WHEN: Today, Monday, September 29th
WHERE: CNBC's "Power Lunch"
Following is the unofficial transcript of a CNBC interview with GoPro Founder & CEO Nick Woodman on CNBC's "Power Lunch" today. Following is a link to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000314531.
All references must be sourced to CNBC.
TYLER MATHISEN: GOPRO UNVEILING ITS NEW CAMERA. NOW YOU'RE LOOKING RIGHT THROUGH – AT THE HERO 4 – RIGHT THROUGH ONE OF THE CAMERAS. THERE IS BRIAN OVER THERE, HE'S A BIG JETS FAN, HE'S IN MOURNING TODAY. I'M GOING TO WALK OVER THERE. HEY, MORGAN, WAVE TO THE GOPRO – LOOK AT THAT. THAT IS REALLY GOOD QUALITY. I'M TALKING ABOUT THE CAMERA AND YOU, TOO. HERE WE GO. LOOK AT THIS. THIS IS WHAT WE DO. I'M GOING TO PUT ONE OF THESE ON MY CAT AT HOME TONIGHT. IT IS GOING TO BE FUN. THIS IS REALLY COOL. I LOVE THIS. THERE IS CHRIS. HI, HE'S OUR STEADY CAM GUY. BRIAN IS OVER THERE, HE'S A RED SOX FAN. HE'S HAD A BAD YEAR. ALRIGHT, GOPRO STOCK HITTING A NEW ALL TIME HIGH SOARING 260 SOME PERCENT SINCE IT WENT PUBLIC ON JUNE 26. THE CAMERA MAKER NOW HAS A MARKET CAP OF $10 BILLION. THAT'S BIGGER THAN ABOUT A QUARTER OF THE COMPANIES IN THE S&P 500. SO WHERE DOES GOPRO GO FROM HERE? JOSH LIPTON IS HERE WITH GOPRO CEO. THIS IS REALLY COOL, JOSH.
JOSH LIPTON: WELL TYLER, LET'S WELCOME GOPRO'S FOUNDER AND CEO NICK WOODMAN WHO IS COMING TO US FROM THE NASDAQ. SO NICK, YOU'RE HERE TO TALK ABOUT YOUR NEW CAMERAS TODAY. LET'S TALK FIRST ABOUT THE HERO 4 BLACK. YOU'RE SAYING THIS IS THE ULTIMATE GOPRO, NICK. WALK US THROUGH THE FEATURES.
NICK WOODMAN: HEY JOSH, HOW ARE YOU? GOOD TO BE TALKING WITH YOU AGAIN. YEAH, TODAY IS A BIG DAY FOR GOPRO. WE ARE JUST LAUNCHING OUR HERO 4 LINE OF CAMERAS AND IN MY HAND IS THE HERO 4 BLACK, WHICH IS THE MOST ADVANCED GOPRO THAT WE'VE EVER MADE. IT IS THE CULMINATION OF THE LAST COUPLE OF YEARS DEVELOPMENT AT THE COMPANY. AND THIS LITTLE MATCH BOX SIZE GOPRO CAN CAPTURE 4K30 – 4K VIDEO AT 30 FRAMES A SECOND, WHICH IS A REAL ENGINEERING FEAT.
LIPTON: AND THAT CAMERA, NICK, IS GOING TO SELL FOR $500. SO WHO IS YOUR TARGET AUDIENCE FOR THAT CAMERA, NICK?
WOODMAN: WELL, ALL OF OUR CUSTOMERS AND ANYBODY THAT WANTS TO CAPTURE THEIR LIFE IN STUNNING PROFESSIONAL QUALITY CONTENT AND SHARE THOSE EXPERIENCES WITH OTHERS IN AN IMMERSIVE AND REALLY ENGAGING WAY. AND FRANKLY ANYBODY THAT WANTS TO LOOK AS GOOD AS THE PEOPLE THAT WE SEE ON FILM AND TELEVISION AND THAT IS WHAT A HERO 4 IS CAPABLE OF. OUR NUMBER ONE SELLING CAMERA BEFORE THE LAUNCH OF THE HERO 4 IS THE BLACK EDITION HERO 3 PLUS, OUR $399 PRODUCT. SO THAT HAS – SINCE IT IS HAS BEEN IN THE MARKET, BEEN THE NUMBER ONE SELLER. AND WE EXPECT THE BLACK EDITION HERO 4 TO DO THE SAME EVEN AT THE – WELL, TO HAVE SIMILAR SUCCESS EVEN AT THE $500 PRICE POINT.
