toissuepreferredstockinoneormoreseries,to
establishfromtimetotimethenumberofsharestobeincludedineachseries,tofixthedesignation,powers,preferencesandrightsofthesharesofeachseriesand
anyofitsqualifications,limitationsorrestrictions,ineachcasewithoutfurtheractionbyourstockholders.Ourboardofdirectorscanalsoincreaseordecreasethe
numberofsharesofanyseriesofpreferredstock,butnotbelowthenumberofsharesofthatseriesthenoutstanding,unlessapprovedbytheaffirmativevoteofthe
holdersofamajorityofourcapitalstockentitledtovote,orsuchothervoteasmayberequiredbythecertificateofdesignationestablishingtheseries.Ourboardof
directorsmayauthorizetheissuanceofpreferredstockwithvotingorconversionrightsthatcouldadverselyaffectthevotingpowerorotherrightsoftheholdersofthe
ClassAorClassBcommonstock.Theissuanceofpreferredstock,whileprovidingflexibilityinconnectionwithpossibleacquisitionsandothercorporatepurposes,
could,amongotherthings,havetheeffectofdelaying,deferringorpreventingachangeinourcontrolandmightadverselyaffectthemarketpriceofourClassA
commonstockandthevotingandotherrightsoftheholdersofourClassAandClassBcommonstock.Wehavenocurrentplantoissueanysharesofourpreferred
stock.
OptionsandRSUs
AsofMarch31,2014,wehadoutstandingoptionstopurchase27,798,919sharesofourClassBcommonstockand570,000RSUsunderour2010Plan.

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Registrationrights
Pursuanttothetermsofourinvestorsrightsagreement,immediatelyfollowingthecompletionofthisoffering,theholdersofapproximately30,523,036sharesofour
ClassBcommonstockwillbeentitledtorightswithrespecttotheregistrationofsuchsharesundertheSecuritiesAct,asdescribedbelow.
Demandregistrationrights.Atanytimefollowing180daysaftertheeffectivedateofthisoffering,theholdersofamajorityofthethenoutstandingshareshaving
registrationrightscanrequestthatwefilearegistrationstatementcoveringregistrablesecuritieswithananticipatedaggregateofferingpriceofatleast$50.0million,
providedthatwearenotrequiredtofilemorethanonesuchregistrationstatement.Inaddition,atsuchtimeasweareeligibletoregistersecuritiesonaRegistration
StatementonFormS3,theholdersofamajorityofthethenoutstandingshareshavingregistrationrightscanrequestthatwefilearegistrationstatementcovering
registrablesecuritieswithananticipatedaggregateofferingpriceofatleast$7.0million,providedthatwearenotrequiredtofilemorethantwosuchregistrationsina
12monthperiod.Wehavecertainrightstopostponeordelaysuchrequestsforthefilingofaregistrationstatement.
Piggybackregistrationrights.Ifweregisteranyofoursecuritiesforpublicsale,holdersofshareshavingregistrationrightswillhavetherighttoincludetheirshares
intheregistrationstatement.However,thisrightdoesnotapplytoaregistrationrelatingtoanyofouremployeebenefitplansoraregistrationrelatingtoacorporate
reorganization.Ifthemanagingunderwriterofanyunderwrittenofferingdeterminesthatitisnecessarytolimitthenumberofsharesincludedintheofferingbythese
holders,thenumberofsharestoberegisteredwillbeapportionedprorataamongtheseholders.However,exceptinlimitedcircumstances,thenumberofsharestobe
registeredbytheseholderscannotbereducedbelow25%ofthetotalsharescoveredbytheregistrationstatement.
Expensesofregistrationrights.Wewillpayallexpensesincurredinconnectionwiththeregistrationsdescribedabove.
Expirationofregistrationrights.Theregistrationrightsdescribedabovewillexpire,withrespecttoanyparticularholderoftheserights,ontheearlierofthefifth
anniversaryoftheeffectivedateofthisofferingorwhensuchholdercansellallofitsregistrablesecuritiesinanythreemonthperiodwithoutregistrationunderRule
144oftheSecuritiesAct.
Antitakeoverprovisions
TheprovisionsofDelawarelaw,ourrestatedcertificateofincorporationandouramendedandrestatedbylawsthatwillbeineffectuponthecompletionofthisoffering
mayhavetheeffectofdelaying,deferringordiscouraginganotherpersonfromacquiringcontrolofourcompany.
Delawarelaw
WearesubjecttoSection203oftheDelawareGeneralCorporationLaw,whichprohibitsaDelawarecorporationfromengaginginanybusinesscombinationwithany
interestedstockholderforaperiodofthreeyearsafterthedatethatsuchstockholderbecameaninterestedstockholder,withthefollowingexceptions:

beforesuchdate,theboardofdirectorsofthecorporationapprovedeitherthebusinesscombinationorthetransactionthatresultedinthestockholderbecomingan
interestedstockholder

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uponclosingofthetransactionthatresultedinthestockholderbecominganinterestedstockholder,theinterestedstockholderownedatleast85%ofthevoting
stockofthecorporationoutstandingatthetimethetransactionbegan,excludingforpurposesofdeterminingthevotingstockoutstanding(butnottheoutstanding
votingstockownedbytheinterestedstockholder)thosesharesowned(i)bypersonswhoaredirectorsandalsoofficersand(ii)employeestockplansinwhich
employeeparticipantsdonothavetherighttodetermineconfidentiallywhethersharesheldsubjecttotheplanwillbetenderedinatenderorexchangeofferor

onoraftersuchdate,thebusinesscombinationisapprovedbytheboardofdirectorsandauthorizedatanannualorspecialmeetingofthestockholders,andnot
bywrittenconsent,bytheaffirmativevoteofatleast662/3%oftheoutstandingvotingstockthatisnotownedbytheinterestedstockholder.
Generally,abusinesscombinationincludesamerger,assetorstocksale,orothertransactionresultinginafinancialbenefittotheinterestedstockholder.An
interestedstockholderisapersonwho,togetherwithaffiliatesandassociates,ownsor,withinthreeyearspriortothedeterminationofinterestedstockholderstatus,
didown15%ormoreofacorporationsoutstandingvotingstock.
Restatedcertificateofincorporationandamendedandrestatedbylawprovisions
Weanticipatethatourrestatedcertificateofincorporationandouramendedandrestatedbylawsthatwillbeineffectuponthecompletionofthisofferingwillincludea
numberofprovisionsthatmayhavetheeffectofdeterringhostiletakeoversordelayingorpreventingchangesincontrolofourmanagementteam,includingthe
following:

Dualclasscommonstock.AsdescribedaboveinCommonstockVotingrights,ourrestatedcertificateofincorporationwillprovideforadualclasscommon
stockstructurepursuanttowhichholdersofourClassBcommonstockwillhavetheabilitytocontroltheoutcomeofmattersrequiringstockholderapproval,even
iftheyownsignificantlylessthanamajorityofthesharesofouroutstandingClassAandClassBcommonstock,includingtheelectionofdirectorsandsignificant
corporatetransactions,suchasamergerorothersaleofourcompanyoritsassets,andcurrentinvestors,executivesandemployeeswiththeabilitytoexercise
significantinfluenceoverthosematters.

Boardofdirectorsvacancies.Ourrestatedcertificateofincorporationandamendedandrestatedbylawswillauthorizeonlyourboardofdirectorstofillvacant
directorships.Inaddition,thenumberofdirectorsconstitutingourboardofdirectorsmaybesetonlybyresolutionadoptedbyamajorityvoteofourentireboardof
directors.Theseprovisionspreventastockholderfromincreasingthesizeofourboardofdirectorsandgainingcontrolofourboardofdirectorsbyfillingthe
resultingvacancieswithitsownnominees.

Classifiedboard.Initiallyourboardofdirectorswillnotbeclassified.However,ourrestatedcertificateofincorporationandamendedandrestatedbylawswill
providethatourboardwillbeclassifiedintothreeclassesofdirectorsatsuchtimeasallsharesofourClassBcommonstockhavebeenconvertedintosharesof
ourClassAcommonstock.Directorsmayberemovedfromofficewithorwithoutcausesolongasourboardofdirectorsisnotclassified,andthereafterdirectors
mayberemovedfromofficeonlyforcause.Theexistenceofaclassifiedboardcoulddelayasuccessfultenderofferorfromobtainingmajoritycontrolofourboard
ofdirectors,andtheprospectofthatdelaymightdeterapotentialofferor.

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Supermajorityrequirementsforbylawsandcertificateofincorporationamendments.Ourrestatedcertificateofincorporationwillfurtherprovidethatthe
affirmativevoteofholdersofatleast662/3%ofthevotingpowerofallofthethenoutstandingsharesofvotingstockwillberequiredtoamendcertainprovisions
ofourcertificateofincorporation,includingprovisionsrelatingtotheclassifiedboard,thesizeoftheboard,removalofdirectors,specialmeetings,actionsby
writtenconsentanddesignationofourpreferredstock.Inaddition,theaffirmativevoteofholdersof75%ofthevotingpowerofeachofourClassAcommonstock
andClassBcommonstock,votingseparatelybyclass,willberequiredtoamendtheprovisionsofourrestatedcertificateofincorporationrelatingtothetermsof
ourClassBcommonstock.Theaffirmativevoteofholdersofatleast662/3%ofthevotingpowerofallofthethenoutstandingsharesofvotingstockwillbe
requiredtoamendorrepealouramendedandrestatedbylaws,althoughouramendedandrestatedbylawsmaybeamendedbyasimplemajorityvoteofourboard
ofdirectors.

Stockholderactionspecialmeetingofstockholders.Ourrestatedcertificateofincorporationwillprovidethatourstockholdersmaynottakeactionbywritten
consent,butmayonlytakeactionatannualorspecialmeetingsofourstockholders.Stockholderswillnotbepermittedtocumulatetheirvotesfortheelectionof
directors.Ourrestatedcertificateofincorporationandouramendedandrestatedbylawsthatwillbeineffectupontheclosingofthisofferingwillfurtherprovidethat
solongasanysharesofourClassBcommonstockareoutstanding,specialmeetingsofourstockholdersmaybecalledbytheholdersof10%oftheoutstanding
votingpowerofallthenoutstandingsharesofstock,amajorityofourboardofdirectors,thechairmanofourboardofdirectors,ourchiefexecutiveofficeorour
president,andthereafterspecialmeetingsofourstockholdersmaybecalledonlybyamajorityofourboardofdirectors,thechairmanofourboardofdirectors,our
chiefexecutiveofficerorourpresident.

Advancenoticerequirementsforstockholderproposalsanddirectornominations.Ouramendedandrestatedbylawswillprovideadvancenoticeproceduresfor
stockholdersseekingtobringbusinessbeforeourannualmeetingofstockholders,ortonominatecandidatesforelectionasdirectorsatourannualmeetingof
stockholders.Ouramendedandrestatedbylawsalsowillspecifycertainrequirementsregardingtheformandcontentofastockholdersnotice.Theseprovisions
mayprecludeourstockholdersfrombringingmattersbeforeourannualmeetingofstockholdersorfrommakingnominationsfordirectorsatourannualmeetingof
stockholders.

Issuanceofundesignatedpreferredstock.Afterthefilingofourrestatedcertificateofincorporation,ourboardofdirectorswillhavetheauthority,withoutfurther
actionbythestockholders,toissueupto5,000,000sharesofundesignatedpreferredstockwithrightsandpreferences,includingvotingrights,designatedfrom
timetotimebyourboardofdirectors.Theexistenceofauthorizedbutunissuedsharesofpreferredstockenablesourboardofdirectorstorendermoredifficultor
todiscourageanattempttoobtaincontrolofusbymeansofamerger,tenderoffer,proxycontestorotherwise.
Choiceofforum
Ourrestatedcertificateofincorporationprovidesthat,unlessweconsentinwritingtotheselectionofanalternativeforum,theCourtofChanceryoftheStateof
Delawarewillbetheexclusiveforumforanyderivativeactionorproceedingbroughtonourbehalfanyactionassertingabreachoffiduciarydutyowedbyanyofour
directors,officersorotheremployees

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anyactionassertingaclaimagainstusarisingpursuanttotheDelawareGeneralCorporationLaw,ourrestatedcertificateofincorporationorouramendedandrestated
bylawsoranyactionassertingaclaimagainstusthatisgovernedbytheinternalaffairsdoctrine.Thereareseveralpendinglawsuitschallengingthevalidityofchoice
offorumprovisionsinothercompaniesorganizationaldocuments.Itispossiblethatacourtcouldrulethatsuchaprovisionisinapplicableorunenforceable.
Limitationsofliabilityandindemnification
SeeExecutivecompensationLimitedliabilityandindemnificationofdirectorsandofficers.
NASDAQlisting
WehaveappliedtolistourClassAcommonstockontheNASDAQGlobalSelectMarketunderthesymbolGPRO.
Transferagentandregistrar
ThetransferagentandregistrarforourClassAcommonstockisAmericanStockTransfer&TrustCompany,LLC.Thetransferagentsaddressis620115thAvenue,
Brooklyn,NewYork11219,anditstelephonenumberis(800)9375449.

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Shareseligibleforfuturesale
Priortothisoffering,therehasnotbeenapublicmarketforsharesofourClassAcommonstock,andwecannotpredicttheeffect,ifany,thatmarketsalesofshares
ofourClassAcommonstockortheavailabilityofsharesofourClassAcommonstockforsalewillhaveontheprevailingmarketpriceofourClassAcommonstock
fromtimetotime.Nevertheless,salesofsubstantialamountsofourClassAcommonstock,includingsharesofClassAcommonstockissueduponconversionof
ClassBcommonstockissueduponexerciseofoutstandingoptionsorsettlementofoutstandingRSUs,ortheperceptionthatthesesalescouldoccurinthepublic
marketafterthisofferingcouldadverselyaffectprevailingmarketpricesandcouldimpairourabilitytoraisecapitalthroughthesaleofourequitysecurities.
Upontheclosingofthisoffering,basedonthenumberofsharesoutstandingasofMarch31,2014,wewillhavesharesofClassAandClassBcommon
stockoutstandingassumingnoexerciseofoutstandingoptionsafterMarch31,2014.Oftheseshares,allsharesofClassAcommonstocksoldinthis
offeringwillbefreelytradable,exceptthatanysharesheldbyouraffiliates,asthattermisdefinedinRule144undertheSecuritiesAct,mayonlybesoldin
compliancewiththelimitationsdescribedbelow.
TheremainingoutstandingsharesofourClassAandClassBcommonstockwillbedeemedrestrictedsecuritiesasdefinedinRule144underthe
SecuritiesAct.RestrictedsecuritiesmaybesoldinthepublicmarketonlyifregisteredundertheSecuritiesActoriftheyqualifyforanexemptionfromregistration
underRule144orRule701undertheSecuritiesAct,whichrulesaresummarizedbelow.
Inaddition,allofourstockholdershaveenteredintomarketstandoffagreementswithusorlockupagreementswiththeunderwritersunderwhichtheyagreed,subject
tospecificexceptions,nottosellanyoftheirstockforatleast180daysfollowingthedateofthisprospectus.SubjecttotheprovisionsofRule144orRule701,
basedonanassumedofferingdateof,2014,shareswillbeavailableforsaleinthepublicmarketasfollows:

Beginningonthedateofthisprospectus,oftheshareswillbeimmediatelyavailableforsaleinthepublicmarketwithoutrestriction.

Beginning181daysafterthedateofthisprospectus,subjecttoextensionasdescribedinUnderwriting,shareswillbecomeeligibleforsaleinthepublic
market,ofwhichshareswillbefreelytradableunderRule144andRule701andshareswillbeheldbyaffiliatesandsubjecttothevolumeand
otherrestrictionsofRule144andRule701,asdescribedbelow.
Inaddition,ofthe27,798,919sharesofourClassBcommonstockthatweresubjecttostockoptionsoutstandingasofMarch31,2014,optionstopurchase
21,285,710sharesofClassBcommonstockwerevestedasofMarch31,2014andwillbeeligibleforsale181daysfollowingtheeffectivedateofthisprospectus,
subjecttoextensionasdescribedinUnderwriting.

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Lockupagreements
AllofourdirectorsandofficersandtheholdersofsubstantiallyallourequitysecuritiesaresubjecttolockupagreementsdescribedinUnderwriting.
Rule144
Ingeneral,underRule144ascurrentlyineffect,oncewehavebeensubjecttopubliccompanyreportingrequirementsforatleast90days,apersonwhoisnot
deemedtohavebeenoneofouraffiliatesforpurposesoftheSecuritiesActatanytimeduringthe90daysprecedingasaleandwhohasbeneficiallyownedthe
sharesproposedtobesoldforatleastsixmonths,includingtheholdingperiodofanypriorownerotherthanouraffiliates,isentitledtosellthoseshareswithout
complyingwiththemannerofsale,volumelimitationornoticeprovisionsofRule144,subjecttocompliancewiththepublicinformationrequirementsofRule144.If
suchapersonhasbeneficiallyownedthesharesproposedtobesoldforatleastoneyear,includingtheholdingperiodofanypriorownerotherthanouraffiliates,then
thatpersonisentitledtosellthoseshareswithoutcomplyingwithanyoftherequirementsofRule144.
Ingeneral,underRule144,ascurrentlyineffect,ouraffiliatesorpersonssellingsharesonbehalfofouraffiliatesareentitledtoselluponexpirationofthelockup
agreementsdescribedabove,withinanythreemonthperiodbeginning90daysafterthedateofthisprospectus,anumberofsharesthatdoesnotexceedthegreater
of:

1%ofthenumberofsharesofClassAandClassBcommonstockthenoutstanding,whichwillequalapproximatelysharesimmediatelyafterthis
offering,or

theaverageweeklytradingvolumeoftheClassAcommonstockduringthefourcalendarweeksprecedingthefilingofanoticeonForm144withrespecttothat
sale.
SalesunderRule144byouraffiliatesorpersonssellingsharesonbehalfofouraffiliatesarealsosubjecttocertainmannerofsaleprovisionsandnoticerequirements
andtotheavailabilityofcurrentpublicinformationaboutus.
Rule701
Ingeneral,Rule701ascurrentlyineffectallowsastockholderwhopurchasedsharesofourClassBcommonstockpursuanttoawrittencompensatoryplanor
contractandwhoisnotdeemedtohavebeenanaffiliateofourcompanyduringtheimmediatelypreceding90daystosellthesesharesinrelianceuponRule144,but
withoutbeingrequiredtocomplywiththepublicinformation,holdingperiod,volumelimitationornoticeprovisionsofRule144.Rule701alsopermitsaffiliatesofour
companytoselltheirRule701sharesunderRule144withoutcomplyingwiththeholdingperiodrequirementsofRule144.AllholdersofRule701shares,however,are
requiredtowaituntil90daysafterthedateofthisprospectusbeforesellingthosesharespursuanttoRule701.Moreover,substantiallyallRule701sharesaresubject
tolockupagreementsasdescribedaboveandunderthesectiontitledUnderwritingandwillnotbecomeeligibleforsaleuntiltheexpirationofthoseagreements.

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Registrationstatements
WeintendtofilearegistrationstatementonFormS8undertheSecuritiesActcoveringallofthesharesofourClassBcommonstocksubjecttooptionsandRSUs
outstandingandsharesofourClassAcommonstockreservedforissuanceunderourequityincentiveplans.Weexpecttofilethisregistrationstatementon,oras
soonaspracticableafter,theeffectivedateofthisprospectus.However,thesharesregisteredonFormS8willnotbeeligibleforresaleuntilexpirationofthelockup
agreementstowhichtheyaresubject.
Registrationrights
Wehavegranteddemandregistrationrights,rightstoparticipateinofferingsthatweinitiateandFormS3registrationrightstocertainofourstockholderstosellour
commonstock.Forafurtherdescriptionoftheserights,seeDescriptionofcapitalstockRegistrationrights.

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CertainmaterialU.S.federalincometaxconsiderationsfornonU.S.holdersof
ClassAcommonstock
ThissectionsummarizescertainmaterialU.S.federalincometaxconsiderationsrelatingtotheownershipanddispositionofourClassAcommonstockbyanon
U.S.holder(asdefinedbelow)pursuanttothisoffering.Thissummarydoesnotprovideacompleteanalysisofallpotentialtaxconsiderations.Theinformation
providedbelowisbaseduponprovisionsoftheInternalRevenueCodeof1986,asamended,ortheCode,Treasuryregulationspromulgatedthereunder,administrative
rulingsandjudicialdecisionscurrentlyineffect.Theseauthoritiesmaychangeatanytime,possiblyonaretroactivebasis,ortheIRS,mightinterprettheexisting
authoritiesdifferently.Ineithercase,thetaxconsiderationsofowningordisposingofourClassAcommonstockcoulddifferfromthosedescribedbelow.Asaresult,
wecannotassureyouthatthetaxconsequencesdescribedinthisdiscussionwillnotbechallengedbytheIRSorwillbesustainedbyacourtifchallengedbythe
IRS.
ThissummarydoesnotaddressthetaxconsiderationsarisingunderthelawsofanynonU.S.,stateorlocaljurisdiction,orunderU.S.federalgiftandestatetaxlaws,
excepttothelimitedextentprovidedbelow.Inaddition,thisdiscussiondoesnotaddresstaxconsiderationsapplicabletoaninvestorsparticularcircumstancesorto
investorsthatmaybesubjecttospecialtaxrules,including,withoutlimitation:

banks,insurancecompaniesorotherfinancialinstitutions

partnershipsorentitiesorarrangementstreatedaspartnershipsorotherpassthroughentitiesforU.S.federaltaxpurposes(orinvestorsinsuchentities)

corporationsthataccumulatesearningstoavoidU.S.federalincometax

personssubjecttothealternativeminimumtaxorthenetinvestmentincometax

taxexemptorganizationsortaxqualifiedretirementplans

realestateinvestmenttrustsorregulatedinvestmentcompanies

controlledforeigncorporationsorpassiveforeigninvestmentcompanies

personswhoacquiredourcommonstockascompensationforservices

dealersinsecuritiesorcurrencies

tradersinsecuritiesthatelecttouseamarktomarketmethodofaccountingfortheirsecuritiesholdings

personsthatown,oraredeemedtoown,morethan5%ofourcapitalstock(excepttotheextentspecificallysetforthbelow)

certainformercitizensorlongtermresidentsoftheUnitedStates

personswhoholdourcommonstockasapositioninahedgingtransaction,straddle,conversiontransactionorotherriskreductiontransaction

personswhodonotholdourcommonstockasacapitalassetwithinthemeaningofSection1221oftheCode(generally,forinvestmentpurposes)or

personsdeemedtosellourcommonstockundertheconstructivesaleprovisionsoftheCode.

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Inaddition,ifapartnershiporentityclassifiedasapartnershipforU.S.federalincometaxpurposesisabeneficialownerofourClassAcommonstock,thetax
treatmentofapartnerinthepartnershiporanowneroftheentitywilldependuponthestatusofthepartnerorotherownerandtheactivitiesofthepartnershiporother
entity.Accordingly,thissummarydoesnotaddresstaxconsiderationsapplicabletopartnershipsthatholdourClassAcommonstock,andpartnersinsuch
partnershipsshouldconsulttheirtaxadvisors.
INVESTORSCONSIDERINGTHEPURCHASEOFOURCLASSACOMMONSTOCKSHOULDCONSULTTHEIROWNTAXADVISORSREGARDINGTHE
APPLICATIONOFTHEU.S.FEDERALINCOMEANDESTATETAXLAWSTOTHEIRPARTICULARSITUATIONSANDTHECONSEQUENCESOFFOREIGN,
STATEORLOCALLAWS,ANDTAXTREATIES.
NonU.S.holderdefined
Forpurposesofthissummary,anonU.S.holderisanyholderofourClassAcommonstock,otherthananentitytaxableasapartnershipforU.S.federalincome
taxpurposesor:

anindividualwhoisacitizenorresidentoftheUnitedStates

acorporation,orotherentitytaxableasacorporationforUnitedStatesfederalincometaxpurposes,createdororganizedunderthelawsoftheUnitedStates,any
statethereinortheDistrictofColumbiaorotherwisetreatedassuchforU.S.federalincometaxpurposes

atrustthat(1)issubjecttotheprimarysupervisionofaU.S.courtandoneormoreU.S.personshaveauthoritytocontrolallsubstantialdecisionsofthetrustor
(2)hasavalidelectionineffectunderapplicableU.S.TreasuryregulationstobetreatedasaU.S.personor

anestatewhoseincomeissubjecttoU.S.incometaxregardlessofsource.
IfyouareanonU.S.citizenthatisanindividual,youmay,inmanycases,bedeemedtobearesidentalien,asopposedtoanonresidentalien,byvirtueofbeing
presentintheUnitedStatesforatleast31daysinthecalendaryearandforanaggregateofatleast183daysduringathreeyearperiodendinginthecurrentcalendar
year.Forthesepurposes,allthedayspresentinthecurrentyear,onethirdofthedayspresentintheimmediatelyprecedingyear,andonesixthofthedayspresentin
thesecondprecedingyeararecounted.ResidentaliensaresubjecttoU.S.federalincometaxasiftheywereU.S.citizens.Suchanindividualisurgedtoconsulthis
orherowntaxadvisorregardingtheU.S.federalincometaxconsequencesoftheownership,sale,exchangeorotherdispositionofourClassAcommonstock.
Distributions
WedonotexpecttodeclareormakeanydistributionsonourClassAcommonstockintheforeseeablefuture.Ifwedomakeanydistributionsonsharesofour
ClassAcommonstock,however,suchdistributionswillconstitutedividendsforU.S.federalincometaxpurposestotheextentpaidfromourcurrentoraccumulated
earningsandprofits,asdeterminedunderU.S.federalincometaxprinciples.Distributionsinexcessofourcurrentandaccumulatedearningsandprofitswillconstitute
areturnofcapitalthatisappliedagainstandreduces,butnotbelowzero,anonU.S.holdersadjustedtaxbasisinsharesofourClassAcommonstock.Any
remainingexcesswillbetreatedasgainrealizedonthesaleorotherdispositionofourClassAcommonstock.SeeSaleofClassAcommonstock.

