Good day, everyone, and welcome to the GoPro Second Quarter 2014 Financial Results Conference Call, today's conference. [Operator Instructions] And now at this time, I would like to turn things over to Jeff Brown, Vice President of Communications of GoPro. Please go ahead.

Thank you. Good afternoon, and welcome to GoPro's Second Quarter 2014 Financial Results Call. Before we start, I want to remind everyone that this is an audio-only call. With me today are GoPro's CEO, Nicholas Woodman; President, Tony Bates; Chief Financial Officer, Jack Lazar; and Chief Operating Officer, Nina Richardson. Before we begin, I would like to remind you that statements made on this call, including but not limited to those about our projected future and financial results, including revenue and expenses, economic and marketing trends, product benefits, our future plans, prospects and growth opportunities, the continued adoption of our products, the anticipated benefits of our long-term strategy, our customers, competitive position, market share and leadership position in various markets, constitutes forward-looking statements. These forward-looking statements and all other statements that may be made on the call are not historical facts. They are subject to a number of risks and uncertainties that may cause actual results to differ materially. These forward-looking statements speak only as of today's call, and we do not undertake any obligation to update these forward-looking statements. We refer you to our financial prospectus filed with the SEC on June 26, 2014, in particular, to the section entitled Risk Factors, and to other reports that we may file from time to time with the SEC for additional information on the factors that can cause actual results to differ materially from our current expectations. We report net income and basic and diluted net income per share in accordance with GAAP and, additionally, on a non-GAAP basis. We believe that non-GAAP information is useful because it can enhance the understanding of our ongoing economic performance. We use non-GAAP reporting internally to evaluate and manage our operations. We have chosen to provide this information to enable investors to perform comparisons of operating results in a manner similar to how we analyze our own operating results. A reconciliation of GAAP to non-GAAP financial data can be found in our earnings press release issued today, and we ask that you review this information in conjunction with this call. All numbers that are discussed in today's conference call are non-GAAP unless otherwise noted. In addition to the earnings press release, we have posted slides containing detailed financial data and metrics for the second quarter. Both of these documents and a link to the webcast for today's earnings conference call are posted on the Events & Presentations page of the GoPro Investor Relations website for your reference. Now I'll turn the call over to GoPro's CEO, Nicholas Woodman. Nick?

Thanks, Jeff. Good afternoon, everybody. I want to start by welcoming all of our new investors and thanking you for making our IPO so successful. We are encouraged that many of you are GoPro users, and your enthusiasm for GoPro extends to including us as personal life capture solution, as well as an investment opportunity. We should all be so lucky enough to invest in the things we love. Today, I'm going to recap our second quarter performance and discuss some of our key accomplishments. Our CFO, Jack Lazar, will then provide a more detailed update on the financials, as well as guidance for the third quarter. Thereafter, Jack, Tony, Nina and I will take your questions. We're excited about our second quarter results, which were driven by strong marketing and sales execution during the second quarter, which included Mother's Day and Dads and Grads selling opportunities. Our second quarter revenue of $244.6 million represents a 38% increase year-over-year. This, coupled with our gross margin of 42.2%, resulted in non-GAAP net income of $0.08 per diluted share. Including second quarter results, GoPro passed another important milestone year. On a trailing 4-quarter basis, for the first time, we generated over $1 billion of revenue. In a few minutes, Jack will drill down on the details of our financial performance. I'll now highlight some of GoPro's key accomplishments from the most recent quarter. Those of you who saw our IPO roadshow are familiar with our 4 pillars of our mission, which is to enable consumers to capture, manage and create, share and, ultimately, to enjoy GoPro content. This results in a virtuous cycle that has gone on to help make our capture devices among the best-selling in the world, where viral viewership of GoPro-enabled content drives awareness and adoption of GoPro products…

