GoPro Reports Loss, but Results Top Expectations
July 27 2016 - 5:10PM
Dow Jones News
GoPro Inc. swung to a loss in the second quarter, but results
still beat expectations, suggesting that aggressive price cuts on
its flagship camera are paying off.
GoPro, which makes action cameras popular among adrenaline
junkies, also said it expects to return to profitability in the
fourth quarter, following the expected launch of its new camera,
Hero5, and drone, Karma. For 2016, the company now sees revenue
between $1.35 billion and $1.5 billion; analysts surveyed by
Thomson Reuters saw revenue of $1.34 billion.
Shares of GoPro, which have fallen about 88% from their 2014
high, rose 2.4% to $11.85 in after-hours trading.
For the quarter ended June 30, GoPro posted a loss of $91.8
million, or 66 cents a share, compared with a year-ago profit of
$35 million, or 24 cents a share. Excluding stock-based
compensation and other items, the company reported a loss of 52
cents a share, down from year-ago earnings of 24 cents a share.
Revenue declined steeply to $220.8 million from $419.9 million a
year ago.
Analysts had projected a per-share loss of 58 cents, excluding
certain costs, and revenue of $194 million, according to a survey
of analysts by Thomson Reuters.
The loss at GoPro wasn't unexpected: it hasn't released a new
camera in a year, when it bungled the release of its Session camera
last July. GoPro was forced to slash the price of the Session by
half after initial sales flopped.
GoPro faces pressure to demonstrate there is a more mainstream
market for its cameras beyond its adrenaline-addicted core. But as
it tries to go more mainstream, it faces competition from do-it-all
smartphones from tech giants such as Apple Inc. and Samsung
Electronics Corp.
GoPro has said it plans to release a new camera in the second
half of the year, which analysts believe could revive sales. The
company also plans to launch a drone around the holidays, which it
has delayed from the first half of the year.
Write to Georgia Wells at Georgia.Wells@wsj.com
(END) Dow Jones Newswires
July 27, 2016 16:55 ET (20:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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