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AnydistributionmadetoanonU.S.holderonourClassAcommonstockthatisnoteffectivelyconnectedwithanonU.S.holdersconductofatradeorbusinessin
theUnitedStateswillgenerallybesubjecttoU.S.withholdingtaxata30%rate.Thewithholdingtaxmightnotapply,however,ormightapplyatareducedrate,under
thetermsofanapplicableincometaxtreatybetweentheUnitedStatesandthenonU.S.holderscountryofresidence.Youshouldconsultyourtaxadvisorsregarding
yourentitlementtobenefitsunderarelevantincometaxtreaty.Generally,inorderforusorourpayingagenttowithholdtaxatalowertreatyrate,anonU.S.holder
mustcertifyitsentitlementtotreatybenefits.AnonU.S.holdergenerallycanmeetthiscertificationrequirementbyprovidingaFormW8BEN(oranysuccessorform)
orappropriatesubstituteformtousorourpayingagent.IfthenonU.S.holderholdsthestockthroughafinancialinstitutionorotheragentactingontheholders
behalf,theholderwillberequiredtoprovideappropriatedocumentationtotheagent.Theholdersagentwillthenberequiredtoprovidecertificationtousorourpaying
agent,eitherdirectlyorthroughotherintermediaries.IfyouareeligibleforareducedrateofU.S.federalwithholdingtaxunderanincometaxtreaty,youmayobtaina
refundorcreditfromtheIRSofanyexcessamountswithheldbyfilinganappropriateclaimforarefundwiththeIRSinatimelymanner.
DistributionsreceivedbyanonU.S.holderthatareeffectivelyconnectedwithaU.S.tradeorbusinessconductedbythenonU.S.holder,or,ifanincometaxtreaty
betweentheUnitedStatesandthenonU.S.holderscountryofresidenceapplies,areattributabletoapermanentestablishmentmaintainedbythenonU.S.holderin
theUnitedStates,arenotsubjecttosuchwithholdingtax.Toobtainthisexemption,anonU.S.holdermustprovideuswithanIRSFormW8ECIproperlycertifying
suchexemption.Sucheffectivelyconnecteddistributions,althoughnotsubjecttowithholdingtax,aregenerallytaxedatthesamegraduatedratesapplicabletoU.S.
persons,netofcertaindeductionsandcredits.Inadditiontothegraduatedtaxdescribedabove,distributionsreceivedbycorporatenonU.S.holdersthatare
effectivelyconnectedwithaU.S.tradeorbusinessofthecorporatenonU.S.holdermayalsobesubjecttoabranchprofitstaxatarateof30%orsuchlowerrateas
maybespecifiedbyanapplicabletaxtreaty.
SaleofClassAcommonstock
SubjecttothediscussionbelowregardingtheForeignAccountTaxComplianceAct,orFATCA,nonU.S.holderswillgenerallynotbesubjecttoU.S.federalincome
taxonanygainsrealizedonthesale,exchangeorotherdispositionofClassAcommonstockunless:

thegain(1)iseffectivelyconnectedwiththeconductbythenonU.S.holderofaU.S.tradeorbusinessand(2)ifrequiredbyanapplicableincometaxtreaty
betweentheUnitedStatesandthenonU.S.holderscountryofresidenceapplies,isattributabletoapermanentestablishment(or,inthecaseofanindividual,a
fixedbase)maintainedbythenonU.S.holderintheUnitedStates(inwhichcasethespecialrulesdescribedbelowapply)

thenonU.S.holderisanindividualwhoispresentintheUnitedStatesfor183daysormoreinthetaxableyearofthesale,exchangeorotherdispositionofour
ClassAcommonstock,andcertainotherrequirementsaremet(inwhichcasethegainwouldbesubjecttoaflat30%tax,orsuchreducedrateasmaybe
specifiedbyanapplicableincometaxtreaty,whichmaybeoffsetbyU.S.sourcecapitallosses,eventhoughtheindividualisnotconsideredaresidentofthe
UnitedStates)or

therulesoftheForeignInvestmentinRealPropertyTaxAct,orFIRPTA,treatthegainaseffectivelyconnectedwithaU.S.tradeorbusiness.

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TheFIRPTArulesmayapplytoasale,exchangeorotherdispositionofourClassAcommonstockifweare,orwerewithintheshorterofthefiveyearperiod
precedingthedispositionandthenonU.S.holdersholdingperiod,aU.S.realpropertyholdingcorporation,orUSRPHC.Ingeneral,wewouldbeaUSRPHCif
interestsinU.S.realestatecomprisedatleasthalfofthevalueofourbusinessassets.WedonotbelievethatweareaUSRPHCandwedonotanticipatebecoming
oneinthefuture.EvenifwebecomeaUSRPHC,aslongasourcommonstockisregularlytradedonanestablishedsecuritiesmarket,suchcommonstockwillbe
treatedasU.S.realpropertyinterestssubjecttotheFIRPTArulesonlyifanonU.S.holderactuallyownsorconstructivelyholdsmorethan5%ofouroutstanding
commonstock.
Ifanygainfromthesale,exchangeorotherdispositionofClassAcommonstock,(1)iseffectivelyconnectedwithaU.S.tradeorbusinessconductedbyanonU.S.
holderand(2)ifanincometaxtreatybetweentheUnitedStatesandthenonU.S.holderscountryofresidenceapplies,isattributabletoapermanentestablishment
(or,inthecaseofanindividual,afixedbase)maintainedbysuchnonU.S.holderintheUnitedStates,thenthegaingenerallywillbesubjecttoU.S.federalincome
taxatthesamegraduatedratesapplicabletoU.S.persons,netofcertaindeductionsandcredits.IfthenonU.S.holderisacorporation,undercertaincircumstances,
thatportionofitsearningsandprofitsthatiseffectivelyconnectedwithitsU.S.tradeorbusiness,subjecttocertainadjustments,generallywouldbesubjecttoa
branchprofitstax.Thebranchprofitstaxrateis30%,althoughanapplicableincometaxtreatybetweentheUnitedStatesandthenonU.S.holderscountryof
residencemightprovideforalowerrate.
U.S.federalestatetax
TheestatesofnonresidentalienindividualsgenerallyaresubjecttoU.S.federalestatetaxonpropertywithaU.S.situs.BecauseweareaU.S.corporation,our
commonstockwillbeU.S.situspropertyandthereforewillbeincludedinthetaxableestateofanonresidentaliendecedent,unlessanapplicabletaxtreatybetween
theUnitedStatesandthedecedentscountryofresidenceprovidesotherwise.
Backupwithholdingandinformationreporting
TheCodeandtheTreasuryregulationsrequirethosewhomakespecifiedpaymentstoreportthepaymentstotheIRS.Amongthespecifiedpaymentsaredividends
andproceedspaidbybrokerstotheircustomers.TherequiredinformationreturnsenabletheIRStodeterminewhethertherecipientproperlyincludedthepaymentsin
income.Thisreportingregimeisreinforcedbybackupwithholdingrules.Theserulesrequirethepayorstowithholdtaxfrompaymentssubjecttoinformationreporting
iftherecipientfailstocooperatewiththereportingregimebyfailingtoprovidehistaxpayeridentificationnumbertothepayor,furnishinganincorrectidentification
number,failingtoreportinterestordividendsonhisU.S.taxreturns,orfailingtootherwiseestablishanexemptiontotheserules.Thebackupwithholdingtaxrateis
currently28%.Thebackupwithholdingrulesdonotapplytopaymentstocorporations,whetherdomesticorforeign,providedthattheyestablishsuchexemption.
PaymentstononU.S.holdersofdividendsoncommonstockgenerallywillnotbesubjecttobackupwithholding,andpaymentsofproceedsmadetononU.S.holders
byabrokeruponasaleofcommonstockwillnotbesubjecttoinformationreportingorbackupwithholding,ineachcasesolongasthenonU.S.holdercertifiesits
nonresidentstatus(andweorourpayingagentdonothaveactualknowledgeorreasontoknowtheholderisaU.S.personorthattheconditions

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ofanyotherexemptionarenot,infact,satisfied)orotherwiseestablishesanexemption.Thecertificationprocedurestoclaimtreatybenefitsdescribedunder
Distributionsabovewillgenerallysatisfythecertificationrequirementsnecessarytoavoidthebackupwithholdingtax.WemustreportannuallytotheIRSany
dividendspaidtoeachnonU.S.holderandthetaxwithheld,ifany,withrespecttothesedividends.Copiesofthesereportsmaybemadeavailabletotaxauthorities
inthecountrywherethenonU.S.holderresides.
Backupwithholdingisnotanadditionaltax.Anyamountswithheldfromapaymenttoaholderofcommonstockunderthebackupwithholdingrulescanbecredited
againstanyU.S.federalincometaxliabilityoftheholderandmayentitletheholdertoarefundfromtheIRS,providedthattherequiredinformationisfurnishedtothe
IRSinatimelymanner.
Foreignaccounttaxcomplianceact
FATCAwillimposeaU.S.federalwithholdingtaxof30%oncertaintypesofU.S.sourcewithholdablepayments(includingdividendsandthegrossproceedsfrom
thesaleorotherdispositionofU.S.stock)toforeignfinancialinstitutionsandothernonU.S.entitiesthatfailtocomplywithcertaincertificationandinformation
reportingrequirementsregardingU.S.accountholdersorownersofsuchinstitutionorentity.TheobligationtowithholdunderFATCAiscurrentlyexpectedtoapplyto,
amongotheritems,(i)dividendsonourClassAcommonstockthatarepaidafterJune30,2014and(ii)grossproceedsfromthedispositionofourClassAcommon
stockpaidafterDecember31,2016.AnintergovernmentalagreementbetweentheUnitedStatesandanapplicableforeigncountrymaymodifytherequirements
describedinthisparagraph.NonU.S.holdersshouldconsulttheirowntaxadvisorsregardingthepossibleimplicationsofthislegislationontheirinvestmentinour
ClassAcommonstock.
THEPRECEDINGDISCUSSIONOFU.S.FEDERALTAXCONSIDERATIONSISFORGENERALINFORMATIONONLY.ITISNOTTAXADVICE.EACH
PROSPECTIVEINVESTORSHOULDCONSULTITSOWNTAXADVISORREGARDINGTHEPARTICULARU.S.FEDERAL,STATE,LOCALANDNONU.S.TAX
CONSEQUENCESOFPURCHASING,HOLDINGANDDISPOSINGOFOURCLASSACOMMONSTOCK,INCLUDINGTHECONSEQUENCESOFANY
PROPOSEDCHANGEINAPPLICABLELAWS.

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Underwriting
WeandthesellingstockholdersareofferingthesharesofClassAcommonstockdescribedinthisprospectusthroughanumberofunderwriters.J.P.Morgan
SecuritiesLLC,CitigroupGlobalMarketsInc.andBarclaysCapitalInc.areactingasjointbookrunningmanagersoftheofferingandasrepresentativesofthe
underwriters.Weandthesellingstockholdershaveenteredintoanunderwritingagreementwiththeunderwriters.Subjecttothetermsandconditionsofthe
underwritingagreement,weandthesellingstockholdershaveseverallyagreedtoselltotheunderwriters,andeachunderwriterhasseverallyagreedtopurchase,at
thepublicofferingpricelesstheunderwritingdiscountsandcommissionssetforthonthecoverpageofthisprospectus,thenumberofsharesofClassAcommon
stocklistednexttoitsnameinthefollowingtable:

Name Numberofshares
J.P.MorganSecuritiesLLC
CitigroupGlobalMarketsInc.
BarclaysCapitalInc.
Allen&CompanyLLC
Stifel,Nicolaus&Company,Incorporated
RobertW.Baird&Co.Incorporated
MCSCapitalMarketsLLC
PiperJaffray&Co.
RaymondJames&Associates,Inc.

Total
TheunderwritersarecommittedtopurchaseallthesharesofClassAcommonstockofferedbyusandthesellingstockholdersiftheypurchaseanyshares.The
underwritingagreementalsoprovidesthatifanunderwriterdefaults,thepurchasecommitmentsofnondefaultingunderwritersmayalsobeincreasedortheoffering
maybeterminated.
TheunderwritersproposetoofferthesharesofClassAcommonstockdirectlytothepublicattheinitialpublicofferingpricesetforthonthecoverpageofthis
prospectusandtocertaindealersatthatpricelessaconcessionnotinexcessof$pershare.Aftertheinitialpublicofferingoftheshares,theofferingprice
andothersellingtermsmaybechangedbytheunderwriters.SalesofsharesmadeoutsideoftheUnitedStatesmaybemadebyaffiliatesoftheunderwriters.The
representativeshaveadvisedusthattheunderwritersdonotintendtoconfirmdiscretionarysalesinexcessof5%ofthecommonsharesofferedinthisoffering.
TheunderwritershaveanoptiontobuyuptoadditionalsharesofClassAcommonstockfromustocoversalesofsharesbytheunderwriterswhich
exceedthenumberofsharesspecifiedinthetableabove.Theunderwritershave30daysfromthedateofthisprospectustoexercisethisoptiontopurchase
additionalshares.Ifanysharesarepurchasedwiththisoption,theunderwriterswillpurchasesharesinapproximatelythesameproportionasshowninthetable
above.IfanyadditionalsharesofClassAcommonstockarepurchased,theunderwriterswilloffertheadditionalsharesonthesametermsasthoseonwhichthe
sharesarebeingoffered.
TheunderwritingdiscountsandcommissionsareequaltothepublicofferingpricepershareofClassAcommonstocklesstheamountpaidbytheunderwriterstous
andthesellingstockholderspershareofClassAcommonstock.Theunderwritingdiscountsandcommissionsare$pershare.

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Thefollowingtablesshowthepershareandtotalunderwritingdiscountsandcommissionstobepaidtotheunderwritersassumingbothnoexerciseandfullexercise
oftheunderwritersoptiontopurchaseadditionalshares.

Paidbyus Paidbysellingstockholders Total

Withoutover
allotment
exercise
Withover
allotment
exercise
Withoutover
allotment
exercise
Withover
allotmentexercise
Withoutover
allotment
exercise
Withover
allotment
exercise
PerShare $ $ $ $ $ $
Total $ $ $ $ $ $
Weestimatethatthetotalexpensesofthisoffering,includingregistration,filingandlistingfees,printingfeesandlegalandaccountingexpenses,butexcludingthe
underwritingdiscountsandcommissions,willbeapproximately$.Wehaveagreedtoreimbursetheunderwritersforcertainexpenses,includinguptoan
aggregateof$inconnectionwiththeclearanceofthisofferingwiththeFinancialIndustryRegulatoryAuthority,orFINRA,assetforthintheunderwriting
agreement.
Aprospectusinelectronicformatmaybemadeavailableonthewebsitesmaintainedbyoneormoreunderwriters,orsellinggroupmembers,ifany,participatingin
theoffering.Theunderwritersmayagreetoallocateanumberofsharestounderwritersandsellinggroupmembersforsaletotheironlinebrokerageaccountholders.
InternetdistributionswillbeallocatedbytherepresentativestounderwritersandsellinggroupmembersthatmaymakeInternetdistributionsonthesamebasisas
otherallocations.
We,thesellingstockholders,allofourdirectorsandexecutiveofficersandholdersofsubstantiallyallofourcommonstockandsecuritiesexercisableforor
convertibleintoourcommonstockoutstandingimmediatelypriortothisofferinghaveagreednotto(1)offer,pledge,sell,contracttosell,sellanyoptionorcontractto
purchase,purchaseanyoptionorcontracttosell,grantanyoption,rightorwarranttopurchase,orotherwisetransferordisposeof,directlyorindirectly,orfilewiththe
SECaregistrationstatementundertheSecuritiesActrelatingto,anysharesofourcommonstockorsecuritiesconvertibleintoorexchangeableorexercisablefor
anysharesofourcommonstock(including,withoutlimitation,commonstockorsuchothersecuritieswhichmaybedeemedtobebeneficiallyownedbysuch
directors,executiveofficersandsecurityholdersinaccordancewiththerulesandregulationsoftheSECandsecuritieswhichmaybeissueduponexerciseofa
stockoptionorwarrant),orpubliclydisclosetheintentiontomakeanyoffer,sale,pledge,dispositionorfiling,(2)enterintoanyswaporotheragreementthat
transfers,inwholeorinpart,anyoftheeconomicconsequencesofownershipofanysharesofourcommonstockoranysuchothersecurities(whetheranysuch
transactionsdescribedinclause(1)or(2)aboveistobesettledbythedeliveryofsharesofcommonstockorsuchothersecurities,incashorotherwise)or(3)inthe
caseofourdirectors,executiveofficersandholdersofourcommonstockandsecuritiesexercisablefororconvertibleintoourcommonstockoutstanding
immediatelypriortothisoffering,makeanydemandfororexerciseanyrightwithrespecttotheregistrationofanysharesofourcommonstockoranysecurity
convertibleintoorexercisableorexchangeableforourcommonstock,ineachcasewithoutthepriorwrittenconsentofJ.P.MorganSecuritiesLLCforaperiodof180
daysafterthedateofthisprospectus.
Inourcase,suchrestrictionsshallnotapplyto:

thesharesofourClassAcommonstocktobesoldinthisoffering

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anysharesofourcommonstockissuedupontheexerciseofoptionsorwarrantsortheconversionofasecurityoutstandingonthedateoftheunderwriting
agreementanddescribedinthisprospectus

thegrantofoptionsortheissuanceofsharesofcommonstockbyustoouremployees,officers,directors,advisorsorconsultantspursuanttoemployeebenefit
plansineffectonthedateoftheunderwritingagreementandasdescribedinthisprospectusor

thefilingbyusofaregistrationstatementwiththeSEConFormS8inrespectofanysharesissuedunderorthegrantofanyawardpursuanttoanemployee
benefitplandescribedherein.
Inthecaseofourdirectors,executiveofficersandholdersofourcommonstock,andsubjecttocertainconditions,suchrestrictionsshallnotapplyto:

thesaleofsharesofourClassAcommonstocktotheunderwriters

salesofsharesofourClassAcommonstockorothersecuritiesacquiredinopenmarkettransactionsafterthecompletionofthisoffering,provided,thatnofiling
underSection16oftheExchangeActorotherpublicannouncementisrequiredorvoluntarilymadeinconnectionwithsubsequentsalesoftheacquiredsecurities

transfersofsharesofourcommonstockoranysecuritiesconvertibleintoorexercisableorexchangeableforcommonstock(1)tothespouse,domesticpartner,
parent,childorgrandchildofthedirector,executiveofficerorsecurityholder,ortoatrustforthebenefitofsuchspouse,domesticpartner,parent,childor
grandchild,(2)bybonafidegift,willorintestacy,(3)thatoccursbyoperationoflaw,(4)ifthedirector,executiveofficerorsecurityholderisacorporation,
partnershiporotherbusinessentity(a)toanothercorporation,partnershiporotherbusinessentitythatcontrols,iscontrolledbyorisundercommoncontrolwithit
or(b)aspartofadisposition,transferordistributionwithoutconsiderationbysuchdirector,executiveofficerorsecurityholdertoitsequityholders,or(5)ifthe
director,executiveofficerorsecurityholderisatrust,toatrusteeorbeneficiaryofthetrust,providedthat,ineachcase,thetransfereeagreestobeboundbythe
termsofthelockupagreementandnofilingunderSection16oftheExchangeActreportingareductioninbeneficialownershiporotherpublicannouncementis
requiredorvoluntarilymade

transfersofsharesofourcommonstockoranysecurityconvertibleintocommonstocktousuponavestingeventofoursecuritiesorupontheexerciseofoptions
orwarrantstopurchaseoursecurities,ineachcaseonacashlessornetexercisebasisortocovertaxwithholdingobligationsofthedirector,executiveofficer
orsecurityholderinconnectionwithsuchvestingorexercise,butonlytotheextentthatsuchrightexpiresduringthelockupperiod

theestablishmentofatradingplanpursuanttoRule10b51undertheExchangeActforthetransferofsharesofourcommonstockprovidedthatsuchplandoes
notprovideforthetransferofcommonstockduringthelockupperiodandnopublicannouncementorfilingundertheExchangeActisrequiredormadevoluntarily
bythedirector,executiveofficer,securityholderorusor

transfersofsharesofourcommonstockoranysecurityconvertibleintoorexercisableorexchangeableforourcommonstockpursuanttoabonafidethirdparty
tenderoffer,merger,consolidationorothersimilartransactionmadetoallholdersofourcommonstockinvolvingachangeofcontrolofourcompany.

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Weandthesellingstockholdershaveagreedtoindemnifytheunderwritersandtheircontrollingpersons,andwehaveagreedtoindemnifyPiperJaffray&Co.andits
controllingpersons,initscapacityasqualifiedindependentunderwriter,againstcertainliabilities,includingliabilitiesundertheSecuritiesActof1933.
WehaveappliedtolistourClassAcommonstockontheNASDAQGlobalSelectMarketunderthesymbolGPRO.
Inconnectionwiththisoffering,theunderwritersmayengageinstabilizingtransactions,whichinvolvesmakingbidsfor,purchasingandsellingsharesofClassA
commonstockintheopenmarketforthepurposeofpreventingorretardingadeclineinthemarketpriceoftheClassAcommonstockwhilethisofferingisin
progress.ThesestabilizingtransactionsmayincludemakingshortsalesoftheClassAcommonstock,whichinvolvesthesalebytheunderwritersofagreater
numberofsharesofClassAcommonstockthantheyarerequiredtopurchaseinthisoffering,andpurchasingsharesofClassAcommonstockontheopenmarket
tocoverpositionscreatedbyshortsales.Shortsalesmaybecoveredshorts,whichareshortpositionsinanamountnotgreaterthantheunderwritersoptionto
purchaseadditionalsharesreferredtoabove,ormaybenakedshorts,whichareshortpositionsinexcessofthatamount.Theunderwritersmaycloseoutany
coveredshortpositioneitherbyexercisingtheiroptiontopurchaseadditionalshares,inwholeorinpart,orbypurchasingsharesintheopenmarket.Inmakingthis
determination,theunderwriterswillconsider,amongotherthings,thepriceofsharesavailableforpurchaseintheopenmarketcomparedtothepriceatwhichthe
underwritersmaypurchasesharesthroughtheoverallotmentoption.Anakedshortpositionismorelikelytobecreatediftheunderwritersareconcernedthatthere
maybedownwardpressureonthepriceoftheClassAcommonstockintheopenmarketthatcouldadverselyaffectinvestorswhopurchaseinthisoffering.Tothe
extentthattheunderwriterscreateanakedshortposition,theywillpurchasesharesintheopenmarkettocovertheposition.
Theunderwritershaveadvisedusthat,pursuanttoRegulationMoftheSecuritiesAct,theymayalsoengageinotheractivitiesthatstabilize,maintainorotherwise
affectthepriceoftheClassAcommonstock,includingtheimpositionofpenaltybids.ThismeansthatiftherepresentativesoftheunderwriterspurchaseClassA
commonstockintheopenmarketinstabilizingtransactionsortocovershortsales,therepresentativescanrequiretheunderwritersthatsoldthosesharesaspartof
thisofferingtorepaytheunderwritingdiscountreceivedbythem.
TheseactivitiesmayhavetheeffectofraisingormaintainingthemarketpriceoftheClassAcommonstockorpreventingorretardingadeclineinthemarketpriceof
theClassAcommonstock,and,asaresult,thepriceoftheClassAcommonstockmaybehigherthanthepricethatotherwisemightexistintheopenmarket.Ifthe
underwriterscommencetheseactivities,theymaydiscontinuethematanytime.Theunderwritersmaycarryoutthesetransactionsonthe,intheover
thecountermarketorotherwise.
Priortothisoffering,therehasbeennopublicmarketforourClassAcommonstock.Theinitialpublicofferingpricewillbedeterminedbynegotiationsbetweenusand
therepresentativesoftheunderwriters.Indeterminingtheinitialpublicofferingprice,weandtherepresentativesoftheunderwritersexpecttoconsideranumberof
factorsincluding:

theinformationsetforthinthisprospectusandotherwiseavailabletotherepresentatives

ourprospectsandthehistoryandprospectsfortheindustryinwhichwecompete

anassessmentofourmanagement

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ourprospectsforfutureearnings

thegeneralconditionofthesecuritiesmarketsatthetimeofthisoffering

therecentmarketpricesof,anddemandfor,publiclytradedcommonstockofgenerallycomparablecompaniesand

otherfactorsdeemedrelevantbytheunderwritersandus.
Neitherwe,thesellingstockholders,northeunderwriterscanassureinvestorsthatanactivetradingmarketwilldevelopforourClassAcommonstock,orthatthe
shareswilltradeinthepublicmarketatorabovetheinitialpublicofferingprice.
Relationshipswithunderwriters
Theunderwritersandtheirrespectiveaffiliatesarefullservicefinancialinstitutionsengagedinvariousactivities,whichmayincludesecuritiestrading,commercialand
investmentbanking,financialadvisory,investmentmanagement,investmentresearch,principalinvestment,hedging,financing,andbrokerageactivities.Certainof
theunderwritersandtheiraffiliateshaveprovidedinthepasttousandouraffiliatesandmayprovidefromtimetotimeinthefuturecertaincommercialbanking,
financialadvisory,investmentbankingandotherservicesforusandsuchaffiliatesintheordinarycourseoftheirbusiness,forwhichtheyhavereceivedandmay
continuetoreceivecustomaryfeesandcommissions.Specifically,affiliatesofJ.P.MorganSecuritiesLLC,CitigroupGlobalMarketsInc.andBarclaysCapitalInc.
serveaslendersandanaffiliateofJ.P.MorganSecuritiesLLCservesasadministrativeagentunderourcreditfacility.Weexpecttousemorethan5%ofthenet
proceedsfromthesaleofourClassAcommonstocktofullyrepayourtermloanunderourfacility.SeeUseofproceeds.Accordingly,thisofferingisbeingmadein
compliancewiththerequirementsofRule5121ofFINRAsconductrules.SeeConflictsofinterestforamoredetaileddiscussionofpotentialconflictsofinterest.In
addition,fromtimetotime,certainoftheunderwritersandtheiraffiliatesmayeffecttransactionsfortheirownaccountortheaccountofcustomers,andholdonbehalf
ofthemselvesortheircustomers,longorshortpositionsinourdebtorequitysecuritiesorloans.
Directedshareprogram
Atourrequest,theunderwritershavereservedforsale,attheinitialpublicofferingprice,upto%oftheClassAcommonstockofferedherebyforsaletocertain
businessassociatesofours.Noneofourdirectorsorexecutiveofficerswillparticipateinthedirectedshareprogram.Wewillofferthesesharestotheextent
permittedunderapplicableregulationsintheUnitedStatesthroughadirectedshareprogram.ThenumberofsharesofourClassAcommonstockavailableforsaleto
thegeneralpublicwillbereducedbythenumberofdirectedsharespurchasedbyparticipantsintheprogram.Anydirectedsharesnotpurchasedwillbeofferedbythe
underwriterstothegeneralpubliconthesametermsastheothersharesofourClassAcommonstockofferedhereby.Wehaveagreedtoindemnifytheunderwriters
againstcertainliabilitiesandexpenses,includingliabilitiesundertheSecuritiesActof1933,asamended,inconnectionwiththesaleofsharesthroughadirected
shareprogram.
LOYAL3Platform
Atourrequest,theunderwritershavereservedupto1.5%oftheClassAcommonstockofferedherebytobeofferedthroughtheLOYAL3platformattheinitialpublic
offeringprice.Purchases

