Revenue Round Up: GoPro Bounce Back, Shimano Grows & Dassi Liquidates

Feb 20, 2020
by James Smurthwaite  
GoPro Bounces Back

After a 54.1% drop in Q3 last year, Go Pro bounced back with a 40% growth year on year in Q4. It pulled in $1.2 billion up to December 31 following the release of its Hero 8 camera and the Christmas period. This means that despite the weak Q3, revenue for the company increased by 4% over 2018, which rises 7% if you don't include the drone business.

The drop in October was credited to a production delay with the new Hero 8 cameras, which shifted the bulk of its sales from the third quarter to the fourth quarter. Unfortunately, GoPro had already announced the camera, which meant demand for the Hero 7 fell as it was no longer the brand's flagship camera

Nicholas Woodman, GoPro Founder and CEO said, "GoPro achieved both revenue growth and full-year non-GAAP profitability in 2019 due to strong sell-through throughout the year and the fall launch of our two new flagships, Hero8 Black and Max. We believe we are well-positioned to meaningfully expand both margin and EPS in 2020 thanks to the strength of our entire product line, high-margin Plus subscription service and app monetization strategy."

Shimano Grows its Bike Division

Shimano Deore XT 8100

Shimano's bike division grew by 4.6% over 2019 with total sales of ¥290,038 million ($2.64 billion USD). The growth mainly came in Europe, where favourable weather conditions buoyed sales, however sales remained stable in the USA. Also helping sales were the new Deore XT, SLX and GRX drivetrains, while the Steps motor continued to be popular.

Looking to the future, Shimano voiced concerns around " US-China trade issues", "heightened geopolitical risks in Middle East" and "Brexit turmoil" as potential issues for the global economy and its own business. Despite this, it forecasted a further 2.2% net sales growth in its bike division for 2020 to ¥296,500 million ($2.7 billion USD).

MIPS Posts 39% Sales Growth in 2020

MIPS headquarters

MIPS posted a 39% sales growth in 2019 that included a 41% growth year on year in Q4. For the year, net sales were 267.9 million Swedish Kroner ($27.6 million) with operating profit increasing to 108 million Swedish Kroner ($11.1 million).

MIPS now has more than 100 customers however it states that its main customers are the driving force behind its growth and notes that it has doubled its sales to its European cusotmers.

Max Strandwitz, president and CEO, also voiced fears about the shutdown of Chinese helmet factories due to the outbreak of Coronavirus. He said: "It is of course difficult to predict the future outcome of the virus outbreak. However, we know that it will take some time before the Chinese manufacturers reach full production capacity due to the prolonged Chinese New Year and the gradual ramp up in production, which could lead to certain accrual effects for us."

Dassi Enters Liquidation

Photo: Dassi

Dassi is a brand we've only mentioned in passing on Pinkbike but they are certainly interesting as they have been the brand pushing Graphene hardest in cycling and launched the first graphene frame in 2016. The brand had also recently announced a graphene disc rotor that was said to weigh 16.9 grams. Unfortunately, it now seems like the brand has wound up and entered liquidation. Cyclist reports that the brand appointed a voluntary liquidator, Antony Batty & Company LLP, following a meeting of creditors on 20th January. It's a shame this ambitious start-up never got to properly show how graphene can be integrated into cycling components but we're sure it won't be too long before someone else takes on that mantle, given the claims around this supposed wonder material.


  • 59 1
 could at least mentioned Sick Bicycle CO. wind-up here...
  • 8 1
 They really shit the bed last year. Shame it's come to that.
  • 12 0
 @gkeele: sad shame for all that are still owed money
  • 21 1
 @Donkykong017: 100% this. The group of them are the biggest crooks cycling has seen for a good while. We're meant to be a strong community who look out for one another. Not robbing that very community and then being total dicks to anyone who speaks out against them.
I never want to hear their names ever again. I can only hope that anyone who is owed money is successful through the courts.
  • 9 0
 I think they were too small time to ever matter. They probably sold less than 500 frames. They probably sold more tshirts than frames! They just spent all their money on trade show booths to look bigger than they actually were.
  • 1 0
 @samfr1000: yes. i can wholeheartedly agree. the community should stick together, but instead there were some d*ck moves. yeah lets hope for the best. Afaik there are at least a few ppl left that wont give up and just let it go.
  • 3 0
 According to the website of the UK companies house, Sick have received a notice for compulsory strike off from the register. However, this seems to have been suspended at the moment.
  • 2 0
 @nowherenear: yeah that was probably cause of me and others objecting. its suspended til august.
  • 3 0
 @nowherenear: A 'strike off' is an automatic mechanism triggered by the companies house register when a company doesn't file its confirmation / accounts, they essentially consider it dormant and file to have it struck off.