LIPTON: AND ON THE OTHER END, NICK, YOU HAVE THE ENTRY-LEVEL CAMERA CALLED HERO THAT IS FOR $129, RIGHT?
WOODMAN: THAT'S CORRECT. WE'VE COME OUT WITH THREE NEW CAMERAS. AT THE ENTRY-LEVEL WE HAVE HERO, WHICH IS $129 CAMERA WHICH IS THE PERFECT ENTRY-LEVEL GOPRO. AND THEN WE HAVE IN THE MID-LEVEL AT $399, WE HAVE THE HERO 4 SILVER, WHICH HAS AN INTEGRATED LCD. AND THEN AT THE TOP, WE HAVE OUR FLAGSHIP HERO 4 BLACK AT $499.
LIPTON: AND YOU LOOK AT THESE CAMERAS, NICK, THEY ARE GOING TO BE AVAILABLE OCTOBER 5. I THINK SOME OF YOUR INVESTORS MIGHT WANT TO KNOW, WHAT DO YOU THINK THIS MEANS FOR YOUR ALL IMPORTANT HOLIDAY SEASON? HOW DO YOU SEE THAT SHAPING UP?
WOODMAN: WELL, HOLIDAY IS ALWAYS AN IMPORTANT PERIOD FOR GOPRO FOR SURE. WE'RE EXCITED BECAUSE THIS IS THE BEST EXECUTED PRODUCT LAUNCH THAT WE'VE HAD AT THE COMPANY. YOU KNOW, IN PAST YEARS, WE WERE UNDERSTAFFED AND THIS YEAR WE'RE NOW OVER 800 EMPLOYEES STRONG. SO WE'RE BETTER POSITIONED THAN EVER BEFORE FOR GLOBAL LAUNCH OF OUR HERO PRODUCT LINE. TIME WILL TELL. YOU KNOW, THE PRODUCT HASN'T EVEN HIT SHELVES YET. IT GOES ON SALE NEXT MONDAY OCTOBER 5. SO TIME WILL TELL, BUT WE EXPECT PEOPLE WILL STILL BE VERY EXCITED ABOUT GOPRO AND HERO 4 GIVES THEM EVEN MORE TO BE EXCITED ABOUT THAN EVER BEFORE.
LIPTON: AND NICK, YOU HINTED AT MY NEXT QUESTION A LITTLE BIT THERE. THERE HAS BEEN SUPPLY CONSTRAINTS BEFORE DURING THE HOLIDAY SEASON. HOW ARE YOU GUYS GOING TO ADDRESS THAT THIS YEAR?
WOODMAN: WELL, I MEAN, THAT'S A HIGH CLASS PROBLEM, RIGHT? YOU ALWAYS HOPE THAT YOU HAVE HIGH DEMAND FOR YOUR PRODUCTS AND WE ALWAYS HAVE IN THE FOURTH QUARTER. AS I MENTIONED, YOU KNOW, IN PREVIOUS YEARS, WE WERE GROWING THE COMPANY VERY QUICKLY. WE STILL ARE GROWING QUICKLY. WE STILL ARE ADDING STAFF QUICKLY. BUT WE'RE BETTER POSITIONED THIS YEAR THAN EVER BEFORE TO GET OUR PRODUCT OUT TO OUR GLOBAL SUPPLY CHAIN TO MEET DEMAND AS BEST WE CAN.
LIPTON: AND NICK, YOU HEARD SUE AND TYLER TALK ABOUT THAT STOCK PRICE. IT HAS BEEN OBVIOUSLY A ROCKETSHIP, RIGHT? UP 250% SINCE THAT JUNE IPO. HOW DO YOU THINK ABOUT THAT MOVE, NICK? I MEAN, AS THE CEO, WHEN YOU SEE A MOVE LIKE THAT, DOES IT CONCERN YOU?