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throughtheLOYAL3platformwillbeindollaramountsandmayincludefractionalshares.TheLOYAL3platformisdesignedtofacilitateparticipationofindividual
purchasersininitialpublicofferingsinamountsstartingat$100.AnypurchaseofourClassAcommonstockinthisofferingthroughtheLOYAL3platformwillbeat
thesameinitialpublicofferingprice,andatthesametime,asanyotherpurchasesinthisoffering,includingpurchasesbyinstitutionsandotherlargeinvestors.
Individualinvestors,includingemployees,partnersandconsumers,intheUnitedStateswhoareinterestedinpurchasingClassAcommonstockinthisoffering
throughtheLOYAL3platformmaygotoLOYAL3swebsiteforinformationabouthowtobecomeacustomerofLOYAL3,whichisrequiredtopurchaseClassA
commonstockthroughtheLOYAL3platform.TheLOYAL3platformisavailablefeefreetoinvestors.SalesofourClassAcommonstockbyinvestorsusingthe
LOYAL3platformwillbecompletedthroughabatchorcombinedorderprocesstypicallyonlyonceperday.TheLOYAL3platformandinformationontheLOYAL3
websitedonotformapartofthisprospectus.TheLOYAL3platformisadministeredbyLOYAL3Securities,Inc.,aU.S.registeredbrokerdealer,thatisunaffiliated
withGoPro.
SellingrestrictionsoutsidetheUnitedStates
OtherthanintheUnitedStates,noactionhasbeentakenbyusortheunderwritersthatwouldpermitapublicofferingofthesecuritiesofferedbythisprospectusin
anyjurisdictionwhereactionforthatpurposeisrequired.ThesharesofClassAcommonstockofferedbythisprospectusmaynotbeofferedorsold,directlyor
indirectly,normaythisprospectusoranyotherofferingmaterialoradvertisementsinconnectionwiththeofferandsaleofanysuchsecuritiesbedistributedor
publishedinanyjurisdiction,exceptundercircumstancesthatwillresultincompliancewiththeapplicablerulesandregulationsofthatjurisdiction.Personsintowhose
possessionthisprospectuscomesareadvisedtoinformthemselvesaboutandtoobserveanyrestrictionsrelatingtotheofferingandthedistributionofthis
prospectus.Thisprospectusdoesnotconstituteanoffertosellorasolicitationofanoffertobuyanysecuritiesofferedbythisprospectusinanyjurisdictioninwhich
suchanofferorasolicitationisunlawful.
Thisdocumentisonlybeingdistributedtoandisonlydirectedat(i)personswhoareoutsidetheUnitedKingdomor(ii)toinvestmentprofessionalsfallingwithinArticle
19(5)oftheFinancialServicesandMarketsAct2000(FinancialPromotion)Order2005,referredtoastheOrder,or(iii)highnetworthentities,andotherpersonsto
whomitmaylawfullybecommunicated,fallingwithArticle49(2)(a)to(d)oftheOrder,allsuchpersonstogetherbeingreferredtoasrelevantpersons.Thesharesof
ClassAcommonstockareonlyavailableto,andanyinvitation,offeroragreementtosubscribe,purchaseorotherwiseacquiresuchsecuritieswillbeengagedinonly
with,relevantpersons.Anypersonwhoisnotarelevantpersonshouldnotactorrelyonthisdocumentoranyofitscontents.
NoticetoprospectiveinvestorsintheEuropeanEconomicArea
InrelationtoeachMemberStateoftheEuropeanEconomicAreawhichhasimplementedtheProspectusDirective,eachreferredtoasaRelevantMemberState,
fromandincludingthedate,orRelevantImplementationDate,onwhichtheEuropeanUnionProspectusDirective,orEUProspectusDirective,wasimplementedin
thatRelevantMemberState,anofferofsharesofcommonstockdescribedinthisprospectusmaynotbemadetothepublicinthatRelevantMemberStatepriorto
thepublicationofaprospectusinrelationtotheshareswhichhasbeenapprovedbythecompetentauthorityinthatRelevantMemberStateor,whereappropriate,
approvedinanotherRelevantMemberStateandnotifiedtothecompetentauthorityinthat

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RelevantMemberState,allinaccordancewiththeEUProspectusDirective,exceptthat,witheffectfromandincludingtheRelevantImplementationDate,anofferof
securitiesdescribedinthisprospectusmaybemadetothepublicinthatRelevantMemberStateatanytime:

toanylegalentitywhichisaqualifiedinvestorasdefinedundertheEUProspectusDirective

tofewerthan100or,iftheRelevantMemberStatehasimplementedtherelevantprovisionofthe2010PDAmendingDirective,150naturalorlegalpersons(other
thanqualifiedinvestorsasdefinedintheEUProspectusDirective),aspermittedundertheEUProspectusDirective,subjecttoobtainingthepriorconsentofJ.P.
MorganSecuritiesLLCforanysuchofferor

inanyothercircumstancesfallingwithinArticle3(2)oftheEUProspectusDirective,providedthatnosuchofferofsecuritiesdescribedinthisprospectusshall
resultinarequirementforthepublicationbyusofaprospectuspursuanttoArticle3oftheEUProspectusDirective.
Forthepurposesofthisprovision,theexpressionanofferofsecuritiestothepublicinrelationtoanysecuritiesinanyRelevantMemberStatemeansthe
communicationinanyformandbyanymeansofsufficientinformationonthetermsoftheofferandthesharesofcommonstocktobeofferedsoastoenablean
investortodecidetopurchaseorsubscribefortheshares,asthesamemaybevariedinthatMemberStatebyanymeasureimplementingtheEUProspectus
DirectiveinthatMemberState.TheexpressionEUProspectusDirectivemeansDirective2003/71/EC(andanyamendmentsthereto,includingthe2010PD
AmendingDirective,totheextentimplementedintheRelevantMemberState)andincludesanyrelevantimplementingmeasureineachRelevantMemberState,and
theexpression2010PDAmendingDirectivemeansDirective2010/73/EU.
NoticetoprospectiveinvestorsinSwitzerland
ThesharesmaynotbepubliclyofferedinSwitzerlandandwillnotbelistedontheSIXSwissExchange,ortheSIX,oronanyotherstockexchangeorregulated
tradingfacilityinSwitzerland.Thisdocumenthasbeenpreparedwithoutregardtothedisclosurestandardsforissuanceprospectusesunderart.652aorart.1156of
theSwissCodeofObligationsorthedisclosurestandardsforlistingprospectusesunderart.27ff.oftheSIXListingRulesorthelistingrulesofanyotherstock
exchangeorregulatedtradingfacilityinSwitzerland.Neitherthisprospectusnoranyotherofferingormarketingmaterialrelatingtothesharesortheofferingmaybe
publiclydistributedorotherwisemadepubliclyavailableinSwitzerland.Neitherthisprospectusnoranyotherofferingormarketingmaterialrelatingtotheoffering,the
Company,theshareshavebeenorwillbefiledwithorapprovedbyanySwissregulatoryauthority.Inparticular,thisdocumentwillnotbefiledwith,andtheofferof
shareswillnotbesupervisedby,theSwissFinancialMarketSupervisoryAuthorityFINMA,andtheofferofshareshasnotbeenandwillnotbeauthorizedunderthe
SwissFederalActonCollectiveInvestmentSchemes,ortheCISA.Theinvestorprotectionaffordedtoacquirersofinterestsincollectiveinvestmentschemesunder
theCISAdoesnotextendtoacquirersofshares.
NoticetoprospectiveinvestorsinHongKong
Thesharesmaynotbeofferedorsoldbymeansofanydocumentotherthan(i)incircumstanceswhichdonotconstituteanoffertothepublicwithinthemeaningof
theCompaniesOrdinance(Cap.32,LawsofHongKong),or(ii)toprofessionalinvestorswithinthemeaningoftheSecuritiesandFuturesOrdinance(Cap.571,Laws
ofHongKong)andanyrulesmadethereunder,or(iii)inothercircumstanceswhichdonotresultinthedocumentbeingaprospectuswithin

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themeaningoftheCompaniesOrdinance(Cap.32,LawsofHongKong),andnoadvertisement,invitationordocumentrelatingtothesharesmaybeissuedormaybe
inthepossessionofanypersonforthepurposeofissue(ineachcasewhetherinHongKongorelsewhere),whichisdirectedat,orthecontentsofwhicharelikelyto
beaccessedorreadby,thepublicinHongKong(exceptifpermittedtodosounderthelawsofHongKong)otherthanwithrespecttoshareswhichareorare
intendedtobedisposedofonlytopersonsoutsideHongKongoronlytoprofessionalinvestorswithinthemeaningoftheSecuritiesandFuturesOrdinance(Cap.
571,LawsofHongKong)andanyrulesmadethereunder.
NoticetoprospectiveinvestorsinSingapore
ThisprospectushasnotbeenregisteredasaprospectuswiththeMonetaryAuthorityofSingapore.Accordingly,thisprospectusandanyotherdocumentormaterial
inconnectionwiththeofferorsale,orinvitationforsubscriptionorpurchase,ofthesharesmaynotbecirculatedordistributed,normaythesharesbeofferedorsold,
orbemadethesubjectofaninvitationforsubscriptionorpurchase,whetherdirectlyorindirectly,topersonsinSingaporeotherthan(i)toaninstitutionalinvestor
underSection274oftheSecuritiesandFuturesAct,Chapter289ofSingapore,ortheSFA,(ii)toarelevantperson,oranypersonpursuanttoSection275(1A),andin
accordancewiththeconditions,specifiedinSection275oftheSFAor(iii)otherwisepursuantto,andinaccordancewiththeconditionsof,anyotherapplicable
provisionoftheSFA.
WherethesharesaresubscribedorpurchasedunderSection275byarelevantpersonwhichis:(a)acorporation(whichisnotanaccreditedinvestor)thesole
businessofwhichistoholdinvestmentsandtheentiresharecapitalofwhichisownedbyoneormoreindividuals,eachofwhomisanaccreditedinvestoror(b)a
trust(wherethetrusteeisnotanaccreditedinvestor)whosesolepurposeistoholdinvestmentsandeachbeneficiaryisanaccreditedinvestor,shares,debentures
andunitsofsharesanddebenturesofthatcorporationorthebeneficiariesrightsandinterestinthattrustshallnotbetransferablefor6monthsafterthatcorporation
orthattrusthasacquiredthesharesunderSection275except:(1)toaninstitutionalinvestorunderSection274oftheSFAortoarelevantperson,oranyperson
pursuanttoSection275(1A),andinaccordancewiththeconditions,specifiedinSection275oftheSFA(2)wherenoconsiderationisgivenforthetransferor(3)by
operationoflaw.
NoticetoprospectiveinvestorsinJapan
ThesecuritieshavenotbeenandwillnotberegisteredundertheFinancialInstrumentsandExchangeLawofJapan(theFinancialInstrumentsandExchangeLaw)
andeachunderwriterhasagreedthatitwillnotofferorsellanysecurities,directlyorindirectly,inJapanorto,orforthebenefitof,anyresidentofJapan(whichterm
asusedhereinmeansanypersonresidentinJapan,includinganycorporationorotherentityorganizedunderthelawsofJapan),ortoothersforreofferingorresale,
directlyorindirectly,inJapanortoaresidentofJapan,exceptpursuanttoanexemptionfromtheregistrationrequirementsof,andotherwiseincompliancewith,the
FinancialInstrumentsandExchangeLawandanyotherapplicablelaws,regulationsandministerialguidelinesofJapan.

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Conflictsofinterest
Weexpectatleast5%ofthenetproceedsfromthesaleofourClassAcommonstockwillbeusedtofullyrepayourtermloanunderourcreditfacility,whichhadan
outstandingbalanceof$114.0and$111.0millionasofDecember31,2013andMarch31,2014,respectively,owedbyustothelendersunderourcreditfacility,
includingaffiliatesofJ.P.MorganSecuritiesLLC,CitigroupGlobalMarketsInc.andBarclaysCapitalInc.SeeUseofproceedsandManagementsdiscussionand
analysisoffinancialconditionandresultsofoperationsLiquidityandcapitalresourcesforadditionalinformationregardingourcreditfacility.Accordingly,this
offeringisbeingmadeincompliancewiththerequirementsofRule5121ofFINRAsconductrules.Thisruleprovidesgenerallythatifatleast5%ofthenetproceeds
fromthesaleofsecurities,notincludingunderwritingcompensation,isusedtoreduceorretirethebalanceofaloanorcreditfacilityextendedbytheunderwritersor
theiraffiliates,aqualifiedindependentunderwritermeetingcertainstandardssetforthbyFINRAmustparticipateinthepreparationofthisprospectusandexercise
theusualstandardsofduediligencewithrespectthereto.PiperJaffray&Co.isassumingtheresponsibilitiesofactingasthequalifiedindependentunderwriterin
connectionwiththisofferingandinconductingduediligence.NoneofJ.P.MorganSecuritiesLLC,CitigroupGlobalMarketsInc.orBarclaysCapitalInc.willconfirm
salesofthesecuritiestoanyaccountoverwhichtheyexercisediscretionaryauthoritywithoutthepriorwrittenapprovalofthecustomer.
Legalmatters
Fenwick&WestLLP,MountainView,CaliforniawillpassuponthevalidityoftheissuanceofthesharesofClassAcommonstockofferedbythisprospectus.
Fenwick&WestLLPbeneficiallyowns26,015sharesofourredeemableconvertiblepreferredstockthatwillconverttoClassBcommonstockinconnectionwiththe
closingofthisoffering,representingapproximately0.02%ofouroutstandingsharesofcommonstockasofDecember31,2013.WilsonSonsiniGoodrich&Rosati,
ProfessionalCorporation,PaloAlto,California,willactascounseltotheunderwriters.
Experts
TheconsolidatedfinancialstatementsofGoPro,Inc.asofDecember31,2013and2012,andforeachofthethreeyearsintheperiodendedDecember31,2013,
includedinthisprospectushavebeensoincludedinrelianceonthereportofPricewaterhouseCoopersLLP,anindependentregisteredpublicaccountingfirm,givenon
theauthorityofsaidfirmasexpertsinauditingandaccounting.
Whereyoucanfindadditionalinformation
WehavefiledwiththeSECaregistrationstatementonFormS1undertheSecuritiesActwithrespecttotheClassAcommonstock.Thisprospectus,which
constitutesapartoftheregistrationstatement,doesnotcontainalloftheinformationsetforthintheregistrationstatement,someitemsofwhicharecontainedin
exhibitstotheregistrationstatementaspermittedbytherulesandregulationsoftheSEC.ForfurtherinformationwithrespecttousandourClassAcommonstock,
wereferyoutotheregistrationstatement,includingtheexhibitsandtheconsolidated

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financialstatementsandnotesfiledasapartoftheregistrationstatement.Statementscontainedinthisprospectusconcerningthecontentsofanycontractorany
otherdocumentarenotnecessarilycomplete.Ifacontractordocumenthasbeenfiledasanexhibittotheregistrationstatement,pleaseseethecopyofthecontract
ordocumentthathasbeenfiled.Eachstatementinthisprospectusrelatingtoacontractordocumentfiledasanexhibitisqualifiedinallrespectsbythefiledexhibit.
Theexhibitstotheregistrationstatementshouldbereviewedforthecompletecontentsofthesecontractsanddocuments.Acopyoftheregistrationstatement,
includingtheexhibitsandthefinancialstatementsandnotesfiledasapartoftheregistrationstatement,maybeinspectedwithoutchargeattheSECsPublic
ReferenceRoomat100FStreet,N.E.,Washington,D.C.20549,andcopiesofalloranypartoftheregistrationstatementmaybeobtainedfromtheSECuponthe
paymentoffeesprescribedbyit.YoumaycalltheSECat1800SEC0330formoreinformationontheoperationofthepublicreferencefacilities.TheSECmaintains
awebsiteathttp://www.sec.govthatcontainsreports,proxyandinformationstatementsandotherinformationregardingcompaniesthatfileelectronicallywithit.
Asaresultofthisoffering,wewillbecomesubjecttotheinformationandreportingrequirementsoftheExchangeActand,inaccordancewiththislaw,willfileperiodic
reports,proxystatementsandotherinformationwiththeSEC.Theseperiodicreports,proxystatementsandotherinformationwillbeavailableforinspectionand
copyingattheSECspublicreferencefacilitiesandthewebsiteoftheSECreferredtoabove.

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GoPro,Inc.
Indextoconsolidatedfinancialstatements
Page(s)
ReportofIndependentRegisteredPublicAccountingFirm F2
ConsolidatedBalanceSheets F3
ConsolidatedStatementsofOperations F4
ConsolidatedStatementsofRedeemableConvertiblePreferredStockandStockholdersEquity(Deficit) F5
ConsolidatedStatementsofCashFlows F6
NotestoConsolidatedFinancialStatements F7

F1
Table of Contents
Reportofindependentregisteredpublicaccountingfirm
TotheBoardofDirectorsandStockholdersofGoPro,Inc.:
Inouropinion,theaccompanyingConsolidatedBalanceSheetsandtherelatedConsolidatedStatementsofOperations,StatementsofRedeemableConvertible
PreferredStockandStockholdersEquity(Deficit)andStatementofCashFlowspresentfairly,inallmaterialrespects,thefinancialpositionofGoPro,Inc.andits
subsidiariesatDecember31,2013andDecember31,2012,andtheresultsoftheiroperationsandtheircashflowsforeachofthethreeyearsintheperiodended
December31,2013inconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Thesefinancialstatementsaretheresponsibilityof
theCompanysmanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudits.Weconductedourauditsofthese
statementsinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperform
theaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,
evidencesupportingtheamountsanddisclosuresinthefinancialstatements,assessingtheaccountingprinciplesusedandsignificantestimatesmadeby
management,andevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion.
/s/PRICEWATERHOUSECOOPERSLLP
SanJose,California
March14,2014

F2
Table of Contents
GoPro,Inc.
Consolidatedbalancesheets
December31,
March31,
2014

Proforma
March31,
2014
(note2) (inthousands,exceptshareandpershareamounts) 2012 2013
(unaudited)
Assets
Currentassets:
Cash $ 36,485 $ 101,410 $ 111,215
Accountsreceivable,netofallowancefordoubtfulaccountsof$262,$520and$382atDecember31,2012,2013andMarch31,
2014(unaudited),respectively 80,197 122,669 47,310
Inventories,net 60,412 111,994 90,186
Prepaidexpensesandothercurrentassets 21,724 21,967 24,589

Totalcurrentassets 198,818 358,040 273,300
Propertyandequipment,net 22,440 32,111 34,065
Intangibleassetsandgoodwill 8,449 17,365 17,080
Otherlongtermassets 16,958 32,155 30,755

Totalassets $ 246,665 $ 439,671 $ 355,200

Liabilities,RedeemableConvertiblePreferredStockandStockholdersEquity(Deficit)
Currentliabilities:
Accountspayable $ 53,746 $ 126,423 $ 55,673
Accruedliabilities 48,714 86,391 70,083
Deferredrevenue 7,380 7,781 8,689
Incometaxespayable 3,578 19,702 8,556
Notespayableandcurrentportionoflongtermdebt 15,782 60,297 63,300

Totalcurrentliabilities 129,200 300,594 206,301
Longtermdebt,lesscurrentportion 113,613 53,315 47,366
Otherlongtermliabilities 6,455 13,930 13,929

Totalliabilities 249,268 367,839 267,596

Commitmentsandcontingencies(Note12)
Redeemableconvertiblepreferredstock$0.0001parvalue36,000,000sharesauthorized:30,523,036sharesissuedand
outstandingasofDecember31,2012,2013andMarch31,2014(unaudited),respectivelynosharesissuedoroutstandingpro
forma(unaudited)liquidationpreferenceof$77,326asofDecember31,2012,2013andMarch31,2014(unaudited),respectively 77,138 77,198 77,213
Stockholdersequity(deficit)
Commonstock$0.0001parvalue150,000,000sharesauthorized:
80,714,412,81,420,040and81,899,442sharesissuedandoutstandingasofDecember31,2012,2013andMarch31,2014
(unaudited),respectively,and112,422,478proforma(unaudited)sharesissuedandoutstanding 8 8 8 11
Additionalpaidincapital 471 14,510 19,218 96,428
Accumulateddeficit (80,220) (19,884) (8,835) (8,835)

Totalstockholdersequity(deficit) (79,741) (5,366) 10,391 $ 87,604

Totalliabilities,redeemableconvertiblepreferredstockandstockholdersequity(deficit) $ 246,665 $ 439,671 $ 355,200
Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.

F3
Table of Contents
GoPro,Inc.
Consolidatedstatementsofoperations
YearendedDecember31,
Threemonthsended
March31,
(inthousands,exceptpershareamounts) 2011 2012 2013 2013 2014
(unaudited)
Revenue $ 234,238 $ 526,016 $ 985,737 $ 255,057 $ 235,716
Costofrevenue 111,683 298,530 623,953 165,628 139,202
Grossprofit 122,555 227,486 361,784 89,429 96,514
Operatingexpenses:
Researchanddevelopment 8,644 36,115 73,737 12,012 28,739
Salesandmarketing 64,375 116,855 157,771 35,673 41,341
Generalandadministrative 10,757 20,899 31,573 6,988 9,878
Totaloperatingexpenses 83,776 173,869 263,081 54,673 79,958
Operatingincome 38,779 53,617 98,703 34,756 16,556
Otherincome(expense),net 12 (407) (7,374) (1,694) (1,625)
Incomebeforeincometaxes 38,791 53,210 91,329 33,062 14,931
Incometaxexpense 14,179 20,948 30,751 10,027 3,882
Netincome $ 24,612 $ 32,262 $ 60,578 $ 23,035 $ 11,049
Less:commonstockdistributedearnings (5,071) (84,828)
Less:preferredstockdistributedearnings,includingaccumulatedaccretion (5,815) (26,927)
Less:unvestedearlyexercisedoptionsandrestrictedstockdistributedearnings (454)
Less:undistributedearningsallocableto:
holdersofpreferredstockandunvestedearlyexercisedoptionsandrestrictedstock (16,727) (6,379) (3,040)
Undistributednetincome(loss)attributabletocommonstockholdersbasic $ 13,726 $ (79,947) $ 43,851 $ 16,656 $ 8,009
Add:adjustmentstonetincomefordilutivesecuritiesallocableto:
holdersofpreferredstockandunvestedearlyexercisedoptionsandrestrictedstock 2,309 872 443
Undistributednetincome(loss)attributabletocommonstockholdersdiluted $ 13,726 $ (79,947) $ 46,160 $ 17,528 $ 8,452
Distributedearningstocommonstockholders $ 5,071 $ 84,828
Weightedaveragesharesusedtocomputenetincomepershareattributabletocommonstockholders:
Basic 73,481 74,226 81,018 80,768 81,582
Diluted 78,551 74,226 98,941 98,457 100,783
Netincomepershareattributabletocommonstockholders:
Basic $ 0.26 $ 0.07 $ 0.54 $ 0.21 $ 0.10
Diluted $ 0.24 $ 0.07 $ 0.47 $ 0.18 $ 0.08
Proformanetincomepershareattributabletocommonstockholders(unaudited):
Basic $ 0.54 $ 0.10
Diluted $ 0.47 $ 0.08
Proformaweightedaveragesharesusedtocomputenetincomepershareattributabletocommonstockholders(unaudited):
Basic 111,541 112,105
Diluted 129,464 131,306
Supplementalproformanetincomepershareattributabletocommonstockholders(unaudited):
Basic
Diluted
Supplementalproformaweightedaveragesharesusedtocomputenetincomepershareattributabletocommonstockholders
(unaudited):
Basic
Diluted
Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.

F4
Table of Contents
GoPro,Inc.
Consolidatedstatementsofredeemableconvertiblepreferredstockand
stockholdersequity(deficit)

Redeemable
convertible
preferredstock Commonstock
Additional
paidin
capital

Retained
earnings
(accumulated
deficit)

Total
stockholders
equity
(deficit) (inthousands) Shares Amount Shares Amount
BalancesatDecember31,2010 73,160 263 674 11,465 12,402
ReclassificationofretainedearningsduetoterminationofScorporationelection 9,108 (9,108)
Issuanceofpreferredstock,netofissuancecosts 7,894 19,663
Preferredstockdividendtocommonstockholders 26,840 67,995 (10,030) (57,965) (67,995)
Preferredstockdividendaccretion 3,432 (3,432) (3,432)
Accretionofpreferredstockissuancecosts 56 (56) (56)
Exerciseofstockoptions 646 11 11
Stockbasedcompensationexpense 8,975 8,975
Stockoptionsassumedinacquisition 339 339
Stockholdercontribution 6,120 6,120
Cashdistributiontostockholders (5,071) (5,071)
ReincorporationinDelawareandchangeinparvalue (267) 267
Netincome 24,612 24,612
BalancesatDecember31,2011 34,734 91,146 73,806 7 6,894 (30,996) (24,095)
Preferredstockdividendaccretion 4,207 (4,207) (4,207)
Accretionofpreferredstockissuancecosts 67 (67) (67)
Exerciseofstockoptions 2,565 1,906 1,906
Vestingofsharesrelatedtoearlyexerciseofcommonstockoptions 132 201 201
Excesstaxbenefitfromstockbasedcompensation 4,182 4,182
Stockbasedcompensationexpense 9,156 9,156
Conversionofpreferredstocktocommonstock (4,211) (11,569) 4,211 1 11,568 11,569
Cashdistributiontostockholders (6,713) (29,162) (81,486) (110,648)
Netincome 32,262 32,262
BalancesatDecember31,2012 30,523 77,138 80,714 8 471 (80,220) (79,741)
Accretionofpreferredstockissuancecosts 60 (60) (60)
Exerciseofstockoptions 346 769 769
Vestingofsharesrelatedtorestrictedstockandearlyexerciseofcommonstockoptions 267 379 379
Stockbasedcompensationexpense 10,887 10,887
Retirementofcommonstock (15) (242) (242)
Issuanceofcommonstockforacquisition 108 1,741 1,741
Excesstaxbenefitfromstockbasedcompensation 323 323
Netincome 60,578 60,578
BalancesatDecember31,2013 30,523 77,198 81,420 8 14,510 (19,884) (5,366)
Accretionofpreferredstockissuancecosts(unaudited) 15 (15) (15)
Exerciseofstockoptions(unaudited) 390 522 522
Vestingofsharesrelatedtorestrictedstockandearlyexerciseofcommonstockoptions(unaudited) 89 95 95
Stockbasedcompensationexpense(unaudited) 4,037 4,037
Excesstaxbenefitfromstockbasedcompensation(unaudited) 69 69
Netincome(unaudited) 11,049 11,049
BalancesatMarch31,2014(unaudited) 30,523 $ 77,213 81,899 $ 8 $ 19,218 $ (8,835) $ 10,391
Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.

F5
Table of Contents
GoPro,Inc.
Consolidatedstatementsofcashflows
YearsendedDecember31,
Threemonthsended
March31,
(inthousands) 2011 2012 2013 2013 2014
(unaudited)
Operatingactivities:
Netincome $ 24,612 $ 32,262 $ 60,578 $ 23,035 $ 11,049
Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities
Depreciationandamortization 1,517 3,975 12,034 2,209 3,811
Deferredtaxes (6,831) (2,121) (8,129) (346) (330)
Excesstaxbenefitfromstockbasedcompensation (4,182) (323) (69)
Stockbasedcompensation 8,975 9,156 10,887 2,095 4,037
Provisionfordoubtfulaccounts 42 736 664 63
Provisionforinventoryobsolescence 760 1,955 4,081 2,212 78
Netlossondisposalsoffixedassetsandother 127 57 1,224 279 247
Changesinoperatingassetsandliabilities,netofeffectofacquisitions:
Accountsreceivable (19,565) (53,508) (43,117) 21,346 75,359
Inventories (12,737) (43,718) (55,664) (26,919) 21,729
Prepaidsandotherassets (8,381) (8,510) (15,355) (2,680) 1,068
Accountspayableandaccruedliabilities 24,916 67,802 135,197 11,386 (100,173)
Deferredrevenue 1,794 4,462 400 (1,555) 908

Netcashprovidedbyoperatingactivities 15,229 8,366 102,477 31,125 17,714

Investingactivities:
Purchaseofpropertyandequipment (1,954) (17,795) (18,325) (5,844) (4,701)
Netcashusedinacquisitions (7,955) (2,912)

Netcashusedforinvestingactivities (9,909) (17,795) (21,237) (5,844) (4,701)

Financingactivities:
Proceedsfromissuanceofcommonstock 11 2,762 527 88 522
Proceedsfromissuanceofdebtandrevolvingcreditfacility 139,389 30,000
ProceedsfromissuanceofSeriesApreferredstock,netofissuancecosts 19,663
Excesstaxbenefitfromstockbasedcompensation 4,182 323 69
Paymentofdebtissuancecostsanddeferredpublicofferingcosts (1,776) (1,165) (104) (799)
Repaymentofdebt (380) (10,380) (46,000) (11,500) (3,000)
Cashdistributiontostockholders (5,071) (117,361)
Stockholdercontribution 6,120

Netcashprovidedby(usedfor)financingactivities 20,343 16,816 (16,315) (11,516) (3,208)

Netincreaseincash 25,663 7,387 64,925 13,765 9,805
Cash:
Beginningofyear 3,435 29,098 36,485 36,485 101,410

Endofperiod $ 29,098 $ 36,485 $101,410 $ 50,250 $ 111,215

Supplementarycashflowdisclosure:
Cashpaidfor
Interest $ 31 $ 284 $ 4,904 $ 1,188 $ 996
Incometaxes 10,280 31,317 2,831 92 14,855
Noncashinvestingandfinancingactivities:
Accretionofpreferredstockdividends 3,432 4,207
Conversionofpreferredstocktocommonstock 11,569
Purchasesofpropertyandequipmentincludedinaccountspayableandaccruedexpenses 785 4,621 2,937 1,436 810
Vestingofsharesrelatedtorestrictedstockandearlyexerciseofcommonstockoptions 201 379 94 95
Preferredstockdividendtocommonstockholders 67,995
NotespayableandstockoptionsassumedinacquisitionofCineForm 1,099
Retirementofcommonstock 242
Deferredpublicofferingcostsnotyetpaid 490 88 1,323
Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.