They are basically hoping by keeping quiet the company will be struck off and people can walk off into the sunset, thankfully some customers (like Donkeykong) are still annoyed enough that they are making the effort to try and at least get some form of accountability even if there is no money to get back.
  • 13 0
 $2.7B revenue for Shimano's bike division - so huge Eek
  • 3 2
 Damn should have bought stocks.
  • 10 44
flag RoadStain (Feb 20, 2020 at 3:50) (Below Threshold)
 Revenue doe not at all infer profitability. Please, do not bother the uneducated with reality however :-)
  • 3 0
 For one of the two major worldwide suppliers of bike parts in a market that is partially (drivetrain) practically a duopoly and partially (brakes) run by a very limited number of players, that number doesn't surprise me.
  • 33 0
 @RoadStain: infer is not the same as imply. .... bother ... uneducated... Wink
  • 5 1
 in 2017 their revenue was 2.93B so looks like SRAM took some of that $$$
  • 5 0
 @ddbiked: box components got mine.
  • 7 0
 @Kramz: Why?

ummm no. If you bought Shimano stock, say 5 years ago, and hoped to have made any money you'd have terrible returns. Their stock price has been range bound and has pretty much gone nowhere.

Just because a company appears "so huge" does not mean they have any growth, or that you'll make any money buying their stock or that they are a good investment.
  • 1 0
 The market for mountainbike components is probably growing because heavy/fast commuter bikes with pedal assist now need powerful brakes and gearing too, but I think the market for everyday stuff like hub dynamos, rear hubs with gears and roller brakes are still so much bigger. Sturmey Archer lost it soon enough but the hub gears from Sachs went completely to shit when SRAM took over whereas the Shimano Nexus hubs are just really good (and the Alfine ones are supposedly even better). I think Shimano is pretty much alone in this market.
  • 3 0
 Actually Shimano is a relatively small company when looking globally. Their growth is really going to be driven by eBikes going forward. Everyone is looking forward to the new 9000 series with increased battery life and quieter motors. Sram is going to be left behind if they don't come up with a motor solution soon.
  • 1 0
 @Kramz: right!
  • 5 2
 Biggest part of Shimano is actually fishing equipment.
  • 5 0
What are you angling at?
  • 4 0
 @salespunk: Not sure how the motors are going to push it. They've definitely managed to snatch a good proportion of the market, especially in the mountainbike scene. Bosch lost it because they weren't willing to go the extra mile for mountainbikers as the commuter market was already good enough for them. So it was a challenge for mountainbike brands to fit the Bosch motor in, have the chainstays short enough and still enjoy decent mud clearance even with fashionably big wheels. Shimano gave mountainbike brands more options. Ways to play with battery size, less bulky computer etc. But it is a hugely difficult business because us mountainbikers are a nitpicky bunch compared to people who just need to travel to work and back. And Shimano still doesn't dominate the motor market. And I don't think they will. However most people work so most people need to travel. And unless you're going for max efficiency (or you have an e-bike with the motor in the rear hub), running gears safely inside the rear hub is just the way to go for most. And that's where Shimano dominates.

The sports side of it is just the billboard. Everyday life stuff is where brands make their money.
  • 3 0
 @cassiusclaim: fishing only is about 20% I think. Still strange how many people spend money on Fishing....
  • 2 0
 @ddbiked: If Shimano continues to have success with their e bike motor I think they will get back ahead of sram in numbers. I don't think sram has invested much in e technology and they are gonna miss out as it continues to blow up. They also seemed to have improved their shifting over sram last year, although I do like sram brakes more now.
  • 1 0
 @Strider1138: yes, cycling is 79.9% of their business. Most of the rest is fishing, with a tiny amount of "other."
  • 1 0
 @cassiusclaim: not true, cycling is 80% of Shimano's business.
  • 13 0
 A graphene bike, what is this? A bike for proteins??!?
  • 9 0
 Brief but interesting, keep the economic bike updates coming and please include “profitability” if possible as a metric versus just “revenue/sales and growth %”. Good stuff.
  • 2 0
 Yup. Had to go back to gopros chart to see they still have no p/e ratio as they don't make any profit.
  • 1 0
 @friendlyfoe: non GAAP profitability is the first step. My guess is that stock based compensation is the only thing keeping them from GAAP profits. They had to give away a lot of stock to keep key people on board especially after the price got crushed.
  • 1 0
 @salespunk: Non GAAP is kind of vague without knowing what they are disclosing. It may just not include a writedown of goodwill which is essentially meaningless, or it could be not including interest on heavy debt loads. I have no idea what their financial position looks like and am not interested enough in their stock to spend any time on it lol.
  • 11 0
 So graphene is not as durable as we thought
  • 3 1
 ans is harmfull for our health
  • 6 3
 @PauRexs: ans is harmfull for our health