Thank you, Nick, and thanks to all of you for joining us today. If you've not already done so, I would encourage you to download from the Investors section of our website the financial slides we posted concurrent with our press release earlier today. My prepared remarks will be focused on a financial overview of Q2 and the related business trends, and then I'll provide our guidance for the third quarter of 2014. As Nick mentioned in his opening remarks, Q2 was the first time GoPro has recorded revenue of over $1 billion for a rolling 4-quarter period. Strong revenue growth, coupled with gross margin expansion made the second quarter a very good one for GoPro. For the quarter, revenue of $244.6 million was up 38% year-over-year and up 4% sequentially. Gross margin of 42.2% increased 990 basis points year-over-year and 110 basis points sequentially. And our cost-out initiatives provided us further returns. Gross margin of 42.2% was also in line with the lower end of our target model range of 42% to 44%. Operating income for the second quarter was $17.8 million or 7.3% of revenue, an increase of $21 million from our operating loss of $3.2 million in Q2 of 2013 and down $3.1 million sequentially. Earnings per diluted share for the second quarter were $0.08, and we continue to be focused on the long-term operating model and making the investments required to achieve it. Let's take a more detailed look at our performance for Q2. As I previously mentioned, revenue was up $8.9 million to $244.6 million, up 38% year-over-year and 4% sequentially. Our year-over-year revenue growth was primarily driven by a 31% increase in capture devices shipped and sequential revenue growth due to strong sales of GoPro accessories, including our recently launched Sportsman, 3-Way, Gooseneck and…

Thanks, Jack. Operator, we are now ready for questions.

[Operator Instructions] We'll take our first question from Paul Coster with JPMorgan.

I've got a couple of quick questions. The first one relates to this direct versus indirect mix. It seems to be shifting towards direct. Can you tell us, will that trend continue? What does it mean for gross margins moving forward? And then I've got a quick follow-up.

Paul, it's Jack here, and thanks for joining us on the call today. Hey, the direct move this quarter was, as mentioned, particularly related to big box in particular and some mid-market. It just shows the strength in a particular quarter. I don't know that this is a trend to really look to. We are guiding it to be up again next quarter. And I wouldn't say that there is a specific gross margin implication of it. Generally, our products are relatively gross margin agnostic across these channels. So I would say that this is just the way it played out in the quarter, and we're looking for some strength in that area as we head into the next quarter.

Okay. And my second question is that I've got used to the international growth outpacing that of the domestic market. But in this quarter, it was really pronounced, the domestic growth. And I'm just wondering, is this kind of like a relay that you'll see growth in the Americas then handed off to Europe and Asia? Is it a function of the way in which you manage the product cycle? Can you just give us some color on that? And longer term, am I correct in expecting the EMEA and APAC growth to outpace the domestic growth?

Yes, so it's Jack again. And regarding the overall domestic versus international growth, I think, clearly, we see massive opportunities outside of the Americas. Still large opportunities in the Americas, but really, we're really underpenetrated as we look out into Europe, in particular. Lots of places in Asia and China, we're not even really doing business today. One thing I would point out in some of these regions like EMEA, while it may have been a little slower this quarter from a sell-in basis, year-over-year, it is up 25%, so it is a pretty significant increase. And we expect these trends are things that we should be able to take advantage of. The one thing I would point out with the international growth, and particularly in EMEA, is we saw that there was more sell-through in those channels over the last quarter. We probably went into that in the quarter with a little more inventory than we would have liked in the EMEA channel, and we've now brought that back down to a healthy level. And so because of that, yes, we've seen a little less sell-in in the most recent quarter.

[Operator Instructions] We'll take our next question from Sean Naughton with Piper Jaffray.

So when, Nick, I think you mentioned 10,000 linear feet delivered to retail. Can you talk about that in a little bit more detail? Is this new linear feet in the marketplace in existing stores? Or are these new doors that you're going into? And then maybe just talk about the incremental investment associated with those displays.

Thanks, Sean. Good question. Our investment in increasing our POP presence in retail locations selling GoPro includes both new doors and expanding the amount of linear feet in existing doors. And so what you've got is, initially, when we rolled out our POP displays, we started with 2 foot-wide displays that went into almost all of our retailers starting just a few years ago. And then, as we introduced more and more products and accessories, and our sales grew within each store, our retailers came back to us requesting larger POP. And so we've been rolling out 4 foot and 5 foot-wide POPs, as well as -- or 3 and 4 foot-wide POPs, as well as much larger monolith POPs, we call them, up to 12 feet of linear in Best Buy locations, for example. So you're seeing the investment across the board from new doors, as well as expanding existing doors. And Jack can speak to the investment that we're making there.

Yes, so I think related to the investment, I think we would just reaffirm, as what we said when we're on the road, is we're committed to spending more than $20 million in POP rollout this year. And you're going to see that various different times. We just decided it would be interesting to point out that there's a lot of footage of POP that's going out there, and it is very important because in order for us to sell more product, we need -- we really aspire to have as much POP out there as possible.

Next, we'll hear from Joseph Wolf with Barclays.