F6
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
1.Businessoverview
GoPro,Inc.(GoProortheCompany)wasincorporatedasWoodmanLabs,Inc.inCaliforniaonFebruary14,2004asanSCorporation.TheCompanyproduces
mountableandwearablecamerasandaccessories,whichtheCompanyreferstoascapturedevices.TheCompanysproductsaresoldgloballythroughretailers,
wholesaledistributorsandontheCompanyswebsite.In2012,theCompanyestablishedwhollyownedsubsidiariesinHongKong,GermanyandtheCaymanIslands.
TheCompanyscorporateheadquartersarelocatedinSanMateo,CaliforniawithadditionaloperationalsupportofficesinHongKongandShenzhen,China.
OnFebruary18,2011,theCompanyissued26,839,707sharesofSeriesAredeemableconvertible(SeriesA)preferredstocktoallofitsthenexistingcommon
stockholdersinexchangeforthesameamountofcommonsharesandthecommonsharesexchangedweresubsequentlycancelled.Thepreferredstockissuance
wasaccountedforasastockdividend.Thecancellationofthecommonshareswasaccountedforasareversestocksplitaccordingly,allshareandpershare
amountsforallperiodspresentedintheseconsolidatedfinancialstatementsandrelatednotes,havebeenadjustedtoreflectthereversestocksplit.OnFebruary24,
2011,theCompanyamendedandrestateditsArticlesofIncorporationtoincreasetheauthorizednumberofsharesofcommonstockonapostsplitbasisfrom
120.0millionto150.0millionandapprovedanadditional36.0millionsharesofSeriesApreferredstock,bothwithnoparvalue.Asaresultofthisamendmentand
restatementoftheCompanysArticlesofIncorporation,theCompanychangedfromanScorporationtoaCcorporation.OnOctober27,2011,theCompanyre
incorporatedinthestateofDelawareandchangeditsnoparvaluecommonandpreferredstockto$0.0001parvalue.InJuly2012,theCompanysboardofdirectors
(Board)approveda3for1splitofthepreferredstockandcommonstock.Allshareandpershareamountsforallperiodspresentedintheseconsolidatedfinancial
statementshavebeenadjustedtoreflectthestocksplit(includingtheFebruary2011transactiondescribedabove).
2.Basisofpresentation
TheCompanysfiscalyearendsonDecember31,anditsfiscalquartersendonMarch31,June30andSeptember30.
Changesinclassification
TheCompanyhasreclassifiedcertainamountsfromitspreviouslyissuedconsolidatedfinancialstatements.TheCompanyhasreviseditspresentationofcertain
operatingexpensesfor2011and2012andhasnowincluded$2.1millionand$3.2million,respectively,insalesandmarketingexpensesthatwaspreviously
classifiedingeneralandadministrativeexpenses.Inaddition,theCompanyhasreviseditsdisclosureofadvertisingcostsfor2011and2012toincludecostsof
sponsorshipsof$2.6millionand$8.2million,respectively.
Principlesofconsolidation
TheseconsolidatedfinancialstatementsincludealltheaccountsoftheCompanyanditswhollyownedsubsidiaries.Unlessotherwisespecified,referencestothe
CompanyarereferencestotheCompanyanditsconsolidatedsubsidiaries.Allintercompanybalancesandtransactionshavebeeneliminateduponconsolidation.

F7
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Useofestimates
ThepreparationoffinancialstatementsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(U.S.GAAP)requires
managementtomakeestimatesandassumptionsthataffecttheamountsreportedanddisclosedintheCompanysconsolidatedfinancialstatementsand
accompanyingnotes.TheCompanyregularlyevaluatesestimatesandassumptionsrelatedtoitsallowancefordoubtfulaccounts,stockbasedcompensation,
inventoryvaluation,warrantyliabilities,salesreturns,webbasedsaledeliveriesatperiodend,impliedpostcontractsupportandmarketingallowances,thevaluation
andusefullifeevaluationofacquiredintangibles,thevaluationofdeferredincometaxassetsanduncertaintaxpositions.TheCompanybasesitsestimatesand
assumptionsonhistoricalexperienceandonvariousotherfactorsthatitbelievestobereasonableunderthecircumstances,theresultsofwhichformthebasisfor
makingjudgmentsaboutthecarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.TheactualresultsexperiencedbytheCompany
maydiffermateriallyandadverselyfrommanagementsestimates.Totheextenttherearematerialdifferencesbetweentheestimatesandtheactualresults,future
resultsofoperationswillbeaffected.
Unauditedinterimconsolidatedfinancialstatements
TheaccompanyinginterimConsolidatedBalanceSheetasofMarch31,2014,theinterimConsolidatedStatementsofOperationsandCashFlowsforthethree
monthsendedMarch31,2014and2013andtheinterimConsolidatedStatementofRedeemableConvertiblePreferredStockandStockholdersEquity(Deficit)forthe
threemonthsendedMarch31,2014areunaudited.Theunauditedinterimconsolidatedfinancialstatementshavebeenpreparedonabasisconsistentwiththeannual
consolidatedfinancialstatementsand,intheopinionofmanagement,reflectalladjustments,whichincludeonlynormalrecurringadjustments,necessarytostate
fairlytheCompanysfinancialpositionasofMarch31,2014anditsresultsofoperationsandcashflowsforthethreemonthsendedMarch31,2014and2013.The
financialdataandtheotherfinancialinformationdisclosedinthenotestotheseconsolidatedfinancialstatementsrelatedtothethreemonthperiodsarealso
unaudited.TheresultsofoperationsforthethreemonthsendedMarch31,2014arenotnecessarilyindicativeoftheresultstobeexpectedforthefiscalyearending
December31,2014,orforanyotherfutureyearorinterimperiod.
Unauditedproformafinancialinformation
InconnectionwiththeclosingoftheCompanysinitialpublicoffering,alloftheoutstandingsharesofSeriesApreferredstockwillconvertona1for1basisinto
commonstock.Theunauditedproformafinancialinformationhasbeenpreparedassumingtheconversionoftheredeemableconvertiblepreferredstockintosharesof
commonstock.
Supplementalproformanetincomepershare
Supplementalproformabasicanddilutednetincomepershareattributabletocommonstockholdershavebeencomputedtogiveeffecttotheproformaadjustments
discussedaboveandtothenumberofadditionalsharesthatwouldhavebeenrequiredtobeissuedtorepaytheoutstandingsyndicatedseniorsecuredcredit
facilitybalanceatMarch31,2014,assumingtheissuanceofsuchsharesattheinitialofferingpriceof,themidpointofthepricerangeset

F8
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
forthonthecoverpageoftheCompanysinitialpublicofferingprospectus.Thenumeratorinthesupplementalproformabasicanddilutednetincomepershare
calculationhasbeenadjustedtoincludetheproformaadjustmentsdiscussedaboveandtoreversetheinterestexpense,netoftaxonthiscreditfacilitywhichis
assumedtoberepaidusingaportionofthenetproceedsoftheCompanysinitialpublicofferingofitscommonstock.Thesupplementalproformanetincomeper
sharedoesnotincludetheproceedstobereceivedfromtheassumedinitialpublicoffering,orsharesexpectedtobesoldintheinitialpublicoffering,exceptforthose
sharesnecessarytobeissuedtorepaythiscreditfacility.
Comprehensiveincome
Forallperiodspresented,comprehensiveincomeequalednetincome.Therefore,theConsolidatedStatementsofComprehensiveIncomehavebeenomittedfromthe
consolidatedfinancialstatements.
3.Summaryofsignificantaccountingpolicies
Accountsreceivableandallowancefordoubtfulaccounts
Accountsreceivablesarestatedatinvoicevaluelessestimatedallowancesforreturnsanddoubtfulaccounts.TheCompanycontinuallymonitorscustomerpayments
andmaintainsareserveforestimatedlossesresultingfromitscustomersinabilitytomakerequiredpayments.TheCompanyconsidersfactorssuchashistorical
experience,creditquality,ageoftheaccountsreceivablebalances,geographicrelatedrisksandeconomicconditionsthatmayaffectacustomersabilitytopay.In
caseswheretherearecircumstancesthatmayimpairaspecificcustomersabilitytomeetitsfinancialobligations,aspecificallowanceisrecordedagainstamounts
due,andtherebyreducesthenetrecognizedreceivabletotheamountreasonablybelievedtobecollectible.Forallperiodspresented,theactivityintheallowancefor
doubtfulaccountswasnotmaterial.
Inventories
Inventoriesconsistoffinishedgoodsandcomponentparts,whicharepurchasedfromcontractmanufacturers.Inventoriesarestatedatthelowerofaveragecostor
marketonafirstin,firstoutbasis.TheCompanysassessmentofmarketvaluerequirestheuseofestimatesregardingthenetrealizablevalueofitsinventory
balances,includinganassessmentofexcessorobsoleteinventories.TheCompanydeterminesexcessandobsoleteinventoriesbasedonanestimateofthefuture
demandforitsproductswithinaspecifiedtimehorizon,generally12months.Theestimatesusedforfuturedemandarealsousedforneartermcapacityplanningand
inventorypurchasesandareconsistentwithrevenueforecastassumptions.IftheCompanysdemandforecastisgreaterthanactualdemand,theCompanymaybe
requiredtorecordanexcessinventorycharge,whichwoulddecreasegrossprofit.Anywritedownstakenestablishanewcostbasisfortheunderlyinginventory.For
allperiodspresented,inventorieswerepredominantlycomprisedoffinishedgoods.

F9
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Pointofpurchase(POP)displays
TheCompanysponsorsaprogramtoprovideretailerswithPOPdisplaysinordertofacilitatethemarketingoftheCompanysproductswithinretailstores.ThePOP
displayscontainavideodisplaythatbroadcastvideoimagestakenbyGoProcameraswithproductplacementavailableonthePOPdisplayforcamerasand
accessories.TheCompanygenerallyprovidesthesePOPdisplaystocustomersfreeofcharge.ThecostsofthePOPdisplays,lessanyfeeschargedtocustomers,
arecapitalizedasalongtermassetontheaccompanyingConsolidatedBalanceSheets,andthenetcostisrecognizedovertheexpectedperiodofthebenefit
providedbytheseassets,whichisgenerally24months.POPdisplayamortizationincludedinsalesandmarketingexpensewere$3.6million,$8.6million,$13.5
million,$2.2millionand$4.5millionfor2011,2012,2013andthethreemonthsendedMarch31,2013(unaudited)andMarch31,2014(unaudited),respectively.
Propertyandequipment,net
Propertyandequipmentarestatedatcostandaredepreciatedusingthestraightlinemethodovertheestimatedusefullifeoftheassets,rangingfromonetoseven
years.Leaseholdimprovementsarestatedatcostandamortizedovertheshorteroftheleasetermortheexpectedusefullifeoftheimprovements.Propertyand
equipmentpendinginstallation,configurationorqualificationareclassifiedasconstructioninprogress.
Fairvaluemeasurements
TheCompanydoesnothaveanyfinancialinstruments,suchasinvestmentsindebtorequitysecuritiesorderivativeinstrumentsthatarerequiredtobemeasuredat
fairvalueonarecurringbasis.ThecarryingamountsoftheCompanysaccountsreceivable,accountspayableandaccruedliabilitiesapproximatetheirfairvaluesdue
totheirshortmaturities.BasedonborrowingratescurrentlyavailabletotheCompanyforitscreditfacilitywithsimilartermsandremainingmaturities,andconsidering
theCompanyscreditrisk,thecarryingvalueofthecreditfacilityapproximatesfairvalueandwasdeterminedtobeaLevel2measurement.
Leases
TheCompanyleasesitsfacilitiesundercancelableandnoncancelableoperatingleases.Forleasesthatcontainrentescalationorrentconcessionprovisions,the
Companyrecordsthetotalrentexpenseonastraightlinebasisoverthetermofthelease.TheCompanyrecordsthedifferencebetweentherentpaidandthestraight
linerentasadeferredrentliabilityontheaccompanyingConsolidatedBalanceSheets.Leaseholdimprovementsareincludedinpropertyandequipment,net.
Goodwill,acquiredintangibleassetsandotherlonglivedassets
Goodwillrepresentstheexcessofthepurchasepriceoverthefairvalueofthenettangibleandintangibleassetsacquiredinabusinesscombination.Goodwillisnot
amortizedbuttheCompanyperformsanannualqualitativeassessmentofitsgoodwillduringthefourthquarterofeachcalendaryeartodetermineifanyeventsor
circumstancesexist,suchasanadversechangeinbusinessclimateoradeclineintheoverallindustrydemand,thatwouldindicatethatitwould

F10
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
morelikelythannotreducethefairvalueofareportingunitbelowitscarryingamount,includinggoodwill.Ifeventsorcircumstancesdonotindicatethatthefairvalue
ofareportingunitisbelowitscarryingamount,thengoodwillisnotconsideredtobeimpairedandnofurthertestingisrequired.Iffurthertestingisrequired,the
Companyperformsatwostepprocess.ThefirststepinvolvescomparingthefairvalueoftheCompanysreportingunittoitscarryingvalue,includinggoodwill.Ifthe
carryingvalueofthereportingunitexceedsitsfairvalue,thesecondstepofthetestisperformedbycomparingthecarryingvalueofthegoodwillinthereportingunit
toitsimpliedfairvalue.Animpairmentchargeisrecognizedfortheexcessofthecarryingvalueofgoodwilloveritsimpliedfairvalue.Forthepurposeofimpairment
testing,theCompanyhasdeterminedthatithasonereportingunit.Therehasbeennoimpairmentofgoodwillforanyperiodspresented.
TheCompanyslonglivedassetsconsistofpropertyandequipmentandacquiredintangibleassets.Acquiredintangibleassetswithdefinitelivesareamortizedona
straightlinebasisovertheremainingestimatedeconomiclifeoftheunderlyingproductsandtechnologies.TheCompanyreviewsitsdefinitelivedlonglivedassetsfor
impairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountofalonglivedassetmaynotberecoverable.Recoverabilityofanasset
groupismeasuredbycomparingitscarryingamounttotheexpectedfutureundiscountedcashflowsthattheassetgroupisexpectedtogenerate.Ifitisdetermined
thatanassetgroupisnotrecoverable,animpairmentlossisrecordedintheamountbywhichthecarryingamountoftheassetgroupexceedsitsfairvalue.Therehas
beennoimpairmentoflonglivedassetsforanyperiodspresented.
Warranty
TheCompanygenerallyprovides12monthwarrantycoverageonallofitsproductsexceptintheEuropeanUnionwheretheCompanyprovidesatwoyearwarranty.
TheCompanyswarrantyprovidesforrepairorreplacementoftheassociatedproductsduringthewarrantyperiod.TheCompanyestablishesaliabilityforestimated
productwarrantycostsatthetimeproductrevenueisrecognized.Thewarrantyobligationisaffectedbyproductfailureratesandtherelateduseofmaterials,labor
costsandfreightincurredincorrectinganyproductfailure.Shouldactualproductfailurerates,useofmaterials,orothercostsdifferfromtheCompanysestimates,
additionalwarrantyliabilitiescouldberequired,whichwouldreduceitsgrossprofit.
Revenuerecognition
Revenueiscomprisedofproductrevenue,netofreturnsandsalesincentives.
Revenueisderivedfromthesaleofcapturedevices,aswellastherelatedimpliedpostcontractsupport(PCS).TheCompanyrecognizesrevenuewhenpersuasive
evidenceofanarrangementexists,deliveryhasoccurred,thesalespriceisfixedordeterminableandcollectabilityisreasonablyassured.Evidenceofan
arrangementconsistsofanorderfromitsdistributors,resellersoronlinecustomers.TheCompanyconsidersdeliverytohaveoccurredoncetitleandriskoflosshas
beentransferred.CustomerdepositsareincludedinaccruedliabilitiesontheaccompanyingConsolidatedBalanceSheetsandarerecognizedasrevenuewhenallthe
criteriaforrecognitionofrevenuearemet.

F11
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
TheCompanysstandardtermsandconditionsofsaledonotallowforproductreturnsanditgenerallydoesnotallowproductreturnsotherthanunderwarranty.
However,theCompanygrantslimitedrightstoreturnproductforcertainlargeretailersanddistributors.Estimatesofexpectedfutureproductreturnsarerecognizedat
thetimeofsalebasedonanalysesofhistoricalreturntrendsbycustomerclass.Uponrecognition,theCompanyreducesrevenueandcostofsalesfortheestimated
return.Returntrendsareinfluencedbyproductlifecyclestatus,newproductintroductions,marketacceptanceofproducts,saleslevels,productsellthrough,thetype
ofcustomer,seasonality,productqualityissues,operationalpoliciesandprocedures,andotherfactors.Returnratescanfluctuateovertime,butaresufficiently
predictabletoallowtheCompanytoestimateexpectedfutureproductreturns.
ForcustomerswhopurchaseproductsdirectlyfromtheCompanyswebsite,transferofriskoflossisdeterminedtobeupondeliverytothecustomersaddress.The
CompanydefersthosesalesmadetocustomerswhopurchaseproductsfromitswebsiteinthelastfourdaysofthereportingperiodforwhichtheCompanyestimates
deliverytooccurinthefollowingperiod.TheCompanyusesestimatestodeterminewhenshipmentsaredeliveredbasedonthirdpartymetricsforaveragetransit
time.Additionally,theCompanyprovidesa30daymoneybackguaranteeforwebbasedsalesforwhichtheCompanyreducesrevenuebyanestimateofpotential
futureproductreturnsrelatedtothewebbasedsales,basedonanalysesofhistoricalreturntrendsandseasonality.Estimatesforwebbasedsalereturnsand
estimatestoderivewebsaleshipmentdeliverydatesmaydifferfromactualresults.
TheCompanyscameraproductsincludemultipleelements.Eachelementinamultipleelementarrangementmustbeevaluatedtodeterminewhetheritrepresentsa
separateunitofaccounting.Anelementconstitutesaseparateunitofaccountingwhenithasstandalonevalueanddeliveryofanundeliveredelementisboth
probableanddeliveryiswithintheCompanyscontrol.
TheCompanyhasdetermineditsmultipleelementarrangementsgenerallyincludetwoseparateunitsofaccounting:Thefirstelementisthehardwarecomponent
(cameraandaccessories)andtheembeddedfirmwareessentialtothefunctionalityofthecameradeliveredatthetimeofsale.Thesecondelementistheimplied
rightforthecustomertoreceivepostcontractsupportincludedwiththepurchaseoftheCompanyscameraproducts.PCSincludestherighttoreceive,onawhen
andifavailablebasis,futureunspecifiedfirmwareupgradesandfeaturesaswellasbugfixes,emailandtelephonesupport.
TheCompanyaccountsforeachelementseparatelyandallocatefeesfromthearrangementbasedontherelativesellingpriceofeachelement.Revenueallocatedto
anundeliveredelementisrecognizedoveranestimatedserviceperiod.TheCompanyrecognizesrevenuefordeliveredelementsonlywhenallcontractualobligations
havebeencompleted.
TheCompanyusesahierarchytodeterminetheallocationofrevenue.Thehierarchyisasfollows:(i)vendorspecificobjectiveevidenceoffairvalue(VSOE),(ii)third
partyevidenceofsellingprice(TPE)and(iii)bestestimateofthesellingprice(BESP).

i.

VSOEgenerallyexistsonlywhenacompanysellsadeliverableseparatelyandisthepriceactuallychargedbythecompanyforthatdeliverable.TheCompany
doesnotsellitsdeliverablesseparatelyand,assuch,donothaveVSOE.

F12
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
ii.

TPEcanbesubstantiatedbydeterminingthepricethatotherpartiessellsimilarorsubstantiallysimilarofferings.TheCompanydoesnotbelievethatthereis
accessibleTPEevidenceforsimilardeliverablessincetherearenotcomparabledeliverablessoldbyothercompanies.

iii.

BESPreflectstheCompanysbestestimatesofwhatthesellingpricesofelementswouldbeiftheyweresoldregularlyonastandalonebasis.TheCompany
believesthatBESPisthemostappropriatemethodologyfordeterminingtheallocationofrevenueforitsmultipleelementarrangements.
TheCompanyhasallocatedrevenuebetweenitstwoelementsusingtherelativesellingpricemethodwhichisbasedontheBESPforalldeliverables.Revenue
allocatedtothedeliveredhardwareandtherelatedessentialsoftwareisrecognizedatthetimeofsaleprovidedtheconditionsforrecognitionofrevenuehavebeen
met.RevenueallocatedtoPCSisdeferredandrecognizedonastraightlinebasisovertheestimatedtermofthesupportperiod,whichisestimatedtobeoneyear
basedonhistoricalexperience.AtDecember31,2012,2013andMarch31,2014(unaudited),deferredimpliedPCSrevenuewas$3.8million,$6.4millionand
$7.4million,respectively.
TheCompanysprocessfordeterminingtheBESPforitsdeliverablesinvolvesmultiplefactorsthatmayvarydependingupontheuniquefactsandcircumstances
relatedtoeachdeliverable.KeyfactorsconsideredbytheCompanyindevelopingtheBESPforPCSincludeevaluatingthelevelofsupportprovidedtocustomers
andanalyzingtheamountoftimeandcostthatisallocatedtotheCompanyseffortstodeveloptheundeliveredelements,determiningthecostofitssupportefforts,
andthenaddinganappropriatelevelofgrossprofittothesecosts.
Salesincentives
TheCompanyofferssalesincentivesthroughvariousprograms,consistingprimarilyofcooperativeadvertisingandmarketingdevelopmentfundprograms.The
Companyrecordscooperativeadvertisingandmarketingdevelopmentfundprogramswithcustomersasareductiontorevenueunlessitreceivesanidentifiable
benefitinexchangeforcreditsclaimedbythecustomerandcanreasonablyestimatethefairvalueoftheidentifiablebenefitreceived,inwhichcasetheCompanywill
recorditasamarketingexpense.Inaddition,theCompanyofferspriceprotectiondiscountstocertaincustomerswhennewcapturedevicemodelsarereleasedand
thecustomerhasremaininginventoryonhandoftheoldercapturedevicemodel.TheCompanyestimatespriceprotectiondiscounts,whicharerecordedasa
reductionofrevenue,byevaluatinginventorycurrentlyheldbythecustomersubjecttopriceprotection.TheCompanyrecordsreductionstorevenueforsales
incentiveswhentherelatedrevenueisrecognized.
Costofrevenue
Costofrevenueincludesactualproductcost,thecostofshipping,depreciationandamortization,warehousingandprocessinginventory,warrantyreplacementcosts,
excessandobsoleteinventorywritedowns,certainallocatedcostsandlicensefeespaidtothirdparties.