WOODMAN: NO IT DOESN'T CONCERN ME. I MEAN, LOOK, STOCK PRICES WILL GO UP, STOCK PRICES WILL GO DOWN. WE CAN'T CONTROL THAT. IT'S IMPORTANT TO TAKE A LONG TERM VIEW ON THIS. AND AS CEO OF GOPRO, I'M COMFORTED BY THE FACT THAT WE HAVE A VERY BIG LONG TERM VISION FOR THE BUSINESS AND AT THE END OF THE DAY, AS LONG AS WE CONTINUE TO EXECUTE ON OUR VISION, EVERYTHING WILL BE OKAY. AND THAT'S REALLY EVERYBODY'S FOCUS AT GOPRO IS THINK LONG TERM. AND FRANKLY, I THINK THAT IN TERMS OF STOCK PRICE, THERE IS A LOT OF PEOPLE THAT BELIEVE IN WHAT WE'RE WORKING ON AT GOPRO, THEY BELIEVE IN THE OVERALL SIZE OF THE OPPORTUNITY AND WE'RE EXCITED TO WORK EXTREMELY HARD AND PASSIONATELY TO REALIZE THAT EXPECTATION.
LIPTON: WE'RE TALKING ABOUT CAMERAS HERE TODAY, NICK. BUT YOU KNOW, WALL STREET STILL THINKS MAKING MONEY ON THE CONTENT IS PART OF THE LONG TERM STORY HERE. YOU'VE GOT, YOU KNOW, GOPRO CHANNEL ON YOUTUBE, ON XBOX. HOW DO YOU SORT OF SEE GOPRO'S MEDIA OPPORTUNITY?
WOODMAN: WELL, A FEW YEARS AGO, BALLPARK THREE YEARS AGO, WE RECOGNIZED THAT GOPRO WAS SUCCEEDING AS A CONSUMER PRODUCT COMPANY BECAUSE OF THE CONTENT THAT OUR CUSTOMERS WERE CAPTURING AND SHARING. AND WHEN WE RECOGNIZED THAT PHENOMENON, WE RECOGNIZED WE ARE AS MUCH IN THE CONTENT-ENABLING BUSINESS AS WE ARE IN THE CONSUMER PRODUCTS BUSINESS. AND THAT IF WE ARE SUCCESSFUL IN MAKING IT EASY FOR OUR CUSTOMERS TO CAPTURE AND SHARE COMPELLING, ENGAGING, PROFESSIONAL-QUANTITY CONTENT AT SCALE, THEN WE HAVE A REAL GROWING MEDIA OPPORTUNITY. BECAUSE MOST PEOPLE WHEN YOU ASK THEM, "WHAT DO YOU THINK OF WHEN YOU THINK OF GOPRO?" THEIR ANSWER IS, "OH, I THINK OF ALL THE INCREDIBLE VIDEOS THAT I SEE ONLINE." THAT'S THE DEFINITION OF A MEDIA COMPANY, RIGHT? ENGAGING CONTENT THAT PEOPLE WANT TO WATCH, THAT THEY TUNE IN FOR, AND THAT GIVES THE BRAND RESPONSIBLE FOR THAT CONTENT THE OPPORTUNITY TO POTENTIALLY MONETIZE THAT ENGAGEMENT. THE BEAUTY OF IT IS, IS THAT AS WE DEVELOP OUR MEDIA STRATEGY, ALL THE WHILE, THE GROWING PROLIFERATION OF GOPRO CONTENT THAT IS BEING DISTRIBUTED IS GROWING OUR CONSUMER PRODUCTS BRAND AND IS HELPING SELL PRODUCTS. SO IN SOME SENSE, WE ALREADY ARE GENERATING MEDIA REVENUE IN THE SENSE OF THAT IT'S OUR COMMERCIALS, OUR CONTENT, ARE SELLING THE PRODUCTS THAT WE MAKE.
LIPTON: ALL RIGHT. NICK WOODMAN OF GOPRO, THANK YOU FOR YOUR TIME, SIR. WE APPRECIATE IT.
WOODMAN: THANK YOU VERY MUCH, JOSH.
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