I just wanted to ask a gross margin question, I guess, combining -- hopefully, this qualifies as one question -- combining the move into the big box and the mix with what you're selling for things like the Sportsman and the Music, are we -- are those -- are all those channels with the same mix of Black, White -- Black, Silver, White? And when you think about gross margin, with the guidance and the revenue increase, what are the puts and takes in terms of the scale of the business in terms of revenue growth and how that contributes to gross margin right now?

Yes, these are specialty -- the specialty channel rollouts tend to be all Black, right. White is pretty restricted to certain bigger box type places that we've arranged to have white sell-through. To the extent that we roll out in these particular verticals, we tend to push the premium products, which is, obviously, what we think is best for the application for the people in those places.

And just for scale --

Yes, sorry, Joseph. As far as the scale could -- when you're talking about the scale, are you talking about overall scale, just the growth of the company type scale?

Yes. I mean, with the revenue increase, what's the give and take on the margins for the next quarter? How should we think about that as we model going forward?

Yes, I think the give and take on the margins for the next quarter is really about product mix. We go into a quarter with an expectation of what we think product mix can be. And as we start to look at it, we had a very high percentage of Black this last quarter. And while we continue to believe it's going to be very strong, logic would tell you that there's a certain point where maybe you want to -- you expect to see some of the other products step up. So it's just our expectation at this point. That's -- it is offset by continued supply chain reductions that we're constantly getting. And so I think the mix of that is what put us in this 41% to 42% range, which is pretty strong. Particularly year-over-year, it's up quite a bit.

Just to add a little bit of color, this is Nick here, to SKU mix and various retail channels, the specialty markets, the core markets, are our most enthusiastic customers, who are primarily interested in our best-in-class products, our highest-priced products, the Black Edition; in some cases, the Silver. And when we introduced GoPro into mass-market channels, Target, Walmart, for example -- Best Buy excluded because Best Buy has always taken our full range of products -- the mass-market retailers initially started with only our entry-level products. But as we've gained awareness and traction success in their stores with their customers, we've seen those retailers come back and request to move up to our higher-level products. So in the last year, you saw us in Walmart and Target, specifically, moving from just White to include our mid-level products, Silver, as well, with sales success in that channel. So that's sort of how we bifurcate between channels but also how success in a certain channel can also gradually, over time, give us the opportunity to move to higher ASP products.

So just one quick follow-on. In Walmart with hunting, which I think you mentioned, is that the Black product or is that the Silver product?

Nina, would you like to?

Yes, so this is Nina. In hunt and fish, the product set was introduced in accessory products, rather than specific product, as a capture device product.

And in Walmart today, we're selling White and Silver.

And next, we'll hear from Jeremy David with Citigroup.

I wanted to ask you about your media strategy in terms of the incremental investments you're -- sort of might be doing to drive media revenue. I understand you already have many investments to generate contents. Are you looking at incremental investments from the ones already made to generate media revenue in 1 year or 2? I mean, so what sort of investments are you potentially looking at?

Sure. Thanks for that question. In terms of priorities, we're primarily focused right now on making it easier for our customers to capture, manage, create and share more engaging personal content at scale, realizing the promise of why a consumer buys a GoPro in the first place. And when we succeed with that, our media opportunity is a natural organic outcome, right, because if using a cross-platform content management and creation application to help consumers more regularly get to the great video content that they're looking to share using their GoPro, we're naturally increasing the pool of fabulous human experiences that we can aggregate and redistribute as GoPro programming. So in terms of where we place our priorities, it's first, on realizing the promise of GoPro to our consumer; and then we recognize an expanded media opportunity from that. That said, we are making investments and have an ongoing effort in parallel to build out our media distribution because even before we talk about monetization of that media, we benefit massively in that the more we distribute GoPro content, the more that we enable mass viewership of that content on YouTube, Xbox platforms and more distribution platforms to come, the more we drive enthusiastic awareness and adoption of GoPro, which then leads to even more user-generated content that we can aggregate and redistribute. And then on the long tail of that is that if we're successful with the meeting the needs of our customers, then we naturally benefit with a down-the-road opportunity to monetize that media.

So we're obviously making a lot of those investments today that are very complementary for our existing business, and we're going to continue making them going forward. We're trying to operate it within an envelope of having a well-run, financially, fiscal -- fiscally well-run company, and I think we've been doing that so far. We've been profitable for many years now. We're going to continue to reinvest while still driving the overall long-term vision that we have.