F13
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Shippingcosts
TheCompanyrecordsamountsbilledtocustomersforshippingcostsasrevenueintheaccompanyingConsolidatedStatementsofOperations.TheCompany
classifiesrelatedshippingandhandlingcostsincurredascostofrevenueintheaccompanyingConsolidatedStatementsofOperations.
Deferredrevenue
Deferredrevenueiscomprisedofcustomerdeposits,undeliveredpostcontractsupportandundeliveredwebsaleshipments.Thecostofrevenuerelatedtodeferred
websalesisincludedininventory.
Researchanddevelopment
Researchanddevelopmentexpenseincludesinternalandexternalcosts.Internalcostsincludeemployeerelatedexpenses,equipmentcosts,depreciationexpense
andallocatedfacilitycosts.Externalresearchanddevelopmentexpensesconsistofcostsassociatedwithconsultants,toolingandprototypematerials.
Substantiallyallresearchanddevelopmentexpenseisrelatedtonewresearchanddevelopmenteffortsandthedesigningofsignificantimprovementstoexisting
products.ResearchanddevelopmentexpensetoestablishthetechnologicalfeasibilityoftheCompanysproductsareexpensedasincurred.Todate,theperiod
betweenachievingtechnologicalfeasibilityandthereleaseofproductsforsalehasbeenshortanddevelopmentcostsqualifyingforcapitalizationhavebeen
insignificant.
Advertisingcosts
Advertisingcostsconsistofcostsassociatedwithprint,televisionandecommercemediaadvertisementsandareexpensedasincurred.Asignificantamountofthe
Companyspromotionalexpensesresultfrompaymentsunderevent,resortandathletesponsorshipcontracts.Accountingforsponsorshippaymentsisbasedupon
specificcontractprovisions.Thesesponsorshiparrangementsareconsideredtobeexecutorycontractsand,assuch,thecostsarerecognizedasperformanceunder
thecontractisreceived.Thecostsassociatedwithpreparationofsponsorshipactivities,includingthesupplyofGoProproducts,mediateamsupportandactivation
feesareconsideredcostsofproducingadvertisingandareexpensedasincurred.Prepaymentsmadeundersponsorshipagreementsareincludedinprepaidexpenses
orotherassetsdependingontheperiodtowhichtheprepaymentapplies.Advertisingcostswere$23.7million,$46.9million,$55.5million,$13.3millionand$10.4
millionfor2011,2012and2013andthethreemonthsendedMarch31,2013(unaudited)and2014(unaudited),respectively.
Stockbasedcompensation
TheCompanyaccountsforstockbasedcompensationactivityusingthefairvaluemethod,whichrequiresthemeasurementandrecognitionofcompensationexpense
forallsharebasedpaymentawardsbasedonestimatedfairvalues.Thismethodrequirescompaniestoestimatethefairvalueofstockbasedcompensationonthe
dateofgrantusinganoptionpricingmodel.TheCompanyusestheBlackScholesoptionpricingmodeltomeasurestockbasedcompensation.TheBlackScholes
modeldeterminesthefairvalueofsharebasedpaymentawardsbasedonthefairvalue

F14
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
oftheunderlyingcommonstockonthedateofgrantandisaffectedbyassumptionsregardinganumberofhighlycomplexandsubjectivevariables.Thesevariables
include,butarenotlimitedto,thefairvalueoftheunderlyingcommonstock,expectedvolatilityoverthetermoftheawardsandactualandprojectedemployeestock
optionexercisebehaviors.Inaddition,theCompanyisrequiredtoestimatetheexpectedforfeiturerateandonlyrecognizeexpenseforthosesharesexpectedtovest.
Theassumptionsusedincalculatingthefairvalueofthestockbasedawardsrepresentmanagementjudgment.Asaresult,iffactorschangeanddifferentassumption
areused,thestockbasedcompensationexpensecouldbemateriallydifferentinthefuture.Compensationexpenserelatingtoemployeestockawardsisrecordedon
astraightlinebasisintheaccompanyingConsolidatedStatementsofOperations.
Stockawardsissuedtononemployeesareaccountedforatfairvalue.TheCompanybelievesthatthefairvalueoftheawardsismorereliablymeasuredthanthefair
valueofservicesreceived.TheCompanyrecordscompensationexpensebasedonthethencurrentfairvaluesofthestockawardsateachfinancialreportingdate.
Compensationrecordedduringtheserviceperiodisadjustedinsubsequentperiodsforchangesinthestockawardsfairvalueuntiltheearlierofthedateatwhichthe
nonemployeesperformanceiscompleteoraperformancecommitmentisreached,whichisgenerallywhenthestockoptionawardvests.Compensationexpense
relatingtononemployeestockawardsisrecordedonastraightlinebasisintheaccompanyingConsolidatedStatementsofOperations.
TheCompanyrecognizesabenefitfromstockbasedcompensationinadditionalpaidincapitalifanincrementaltaxbenefitisrealizedbyfollowingtheordering
provisionsofthetaxlaw.Inaddition,theindirecteffectsofstockbasedcompensationdeductionsarereflectedintheincometaxprovisionforpurposesofmeasuring
thewindfallatsettlementofawards.
Salestaxes
Salestaxescollectedfromcustomersandremittedtorespectivegovernmentalauthoritiesarenotincludedinrevenueandarereflectedasaliabilityonthe
accompanyingConsolidatedBalanceSheets.
Foreigncurrency
TheCompanyandtheCompanyswhollyownedsubsidiariesusetheU.S.dollarastheirfunctionalcurrency.LocalcurrencytransactionsoftheCompanys
internationaloperationsareremeasuredintoU.S.dollarsattheratesofexchangeineffectatthedateofthetransaction.Forthosewhollyownedsubsidiarieswith
assetsorliabilitiesdenominatedincurrenciesotherthantheU.S.dollar,nonmonetaryassetsareremeasuredintoU.S.dollarsusinghistoricalratesofexchange.
MonetaryassetsandliabilitiesareremeasuredintoU.S.dollarsusingexchangeratesprevailingonthebalancesheetdate.Transactiongainsandlosseswerenot
materialforallperiodspresentedandareincludedinotherincome(expense),net,intheaccompanyingConsolidatedStatementsofOperations.
Incometaxes
TheCompanyutilizestheassetandliabilitymethodofaccountingforincometaxeswhichrequirestherecognitionofdeferredtaxassetsandliabilitiesforexpected
futureconsequencesoftemporarydifferencesbetweenthefinancialreportingandincometaxbasesofassetsand

F15
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
liabilitiesusingenactedtaxrates.Managementmakesestimates,assumptionsandjudgmentstodeterminetheCompanysprovisionforincometaxesandalsofor
deferredtaxassetsandliabilities,andanyvaluationallowancesrecordedagainsttheCompanysdeferredtaxassets.TheCompanyassessesthelikelihoodthatits
deferredtaxassetswillberecoveredfromfuturetaxableincomeand,totheextenttheCompanybelievesthatrecoveryisnotlikely,theCompanymustestablisha
valuationallowance.
ThecalculationoftheCompanyscurrentprovisionforincometaxesinvolvestheuseofestimates,assumptionsandjudgmentswhiletakingintoaccountcurrenttax
laws,interpretationofcurrenttaxlawsandpossibleoutcomesoffuturetaxaudits.TheCompanyhasestablishedreservestoaddresspotentialexposuresrelatedto
taxpositionsthatcouldbechallengedbytaxauthorities.AlthoughtheCompanybelievesitsestimates,assumptionsandjudgmentstobereasonable,anychangesin
taxlaworitsinterpretationoftaxlawsandtheresolutionsofpotentialtaxauditscouldsignificantlyimpacttheamountsprovidedforincometaxesintheCompanys
consolidatedfinancialstatements.
ThecalculationoftheCompanysdeferredtaxassetbalanceinvolvestheuseofestimates,assumptionsandjudgmentswhiletakingintoaccountestimatesofthe
amountsandtypeoffuturetaxableincome.ActualfutureoperatingresultsandtheunderlyingamountandtypeofincomecoulddiffermateriallyfromtheCompanys
estimates,assumptionsandjudgmentstherebyimpactingtheCompanysfinancialpositionandresultsofoperations.
TheCompanyhasadoptedASC74010AccountingforUncertaintyinIncomeTaxesthatprescribesarecognitionthresholdandmeasurementattributeforthe
financialstatementrecognitionandmeasurementofuncertaintaxpositionstakenorexpectedtobetakenintheCompanysincometaxreturn,andalsoprovides
guidanceonderecognition,classification,interestandpenalties,accountingininterimperiods,disclosureandtransition.
TheCompanyincludesinterestandpenaltiesrelatedtounrecognizedtaxbenefitswithinincometaxexpenseintheaccompanyingConsolidatedStatementsof
Operations.TheCompanyhasnotincurredanyinterestorpenaltiesrelatedtounrecognizedtaxbenefitsinanyoftheperiodspresented.
Recentaccountingpronouncements
InJuly2013,theFinancialAccountingStandardsBoardissuedanewaccountingstandardupdateonthefinancialstatementpresentationofunrecognizedtax
benefits.Thenewguidanceprovidesthataliabilityrelatedtoanunrecognizedtaxbenefitwouldbepresentedasareductionofadeferredtaxassetforanetoperating
losscarryforward,asimilartaxlossorataxcreditcarryforwardifsuchsettlementisrequiredorexpectedintheeventtheuncertaintaxpositionisdisallowed.The
newguidancebecomeseffectivefortheCompanyonJanuary1,2014anditshouldbeappliedprospectivelytounrecognizedtaxbenefitsthatexistattheeffective
datewithretrospectiveapplicationpermitted.TheCompanyadoptedtheguidanceonJanuary1,2014.TheguidancehadnomaterialimpacttotheCompanys
financialpositionorresultsofoperationsinthefirstquarterof2014.

F16
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
4.Balancesheetcomponents
Inventories,net
Inventories,netconsistedofthefollowing:

December31, March31,
2014 (inthousands) 2012 2013

(unaudited)
Components $ 3,240 $ 8,000 $ 3,702
Finishedgoods 57,172 103,994 86,484

Inventories,net $60,412 $111,994 $ 90,186

Prepaidexpensesandothercurrentassets
Prepaidexpensesandothercurrentassetsconsistedofthefollowing:

December31, March31,
2014 (inthousands) 2012 2013

(unaudited)
Prepaidincometaxes $ 9,529 $ $
Currentdeferredtaxassets 7,226 15,173 15,079
Prepaidexpenses 1,947 2,739 3,270
Deposits 1,193 2,049 1,400
Prepaidlicenses 544 1,091 1,353
Othercurrentassets 1,285 915 3,487

$21,724 $21,967 $ 24,589

Propertyandequipment,net
Propertyandequipment,netconsistedofthefollowing

Usefullife
(inyears)
December31, March31,
2014 (inthousands) 2012 2013
(unaudited)
Leaseholdimprovements 37 $ 7,595 $ 20,111 $ 20,345
Computers,software,equipmentandfurniture 27 4,757 11,988 14,859
Tooling

14

4,197

8,799

9,582
Constructioninprogress 6,356 2,151 3,095
Tradeshowequipment 25 2,308 2,613 2,781
Automobiles 35 717 856 918

25,930 46,518 51,580
Less:Accumulateddepreciation (3,490) (14,407) (17,515)

$22,440 $ 32,111 $ 34,065
Depreciationexpensewas$0.6million,$2.8million,$10.9million,$1.9millionand$3.5millionfor2011,2012and2013andthethreemonthsendedMarch31,2013
(unaudited)andMarch31,2014(unaudited),respectively.

F17
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Goodwillandacquiredintangibleassets
GoodwillatDecember31,2012,2013andMarch31,2014(unaudited)wasasfollows:

(Inthousands)
GoodwillatDecember31,2012 $ 4,233
Acquisition 9,862

GoodwillatDecember31,2013 $ 14,095
Adjustments(unaudited)

GoodwillatMarch31,2014(unaudited) $ 14,095

Goodwillincreasedbyapproximately$9.9millionduetotheacquisitionofGeneralThings,Inc.(GeneralThings)inthefourthquarterof2013.Therewereno
impairmentsorotheradditionstogoodwillin2012orthethreemonthsendedMarch31,2014(unaudited).
AcquiredintangibleassetsatDecember31,2012,2013andMarch31,2014(unaudited)wereasfollows:

December31,2012
Weighted
average
remaining
usefullife
(inyears) (inthousands) Gross
Accumulated
amortization Net
Developedtechnology $5,330 $ (1,629) $3,701 4.2
Tradename 664 (243) 421 3.2
Customerrelationships 170 (104) 66 1.2
Noncompeteagreements 150 (137) 13 0.2
Domainname 15 15

$6,329 $ (2,113) $4,216

December31,2013
Weighted
average
remaining
usefullife
(inyears) (inthousands) Gross
Accumulated
amortization Net
Developedtechnology $5,330 $ (2,517) $2,813 3.2
Tradename 664 (376) 288 2.2
Customerrelationships 170 (161) 9 0.2
Noncompeteagreements 311 (166) 145 1.8
Domainname 15 15

$6,490 $ (3,220) $3,270

F18
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
March31,2014
Weighted
average
remaining
usefullife
(inyears) (inthousands) Gross
Accumulated
amortization Net

Developedtechnology $5,330 $ (2,739) $2,591 3.0
Tradename 664 (410) 254 2.0
Customerrelationships 170 (170)
Noncompeteagreements 311 (186) 125 1.6
Domainname 15 15

$6,490 $ (3,505) $2,985

Amortizationexpenseinfiscalyears2011,2012,2013andthethreemonthsendedMarch31,2013(unaudited)andMarch31,2014(unaudited)was$1.0million,$1.2
million,$1.1million,$0.3millionand$0.3million,respectively.
TheestimatedfutureamortizationexpenseofacquiredintangibleassetstobechargedtocostofrevenueandoperatingexpensesasofDecember31,2013,isas
follows:

(inthousands)
Costof
revenue
Operating
expenses Total
YearsendingDecember31,
2014 $ 888 $ 223 $1,111
2015 888 197 1,085
2016 888 22 910
2017 149 149

$ 2,813 $ 442 $3,255
TheestimatedfutureamortizationexpenseofacquiredintangibleassetstobechargedtocostofrevenueandoperatingexpensesasofMarch31,2014(unaudited),is
asfollows:

(inthousands)
Costof
revenue
Operating
expenses Total
YearsendingDecember31,
2014(remaining9months) $ 666 $ 160 $ 826
2015 888 197 1,085
2016 888 22 910
2017 149 149

$ 2,591 $ 379 $2,970

F19
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Otherlongtermassets
Otherlongtermassetsconsistedofthefollowing:

December31, March31,
2014 (inthousands) 2012 2013

(unaudited)
POPdisplays $13,106 $22,379 $ 19,025
Deposits 1,920 2,698 2,752
Longtermlicenses 4,000 4,000
Deferredfinancingcharges 1,378 947 790
Longtermdeferredtaxassets 554 736 1,160
Deferredpublicofferingcosts 1,395 3,028

$16,958 $32,155 $ 30,755

Deferredpublicofferingcostsconsistprincipallyoflegal,accountingandotherfeesincurredthroughthebalancesheetdatethataredirectlyrelatedtothispublic
offeringandthatwillbechargedtoStockholdersEquity(Deficit)uponthereceiptofthecapitalraised.AsofDecember31,2013andMarch31,2014(unaudited),
$0.5millionand$1.3million,respectively,ofdeferredpublicofferingcostsareincludedinaccruedliabilities.
Accruedliabilities
Accruedliabilitiesconsistedofthefollowing:

December31, March31,
2014 (inthousands) 2012 2013

(unaudited)
Accruedpayables $33,112 $49,975 $ 38,311
Employeerelatedliabilities 2,716 11,932 8,978
Customerdeposits 1,372 1,316 3,550
Warrantyliability 1,734 3,691 2,428
Taxespayable 2,561 7,766 7,108
Accruedsponsorshipexpense 504 2,909 4,124
Accruedsalesincentives 3,314 4,909 2,352
Salescommissions 2,579 2,454 1,440
Other 822 1,439 1,792

$48,714 $86,391 $ 70,083


F20
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
5.Redeemableconvertiblepreferredstock
AtDecember31,2012and2013andMarch31,2014(unaudited),therewere36,000,000sharesofSeriesApreferredstockauthorizedand30,523,036ofSeriesA
preferredstockissuedandoutstandingwiththefollowingterms:
Conversion
EachshareofSeriesApreferredstockisconvertible,attheoptionoftheholder,intosharesofcommonstockatarateof1for1.Theconversionofalloutstanding
SeriesApreferredstockwilloccurinconnectionwiththeclosingofaninitialpublicoffering,providedtheaggregateofferingpriceequalsorexceeds$50.0million.
Votingrights
TheholdersofsharesoftheCompanysSeriesApreferredstockvoteequallywithsharesofcommonstockonanasifconvertedtocommonstockbasisonall
matters,includingtheelectionofdirectors.
Dividendrights
TheholdersofeachSeriesAshareareentitledtoreceiveanynoncumulativedividendsonanequalbasiswithcommonstock,whenandifdeclaredbytheBoard.
Redemptionrights
Intheeventofanyliquidation,dissolution,orwindingupoftheCompany,whethervoluntaryorinvoluntary,theCompanyisrequiredtoredeemsharesofSeriesA
preferredstockattheoriginalissuepriceof$2.53pershareplusanynoncumulativedividendsdeclaredbytheBoard.Iftheholdershavenotpreviouslyexercisedthe
rightsgrantedtothem,theSeriesApreferredstockisredeemablewithin365daysafterJuly1,2017,subjecttoamajorityvoteofthethenoutstandingSeriesA
preferredshares.AstheredemptioneventsdescribedabovecouldoccurandarenotsolelywithintheCompanyscontrol,allsharesofpreferredstockhavebeen
presentedoutsideofpermanentequity.
OnDecember19,2012,certainSeriesAstockholdersexercisedtheirconversionrightandconverted4,211,303sharesofSeriesApreferredstocktocommonstock
toparticipateinacommonsharesaletransactionbetweentheCompanysprincipalstockholderandanewinvestorpursuanttothepreexistingtagalongright.On
December20,2012,theSeriesApreferredstockwasmodifiedtoeliminatean8%cumulativedividendandtoextendtheredemptiondatetoJuly2017.The8%
cumulativedividendhadbeenaccretedusingtheeffectiveinterestmethodfromthetimeofissuethroughFebruary28,2016,untilthe8%cumulativedividendwas
eliminatedonDecember20,2012.TheCompanyrecordedpreferredstockdividendaccretionof$4.2millionand$3.4millionintheyearsendedDecember31,2012
and2011,respectively.OnDecember21,2012,adividendof$1.05persharewasdeclaredandpaidtoholdersofcommonandpreferredstocktotaling$117.4million.
Thedividendpaymenttothepreferredstockholdersrepresentedasettlementofaccumulateddividendstodate,prepaymentsoffuturecumulativedividendsand
participationin

F21
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
additionaldividendspaidtocommonstockholdersascontractuallyprovidedfor.Thecashdividendwasreflectedfirstasareductiontopreferredstocktotheextent
thatsuchdividendpaymentswereaccreted,withanycashpaidinexcessofthisamountrecordedasareductionofretainedearningsuntilexhausted,thenasa
reductionofadditionalpaidincapitaluntilexhausted,andthenasaccumulateddeficit.
6.Commonstockandstockholdersequity(deficit)
Commonstock
AtDecember31,2012and2013andMarch31,2014(unaudited),theCompanyhad150,000,000sharesauthorizedforissuance.AtDecember31,2012and2013and
March31,2014(unaudited),therewere80,714,412,81,420,040and81,899,442sharesissuedandoutstanding,respectively.InJuly2012,theCompanyapproveda3
for1splitoftheCompanyscommonandpreferredstock.Allshareandpershareamountsintheseconsolidatedfinancialstatementshavebeenadjustedtoreflect
thisstocksplit.
InOctober2011,theCompanyreincorporatedintheStateofDelawareandconverteditsnoparvaluecommonstockandSeriesApreferredstocktoaparvalueof
$0.0001.Thecarryingvalueofcommonstockwasadjustedtostatecommonstockatparvalue.
InFebruary2011,theCompanyissued26,839,707sharesofSeriesApreferredstocktoitsexistingstockholdersinexchangeforthesamenumberofcommon
sharespreviouslyheld.Thecommonsharesexchangedweresubsequentlycancelled.Thecancellationofcommonshareswasaccountedforasa26.8%reverse
stocksplit.Alloftheshareandpershareamountsintheseconsolidatedfinancialstatementshavebeenadjustedtoreflectthereversestocksplit.
OnFebruary24,2011,theCompanyamendedandrestateditsArticlesofIncorporationtoincreasetheauthorizednumberofpostsplitsharesofcommonstockfrom
120.0millionto150.0million,andchangeitsstatusfromanScorporationtoaCcorporation.
InOctober2010,theCompanyconvertedaconvertiblepromissorynoteof$0.2millionplusinterestof$0.1millioninto7.3millionsharesofcommonstock.
TheCompanyhadthefollowingsharesofcommonstockreservedforissuanceupontheexerciseofequityinstruments:

(inthousands)
December31,
2013
March31,
2014

(unaudited)
Stockoptionsoutstanding 26,724 27,799
Restrictedstockunitsoutstanding 270 570
Stockoptions,restrictedstockandRSUsavailableforfuturegrants 1,306 541

28,300 28,910


F22
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Equityincentiveplan
InAugust2010,theBoardapprovedtheadoptionofthe2010EquityIncentivePlan(EIP).Asamended,theEIPpermitstheCompanytograntupto
32,420,000sharesoftheCompanyscommonstock.TheEIPprovidesforthegrantofincentiveandnonqualifiedstockoptions,restrictedstock,restrictedstockunits
(RSUs)andstockappreciationrightstoemployees,nonemployeedirectorsandconsultantsoftheCompany.Allsharesthatarecancelled,forfeitedorexpiredare
returnedtotheplanandareavailableforgrantinconjunctionwiththeissuanceofnewstockawards.
TheBoardoverseestheadministrationoftheCompanysequityplansandgenerallydetermineseligibility,vestingschedulesandothertermsforawardsgrantedunder
theplans.Stockoptionsundertheplanhaveamaximumcontractualtermofnotmorethantenyearsfromthedateofgrantandaregenerallyexercisableupon
vesting.Vestinggenerallyoccursoverfouryearsandbecomesexercisableattherateof25%onthefirstanniversaryofthedateofgrantandratablyonamonthly
basisovertheremaining36monthperiodthereafter.Awardsthatprovideforearlyexercisearesubjecttorepurchaseupontheterminationofservicespriortovesting.
Theexercisepriceofstockoptionsmustgenerallybeatleast100%ofthefairvalueoftheCompanyscommonstockonthedateofgrantasdeterminedbythe
Board.

F23
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Stockoptionactivity
AsummaryoftheCompanysstockoptionactivityandrelatedinformationisasfollows:


Shares
available
forgrant
Optionsoutstanding
(sharesinthousands) Shares
Weighted
average
exercise
price
Weighted
average
grant
datefair
value
Totalintrinsic
valueof
options
exercised
(inthousands)
Weighted
average
remaining
contractual
term
(inyears)
Aggregate
intrinsic
value
(inthousands)
OutstandingatDecember31,2010: 3,268 13,043 $ 0.66
Additionalsharesauthorized 12,010
Optionsgranted (14,100) 14,100 0.93 $ 1.01
Restrictedstockandearlyexercisedoptionsgrantedsubjectto
repurchase (1,244)
RSUsgranted (270)
Exercised (46) 0.24 $ 60
Forfeited/Cancelled 736 (736) 0.72
OutstandingatDecember31,2011: 400 26,361 $ 0.80
Additionalsharesauthorized 2,100
Granted (1,418) 1,418 5.10 $ 5.02
Exercised (2,486) 1.11 $ 30,605
Forfeited/Cancelled 891 (891) 1.43
OutstandingatDecember31,2012: 1,973 24,402 $ 1.00 8.33 $ 310,454
Additionalsharesauthorized 2,000
Granted (2,906) 2,906 15.14 $ 8.45
Exercised (345) 2.23 $ 4,564
Forfeited/Cancelled 239 (239) 6.31
OutstandingatDecember31,2013: 1,306 26,724 $ 2.47 7.55 $ 367,395
Additionalsharesauthorized(unaudited) 1,000
Granted(unaudited) (1,571) 1,571 16.26 $ 8.80
RSUsgranted(unaudited) (300)
Exercised(unaudited) (390) 1.33 $ 5,849
Forfeited/Cancelled(unaudited) 106 (106) 8.45
OutstandingatMarch31,2014(unaudited): 541 27,799 $ 3.24 7.62 $ 365,425
ExercisableatDecember31,2013 20,605 $ 0.84 7.26 $ 316,812
VestedandexpectedtovestatDecember31,2013 25,798 $ 2.32 7.52 $ 358,624
ExercisableatMarch31,2014(unaudited) 21,286 $ 1.00 7.24 $ 327,605
VestedandexpectedtovestatMarch31,2014(unaudited) 26,975 $ 3.06 7.57 $ 359,710
InDecember2010,theCompanygrantedatotalof2,400,000stockoptionstotwoemployeeswhoarefamilymembersoftheprincipalstockholderandChief
ExecutiveOfficer(CEO)oftheCompany.Thesestockoptionscontaintermssimilartootheremployeestockoptiongrants.

F24
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
ThetotalfairvalueofstockoptionsvestedintheyearsendedDecember31,2011,2012and2013andthethreemonthsendedMarch31,2013(unaudited)and
March31,2014(unaudited)was$1.9million,$3.0million,$5.2million,$1.0millionand$2.6million,respectively.
ThefollowingisafurtherbreakdownoftheoptionsoutstandingatDecember31,2013:

Optionsoutstanding Optionsexercisable
(optionsinthousands)
Options
outstanding
Weighted
average
remaining
contractual
life(inyears)
Weighted
average
exerciseprice
Options
exercisable
Weighted
average
exerciseprice
Rangeofexerciseprices
$0.180.66 11,451 6.98 $ 0.62 10,594 $ 0.62
0.760.76 9,757 7.46 0.76 8,706 0.76
1.522.96 2,119 8.05 1.91 1,071 1.83
8.308.30 574 8.80 8.30 184 8.30
13.7213.72 891 9.15 13.72 28 13.72
15.4015.40 611 9.44 15.40 22 15.40
15.5915.59 472 9.64 15.59
16.1916.19 849 9.88 16.19
$0.1816.19 26,724 7.55 $ 2.47 20,605 $ 0.84
ThefollowingisafurtherbreakdownoftheoptionsoutstandingatMarch31,2014(unaudited):

Optionsoutstanding Optionsexercisable
(optionsinthousands)
Options
outstanding
Weighted
average
remaining
contractual
life(inyears)
Weighted
average
exerciseprice
Options
exercisable
Weighted
average
exerciseprice

Rangeofexerciseprices
$0.180.66 11,298 7.12 $ 0.62 10,909 $ 0.62
0.760.76 9,649 7.22 0.76 8,816 0.76
1.522.96 1,958 7.81 1.91 1,063 1.83
8.308.30 552 8.56 8.30 206 8.30
13.7213.72

876

8.90

13.72

242

13.72
15.4015.40 614 9.19 15.40 48 15.40
15.5915.59 453 9.40 15.59
16.1916.19 834 9.64 16.19
16.2216.22 1,143 9.84 16.29
16.3916.39 422 9.99 16.39 2 16.39

$0.1816.39 27,799 7.62 $ 3.24 21,286 $ 1.00

Restrictedstock
TheCompanyhasgrantedrestrictedstockpursuanttoitsEIP.Restrictedstockareshareawardsthat,upongrant,theholderreceivesrestrictedsharesofthe
Companyscommonstock,subjectto

F25
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
repurchaseattheoriginalissuancepriceuponterminationofservicespriortovesting.Theserepurchasetermsareconsideredtobeaforfeitureprovisionanddonot
resultinmarktomarketaccountingeachreportingperiod.Restrictedstockislegallyissuedandoutstanding.However,restrictedstockisonlydeemedoutstandingfor
basicearningspersharecomputationpurposesuponthelapseoftheCompanysrightofrepurchase.
InJune2011,theCompanyissued600,000sharesofrestrictedstockatapurchasepriceof$0.0033persharetoarelatedpartyforconsultingservices,whichvested
onthegrantdate.Theintrinsicvalueonthedateofgrantwas$0.5million.
InDecember2011,theCompanyissued433,500sharesofrestrictedstocktoaconsultantatapurchasepriceof$1.52pershareinaccordancewiththetermsoftheir
serviceagreements,subjecttomonthlyvestingoverathreeyearserviceperiod.
InOctober2013,inconnectionwiththeacquisitionofGeneralThings,theCompanyissued430,000sharesofrestrictedstocktothetwofounders,ofwhich322,500
aresubjecttomonthlyvestingoverathreeyearserviceperiod.
Earlyexercisedstockoptionssubjecttorepurchase
TheCompanyhasgrantedoptionsthatprovidecertainoptionholderstherighttoexerciseunvestedoptionsforsharesofrestrictedstockpursuanttoitsEIP.
Restrictedsharesissueduponearlyexerciseofstockoptionsarelegallyissuedandoutstanding.However,theserestrictedsharesareonlydeemedoutstandingfor
basicearningspersharecomputationpurposesuponthelapseoftheCompanysrightofrepurchase.Cashreceivedfromoptionholdersforexerciseofunvested
optionsistreatedasarefundabledepositshownasaliabilityontheaccompanyingConsolidatedBalanceSheets,andreclassifiedtoStockholdersEquity(Deficit)as
theCompanysrepurchaserightlapses.
InDecember2011,theCompanygranted210,000stockoptionstoaconsultantatanexercisepriceof$1.52pershareinaccordancewiththetermsofhisservice
agreement,subjecttomonthlyvestingoveratwoyearserviceperiod.InDecember2012,thestockoptionswereexercisedearlyandtheshareswerepurchased.

