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GoPro revenue plunges 47 percent, but beats estimates

Published 07/27/2016, 04:38 PM
© Reuters. GoPro Hero 3+ camera is seen at the Nasdaq Market Site before before GoPro Inc's IPO in New York
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(Reuters) - GoPro Inc's (O:GPRO) quarterly revenue plunged 47.4 percent, but beat analysts' estimates, which have been sharply lowered on shrinking demand for the company's body-mounted point-of-view cameras.

The company's shares were up 2.4 percent in volatile trading after the bell on Wednesday.

GoPro's revenue fell to $220.8 million in the second quarter ended June 30 from $419.9 million a year earlier.

Analysts on average were expecting revenue of $194.3 million, according to Thomson Reuters I/B/E/S.

That is about 20 percent lower than the estimate on May 5, when GoPro reported first-quarter results and delayed the launch of its Karma drone until the holiday season.

The company, whose cameras are worn by surfers, skydivers and other action junkies, said second-quarter units shipments rose 8 percent to 759,000 compared with the first quarter.

Its average selling price increased 11 percent sequentially and 14 percent on a year-over-year basis.

GoPro, however, maintained its full-year revenue guidance of $1.35 billion to $1.5 billion. Analysts on average were expecting revenue of $1.34 billion.

GoPro posted a loss of $91.77 million, or 66 cents per share, for the second quarter compared with a profit of $35.03 million, or 24 cents per share, a year earlier.

© Reuters. GoPro Hero 3+ camera is seen at the Nasdaq Market Site before before GoPro Inc's IPO in New York

Excluding items, GoPro lost 52 cents per share in the latest quarter, less than analysts' estimates of 58 cents.

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