I'd just add more -- a little bit color on this. This is Tony. If you look at sort of where we've gone in terms of the produced content, you've seen a dramatic increase. Nick outlined this in the share pillar at the top of the summary here. And so, really there are 2 areas of focus, just to be very clear: one is to continue to help create very compelling content; and also, to drive more distribution. We deal with both of those pieces. It creates this opportunity not to describe the virtuous cycle but to really set us up to capture on the media opportunity at the appropriate time.

And next, we'll hear from Tavis McCourt with Raymond James.

Nick, I was wondering, in relation to EMEA, the sell-in, the first 6 months was down year-over-year, and I know Jack mentioned some channel inventory distorting that a bit. Do you guys get any decent data, whether it's GfK or some other service, on what the sell-through growth trend is in Europe or EMEA more broadly?

This is Jack. And Tavis, thanks -- first of all, thanks for your congratulations. The -- you're right, the 6 months -- the 6-month trends are relatively flat, they're actually slightly down, just a couple of percent down year-over-year. We actually do, and this is one of the ways in which we focus in on like maybe sometimes in the past, we were able to focus in, and see that there was too much inventory in the channel by both looking at sell-through data. And now we actually get weeks of inventory on hand from all of our distributors. So we review on it on a weekly basis. And so part of that, we decided to manage down the weeks of inventory, both in the distribution channel -- in the distribution channel to a more reasonable level over the last quarter, and so that is a large chunk of the decline. I guess, year-over-year, it's up 25% if we look just on a year-over-year basis. And we are very much convinced that Europe, in particular, is a very important part of our strategy going forward.

That's helpful. And if I could ask a follow-up. The DSO is 18 days. Obviously, it's tremendous performance. I assume that's kind of a low point. What should we think of in terms of reasonable range for DSOs, especially as it kind of get more towards the stronger selling season?

Yes, so actually, one of the reasons why the DSOs -- well, there's 2 main reasons why the DSOs stayed low here, and obviously, they were 18 for both quarters, so it isn't a 1 quarter phenomenon. It is really impressive. I mean, this is, frankly, a testament to how Nick grew the business from the early days. This is what you do when you're growing from the ground up because it's all about cash flow. What really makes this happen is we get prepaid. For much of our international business, frankly, they prepay us for the goods, and so that creates pretty nice DSO when you prepay. And then the other part of it is some of -- well, one particular customer here in the U.S., we get some pretty decent-sized receivables, but we actually do factor them. And so the combination of the 2 is what's really been keeping the DSOs down at these levels. They're not going to get a lot better than 18, so -- but I don't expect them to jump up at this point to something on a more traditional 30 to 45 days, I think. However, that being said, over time, that could change. But in the short term, we don't expect it to.

Next, we'll hear from Jim Duffy with Stifel.

Nick, I was a little disappointed you didn't bring a video component to the investor call, but maybe we can save that for future quarters.

Don't tempt us.

We're a nerdy audience, but there has to be an advertising angle there somehow. A question on the inventory. It looks really tight coming into the seasonally stronger second half, better that than the other way around, I suppose. But do you think you're adequately positioned to meet demand and/or access demands in the second half should that materialize?

Yes, so this is Jack here, Jim. Related to inventory levels, this is another thing that the company has done exceptionally well over the last few years. If you can go back and look at the inventory levels going into any of the selling seasons, we've actually done a very good job of keeping them lean, but then turning it on when we need to. And right now, we're in the process of turning it on. So we're comfortable with -- we're not looking at inventory availability as a reason for us not to make numbers. Obviously, we guided up for this upcoming quarter, and we feel pretty good about where we're -- with the sell-through data that we're seeing and the feedback we're getting from our customers, we feel pretty good about the opportunities, and we don't think inventory is going to be the thing that holds us back. I will say just philosophically, Nina and I have talked about this quite a bit, I believe that working capital is extremely useful for building inventory. And so I'm not going to be looking personally, and I think Nina would concur with me, and speak up if you don't, but I think we would say that we would rather use working capital to actually build up inventory when we know that there is demand for these types of products. And going into the seasonally stronger part of the year, obviously, it makes sense to build up inventory. She's nodding her head. She agrees, by the way.

I'm agreeing largely as we're ramping for the quarter -- for Q4.

See the video would have captured that.

Yes, broadcasted.

And next, we'll hear from Charlie Anderson with Dougherty & Company.

So I want to ask about the Asia market. Nick, as you're building the business, I wonder, level of focus on that market is a very small percent of sales relative to maybe other consumer electronics peers. Do you see any barriers to be much larger in that market in some of the main geographies?