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GoPro,Inc.
Notestoconsolidatedfinancialstatements
AsummaryoftheCompanysrestrictedstockandearlyexercisedstockoptionssubjecttorepurchaseactivityisasfollows:

(inthousandsexceptforweightedaveragegrantdatefairvalue) Shares
Weighted
average
grantdate
fairvalue
Aggregate
intrinsic
value
NonvestedsharesatDecember31,2010 $ $
Granted 1,244 1.68
Vested (600) 0.98

NonvestedsharesatDecember31,2011 644 2.44 711
Vested (212)

NonvestedsharesatDecember31,2012 432 2.44 5,274
Granted 430 16.19 6,962
Vested (375)

NonvestedsharesatDecember31,2013 487 11.03 7,628
Vested(unaudited) (89)

NonvestedsharesatMarch31,2014(unaudited) 398 12.03 6,342
TheweightedaverageremainingvestingtermfortherestrictedstockandunvestedearlyexercisedstockoptionssubjecttorepurchaseasofDecember30,2013and
March31,2014(unaudited)was1.4yearsand1.6years,respectively.Thetotalfairvalueofrestrictedstockandearlyexercisedstockoptionssubjecttorepurchase
vestedintheyearendedDecember31,2012and2013andthethreemonthsendedMarch31,2013(unaudited)andMarch31,2014(unaudited)were$2.9million,
$6.1million,$1.0millionand$1.5million,respectively.
Sharingofproceedsfromsaleofsecurities
DuringthedevelopmentstageoftheCompany,thefounderandCEOenteredintoaverbalagreementwithasalesemployeetoshare10%ofanyproceedsfromthe
saleofequitysecuritiesheldbythefounderandCEO.AsaresultoftheissuanceofpreferredstocktocommonstockholdersinFebruary2011,andsubsequentsale
ofthesepreferredsharesbythefounderandCEOtothirdparties,anobligationunderthisverbalagreementarose.Inordertosatisfythisobligationandanyfuture
obligationsthatmayhavearisenoutofthisverbalagreement,theCompanyenteredintoawrittenagreementandprovidedthefollowingformsofcompensationtothe
employee:

InMarch2011,theCompanypaidtheemployee$6.1millionincash,whichwasrecordedascompensationexpensewithinsalesandmarketingexpense.Alsoin
March2011,theCEOreimbursedtheCompanyfor$6.1million,whichisrecordedasastockholdercontributiontoadditionalpaidincapital

InJune2011,theCompanyissuedtheemployeeanoptiontopurchase6,584,427sharesofcommonstockatanexercisepriceof$0.763pershare.Theoptions
vestedimmediatelyandhaveacontractuallifeof10years.$6.8millionofstockcompensationexpensewasrecordedinJune2011withinsalesandmarketing
expenseasaresultofthisgrant.Uponexerciseofthisoptionbytheemployee,thefounderandCEOwillcontributeanequalnumberofcommonsharesbackto
theCompanyand

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GoPro,Inc.
Notestoconsolidatedfinancialstatements

InDecember2011,theCompanyissuedtheemployee270,000RSUs.
Restrictedstockunits
TheCompanyhasgrantedRSUspursuanttoitsEIP.TheCompanyissued270,000RSUsinDecember2011aspartofthesharingofproceedsfromasaleof
securities.TherewerenoRSUsawardedduringtheyearsendedDecember31,2012and2013.
RSUsareshareawardsthat,uponvesting,willdelivertotheholdersharesoftheCompanyscommonstock.ThevestingoftheDecember2011RSUgrantof270,000
RSUsdescribedaboveisbasedontheacquisitionoftheCompany.Nostockbasedcompensationexpensehasbeenrecognizedforthisgrantbecausesatisfactionof
theperformanceconditionisnotprobable.
InJanuary2014,theCompanyissuedatotalof300,000RSUstoemployees,comprisedofthreedifferentgrants.Twoofthegrants,oratotalof200,000shares,are
subjecttoannualvestingoverfouryearsbasedoncontinuedservice.Thethirdgrantof100,000shareswillvest50%onthefouryearanniversaryand50%onthe
fiveyearanniversaryofthegrantdatebasedoncontinuedservice.
TheweightedaveragefairvaluepershareoftheRSUsawardedintheyearendedDecember31,2011andthethreemonthsendedMarch31,2014(unaudited)was
$2.23and$16.22,respectively.TheweightedaveragefairvaluepersharewascalculatedbasedonthefairmarketvalueoftheCompanyscommonstockonthe
grantdate.AsofDecember31,2013andMarch31,2014(unaudited),thefairvalueofRSUsoutstandingwas$4.4millionand$9.3million,respectively.
7.Stockbasedcompensation
ThefollowingtablesummarizesstockbasedcompensationexpenserelatedtostockoptionsandrestrictedstockforthethreeyearsendedDecember31,2011,2012
and2013andthethreemonthsendedMarch31,2013(unaudited)andMarch31,2014(unaudited),asfollows:

YearsendedDecember31,
Threemonthsended
March31,
(inthousands) 2011 2012 2013 2013 2014
(unaudited)
Stockbasedcompensationexpensebytypeofaward
Stockoptions $ 8,518 $ 8,165 $ 8,468 $ 1,623 $ 2,894
RSUs 179
Restrictedstock 457 991 2,419 472 964

Totalstockbasedcompensationexpense $ 8,975 $ 9,156 $10,887 $ 2,095 $ 4,037

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GoPro,Inc.
Notestoconsolidatedfinancialstatements
ThefollowingtablesummarizesstockbasedcompensationexpenseasreportedintheCompanysaccompanyingConsolidatedStatementsofOperations:

YearsendedDecember31,
Threemonths
endedMarch31,
(inthousands) 2011 2012 2013 2013 2014
(unaudited)
Costofrevenue $ 122 $ 333 $ 690 $ 220 $ 168
Researchanddevelopment 261 1,452 3,003 441 1,401
Salesandmarketing 7,690 6,335 5,670 1,204 1,414
Generalandadministrative 902 1,036 1,524 230 1,054

Totalstockbasedcompensationexpense 8,975 9,156 10,887 2,095 4,037
Totaltaxbenefitrecognized (2,897) (1,091) (1,104) (312) (342)

Decreaseinnetincome $ 6,078 $ 8,065 $ 9,783 $ 1,783 $ 3,695
Stockbasedcompensationexpenserelatedtomanufacturingpersonnelthatwascapitalizedintoinventorywasimmaterialforallperiodspresented.
Theamountofunearnedstockbasedcompensationcurrentlyestimatedtobeexpensedwithrespecttounvestedemployeesharebasedpaymentawardsat
December31,2013andMarch31,2014(unaudited)was$22.8millionand$32.6million,respectively.AsofeachofDecember31,2013andMarch31,2014
(unaudited),theweightedaverageperiodoverwhichtheunearnedstockbasedcompensationisexpectedtoberecognizedwas1.0year.Ifthereareanymodifications
orcancellationsoftheunderlyingunvestedawards,theCompanymayberequiredtoaccelerate,increaseorcancelanyremainingunearnedstockbased
compensationexpense.FuturestockbasedcompensationexpensewillincreasetotheextentthattheCompanygrantsadditionalequityawardsorassumesunvested
equityawardsinconnectionwithacquisitions.
Stockoptionvaluationassumptions
ThefairvalueoftheoptionsgrantedwasestimatedasofthegrantdateusingtheBlackScholesoptionpricingmodelassumingtheweightedaverageassumptions
listedinthefollowingtable:

YearsendedDecember31,
Threemonthsended
March31,
2011 2012 2013 2013 2014
(unaudited)
Expectedlife(years) 5.06.1 5.16.1 5.36.1 5.96.1 5.46.3
Riskfreeinterestrate 1.1%2.4% 0.8%2.4% 0.8%2.4% 1.0%1.2% 1.8%2.0%
Volatility 56%59% 56%60% 56%60% 56% 55%56%
Dividendyield 0% 0% 0% 0% 0%
Expectedforfeiturerate 5% 5%7% 6% 7% 5%
Weightedaveragefairvalue $0.98 $5.08 $8.45 $7.41 $8.80

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GoPro,Inc.
Notestoconsolidatedfinancialstatements
Compensationamortizationperiod
Allstockbasedcompensationisamortizedovertherequisiteserviceperiodoftheawards,whichisgenerallythesameasthevestingperiodoftheawards.The
Companyamortizesthefairvaluecostonastraightlinebasisovertheexpectedserviceperiods.
Expectedlife
ExpectedliferepresentstheperiodoverwhichtheCompanyanticipatesstockbasedawardstobeoutstanding.AstheCompanyhasundergonesignificantoperational
andstructuralchanges,thehistoricalexercisedatadonotprovideareasonablebasisuponwhichtoestimateexpectedlife.Asaresult,theCompanyusedthe
simplifiedmethod,asprovidedunderStaffAccountingBulletinTopic14.D,ShareBasedPayment,tocalculatetheexpectedtermestimatebasedontheoptions
vestingtermandcontractualterms.Underthesimplifiedmethod,theexpectedlifeisequaltotheaverageofthestockbasedawardsweightedaveragevestingperiod
anditscontractualterm.
Expectedvolatility
Expectedvolatilityisameasureoftheamountbywhichthestockpriceisexpectedtofluctuate.TheCompanyestimatestheexpectedvolatilityofitsstockoptions
attheirgrantdatebytakingtheaveragehistoricalvolatilityofagroupofcomparablepubliclytradedcompaniesoveraperiodequaltotheexpectedlifeoftheoptions.
Riskfreeinterestrate
TheriskfreeinterestrateistheestimatedaverageinterestratebasedonU.S.Treasuryzerocouponnoteswithtermsconsistentwiththeexpectedlifeoftheawards.
Expecteddividends
TheCompanyconcludedthatcashdividendspaidpriortobeingconvertedtoaCcorporationfromanScorporationweresolelyformeetingstockholderstaxliabilities
asapassthroughentity.Thecashdividendin2012wasstructuredasaoneoffeventtoreturnvaluetothestockholders,asdiscussedinNote5,Redeemable
ConvertiblePreferredStock.TheCompanymayfromtimetotimecontemplatecapitaltransactions,includingforexampleanonrecurringdividendtocreatealiquidity
eventforitsstockholders.However,theCompanydoesnotanticipatepayinganyrecurringcashdividendsintheforeseeablefuture.Consequently,theCompanyuses
anexpecteddividendyieldof0%instockoptionvaluationmodels.
Expectedforfeitures
StockbasedcompensationexpenserecognizedintheConsolidatedStatementsofOperationsforthethreeyearsendedDecember31,2013andthreemonthsended
March31,2013(unaudited)andMarch31,2014(unaudited)arebasedonawardsthatareexpectedtovestlessestimatedforfeitures.TheCompanyestimatesthe
forfeiturerateofitsstockbasedawardsbasedonananalysisofactualforfeitures,employeeturnoverandotherfactors.Theimpactfromaforfeiturerateadjustment
wouldberecognizedinfullintheperiodinwhichtheforfeitureratechanges

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GoPro,Inc.
Notestoconsolidatedfinancialstatements
and,iftheactualnumberoffutureforfeituresdiffersfrompriorestimates,theCompanymayrecordadjustmentstostockbasedcompensation,ifnecessary.
Determiningthefairvalueofthecompanyscommonstock
DeterminingthefairvalueoftheCompanyscommonstockrequirescomplexandsubjectivejudgmentandestimates.Thereisinherentuncertaintyinmakingthese
judgmentsandestimates.TheabsenceofanactivemarketfortheCompanyscommonstockrequiredtheBoardtoestimatethefairvalueofthecommonstockfor
purposesofsettingtheexercisepriceoftheoptionsandestimatingthefairvalueofthecommonstockateachmeetingatwhichoptionsweregrantedbasedon
factorssuchasthevaluationsofcomparablecompanies,thestatusoftheCompanysdevelopmentandsalesefforts,revenuegrowth,independentthirdparty
valuationsandadditionalobjectiveandsubjectivefactorsrelatingtotheCompanysbusiness.TheCompanyperformeditsanalysisinaccordancewithapplicable
elementsofthepracticeaidissuedbytheAmericanInstituteofCertifiedPublicAccountantsentitledValuationofPrivatelyHeldCompanyEquitySecuritiesIssuedas
Compensation.ThefairvalueoftheunderlyingcommonstockwillbedeterminedbytheBoarduntilsuchtimeasitscommonstockislistedonanestablishedstock
exchange.
Stockoptionmodifications
During2012,theCompanymodifiedoptionstopurchase250,000sharesofcommonstockofthreeemployeestoacceleratevestingandextendthetimeallowedto
exercisethestockoptionsinconjunctionwithterminationofemployment.TheCompanyrecordedachargeof$1.1millionrelatedtothemodificationoftheseawards,
ofwhich$1.0millionwasrecordedtosalesandmarketingexpenseandtheremainingamountstoresearchanddevelopmentandgeneralandadministrativeexpenses
basedontheemployeesfunctionalrolewithintheCompany.During2013,theCompanymodifiedoptionstopurchase8,438sharesofcommonstocktoaccelerate
vestingandextendthetimeallowedtoexercisethestockoptionsafterterminationofemployment.TheCompanyrecordedachargeof$0.1millionrelatedtothe
modificationofthisawardtocostofrevenue,basedontheemployeesfunctionalrolewithintheCompany.
CompensationcostrecognizeduponemployeesaleofsharestotheCEO
InDecember2012,eightemployeessold760,500sharesoftheircommonstockfor$13.0milliontotheCompanysCEO.Thestockwassoldat$17.08pershare,
whichwasgreaterthanthedeterminedfairvalueofthecommonstockatthetimeofsale.ThefairvaluewasdeterminedbytheBoard,basedontheCompanys
developmentandsalesefforts,revenuegrowth,independentthirdpartyvaluationsandadditionalobjectiveandsubjectivefactorsrelatingtotheCompanysbusiness.
TheCompanydeterminedthattheamountpaidbytheCompanysCEOexceededtheestimatedfairvalueofthesesharesby$2.6millionandconcludedthatthe
valuetransferredtoemployeesinexcessofthefairvalueofsharessoldwasadditionalcompensationtothesellingemployees.Asaresult,theCompanyrecorded
compensationexpenseof$2.6million,ofwhich$0.3millionwasrecordedtoresearchanddevelopment,$1.7millionwasrecordedtosalesandmarketingand$0.6
millionwasrecordedtogeneralandadministrativeexpenseintheaccompanyingConsolidatedStatementsofOperations,basedontheemployeesfunctionalroles
withintheCompany.Ofthe760,500sharessold,theCompanyrepurchased240,000sharesfromtwoemployeeswhoarefamilymembersoftheCompanysCEO.

F31
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GoPro,Inc.
Notestoconsolidatedfinancialstatements
Restrictedstockandearlyexercisedoptionssubjecttorepurchase
InJune2011,theCompanygrantedatotalof600,000sharesofrestrictedstockatapurchasepriceof$0.0033persharetotwofamilymembersoftheCEOfor
consultingservices,whichvestedonthegrantdate.Thesesharesofrestrictedstockwereaccountedforatfairvalue.Generalandadministrativeexpenserelatedto
theseoptionsfortheyearendedDecember31,2011was$0.5million.
InDecember2011,theCompanygranted433,500sharesofrestrictedstockand210,000stockoptionstotwoconsultantsthattheCompanysponsorsatanexercise
priceof$1.52pershareinaccordancewiththetermsoftheirserviceagreements,subjecttomonthlyvestingoverathreeyearserviceperiodandatwoyearservice
period,respectively.SalesandmarketingexpenserelatedtotheserestrictedsharesfortheyearsendedDecember31,2011,2012and2013andthethreemonths
endedMarch31,2013(unaudited)andMarch31,2014(unaudited)was$1,000,$1.9million,$3.5million,$0.8millionand$0.8million,respectively.
InOctober2013,pursuanttotheacquisitionofGeneralThings,theCompanyissued430,000sharesofrestrictedstocktothetwofounders,ofwhich322,500are
subjecttomonthlyvestingoverathreeyearserviceperiod.ResearchanddevelopmentexpenserelatedtotheserestrictedsharesfortheyearendedDecember31,
2013andthethreemonthsendedMarch31,2014(unaudited)was$0.3millionand$0.4million,respectively.
Theamountofunearnedstockbasedcompensationcurrentlyestimatedtobeexpensedwithrespecttounvestednonemployeesharebasedpaymentawardsat
December31,2013andMarch31,2014(unaudited)was$7.4millionand$6.2million,respectively.AsofDecember31,2013andMarch31,2014(unaudited),the
weightedaverageperiodoverwhichtheunearnedstockbasedcompensationisexpectedtoberecognizedwas1.4yearsand1.6years,respectively.
Restrictedstockunits
InJanuary2014,theCompanyissuedatotalof300,000RSUstoemployees,comprisedofthreedifferentgrants.Twoofthegrants,oratotalof200,000shares,are
subjecttoannualvestingoverfouryearsbasedoncontinuedservice.Thethirdgrantof100,000shareswillvest50%onthefouryearanniversaryand50%onthe
fiveyearanniversarybasedoncontinuedservice.GeneralandadministrativeexpenserelatedtotheseRSUsforthethreemonthsendedMarch31,2014(unaudited)
was$0.2million.TheamountofunearnedstockbasedcompensationcurrentlyestimatedtobeexpensedrelatedtotheseRSUsatMarch31,2014(unaudited)was
$4.7million.AsofMarch31,2014(unaudited),theweightedaverageperiodoverwhichtheunearnedstockbasedcompensationisexpectedtoberecognizedwas4.2
years.
Nonemployeeoptions
InDecember2011,theCompanygrantedoptionstopurchase90,000sharesofcommonstocktoconsultantsatanexercisepriceof$1.52,whichvestedonthegrant
date.SalesandmarketingexpenserelatedtotheseoptionsfortheyearendedDecember31,2011was$0.2million.
InApril2013,theCompanygrantedoptionstopurchase44,000sharesofcommonstocktotwocontractorsatanexercisepriceof$15.40.InSeptember2013,oneof
thecontractorswas

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GoPro,Inc.
Notestoconsolidatedfinancialstatements
terminatedandtheothercontractorwasconvertedtoanemployeeonOctober1,2013.Salesandmarketingexpenserelatedtotheseoptionswas$0.2millionin
2013.Nonemployeestockcompensationexpenseisincludedinthestockbasedcompensationtablesinthisfootnote.
8.Netincomepershareattributabletocommonstockholders
Basicanddilutednetincomepershareattributabletocommonstockholdersispresentedinconformitywiththetwoclassmethodrequiredforparticipatingsecurities.
TheCompanyconsidersitsredeemableconvertiblepreferredstocktobeparticipatingsecurities.PriortoDecember20,2012,theholdersoftheCompanysSeriesA
preferredstockwereentitledtoreceivecumulativedividendsattheannualrateof8%pershareperannum,payablepriorandinpreferencetoanydividendsonany
sharesoftheCompanyscommonstock.Intheeventadividendwaspaidoncommonstock,theholdersofpreferredstockwereentitledtoaproportionateshareof
anysuchdividendasiftheywereholdersofcommonstock(onanasifconvertedbasis).AllparticipatingdividendspaidontheSeriesApreferredstockreduced
accruedpastorfuturepreferreddividendsbysuchamount.OnDecember20,2012,theCompanysSeriesApreferredstockwasmodifiedtoeliminatethe8%
cumulativedividend.TheholdersoftheSeriesApreferredstockdonothaveacontractualobligationtoshareinlosses.Inaddition,theCompanyconsidersshares
issuedupontheearlyexerciseofoptionssubjecttorepurchaseandnonvestedrestrictedsharestobeparticipatingsecurities,astheholdersoftheseshareshavea
nonforfeitablerighttodividends.Inaccordancewiththetwoclassmethod,earningsallocatedtotheseparticipatingsecuritiesandtherelatednumberofoutstanding
sharesoftheparticipatingsecurities,whichincludecontractualparticipationrightsinundistributedearnings,havebeenexcludedfromthecomputationofbasicand
dilutednetincome(loss)pershareattributabletocommonstockholders.
Underthetwoclassmethod,netincomeattributabletocommonstockholdersafterdeductionofpreferredstockdividendsisdeterminedbyallocatingundistributed
earningsbetweenthecommonstockandtheparticipatingsecuritiesbasedontheirrespectiverightstoreceivedividends.Incomputingdilutednetincomeattributable
tocommonstockholders,undistributedearningsarereallocatedtoreflectthepotentialimpactofdilutivesecurities.Basicnetincomepershareattributableto
commonstockholdersiscomputedbydividingthenetincomeattributabletocommonstockholdersbytheweightedaveragenumberofcommonsharesoutstanding
duringtheperiod.Allparticipatingsecuritiesareexcludedfrombasicweightedaveragecommonsharesoutstanding.Dilutednetincomepershareattributableto
commonstockholdersiscomputedbydividingthenetincomeattributabletocommonstockholdersbytheweightedaveragenumberofcommonsharesoutstanding,
includingallpotentiallydilutivecommonshares,iftheeffectofeachclassofpotentialsharesofcommonstockisdilutive.

F33
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Thefollowingtablepresentsthecalculationsofbasicanddilutednetincomepershareattributabletocommonstockholders:

YearendedDecember31,
Threemonthsended
March31,
(inthousands,exceptpershareamounts) 2011 2012 2013 2013 2014
(unaudited)
Numerator:
Netincome $24,612 $ 32,262 $ 60,578 $23,035 $ 11,049
Less:commonstockdistributedearnings (5,071) (84,828)
Less:preferredstockdistributedearnings,includingaccumulatedaccretion (5,815) (26,927)
Less:unvestedearlyexercisedoptionsandrestrictedstockdistributedearnings (454)
Less:undistributedearningsallocableto:
holdersofpreferredstock (16,521) (6,295) (2,996)
holdersofunvestedearlyexercisedoptionsandrestrictedstock (206) (84) (44)

Undistributednetincome(loss)attributabletocommonstockholdersbasic $13,726 $(79,947) $ 43,851 $16,656 $ 8,009

Add:adjustmentstonetincomefordilutivesecuritiesallocableto:
holdersofpreferredstock 2,281 860 437
holdersofunvestedearlyexercisedoptionsandrestrictedstock 28 12 6

Undistributednetincome(loss)attributabletocommonstockholdersdiluted $13,726 $(79,947) $ 46,160 $17,528 $ 8,452

Distributedearningstocommonstockholders $ 5,071 $ 84,828 $ $ $

Denominator:
Weightedaveragecommonsharesbasic 73,481 74,226 81,018 80,768 81,582
Effectofpotentiallydilutivesecurities:
StockoptionsandRSUs 5,070 17,923 17,689 19,201

Weightedaveragecommonsharesdiluted 78,551 74,226 98,941 98,457 100,783

Netincomepershareattributabletocommonstockholders:
Distributedearningsbasic $ 0.07 $ 1.15 $ $ $
Undistributedearningsbasic 0.19 (1.08) 0.54 0.21 0.10

Basicnetincomepershare $ 0.26 $ 0.07 $ 0.54 $ 0.21 $ 0.10

Distributedearningsdiluted $ 0.06 $ 1.15 $ $ $
Undistributedearningsdiluted 0.18 (1.08) 0.47 0.18 0.08

Dilutednetincomepershare $ 0.24 $ 0.07 $ 0.47 $ 0.18 $ 0.08

F34
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GoPro,Inc.
Notestoconsolidatedfinancialstatements
Thefollowingpotentiallydilutivesharesofcommonstocksubjecttooptions,unvestedstockawardsandredeemableconvertiblepreferredstockwerenotincludedin
thecalculationofdilutedsharesoutstandingastheeffectwouldhavebeenantidilutive:

YearendedDecember31,
Threemonths
endedMarch31,
(inthousands) 2011 2012 2013 2013 2014

(unaudited)
SeriesAredeemableconvertiblepreferredstock 28,744 30,523 30,523 30,523 30,523
Stockoptions 7,107 24,402 1,409 439 3,634
Unvestedstockawardsandstockoptions 2 432 380 409 451

35,853 55,357 32,312 31,371 34,608

Unauditedproformanetincomepershare
UnauditedproformabasicanddilutednetincomepersharewerecomputedtogiveeffecttotheassumedconversionofSeriesApreferredstockintocommonstock
inconnectionwiththeclosingoftheCompanysinitialpublicofferingusingtheifconvertedmethodasthoughtheconversionhadoccurredasofJanuary1,2013or
theoriginaldateofissuance,iflater.

F35
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Thefollowingtablepresentsthecalculationsofunauditedproformabasicanddilutednetincomepershare:


Yearended
December31,
Threemonths
ended
March31,
2013 2014
(inthousands,exceptpershareamounts)
Numerator:
Netincome $ 60,578 $ 11,049
Less:amountallocabletounvestedearlyexercisedoptionsandrestrictedstock (206) (44)

Undistributednetincome(loss)attributabletocommonstockholdersbasic $ 60,372 $ 11,005
Add:adjustmentofnetincomefordilutivesecuritiesallocabletounvestedearlyexercisedoptionsand
restrictedstock 28 6

Undistributednetincome(loss)attributabletocommonstockholdersdiluted $ 60,400 $ 11,011

Denominator:
Weightedaveragecommonsharesoutstanding 81,018 81,582
ProformaadjustmenttoreflectautomaticconversionofSeriesAredeemableconvertiblepreferredstock 30,523 30,523

Proformaweightedaveragesharesusedtocomputenetincomepershareattributabletocommon
stockholdersbasic: 111,541 112,105
Effectofpotentiallydilutivesecurities:
StockoptionsandRSUs 17,923 19,201

Proformaweightedaveragesharesusedtocomputenetincomepershareattributabletocommon
stockholdersdiluted: 129,464 131,306

Proformanetincomepershareattributabletocommonstockholders:
Distributedearningsbasic $ $
Undistributedearningsbasic 0.54 0.10

Basic $ 0.54 $ 0.10
Distributedearningsdiluted $ $
Undistributedearningsdiluted 0.47 0.08

Diluted $ 0.47 $ 0.08
Supplementalunauditedproformanetincomepershare
SupplementalunauditedproformabasicanddilutednetincomepersharewerecomputedtogiveeffecttotheassumedconversionofSeriesApreferredstockinto
commonstockimmediatelypriortotheclosingoftheCompanysinitialpublicoffering,aswellasthenumberofadditionalsharesthatwouldhavebeenrequiredtobe
issuedtorepaytheoutstandingsyndicatedsenior

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GoPro,Inc.
Notestoconsolidatedfinancialstatements
securedcreditfacilitybalanceof$111.0millionatMarch31,2014(unaudited)assumingtheissuanceofsuchsharesattheassumedinitialofferingpriceof,the
midpointofthepricerangesetforthonthecoverpageoftheCompanysinitialpublicofferingprospectus.Thenumeratorinthesupplementalproformabasicand
dilutednetincomepersharecalculationhasbeenadjustedtoincludetheproformaadjustmentsdiscussedaboveandtoreverseinterestexpense,netoftaxonthe
creditfacility,whichisassumedtoberepaidusingaportionofthenetproceedsoftheCompanysinitialpublicofferingofitscommonstock.
Thefollowingtablepresentsthecalculationsofunauditedsupplementalproformabasicanddilutednetincomepershare:

(inthousands,exceptpershareamounts)
Yearended
December31,
2013
Threemonths
ended
March31,
2014
Netincome $ 60,578 $ 11,049
Less:amountallocabletounvestedearlyexercisedoptionsandrestrictedstock (206) (44)
Proformaadjustmenttoreverseinterestexpenserelatedtorepaymentofcreditfacility,netoftax
Netincomeusedincomputingsupplementalproformaundistributednetincomepershareattributableto
commonstockholders
Denominator:
Weightedaveragecommonsharesoutstandingusedincomputingproformanetincomeattributableto
commonstockholdersbasic 111,541 112,105
Proformaadjustmenttoincludeadditionalsharesrequiredtobeissuedtogenerateproceedstorepaycredit
facility
Denominatorforsupplementalproformanetincomepershareattributabletocommonstockholdersbasic:
Effectofpotentiallydilutivesecurities:
StockoptionsandRSUs 17,923 19,201
Denominatorforsupplementalproformanetincomepershareattributabletocommonstockholdersdiluted:
Supplementalproformanetincomepershareattributabletocommonstockholders:
Distributedearningsbasic
Undistributedearningsbasic
Basic
Distributedearningsdiluted
Undistributedearningsdiluted
Diluted $ $
9.Financingarrangements
Creditfacility
OnDecember21,2012,theCompanyenteredintoa$170.0millionsyndicatedseniorsecuredcreditfacilityconsistingofa$120.0millionthreeyeartermloanfacility
anda$50.0millionfouryearrevolvingcreditfacility.TheCompanyreceivednetproceedsof$127.6million,netof$2.4millionofdebtissuanceandlendercosts.The
debtissuanceandlendercostswereallocated

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GoPro,Inc.
Notestoconsolidatedfinancialstatements
betweenthetermloanfacilityandtherevolvingcreditfacilitybasedonthemaximumlendingcommitmentamounts.Thedebtissuancecostsallocatedtotheterm
loanfacilityarereportedasdeferredchargesandthelendercostsallocatedtothetermloanfacilityareincludedinthecarryingvalueofthetermloanasdebt
discount.Thedeferredissuanceandlendercostsallocatedtothetermloanfacilityarebeingamortizedtointerestexpenseoverthecontractualtermofthetermloan
facilityusingtheeffectiveinterestmethod.Costsallocatedtotherevolvingcreditfacilityaredeferredandamortizedusingthestraightlinemethodoverthefouryear
contractualtermoftherevolvingcreditfacility.BorrowingsunderthecreditfacilityarecollateralizedbysubstantiallyalloftheassetsoftheCompany.
Thetermloanfacilityhasscheduledquarterlyprincipalrepaymentsdueonthelastdayofeachquarterof$1.5millionperquarterin2013,$3.0millionperquarterin
2014and$6.0millionforthefirstthreequartersof2015withthebalanceof$84.0milliondueonDecember21,2015.Theinterestrateisbasedonthe6month
adjustedLIBOR(LondonInterbankOfferedRate)plus2.5%.Theinitialcontractualinterestrateis3.06%andwilladjusteverysixmonths.Theinceptiondateeffective
interestratewas3.71%.TheCompanymayprepaythetermloanatanytime,withoutpenalty.Mandatoryadditionalprincipalprepaymentsmayberequiredbasedon
excesscashflowsoftheCompany.TheCompanysexcesscashflows,asdefinedinthecreditfacility,for2013triggeredacontractualprincipalprepayment
obligationof$48.5million,whichamounthasbeenclassifiedasacurrentliabilityasofDecember31,2013andMarch31,2014(unaudited).InApril2014,the
CompanyamendedthecreditfacilityagreementforitstermloantoextendtheduedateforthiscontractualprincipalprepaymentfromApril2014toDecember2014.
AsofDecember31,2013andMarch31,2014(unaudited),$114.0millionand$111.0millionofthetermloanwasoutstanding,respectively.Theremaining
unamortizeddiscountwas$0.4millionand$0.3millionasofDecember31,2013andMarch31,2014(unaudited),respectively.Theeffectiveinterestrateontheterm
loanwas3.79%onDecember31,2013andMarch31,2014(unaudited).
TherevolvingcreditfacilitymaturesonDecember21,2016.Principalcanbepaidandreborrowedduringthetermoftherevolvingcreditfacility.Theinterestrateis
basedonthe3monthadjustedLIBORplus2.5%.Theinitialinterestratewas2.81%andwilladjustquarterlyforanybalanceoutstanding.Mandatoryadditional
principalrepaymentsmayberequiredbasedonexcesscashflowsoftheCompanyoncethetermloanfacilityhasbeenfullyrepaid.AsofDecember31,2013and
March31,2014(unaudited),zerooftherevolvingcreditfacilitywasdrawndown.AsofDecember31,2013andMarch31,2014(unaudited),$20.0millionofthe
revolvingcreditfacilitywascommittedtoastandbyletterofcredit.InApril2014,the$20.0millionstandbyletterofcreditwasterminated.
ThecreditagreementcontainscustomaryrepresentationsandwarrantiesandcustomaryaffirmativeandnegativecovenantsapplicabletotheCompanyandits
restrictedsubsidiaries,including,amongotherthings,restrictionsonindebtedness,liens,investments,mergers,dispositions,prepaymentofotherindebtednessand
dividendsandotherdistributions.ThecreditagreementcontainsanaccelerationclauseforcertaineventsrelatedtotheCompanysfinancialcreditworthiness,
includingafinancialcovenantthatrequirestheCompanytomaintainspecificconsolidatedratios.AsofDecember31,2013andMarch31,2014(unaudited),the
Companywasincompliancewithallcovenants.