Um, so is mining Aluminum, Titanium as is Carbon (even the dust)
  • 11 28
flag RoadStain (Feb 20, 2020 at 4:06) (Below Threshold)
 @PauRexs: Ban all but Bamboo bikes....I will check with Gretta Thunburg as soon as I finish rinsing the used motor oil down my kitchen sink.
  • 16 5
 In vast majority of cases when someone says "graphene" they don't use an uber strong 1 atom thick material... 1sqcm of it costs 250$, so unless you show me a bike frame made of graphene that costs 1/10th of Jeff Bezos net worth, don't mention it. What they mention is easily marketable snake oil called Graphene Oxide
  • 16 5
 Several Italian companies are at the forefront of selling bullshit in road and XC world. They literally stamp Made in Italy on frames and wheels made in Asia, ruining it for good companies like Formula or Ingrid. They make alu bricks that dampen vibrations and are leaders in ceramic bearing applications in cycling. When Raoul cut through a Pinarello that was a fake, he found fake was better than the original! Whoever says they have graphene in their products, you can trust them as much as a a physio therapist that tells you that tingling in your toes as he puts a knee to your back is a sign of toxins leaving your body. Pure bullshit and have a d* whoever does it. Liars. Make a good product without graphene first, then play with quantum theory.
  • 2 2
 @WAKIdesigns: Sir, I think the term (in roadie circles) is Chinarello...quite a Boldie statement....Remember Specialized M2? That stuff was the bestest ever.....
  • 7 5
 @RoadStain: if you have doubts please go through this profile:

Given how accessible are American carbon frames or cheap German ones, I see no point in spending Sworks money on Canyon quality, just because I like Pizza, Pasta or a gallon of olive oil on a tomato sallad, or the spike of homrones when watching Giro and remembering legend dopers. I like US road if that makes you happy.
  • 3 2
 @WAKIdesigns: No no, you are 100% correct. They will put "Made in Italy" on Chinese Checkers if it fits a marketing niche. Not too far a cry from "Designed in California".

I have no doubt that the people who made my Made in Italy Campagnolo Super Record groupset had Dim Sung for lunch.

(Oh, Boldie is a $15k Pinerello TT bike)
  • 3 2
 @RoadStain: aaaah. ok... I thought you meant that I made a Bold statement... I am often accused of that... I don't know why...
  • 2 0
 @RoadStain: personally I’m picturing Boldie as a bald version of blondie

Bolide on the other hand is an Italian word which I don’t think has a direct translation, it means something super fast, usually referring to a race car or extremely fast road car
  • 1 0
 @WAKIdesigns: @WAKIdesigns: It's possible they were lying, however, I would argue, they were not lying, as they were mixing 1% graphene in the resin, if they were lying, they would have most likely embellished a bit more and probably had higher profit margins, and perhaps not gone out of business.
  • 1 0
 @mark4444: they are lying about the fact it does something. If they want to say their frames are great they should show the cut outs, without voids and wrinkles. There are many other factors in how good a frame is, what is its strength to weight ratio, that resin composition. But they are masters of using long names of technologies involving word modulus in them. Ultra high modulus, adaptive kinetics and other BS.
  • 2 0
 @RoadStain: dim sum is for breakfast.
  • 4 1
 FYI for those saying that SRAM has been putting the hurt on Shimano their yearly revenue is $700M. And that's counting all their divisions like wheels, suspension, power meters, etc. In essence, Shimano doesn't give a shit about SRAM in the drivetrain market.
  • 3 0
 Sort of? I mean, I can assure you they pay attention. When SRAM or Campagnolo leapfrog them to the Next Big Thing, Shimano is watching, both in terms of technical appraisal and scoping the market response. Same goes for any of the others, of course. They all know they compete with each other, and they sometimes make decisions accordingly. For example, do you really believe a 10-51 cassette was just a functional decision? No oneuppery involved? Remember when FSA made a front mech that traced compact chainsets better and Shimano almost immediately tweaked everything in response? Would Centaur even exist if there was no 105 choking the variety out of the market (successfully, at that)? So, no, Shimano isn't necessarily threatened in the mid-term by... anybody, really, but they do give a shit.
  • 6 4
 There once was another wonder material heralded as the future. It was put on roofs and wrapped round air conditioning and heating ducts and used as was called asbestos...the world never learns to look at the impact before the benefit.
  • 8 0
 Asbestos frame? That would be sick!
  • 2 1
 And a few years ago cyclist with smoke cigarettes to quote-unquote open their lungs. Sometimes we don't know something until we know it. At the end of the day we are all Mortal. It's simply how much we enjoy the ride.
  • 3 1
 guess which US president wants to deregulate asbestos?