Thanks, Charlie. Great question. The answer is no, we don't see barriers other than bandwidth and focus. We have great indication that there's no reason that GoPro can't be as successful in Asia as it's been in the rest of the world. We're a little bit guilty of being busy dealing with the growth that we've had in other markets and scaling up the business. So it's entirely a matter of focus, and then following up with execution in those areas, as opposed to we've had any trouble in those areas today. For whatever we've put into the various Asia markets, we've had a terrific success, and we're excited about the opportunity moving forward.

Yes, one thing there to think about, if you look on a trailing 4-quarter basis, Asia is about 1/2 of what Europe was, and Europe was about 1/2 of what the Americas was. So I think that's kind of -- the way we position it when we first started talking to people about the geographical reach of the company is, is the opportunity in EMEA is similar to what we're already establishing in the Americas. We still believe there's a lot of growth in the Americas, but each one of these is kind of a step function away. So in Asia, there's really tremendous opportunity. We've put very little into it to date. We've been lucky to have some interesting opportunities there and sell a fair amount of product, but there's really so much more than we can -- that we can do over the next few years, and I think we're pretty excited about that.

And this is Tony. I would add that we also believe, I think, the go-to market approach we have has worked well. Just as we start to see -- just starting to see that happen from the U.S. to EMEA, and we believe the same will occur just as well in the APAC. So it isn't necessarily that we need to make a lot of changes to the way we think about go-to-market.

Next, we'll hear from Mitch Kummetz with Robert Baird.

If I heard you guys correctly, device sales were up 31%, which, given that overall revenues were up 38%, would suggest that accessory sales were really strong in the quarter, something probably north of 50%. And I'm just curious, what drove that? Was it some of the new accessories? And with the launch of some things like the Sportsman's Mount, the Music Edition, are you seeing a lot more content being generated in those areas now?

So I'll talk about kind of the company, the plus [ph] for the quarter. So accessories were strong. There was no doubt about it. We did launch a bunch of accessories, as we mentioned on the call. And some things like the 3-Way are really starting to grab hold. So we see some good opportunities there. But remember there's multiple pieces to this mix here. Price also matters, right. So we have better mix of Black in this last quarter, which means that it obviously plays into the differential between the 31% units and the 38% revenue growth. So it's kind of a combination of all these things. But you are hitting on a key point, which is accessories did have a very strong quarter in the most recent quarter. And I think the other piece was around content. Can you -- I'm not sure I really got what the question was there, Mitch.

Well, you've launched some new accessories or some accessories in different areas recently, like the Sportsman's Mount or the Music Edition. I'm just wondering, with those new accessories, are you seeing a lot more content being generated in, let's say, hunt, fish or music and how that might play into kind of the virtuous cycle, given those are sort of new areas for you guys?

Thanks, Mitch. This is Nick. Yes, absolutely, we do. It goes without saying that when people buy accessories for a particular use case, it's one step beyond just buying the camera. So generally, you can be fairly sure they're going to, more often than not, put it to use to create compelling content. And you can see examples of that on GoPro's Facebook wall, for example, and the content that our customers are sharing. So absolutely, we see it. And then it becomes this beautiful reinforcing phenomenon, a sub-virtuous cycle, if you will, where, say, in music circles, where musicians start sharing content unlike any that's been shared before, the natural question from others in the community is, "Dude, how did you do that?" And then it just sort of grows virally within that community, and we're seeing that. And what's fantastic, even in music, is that we see not only the musicians or the bands adopting it, but then fans as well see cameras being used on stage. And then they use it to document their experience at music festivals and concerts in new ways. And there was just -- I just recently saw an article in a German media article that was about Tomorrowland, which is a huge music festival in Germany, and the article was specifically about...

In Belgium.

I'm sorry, in Belgium. That was specifically about how many fans were using GoPros to document their experience at the music festival. And so it's really encouraging to see how use of GoPro in one application, like on stage, for example, inspires fans in the crowd to adopt GoPro to document their experience in this sort of circular loop fashion.

Yes, let me just add a little bit more color. So I think it's a great connection, as you mentioned, between the type of content we're starting to see and how -- and has been in new verticals. I would actually point you, I think a good proxy is if you look at the types of content that's recently starting to show up in our own GoPro Channel and some of the more compelling viewership we're getting, it's not only coming from music, but we have actually seen quite an uptick in the hunting and fishing market. And we'll give a little shout out for one of our own, our CMO, Paul Crandell, who had put together a very compelling piece of fishing content with some really unique point of views. And we're just -- we really are starting to see that increase. I'd also add, though, we see an increase overall in the types of content that we're seeing across the board, from family to nature and so on. So it goes far beyond just us driving a new vertical or a new specialty market.