F38
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Lineofcredit
PriortothecreditfacilityinDecember2012,theCompanyhadalineofcreditagreementwhichprovidedforborrowingsofupto$15.0million,whichwaslater
amendedtoincreasethemaximumamountofborrowingsupto$50.0million,withinterestatthebanksprimerate.Borrowingsunderthislineofcreditwere
collateralizedbysubstantiallyalloftheassetsoftheCompany.During2012,theCompanyfailedtoprovidearequiredpledgeagreementuponcreationofaforeign
subsidiary,failedtoprovideauditedfinancialstatementswithin120daysafteryearendanddidnotmeetthequarterlynetincomecovenantforthequarterended
September30,2012.Allcovenantdefaultswerewaivedbythebank.InDecember2012,thelineofcreditwascancelledduetothenewcreditfacilitythatwasentered
inDecember2012.
Licensefinancingarrangement
InAugust2013,theCompanyenteredintoaStadiumBuildersLicenseAgreement(LicenseAgreement)withtheSantaClaraStadiumAuthority.AspartoftheLicense
Agreement,theCompanywillhaverightsduringtheagreementtermtoseasonticketsforaNationalFootballLeagueteam.Thecostofthelicensewas$4.0million,of
which$3.2millionwasfinancedwiththeSantaClaraStadiumAuthorityatan8.5%fixedinterestrateoverthecourseofthefirsttenyearsofthenewstadium.Interest
wastobeginaccruingonMarch1,2014.Thefinancingarrangementrequirestenannualpaymentsof$0.4million,withanoptiontopayofftheprincipalatanytime
withoutanyprepaymentpenalty.AsofDecember31,2013,theCompanyhadmadeapaymentof$0.4million,andrecordedalongtermassetof$4.0millionanda
shorttermliabilityof$3.6millionontheaccompanyingConsolidatedBalanceSheetsrelatedtothisLicenseAgreement.InJanuaryandFebruary2014,theCompany
paiddowntheremaining$3.6millionrelatedtothelicenseagreementwiththeSantaClaraStadiumAuthority.AsofMarch31,2014,therewerenofurtherfinancial
obligationsrelatedtothisLicenseAgreementoutstanding.
Loanagreement
InDecember2010,theCompanyenteredintoaloanagreementwithabankwhichprovidedforborrowingsupto$5.0millionandboreinterestatthebanksprimerate
plus1.75%.TheloanagreementexpiredonDecember27,2011,withnofundsborrowed.
CineFormnoteholdersnotepayable
AspartoftheacquisitionconsiderationofCineForm,Inc.,theCompanyassumed$760,000oftheoutstandingbalanceduetoCineFormNoteholders.SeeNote15,
AcquisitionofCineForm.Thenotebalancewaspayableinsixequalquarterlyinstallmentsplusaccruedinterestat7%.Thisnotewasfullyrepaidin2012.

F39
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
10.Incometaxes
Incomebeforeincometaxconsistedofthefollowing:

YearsendedDecember31,
(inthousands) 2011 2012 2013

Domestic $ 38,791 $ 38,714 $ 57,251
Foreign 14,496 34,078

$ 38,791 $ 53,210 $ 91,329
Incometaxexpenseconsistedofthefollowing:

YearsendedDecember31,
(inthousands) 2011 2012 2013
Current:
Federal $ 16,687 $ 19,984 $ 28,856
State 4,323 (493) 1,634
Foreign 3,578 8,058

Totalcurrent 21,010 23,069 38,548

Deferred:
Federal (5,962) (2,247) (7,268)
State (869) 126 (861)
Foreign 332

Totaldeferred (6,831) (2,121) (7,797)

Incometaxexpense $ 14,179 $ 20,948 $ 30,751
Undistributedearningsof$36.9millionoftheCompanysforeignsubsidiariesareconsideredtobeindefinitelyreinvestedand,accordingly,noprovisionforfederaland
stateincometaxeshavebeenprovidedthereon.TheCompanyintendstoreinvesttheseearningsindefinitelyinitsforeignsubsidiaries.Iftheseearningswere
distributedtotheUnitedStatesintheformofdividendsorotherwiseorifthesharesoftherelevantforeignsubsidiariesweresoldorotherwisetransferredthe
CompanywouldbesubjecttoadditionalU.S.incometaxes(subjecttoadjustmentforforeigntaxcredits)andforeignwithholdingtaxes.Determinationoftheamountof
unrecognizeddeferredincometaxliabilityrelatedtotheseearningsisnotpractical.

F40
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Incometaxexpensereconcilestotheamountcomputedbyapplyingthefederalstatutoryrate(35%)toincomebeforeincometaxesasfollows:

YearsendedDecember31,
2011 2012 2013
(inthousands,exceptpercentage) $ % $ % $ %
Reconciliationtostatutoryrate:
Taxatfederalstatutoryrate $ 13,577 35.0% $ 18,623 35.0% $ 31,965 35.0%
Statetaxes,netoffederalbenefit 2,229 5.8 1,384 2.6 2,344 2.6
Impactofforeignoperations (211) (0.4) (113) (0.1)
Stockbasedcompensation 540 1.4 1,385 2.6 2,982 3.3
Scorporationstatusbenefit (1,082) (2.8)
ScorporationconversionDTAsetup (965) (2.5)
Taxcredits (211) (0.5) (415) (0.8) (5,637) (6.2)
Other 91 0.3 182 0.3 (790) (0.9)

$ 14,179 36.6% $ 20,948 39.4% $ 30,751 33.7%
Deferredincometaxesreflectthenettaxeffectsoftemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesand
theamountsusedforincometaxpurposes.SignificantcomponentsoftheCompanysdeferredtaxassetsandliabilitieswereasfollows:

December31,
(inthousands) 2012 2013
Componentsofdeferredtaxassetsandliabilities
Deferredtaxassets:
Netoperatinglosscarryforwards $ 746 $ 252
Stockbasedcompensation 3,477 3,475
Accrualsandreserves 6,973 15,463

Grossdeferredtaxassets 11,196 19,190
Valuationallowance (204)

Totaldeferredtaxassets 10,992 19,190
Deferredtaxliabilities:
Depreciationandamortization (1,998) (3,063)
Intangibleassets (1,214) (550)

Totaldeferredtaxliabilities (3,212) (3,613)

Netdeferredtaxassets $ 7,780 $15,577
Recognitionofdeferredtaxassetsisappropriatewhenrealizationofsuchassetsismorelikelythannot.Basedupontheweightofavailableevidence,whichincludes
theCompanyshistoricaloperatingperformanceandtheU.S.cumulativenetprofitsinpriorperiods,theCompanybelievesitismorelikelythannotthatdeferredtax
assetswillberealized.

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Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
AsofDecember31,2013,theCompanysfederalandstatenetoperatinglosscarryforwardsforincometaxpurposeswere$0.4millionand$0.2million,respectively.
Ifnotutilized,thefederalandstatelosseswillbegintoexpirein2022and2014,respectively.Utilizationofthesefederalandstatetaxcreditcarryforwardsaresubject
toanannualutilizationlimitationof$1.2millionduetotheownershipchangelimitationsprovidedbytheInternalRevenueCodeof1986,asamended,andsimilarstate
provisions.
Uncertainincometaxpositions
TheCompanyhasadoptedASC74010AccountingforUncertaintyinIncomeTaxes.ASC74010prescribesarecognitionthresholdandmeasurementattributefor
thefinancialstatementrecognitionandmeasurementofuncertaintaxpositionstakenorexpectedtobetakenintheCompanysincometaxreturn,andalsoprovides
guidanceonderecognition,classification,interestandpenalties,accountingininterimperiods,disclosureandtransition.
TheCompanystotalamountsofgrossunrecognizedtaxbenefitsasofDecember31,2013was$9.9million,whichrepresentedanincreaseinunrecognizedtax
benefitsby$5.5millionduring2013.Ifrecognized,$9.4millionoftheseunrecognizedtaxbenefits(netoffederalbenefit)wouldberecordedasareductionoffuture
incometaxprovisionfortheyearendingDecember31,2013.
AreconciliationofthebeginningandendingamountoftheunrecognizedincometaxbenefitsduringtheyearsendedDecember31,2012and2013areasfollows:

December31,
(inthousands) 2011 2012 2013
GrossbalanceatJanuary1 $ $ 966 $4,439
Grossincreaserelatedtocurrentyeartaxpositions 171 3,473 5,280
Grossincreaserelatedtoprioryeartaxpositions 795 179

$966 $4,439 $9,898
TheCompanyspolicyistoaccountforinterestandpenaltiesasincometaxexpense.AsoftheDecember31,2013,theCompanyhadaccruednointerestor
penaltiesrelatedtounrecognizedtaxbenefits.
Itisreasonablypossiblethatthetotalamountsofunrecognizedtaxbenefitswillsignificantlyincreasewithinthenext12months.However,therangeofthereasonably
possiblechangecannotbereliablyestimated.
TheCompanyfilesincometaxreturnsintheU.S.federaljurisdiction,certainU.S.statesandHongKong.TheCompanyissubjecttoU.S.federalincometax
examinationforcalendartaxyearsending2010through2013,from2009through2013forstatetaxpurposesand2013forHongKong.TheU.S.federalandU.S.state
taxingauthoritiesmaychoosetoaudittaxreturnsfortaxyearsbeyondthestatuteoflimitationperiodduetosignificanttaxattributecarryforwardsfromprioryears,
makingadjustmentsonlytocarryforwardattributes.

F42
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
TheCompanywascontactedforauditinDecember2013bytheInternalRevenueServiceforthe2011taxyearwhichincludedapartialyearScorporationandpartial
yearCcorporationreturn.Atthistime,theCompanyisnotabletoestimatethepotentialimpactthattheexaminationmayhaveonincometaxexpense.Ifthe
examinationisresolvedunfavorably,thereisapossibilityitmayhaveamaterialnegativeimpactontheCompanysresultsofoperations.
11.Relatedparties
Beginninginfiscalyear2013,theCompanyenteredintoagreementsforcertaincontractmanufacturingandengineeringserviceswithacompanyaffiliatedwithoneof
itsinvestors.In2013andthethreemonthsendedMarch31,2014(unaudited),theCompanymadepaymentsof$3.6millionand$8.4million,respectively,for
servicesrendered.AsofDecember31,2013andMarch31,2014(unaudited),theCompanyhadaccountspayableassociatedwiththisvendorof$3.9millionand$2.6
million,respectively.
Inthesecondquarteroffiscalyear2013,theCompanysettledanoutstandinglegalmatterwithoneoftheCEOsfamilymembersfor$0.2million.
Inthesecondquarteroffiscalyear2013,theCompanyloanedoneofitsexecutiveofficers$150,000pursuanttoademandpaymentloanthatdidnotbearinterest,
whichwasfullyrepaidinMarch2014.
Inthethirdquarteroffiscalyear2013,theCompanyenteredintoanagreementwithacompanyaffiliatedwiththesonofoneofthemembersoftheBoardtoacquire
certainnamingrightstoasprintkartracetrack.Asconsiderationforthesenamingrights,theCompanywillpayatotalof$0.5millionininstallmentsbeginningin
October2013overthenamingrightsperiod.Inadditiontothefee,theCompanywillalsoprovidethecompanywith100GoProcapturedevicesatnocosteachyear
duringthetermoftheagreement,whichisthreeyears.AsofMarch31,2014(unaudited),theCompanyhaspaid$0.2millionrelatedtothisagreement.
InDecember2013,theCompanyenteredintoaseparationagreementwiththeCompanysformerChiefFinancialOfficer,pursuanttowhichtheCompanypaidhim
cashseveranceof$0.3million.
Infiscalyear2013andthefirstquarteroffiscalyear2014,theCompanyincurredandexpensedcharteredaircraftfeesfortheuseoftheCEOsprivateplane,for
which$0.2millionwasaccruedasofMarch31,2014(unaudited).
OtherrelatedpartytransactionsinvolvingtheCompanysCEOarediscussedinNote6,Commonstockandstockholdersequity(deficit)andNote7,Stockbased
compensation.

F43
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
12.Commitments,contingenciesandguarantees
ThefollowingtablesummarizestheCompanyscontractualcommitmentsasofDecember31,2013:

(inthousands) Total
1year
(fiscal
2014)
23years
(fiscal
2015
and
2016)
45years
(fiscal
2017and
2018)
Morethan
5years
(beyond
fiscal
2018)
Termloanprincipalandinterest(1) $118,606 $63,652 $ 54,954 $ $
Operatingleases(2) 32,243 7,681 13,368 10,614 580
Sponsorshipcommitments(3) 34,423 18,526 15,596 301
Licensefinancingarrangement(4) 3,600 3,600
Othercontractualcommitments(5) 4,365 1,896 2,469
Capitalequipmentpurchasecommitments(6) 3,607 3,607

Totalcontractualcashobligations $196,844 $98,962 $ 86,387 $ 10,915 $ 580

(1) SeeNote9,Financingarrangements.InterestpaymentswerecalculatedusingtheapplicablerateasofDecember31,2013.

(2) TheCompanyleasesitsfacilitiesunderlongtermoperatingleases,whichexpireatvariousdatesthroughMay2019.Theleaseagreementsfrequentlyincludeleaseholdimprovementincentives,
escalatingleasepayments,renewalprovisionsandotherprovisionswhichrequiretheCompanytopaytaxes,insurance,maintenancecostsordefinedrentincreases.
(3) TheCompanysponsorssportingeventsandathletesaspartofitsmarketingefforts.Inmanycases,theCompanyentersintomultiyearagreementswitheventorganizersandathletes.

(4) InAugust2013,theCompanyenteredintoalicenseagreementwiththeSantaClaraStadiumAuthoritywhichgaveitrightsduringtheagreementtermtoseasonticketsforaNationalFootballLeague
team.Thecostofthelicensewas$4.0million,ofwhich$3.6millionremainstobepaidasofDecember31,2013andwasrecordedasashorttermliabilityontheaccompanyingConsolidatedBalance
Sheet.
(5) In2013,theCompanypurchasedsoftwarelicensesandengagedoutsideconsultantstoassistwithupgradingorimplementingitsfinancialandITsystems,whichrequirepaymentsovermultipleyears.

(6) TheCompanyentersintocontractstoacquireequipmentfortoolingandmoldsaspartofitsmanufacturingoperations.Inaddition,theCompanyincurspurchasecommitmentsrelatedtothe
manufacturingofitsPOPdisplaysbythirdparties.TheCompanyhasrevisedthepreviouslydisclosedamountforcapitalequipmentpurchasecommitmentsasofDecember31,2013tocorrectthis
amount.

F44
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
ThefollowingtablesummarizestheCompanyscontractualcommitmentsasofMarch31,2014(unaudited):

(inthousands) Total
1year
(remaining
9months
fiscal
2014)
23years
(fiscal
2015
and
2016)
45years
(fiscal
2017and
2018)
Morethan
5years
(beyond
fiscal
2018)
Termloanprincipalandinterest(1) $115,523 $ 60,569 $ 54,954 $ $
Operatingleases(2) 31,150 6,436 13,520 10,614 580
Sponsorshipcommitments(3) 22,129 9,967 11,861 301
Othercontractualcommitments(4) 5,465 1,760 3,705
Capitalequipmentpurchasecommitments(5) 8,339 8,339

Totalcontractualcashobligations $182,606 $ 87,071 $ 84,040 $ 10,915 $ 580

(1) SeeNote9,Financingarrangements.InterestpaymentswerecalculatedusingtheapplicablerateasofMarch31,2014(unaudited).

(2) TheCompanyleasesitsfacilitiesunderlongtermoperatingleases,whichexpireatvariousdatesthroughMay2019.Theleaseagreementsfrequentlyincludeleaseholdimprovementincentives,
escalatingleasepayments,renewalprovisionsandotherprovisionswhichrequiretheCompanytopaytaxes,insurance,maintenancecostsordefinedrentincreases.
(3) TheCompanysponsorssportingeventsandathletesaspartofitsmarketingefforts.Inmanycases,theCompanyentersintomultiyearagreementswitheventorganizersandathletes.

(4) TheCompanypurchasessoftwarelicensesandengagesoutsideconsultantstoassistwithupgradingorimplementingitsfinancialandITsystems,whichrequirepaymentsovermultipleyears.

(5) TheCompanyentersintocontractstoacquireequipmentfortoolingandmoldsaspartofitsmanufacturingoperations.Inaddition,theCompanyincurspurchasecommitmentsrelatedtothe
manufacturingofitsPOPdisplaysbythirdparties.
RentexpensefortheyearsendedDecember31,2011,2012and2013andforthethreemonthsendedMarch31,2013(unaudited)andMarch31,2014(unaudited)
was$0.4million,$1.9million,$3.9million,$0.7millionand$1.3million,respectively.
Legalproceedings
Fromtimetotime,theCompanyisinvolvedinlegalproceedingsintheordinarycourseofbusiness.TheCompanybelievesthattheoutcomeofanyexistinglitigation,
eitherindividuallyorintheaggregate,willnothaveamaterialimpactontheresultsofoperations,financialconditionorcashflowsoftheCompany.
Indemnifications
Inthenormalcourseofbusiness,theCompanyentersintoagreementsthatcontainavarietyofrepresentationsandwarrantiesandprovideforgeneralindemnification.
TheCompanysexposureundertheseagreementsisunknownbecauseitinvolvesclaimsthatmaybemadeagainsttheCompanyinthefuture,buthavenotyetbeen
made.Todate,theCompanyhasnotpaidanyclaimsorbeenrequiredtodefendanyactionrelatedtoitsindemnificationobligations.However,theCompanymay
recordchargesinthefutureasaresultoftheseindemnificationobligations.

F45
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Productwarranty
AsofDecember31,2013,$3.7millionofthewarrantyliabilitywasrecordedasanelementofaccruedliabilitiesand$0.2millionwasrecordedasanelementofother
longtermliabilities.AsofMarch31,2014(unaudited),$2.4millionofthewarrantyliabilitywasrecordedasanelementofaccruedliabilitiesand$0.2millionwas
recordedasanelementofotherlongtermliabilities.
Thefollowingtablesummarizesthewarrantyliabilityactivity:

YearsendedDecember31,
Threemonths
ended
March31,
(inthousands) 2011 2012 2013 2014
(unaudited)
Beginningbalances $ 116 $ 589 $ 1,937 $ 3,870
Chargedtocostofrevenue 1,644 2,821 7,380 271
Settlementsofwarrantyclaims (1,171) (1,473) (5,447) (1,590)

Endingbalances $ 589 $ 1,937 $ 3,870 $ 2,551
13.Employeeretirementplan
EffectiveJanuary1,2009,theCompanyestablisheda401(k)definedcontributionretirementplan(RetirementPlan)coveringU.S.fulltimeemployees.TheRetirement
Planprovidesforvoluntaryemployeecontributionsfrom1%to86%ofannualcompensation,subjecttoamaximumlimitallowedbyInternalRevenueService
guidelines.
InMarch2014,theCompanymodifieditsRetirementPlantoincludeanemployermatchingcontribution.TheCompanywillmakeamatchingcontributionequaltothe
employees401(k)deferralupto4%oftheir401(k)eligiblecompensationperpayperiod.ThematchingcontributionisretroactivetoJanuary1,2014.AsofMarch31,
2014(unaudited),theCompanyhadexpensedandaccrued$0.6millionforthismatchingprogram.
14.Concentrationsofriskandsegmentinformation
Segmentinformation
TheCompanyoperatesasoneoperatingsegmentasitonlyreportsfinancialinformationonanaggregateandconsolidatedbasistoitsCEO,whoistheCompanys
chiefoperatingdecisionmaker.
Customerconcentration
Financialinstruments,whichpotentiallysubjecttheCompanytoconcentrationsofcreditrisk,consistprincipallyoftradereceivables.TheCompanybelievesthatthe
creditriskinitstradereceivablesismitigatedbytheCompanyscreditevaluationprocess,relativelyshortcollectiontermsanddispersionofitscustomerbase.The
Companygenerallydoesnotrequirecollateralandlossesontradereceivableshavehistoricallybeenwithinmanagementsexpectations.
AsofDecember31,2012,onedistributorcustomeraccountedfor10%oftheCompanysnetaccountsreceivablebalance.AsofDecember31,2012and2013and
March31,2014(unaudited),

F46
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
oneretailcustomeraccountedfor47%,21%and32%oftheCompanysnetaccountsreceivablebalance,respectively.AsofDecember31,2013andMarch31,2014
(unaudited),asecondretailcustomeraccountedfor11%and12%oftheCompanysnetaccountsreceivablebalance.AsofDecember31,2013,athirdretail
customeraccountedfor14%oftheCompanysnetaccountsreceivablebalance.
In2013andthethreemonthsendedMarch31,2014(unaudited),theCompanysoldaccountsreceivables,withoutrecourse,of$71.1millionand$31.3million,
respectively,fromaretailcustomertoathirdpartybankinginstitution.Factoringfeesof$0.6millionand$0.3millionin2013andthethreemonthsendedMarch31,
2014(unaudited)relatedtothesaleoftradeaccountsreceivablewereincludedininterestexpense.
Customerswithrevenueequaltoorgreaterthan10%oftotalrevenuefortheyearsendedDecember31,2011,2012and2013,andforthethreemonthsended
March31,2013(unaudited)andMarch31,2014(unaudited)wereasfollows:

YearsendedDecember31,
Threemonths
ended
March31,
2011 2012 2013 2013 2014
(unaudited)
A(retailer) 15% 15% 17% 14% 13%
B(distributor) * * * * 10%

* Lessthan10%oftotalrevenuefortheperiodindicated
Supplierconcentration
TheCompanyreliesonthirdpartiesforthesupplyandmanufactureofitscapturedevices.Ininstanceswhereasupplyandmanufactureagreementdoesnotexistor
suppliersfailtoperformtheirobligations,theCompanymaybeunabletofindalternativesuppliersorsatisfactorilydeliveritsproductstoitscustomersontime,ifat
all.
TheCompanyalsoreliesonthirdpartieswithwhomitoutsourcessupplychainactivitiesrelatedtoinventorywarehousing,orderfulfillment,distributionandotherdirect
saleslogistics.TheCompanycannotbesurethatthesepartieswillperformtheirobligationsasexpectedorthatanycostsavings,orotherbenefitswillbederived
fromtheeffortsoftheseparties.IfanyofthesepartiesbreachesorterminatestheiragreementwiththeCompanyorotherwisefailstoperformtheirobligationsina
timelymanner,theCompanysfinancialresultsmaybeadverselyaffected.

F47
Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
Geographicandotherinformation
Revenuebygeographicregion,basedonshiptodestinations,wasasfollows:

YearendedDecember31,
Threemonthsended
March31,
(inthousands) 2011 2012 2013 2013 2014

(unaudited)
Americas $ 168,450 $ 314,135 $ 557,285 $ 133,474 $ 125,166
Europe,MiddleEastandAfrica 51,328 157,587 311,674 87,783 80,107
AsiaandPacificareacountries 14,460 54,294 116,778 33,800 30,443

$ 234,238 $ 526,016 $ 985,737 $ 255,057 $ 235,716

RevenueintheUnitedStates,whichisincludedintheAmericasgeographicregion,was$151.4million,$278.7million,$498.5million,$115.5millionand$110.7
millionfortheyearsendedDecember31,2011,2012and2013andforthethreemonthsendedMarch31,2013(unaudited)andMarch31,2014(unaudited),
respectively.
AsofDecember31,2012and2013andMarch31,2014(unaudited)longlivedassets,whichrepresentpropertyandequipment,locatedoutsidetheUnitedStates,
primarilyChina,were$4.0million,$6.0millionand$7.1million,respectively.
TheCompanydoesnotdiscloserevenuebyproductcategoryasitdoesnottracksalesincentivesandotherrevenueadjustmentsbyproductcategorytoreportsuch
data.
15.Acquisitions
CineForm,Inc.
OnFebruary25,2011,theCompanyacquiredallofthesharesofCineForm.CineFormwasaproviderofprofessionaleditingcompressionanddecompression
(CODEC)softwarethatmadehighdefinition(HD)andthreedimensional(3D)editingfasterandmoreconvenientwithoutsacrificingquality.Theacquisitionof
CineFormenabledGoProtoutilizeCineFormscompressionandotherproprietarytechnologiestoenhancethevideoimagequalityofitscameras.
ThetotalacquisitionconsiderationforCineFormof$9.9millionconsistedof$8.0millionpaidattheclosing(netof$0.2millioncashacquired),aholdbackof$0.9
millionforindemnificationofrepresentationsmadebytheacquiree,assumptionof$0.8millionofCineFormnotespayableandassumptionof$0.3millionofvested
employeestockoptions.Theholdbackamountandnotespayablewerepayableinsixequalquarterlyinstallments,plus7%interestaccruedonthenotepayable.In
addition,theCompanyrecordedacquisitionrelatedtransactioncostsof$0.3million,whichwereincludedingeneralandadministrativeexpenseintheaccompanying
ConsolidatedStatementsofOperations.

