$GoPro(GPRO)$  In Q4 2022, we celebrated our 20-year anniversary, and it's been inspiring to consider how far we've come from our first product, a 35-millimeter film camera designed to be worn on the wrist while surfing, to today, one of the world's most popular brands serving millions of the world's most active, creative and inspired humans. Gratitude to all. The strength of our brand and subscription-based business strategy was evident in 2022, a year marked by macroeconomic challenges. Our high-margin subscription business is serving as a powerful financial engine, contributing meaningfully to our bottom line.

In 2022, we grew GoPro subscribers 43% year over year to $2.25 million, exceeding our annual target of $2.2 million and bringing our subscription and service revenue to an annual run rate of $100 million with 70% to 80% gross margin. The growth in our subscription business helped us deliver profitability and positive EBITDA. We paid off debt of $125 million and repurchased $40 million in stock and we exited the year with a strong cash balance of $367 million. 2022 benefited from our complementary direct-to-consumer and retail channels, with each meaningfully contributing to our business throughout the year.

Direct-to-consumer revenue from GoPro.com was 40% of overall revenue in Q4 and 38% for the full year of 2022, up from 33% and 34%, respectively. In addition, our GoPro.com business grew 5% in 2022 over 2021, driven by 52% growth in subscription and services revenue. We estimate GoPro.com revenue growth was 12% in constant currency. Like many companies, GoPro's results for the year and quarter were impacted by a stronger U.S.dollar. On a constant currency basis, we estimate that revenue for the year would have been approximately $50 million higher or 5% above actual results. Gross margin would have been nearly 41%, versus 38.1% actual results and the EBITDA to revenue approximately 13% versus 9% actual results. Considering the global FX and macroeconomic challenges, we believe our 2022 results reflect the strength of our subscription-based business model and the strong execution of our teams.

The future of GoPro is subscription based and we're laser-focused on what we believe is a significant high-margin growth opportunity. GoPro's focus on building our direct-to-consumer channel has increased our understanding of consumer behavior, and we are successfully leveraging this to drive engagement and LTV. While still early in this journey, we see significant opportunities to add further value for new and existing subscribers. Our 2023 plan is to maintain GoPro's ongoing profitability and end the year with a strong cash position of $325 million to $350 million, while investing in critical long-term growth opportunities that we believe will position GoPro well for when the global economy recovers.

We're investing in the people, technology, and innovation that we believe will drive subscriber growth, retention, and ultimately, LTV. This includes expanding our hardware lineup to court a broader consumer base and rolling out a synced mobile, cloud and desktop experience that will target GoPro owners and non-owners alike with a new premium subscription tier. As I reflect on our 20 years in business, I'm most proud of the innovation GoPro has become known for, as well as our purpose; serving the world's most active and creative people with digital imaging solutions that help them capture and share their lives in exciting ways. This purpose combines with the strength of our brand, our people, and our subscription-based business model to give us confidence that we are well-positioned for the future, despite near-term challenges that we and many businesses including GoPro likely to face in 2023.

In the meantime, we're innovating toward an exciting tomorrow where we believe GoPro will serve significantly more people than we do today.