Next, we'll hear from Alex Gauna with JMP Securities.

A lot of great questions have been already asked, but I'm wondering, and I hate to put you on the spot, but if there's any clips that haven't been seen, what are the top 3 that we need go out and make sure we see on the GoPro Channel?

Top 3, that's a tough one. I mean, there are so many. I think one of the best ways to check out what's on the GoPro Channel right now is we just recently made an update to the GoPro App. And one of the most convenient ways to consume the GoPro Channel is on your mobile device, and you can now -- just as of, I think, a couple of days ago, you can now watch genre-specific or the full GoPro Channel playlist of content, which wasn't possible before. And so I would encourage anybody who's interested in checking out the latest and greatest GoPro content to download the app. It's the best way to access it. I mean, my favorites, I'd have to say, I mean, The Pelican Learning To Fly video is absolutely staggering. A pelican was rescued after a storm in Tanzania and was taught how to fly. It was an orphan, and it didn't yet know how to fly. And its human rehabilitators taught it to fly by running up and down the beach, flapping their arms. And they had the foresight to mount a GoPro to the pelican's beak, looking back at the pelican when it took its first flight, so that's an emotional video. I see Jack just stipulating here that he has a favorite video that he wants to promote.

There's a great video about this incredible dog driving along in a Porsche. So yes, if you just go onto YouTube, do dog and Porsche search, you'll find it. It's the way his gums like flopped, it's just amazing, so that's definitely one of my favorites.

Alex, it's Tony. And one of these things is always subjective. What you're getting is the enthusiasm for the theme which is awesome. I think one of the phenomena that we see happening is just how quickly something can go viral, and this is the nature of the way that people consume content in general; but in particular, the way our users and our customers are really starting to consume content. And I'll point you to one. In real time, it's going super viral right now in the last 48 hours, which is one called the Epic Roof Jump. It's just an example of the type of things that can happen overnight.

Is this the snowboarding one?

No.

Okay.

This is a stuntman who's doing an incredible jump from one roof to another and then landing on a staircase, and it's just one of those wow breathtaking moments. So one of the things about this, I think, really, the takeaway is there are some real epic, iconic classic ones, but we just have so much rich content coming in all the time, being generated from our users, but also from the in-house thing that I would encourage you to go look at it each and every day.

Yes, one more -- this is Nick here. One more that's a great example of how our customer base extends to content creation professionals is search for Superman GoPro. Superman goes on a mission to deliver a GoPro that he found back to its owner. And when he's in route to deliver the GoPro, he ends up saving a bunch of people, putting out -- solving a bunch of crimes and whatnot. It is a professional quality production produced by a creative agency, I think, in L.A. that was just using a GoPro. And it is incredible, and it's an example of the range of quality of content we see being shared. And it's content like this, it's part of the reason that GoPro is what it is today.

Yes. And maybe just to add, one of the things that we talked about in the summary at the top is we've just recently improved our own GoPro App. So not only does it give you the ability to really see how we think about GoPro content and the curation of that, but just making it that much easier to share across all the different viewing experiences. So whether you want to do that as a 10-foot experience in your living room using what we've done on Xbox 360 or the Xbox One app, or you want to do that from on the go in your mobile device, you get that same rich, immersive experience. So I would encourage everyone to take a look at it. If you haven't downloaded it, it's a wonderful experience. You can also control our camera devices as well as getting quick and easy access to the content, and it's just a great experience.

We're very proud of our app, yes.

And that concludes our question-and-answer session. I'd like to turn things back over to Nick for any additional or closing comments.

Okay, right on. Well, thanks, everyone, for joining us today. We really appreciate you taking the time and for your interests and support of GoPro. And I'd specifically like to thank our ballpark 800 employees now and our millions of customers and fans around the world whose collective passion has helped GoPro become the amazing company that it is today. I should let you know that GoPro will be participating in 2 investor conferences this quarter: on August 12, the Pacific Crest Investor conference in Vail, Colorado, that's a fun one to attend; and on September 3, the Citibank Global Tech Conference in New York City. So thanks again for your interest in GoPro and support, everybody. This is team GoPro signing off.

And that does conclude today's teleconference. Thank you, all, for joining.