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Table of Contents
GoPro,Inc.
Notestoconsolidatedfinancialstatements
TheCompanyhascalculatedthefairvalueofthetangibleandintangibleassetsacquiredtoallocatethepurchasepriceasoftheacquisitiondate.Theexcessof
purchasepriceovertheaggregatefairvalueswasrecognizedasgoodwill.Baseduponthesecalculations,thepurchasepriceofthetransactionwasallocatedas
follows:

(inthousands)
Estimated
usefullife
(inyears)
Purchase
price
Purchasedintangibleassets:
Developedtechnology 6 $ 5,330
Customerrelationships 3 170
Tradename 5 664
Noncompeteagreements 2 150
Goodwill(nontaxdeductible) 4,233
Netdeferredtaxliabilities (488)
Otherassetsandliabilitiesacquired,netofcash (146)

Totalassetsacquired $ 9,913

Cashpaid $ 7,955
Optionsissued 339
CineFormnote 760
Deferredcash(holdback) 859

Totalconsiderationissuedintheacquisition $ 9,913

Thefairvaluesoftheintangibleassetsweredeterminedusingtheincomeapproachwithsignificantinputsthatarenotobservableinthemarket.Keyassumptions
includedexpectedfuturecashflowsanddiscountratesconsistentwiththeassessmentofrisk.Purchasedintangibleassetsareamortizedusingastraightline
amortizationmethodovertheirestimatedusefullives.Amongthefactorsthatcontributedtoapurchasepriceinexcessofthefairvalueofthenettangibleand
intangibleassetswerethesynergiesinproductsthatcanbeleveragedbytheCompanyandtheacquisitionofanassembledworkforceofexperiencedsoftware
engineers.
TheresultsofoperationsofCineFormareincludedintheaccompanyingConsolidatedStatementsofOperationsfromthedateofacquisition.Theproformafinancial
informationhasnotbeenpresentedastheCompanysconsolidatedresultsofoperationspresentedhereinmateriallyreflectthefulleffectsoftheacquisitionforthe
fiscalyearssincetheacquisitionclosedonFebruary25,2011.
GeneralThings
OnOctober18,2013,theCompanycompletedtheacquisitionof100%ofthesharesofGeneralThings,aleadingdigitaldesignandsoftwarestudiobasedinSan
Francisco,Californiaforaggregateacquisitionconsiderationof$17.0million,comprisedof$10.0millionofcashand$7.0millionrelatedto430,000sharesofthe
Companyscommonstock.Thecashconsiderationincludesretentionbonusesof$1.7millionandthesharesoftheCompanyscommonstockincludes322,500
unvestedstockawards.TheacquisitionisexpectedtoadvancetheCompanysbusinessbackendandconsumerfacingwebdevelopment.

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GoPro,Inc.
Notestoconsolidatedfinancialstatements
Oftheaggregateacquisitionconsideration,approximately$10.1millionwasdeterminedtobetheaccountingpurchasepriceattributabletotheportionofcashand
commonstockforwhichthereisnoremainingrequisiteserviceperiod.TheCompanyexpectstorecord$6.9millionascompensationexpenseovertherequisite
serviceperiodsfollowingtheacquisition.
TheCompanyalsorecordedacquisitionrelatedtransactioncostsof$0.3million,whichwereincludedingeneralandadministrativeexpensesduringtheyearended
December31,2013.
TheCompanyhascalculatedthefairvalueofthetangibleandintangibleassetsacquiredtoallocatethepurchasepriceasoftheacquisitiondate.Theexcessof
purchasepriceovertheaggregatefairvalueswasrecognizedasgoodwill.Baseduponthesecalculations,thepurchasepriceofthetransactionwasallocatedas
follows:

(inthousands)
Estimated
usefullife
(inyears)
Purchase
price
Purchasedintangibleasset:
Noncompeteagreements 2 $ 161
Goodwill(nontaxdeductible) 9,862
Otherassetsandliabilitiesacquired,netofcash 84

Totalassetsacquired $10,107
Thefairvalueoftheintangibleassetwasdeterminedusingtheincomeapproachwithsignificantinputsthatarenotobservableinthemarket.Keyassumptions
includedexpectedfuturecashflowsanddiscountratesconsistentwiththeassessmentofrisk.Thepurchasedintangibleassetwillbeamortizedusingastraightline
amortizationmethodoveritsestimatedusefullives.Amongthefactorsthatcontributedtoapurchasepriceinexcessofthefairvalueofthenettangibleand
intangibleassetswerethesynergiesinproductsthatcanbeleveragedbytheCompanyandtheacquisitionofanassembledworkforceofexperiencedsoftware
engineers.
TheresultsofoperationsofGeneralThingsareincludedintheaccompanyingConsolidatedStatementsofOperationsfromthedateofacquisition.Proformaresults
ofoperationsfortheGeneralThingsacquisitionhavenotbeenpresentedbecausetheyarenotmaterialtotheCompanysconsolidatedresultsofoperations.
16.Subsequentevents
TheCompanyhasperformedanevaluationofsubsequenteventsthroughMarch14,2014,thedatethattheauditedannualconsolidatedfinancialstatementswere
issued.
InJanuary2014,theCompanygrantedtoitsemployeesstockoptionstopurchase1,142,750sharesoftheCompanyscommonstockataweightedaverageexercise
priceof$16.22pershare.Inaddition,theCompanyissued300,000RSUs.
InJanuary2014,theCompanyamendedoneofitssponsorshipagreements,whichwouldhaveexpiredin2015,toexpirein2014.ThisreducedtheCompanys
sponsorshipcommitmentsby$12.8million.

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GoPro,Inc.
Notestoconsolidatedfinancialstatements
OnFebruary5,2014,theCompanychangeditsnamefromWoodmanLabs,Inc.toGoPro,Inc.
InJanuaryandFebruary2014,theCompanypaiddowntheremaining$3.6millionrelatedtothelicenseagreementwiththeSantaClaraStadiumAuthority.
17.Subsequentevents(unaudited)
TheCompanyhasperformedanevaluationofsubsequenteventsthroughMay9,2014,thedatethattheunauditedinterimconsolidatedfinancialstatementswere
issued.
InApril2014,theCompanyamendedthecreditagreementforitssyndicatedseniorsecuredcreditfacilitytoextendtheduedateforthe$48.5millioncontractual
principalprepaymentfromApril2014toDecember2014.Inaddition,the$20.0millionstandbyletterofcreditontheCompanysrevolvingcreditfacilitywas
terminated.
InMay2014,theCompanygrantedtoitsemployeesstockoptionstopurchase247,622sharesoftheCompanyscommonstockataweightedaverageexerciseprice
of$16.39pershare.

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Wehavepassionateideasaboutwhatspossibleinlife.Ourpassionsleadustopursueexperiencesandrealitiesthatexpandourworldandinspirethosearoundus.GoProsfocusistohelpyoucaptureand
sharelifesmostpassionateexperiencesandtocelebratethemwithothers.Likehowadayonthemountainwithfriendsisbetterthanonespentalone,thesharingofourcollectiveexperiencesmakesourlives
moremeaningful,morefun.Versatilecapturedevicesarewhatwemake.Enablingyoutocaptureandshareyourlifeiswhatwedo.Thisisyourlife...GoPro.NicholasWoodmanFounderandCEO
Table of Contents
GoproBeaHERO.
Table of Contents
PartII
Informationnotrequiredinprospectus
Item13.Otherexpensesofissuanceanddistribution
ThefollowingtablesetsforththecostsandexpensestobepaidbytheRegistrantinconnectionwiththesaleofthesharesofClassAcommonstockbeingregistered
hereby.AllamountsareestimatesexceptfortheSECregistrationfee,theFINRAfilingfeeandNASDAQlistingfee.

SECregistrationfee $ 12,880
FINRAfilingfee 60,500
NASDAQlistingfee *
Printingandengraving *
Legalfeesandexpenses *
Accountingfeesandexpenses *
Roadshowexpenses *
Blueskyfeesandexpenses *
Transferagentandregistrarfeesandexpenses *
Miscellaneous *
Total $ *

* Tobefiledbyamendment.
Item14.Indemnificationofdirectorsandofficers
Section145oftheDelawareGeneralCorporationLawauthorizesacourttoaward,oracorporationsboardofdirectorstogrant,indemnitytodirectorsandofficers
undercertaincircumstancesandsubjecttocertainlimitations.ThetermsofSection145oftheDelawareGeneralCorporationLawaresufficientlybroadtopermit
indemnificationundercertaincircumstancesforliabilities,includingreimbursementofexpensesincurred,arisingundertheSecuritiesActof1933,asamended,the
SecuritiesAct.
AspermittedbytheDelawareGeneralCorporationLaw,theRegistrantsrestatedcertificateofincorporationcontainsprovisionsthateliminatethepersonalliabilityof
itsdirectorsformonetarydamagesforanybreachoffiduciarydutiesasadirector,exceptliabilityforthefollowing:

anybreachofthedirectorsdutyofloyaltytotheRegistrantoritsstockholders

actsoromissionsnotingoodfaithorthatinvolveintentionalmisconductoraknowingviolationoflaw

underSection174oftheDelawareGeneralCorporationLaw(regardingunlawfuldividendsandstockpurchases)and

anytransactionfromwhichthedirectorderivedanimproperpersonalbenefit.
AspermittedbytheDelawareGeneralCorporationLaw,theRegistrantsamendedandrestatedbylawsprovidethat:


theRegistrantisrequiredtoindemnifyitsdirectorsandofficerstothefullestextentpermittedbytheDelawareGeneralCorporationLaw,subjecttoverylimited
exceptions

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theRegistrantmayindemnifyitsotheremployeesandagentsassetforthintheDelawareGeneralCorporationLaw

theRegistrantisrequiredtoadvanceexpenses,asincurred,toitsdirectorsandofficersinconnectionwithalegalproceedingtothefullestextentpermittedbythe
DelawareGeneralCorporationLaw,subjecttoverylimitedexceptionsand

therightsconferredintheamendedandrestatedbylawsarenotexclusive.
Priortotheclosingofthisoffering,theRegistrantintendstoenterintoindemnificationagreementswitheachofitscurrentdirectorsandexecutiveofficerstoprovide
thesedirectorsandexecutiveofficersadditionalcontractualassurancesregardingthescopeoftheindemnificationsetforthintheRegistrantsrestatedcertificateof
incorporationandamendedandrestatedbylawsandtoprovideadditionalproceduralprotections.Atpresent,thereisnopendinglitigationorproceedinginvolvinga
director,executiveofficeroremployeeoftheRegistrantregardingwhichindemnificationissought.ReferenceisalsomadetoSectionoftheUnderwriting
Agreement,whichprovidesfortheindemnificationofexecutiveofficers,directorsandcontrollingpersonsoftheRegistrantagainstcertainliabilities.The
indemnificationprovisionsintheRegistrantsrestatedcertificateofincorporation,amendedandrestatedbylawsandtheindemnificationagreementsenteredintoorto
beenteredintobetweentheRegistrantandeachofitsdirectorsandexecutiveofficersmaybesufficientlybroadtopermitindemnificationoftheRegistrantsdirectors
andexecutiveofficersforliabilitiesarisingundertheSecuritiesAct.
TheRegistranthasdirectorsandofficersliabilityinsuranceforsecuritiesmatters.
CertainoftheRegistrantsdirectors(MichaelMarksandEdwardGilhuly)arealsoindemnifiedbytheirrespectiveemployerswithrespecttotheirserviceonthe
Registrantsboardofdirectors.
ReferenceismadetothefollowingdocumentsfiledasexhibitstothisRegistrationStatementregardingrelevantindemnificationprovisionsdescribedaboveand
elsewhereherein:

Exhibitdocument Number
FormofUnderwritingAgreement 1.01
FormofRestatedCertificateofIncorporationoftheRegistrant 3.02
FormofAmendedandRestatedBylawsoftheRegistrant 3.04
InvestorsRightsAgreement,datedasofFebruary25,2011,byandamongtheRegistrantandcertaininvestorsoftheRegistrant,asamended
March10,2011 4.02
FormofIndemnificationAgreement 10.01
Item15.Recentsalesofunregisteredsecurities
SinceJanuary1,2011,theRegistranthasissuedandsoldthefollowingsecurities:
(1)SinceJanuary1,2011,theRegistranthasgrantedstockoptionsunderits2010EquityIncentivePlantopurchase18,774,064sharesofitsClassBcommonstock
(netofexpirations,forfeituresandcancellations)toatotalof740employees,directors,consultantsandotherserviceproviders,withexercisepricesrangingfrom
$0.1833to$16.39pershare.Ofthese,optionstopurchase1,380,392sharesofClassBcommonstockhavebeenexercisedtodateforaggregateconsiderationof
$2,213,958,atexercisepricesrangingfrom$0.1833to$15.40pershare.

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Table of Contents
(2)FromJune29,2011toDecember31,2011,theRegistranthasgrantedrestrictedstockawardsunderits2010EquityIncentivePlanof1,033,500sharesofits
ClassBcommonstocktoatotalofthreeemployees,directors,consultantsandotherserviceprovidersforaggregateconsiderationof$659,475.00,withpurchase
pricesrangingfrom$0.0033to$1.5167pershare.
(3)InFebruaryandMarch2011,theRegistrantenteredintoaSeriesAPreferredStockPurchaseAgreementpursuanttowhichitissuedandsoldtoaccredited
investorsanaggregateof7,894,632sharesofSeriesApreferredstock,atapurchasepriceof$2.533367pershare,foraggregateconsiderationof$19,999,998.In
connectionwiththeclosingofthisoffering,thesesharesofSeriesApreferredstockwillconvertinto7,894,632sharesofClassBcommonstock.
(4)InJuneandDecember2011,theRegistrantgrantedstockoptionsunderits2010EquityIncentivePlantopurchase6,584,427sharesofitsClassBcommonstock
atanexercisepriceof$0.7633pershareand270,000restrictedstockunits,toNeilDana.
(5)OnOctober18,2013,theRegistrantgranted430,000sharesofitsClassBcommonstocktotwoindividualsinconnectionwiththeacquisitionofGeneralThings,
Inc.
(6)OnJanuary29,2014,theRegistrantgrantedanaggregateof300,000restrictedstockunitstotwoemployeesunderits2010EquityIncentivePlan.
Theoffers,salesandissuancesofthesecuritiesdescribedinparagraphs(1),(2),(4)and(6)aboveweredeemedtobeexemptfromregistrationundertheSecurities
ActinrelianceuponSection4(2)oftheSecuritiesActorRule701promulgatedundertheSecuritiesActastransactionspursuanttobenefitplansandcontracts
relatingtocompensationasprovidedunderRule701.TherecipientsofsuchsecuritiesweretheRegistrantsemployees,directorsorbonafideconsultantsand
receivedthesecuritiesunderitsstockoptionplan.Appropriatelegendswereaffixedtothesecuritiesissuedinthesetransactions.Eachoftherecipientsofsecurities
inthesetransactionshadadequateaccess,throughemployment,businessorotherrelationships,toinformationaboutus.
Theoffers,salesandissuancesofthesecuritiesdescribedinparagraphs(3)and(5)aboveweredeemedtobeexemptfromregistrationundertheSecuritiesActin
relianceuponSection4(2)oftheSecuritiesActorRule506ofRegulationDpromulgatedthereunderinthattheissuanceofsecuritiestotheaccreditedinvestorsdid
notinvolveapublicoffering.Therecipientsofthesecuritiesineachofthesetransactionsrepresentedtheirintentionstoacquirethesecuritiesforinvestmentonlyand
notwithaviewtoorforsaleinconnectionwithanydistributionthereofandappropriatelegendswereaffixedtothesecuritiesissuedinthesetransactions.Eachofthe
recipientsofsecuritiesinthesetransactionswasanaccreditedinvestorunderRule501ofRegulationD.

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Table of Contents
Item16.Exhibitsandfinancialstatementschedules
(a)Exhibits

Exhibit
number Exhibittitle
1.01* FormofUnderwritingAgreement.
3.01* AmendedandRestatedCertificateofIncorporationoftheRegistrant,asamended.
3.02 FormofRestatedCertificateofIncorporationoftheRegistrant,tobeeffectiveinconnectionwiththeclosingofthisoffering.
3.03 BylawsoftheRegistrant.
3.04 FormofAmendedandRestatedBylawsoftheRegistrant,tobeeffectiveinconnectionwiththeclosingofthisoffering.
4.01 FormofRegistrantsClassAcommonstockcertificate.
4.02 InvestorsRightsAgreement,datedasofFebruary25,2011,byandamongtheRegistrantandcertaininvestors,asamended.
5.01* OpinionofFenwick&WestLLPregardingthelegalityofthesecuritiesbeingregistered.
10.01 FormofIndemnityAgreementbyandbetweentheRegistrantandeachofitsdirectorsandexecutiveofficers.
10.02 2010EquityIncentivePlan,asamended,andformofstockoptionagreementandrestrictedstockunitagreement.
10.03* 2014EquityIncentivePlanandformsofawardagreements.
10.04* 2014EmployeeStockPurchasePlan.
10.05 OfferLettertoNinaRichardsonfromtheRegistrant,datedFebruary8,2013.
10.06 OfferLettertoPaulCrandellfromtheRegistrant,datedJuly29,2011.
10.07 OfferLettertoJackLazarfromtheRegistrant,datedJanuary17,2014.
10.08 OfferLettertoSharonZezimafromtheRegistrant,datedAugust23,2013.
10.09 FormofChangeinControlSeveranceAgreement.
10.10 ChangeinControlSeveranceAgreementdatedJanuary17,2014,byandbetweenJackLazarandtheRegistrant.
10.11 ContributionAgreementdatedDecember28,2011byandbetweenNicholasWoodmanandtheRegistrant.
10.12

OfficeLeaseAgreement,datedasofNovember1,2011,byandbetweenLoconSanMateo,LLCandtheRegistrant,asamended,andother
leasesfortheRegistrantsheadquarters.
10.13 CreditAgreement,datedasofDecember27,2011,byandbetweenWellsFargoBank,NationalAssociationandtheRegistrant,asamended.
10.14 Design,ManufacturingandSupplyAgreement,datedasofAugust18,2011,byandbetweenChiconyElectronicsCo.Ltd.andtheRegistrant.
10.15

CreditAgreement,datedasofDecember21,2012,byandamongJ.P.MorganSecuritiesLLC,Citibank,N.A.,BarclaysBankPLC,Silicon
ValleyBankandtheRegistrant,asamended.
21.01 Listofsubsidiaries.
23.01* ConsentofFenwick&WestLLP(includedinExhibit5.01).
23.02 ConsentofPricewaterhouseCoopersLLP,independentregisteredpublicaccountingfirm.
24.01 PowerofAttorney(includedonsignaturepage).

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Table of Contents
* Tobefiledbyamendment.

Confidentialtreatmentrequested.
(b)Financialstatementschedules.
AllfinancialstatementschedulesareomittedbecausetheyarenotapplicableortheinformationisincludedintheRegistrantsconsolidatedfinancialstatementsor
relatednotes.
Item17.Undertakings
TheundersignedRegistrantherebyundertakestoprovidetotheunderwritersattheclosingspecifiedintheunderwritingagreementcertificatesinsuchdenominations
andregisteredinsuchnamesasrequiredbytheunderwriterstopermitpromptdeliverytoeachpurchaser.
InsofarasindemnificationforliabilitiesarisingundertheSecuritiesActmaybepermittedtodirectors,officersandcontrollingpersonsoftheRegistrantpursuantto
provisionsdescribedinItem14above,orotherwise,theRegistranthasbeenadvisedthatintheopinionoftheSecuritiesandExchangeCommissionsuch
indemnificationisagainstpublicpolicyasexpressedintheSecuritiesActandis,therefore,unenforceable.Intheeventthataclaimforindemnificationagainstsuch
liabilities(otherthanthepaymentbytheRegistrantofexpensesincurredorpaidbyadirector,officerorcontrollingpersonoftheRegistrantinthesuccessfuldefense
ofanyaction,suitorproceeding)isassertedbysuchdirector,officerorcontrollingpersoninconnectionwiththesecuritiesbeingregistered,theRegistrantwill,unless
intheopinionofitscounselthematterhasbeensettledbycontrollingprecedent,submittoacourtofappropriatejurisdictionthequestionwhethersuch
indemnificationbyitisagainstpublicpolicyasexpressedintheSecuritiesActandwillbegovernedbythefinaladjudicationofsuchissue.
TheundersignedRegistrantherebyundertakesthat:
(1)forpurposesofdetermininganyliabilityundertheSecuritiesAct,theinformationomittedfromtheformofprospectusfiledaspartofthisregistrationstatementin
relianceuponRule430AandcontainedinaformofprospectusfiledbytheRegistrantpursuanttoRule424(b)(1)or(4)or497(h)undertheSecuritiesActshallbe
deemedtobepartofthisregistrationstatementasofthetimeitwasdeclaredeffectiveand
(2)forthepurposeofdetermininganyliabilityundertheSecuritiesAct,eachposteffectiveamendmentthatcontainsaformofprospectusshallbedeemedtobea
newregistrationstatementrelatingtothesecuritiesofferedtherein,andtheofferingofsuchsecuritiesatthattimeshallbedeemedtobetheinitialbonafideoffering
thereof.

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Table of Contents
Signatures
PursuanttotherequirementsoftheSecuritiesAct,theRegistranthasdulycausedthisRegistrationStatementtobesignedonitsbehalfbytheundersigned,
thereuntodulyauthorized,intheCityofSanMateo,StateofCalifornia,onMay19,2014.

GOPRO,INC.
By: /s/NicholasWoodman

NicholasWoodman
ChiefExecutiveOfficer
Powerofattorney
KNOWALLPERSONSBYTHESEPRESENTSthateachindividualwhosesignatureappearsbelowconstitutesandappointsNicholasWoodmanandJackLazar,and
eachofthem,hisorhertrueandlawfulattorneysinfactandagentswithfullpowerofsubstitution,forhimorherandinhisorhername,placeandstead,inanyand
allcapacities,tosignanyandallamendments(includingposteffectiveamendments)tothisRegistrationStatement,andtosignanyregistrationstatementforthe
sameofferingcoveredbytheRegistrationStatementthatistobeeffectiveuponfilingpursuanttoRule462(b)promulgatedundertheSecuritiesAct,andallpost
effectiveamendmentsthereto,andtofilethesame,withallexhibitstheretoandalldocumentsinconnectiontherewith,withtheSecuritiesandExchange
Commission,grantinguntosaidattorneysinfactandagents,andeachofthem,fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteand
necessarytobedoneinandaboutthepremises,asfullytoallintentsandpurposesasheorshemightorcoulddoinperson,herebyratifyingandconfirmingallthat
saidattorneysinfactandagentsoranyofthem,orhisorherortheirsubstituteorsubstitutes,maylawfullydoorcausetobedoneorbyvirtuehereof.
PursuanttotherequirementsoftheSecuritiesAct,thisRegistrationStatementhasbeensignedbythefollowingpersonsinthecapacitiesandonthedatesindicated:

Name Title Date
By:

/s/NicholasWoodman
NicholasWoodman
ChiefExecutiveOfficerandChairman
(PrincipalExecutiveOfficer)

May19,2014
By:

/s/JackLazar
JackLazar
ChiefFinancialOfficer
(PrincipalFinancialandAccountingOfficer)

May19,2014
By:


/s/MichaelMarks
MichaelMarks
Director

May19,2014
By:


/s/JohnBall
JohnBall
Director

May19,2014
By:


/s/EdwardGilhuly
EdwardGilhuly
Director

May19,2014
By:


/s/KennethGoldman
KennethGoldman
Director

May19,2014
Table of Contents
Exhibitindex
Exhibit
number Exhibittitle
1.01* FormofUnderwritingAgreement.
3.01* AmendedandRestatedCertificateofIncorporationoftheRegistrant,asamended.
3.02 FormofRestatedCertificateofIncorporationoftheRegistrant,tobeeffectiveinconnectionwiththeclosingofthisoffering.
3.03 BylawsoftheRegistrant.
3.04 FormofAmendedandRestatedBylawsoftheRegistrant,tobeeffectiveinconnectionwiththeclosingofthisoffering.
4.01 FormofRegistrantsClassAcommonstockcertificate.
4.02 InvestorsRightsAgreement,datedasofFebruary25,2011,byandamongtheRegistrantandcertaininvestors,asamended.
5.01* OpinionofFenwick&WestLLPregardingthelegalityofthesecuritiesbeingregistered.
10.01 FormofIndemnityAgreementbyandbetweentheRegistrantandeachofitsdirectorsandexecutiveofficers.
10.02 2010EquityIncentivePlan,asamended,andformofstockoptionagreementandrestrictedstockunitagreement.
10.03* 2014EquityIncentivePlanandformsofawardagreements.
10.04* 2014EmployeeStockPurchasePlan.
10.05 OfferLettertoNinaRichardsonfromtheRegistrant,datedFebruary8,2013.
10.06 OfferLettertoPaulCrandellfromtheRegistrant,datedJuly29,2011.
10.07 OfferLettertoJackLazarfromtheRegistrant,datedJanuary17,2014.
10.08 OfferLettertoSharonZezimafromtheRegistrant,datedAugust23,2013.
10.09 FormofChangeinControlSeveranceAgreement.
10.10 ChangeinControlSeveranceAgreementdatedJanuary17,2014byandbetweenJackLazarandtheRegistrant.
10.11 ContributionAgreementdatedDecember28,2011byandbetweenNicholasWoodmanandtheRegistrant.
10.12

OfficeLeaseAgreement,datedasofNovember1,2011,byandbetweenLoconSanMateo,LLCandtheRegistrant,asamended,andother
leasesfortheRegistrantsheadquarters.
10.13 CreditAgreement,datedasofDecember27,2011,byandbetweenWellsFargoBank,NationalAssociationandtheRegistrant,asamended.
10.14 Design,ManufacturingandSupplyAgreement,datedasofAugust18,2011,byandbetweenChiconyElectronicsCo.Ltd.andtheRegistrant.
10.15

CreditAgreement,datedasofDecember21,2012,byandamongJ.P.MorganSecuritiesLLC,Citibank,N.A.,BarclaysBankPLC,Silicon
ValleyBankandtheRegistrant,asamended.
21.01 Listofsubsidiaries.
23.01* ConsentofFenwick&WestLLP(includedinExhibit5.01).
23.02 ConsentofPricewaterhouseCoopersLLP,independentregisteredpublicaccountingfirm.
24.01 PowerofAttorney(includedonsignaturepage).

* Tobefiledbyamendment.

Confidentialtreatmentrequested.