and guess which country that mostly speaks russian produces the overwhelming majority of asbestos still?
  • 2 1
 @xeren: your not complaining about cigarettes however......huh.....
  • 1 0
 @RoadStain: what? 2 things can be bad for you.

either way, i was responding to the OP, not you
  • 1 1
 @xeren: Sure....and I was defending deregulating makes sense. Some things it is the best option. Much like (poisonous) lead.
  • 3 1
 GoPro was offering a 25% coupon and then AmEx was offering a $60 dollar credit. Combining those you could pick up a Hero Black for relatively cheap. Not surprising their sales were good, but I imagine their growth will be short lived.
  • 9 0
 I think they need to stop bringing out new models every ten minutes....
  • 7 0
 @mybaben: We don't need another hero (a smart woman once said)
  • 1 0
 If only Shimano decides to make an 11-51 12 speed cassette....I mean, the Sunrace one is alright, but why the hell they just don't do it?
  • 1 0
 I thought that was what they did with the new XTR.
  • 1 0
 I think the biggest problem with the action camera market is that 99% of the footage ends up looking really disappointing for us mere mortals.
  • 1 0
 Shimano does 2.6 billion. Dollars a year selling just bike parts. Holy crap!
  • 1 0
 No I suspect that is a total corporate revenue figure. As you know they do many other things. I agree anything in the billions selling bike kit would be nuts. Pretty sure that's corporate. You could probably research it, if they're a public company...
  • 3 0
 @mybaben: Just looked up their 10K for 2019. Bike components are 79.7% and fishing is 20.2% of revenue.

Looks like their margin is ~14.2% aggregated
  • 2 0
 @Connerv6: Interesting! 79% of 2.6B just on bike components is still massive! Wow, I didn't realize there was that much money happening in the bike world....
  • 1 0
 @mybaben: when you realize that a lot of the walmart bikes have basement level Shimano shifters and stuff, all those pennies add up quick. Def a ton of money still.
  • 2 0
 @Connerv6: Good point! Many of those "cheap sporting goods store" bikes have Shimano as well.
  • 2 0
 TI springs has gone under aswell
  • 1 0
 Did not know that... I have heard some bad reviews on their C/S but personally, I had nothing but excellent & prompt service from Ti Springs. Maybe they will bounce back some time.
  • 1 0
 Go-Pro bouncing back... good one!
  • 2 0
 Stock price still fell as they missed estimates by $0.05 a share. Pretty cheap to get in right now though. With the US kicking DJI & other Chinese drone manufacturers in the nuts, now would be a good time for GoPro to re-release the Karma but make it good this time.
  • 2 0
 @MattyBoyR6: and dont forget 1 of the major rules for buying/selling growth stocks(can slim method)..use rules, not recommendations from Joey..haha
  • 1 0
 @MattyBoyR6: lol. What IP does GoPro actually have? They just use AMBA chipsets and repackage it. How good is the user experience? The only thing they've done is introduce stabilization, which is great honestly, but clearly they don't have a lock on the technology.

GoPro is a total dud. Nick should get fired. Reintroducing a drone would be a TERRIBLE mistake. Best thing they could do would be use their remaining cash to buy SkyDio.
  • 1 4
 $himano! $$$ great co! Unlike the other Ss!

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