Earnings Miss: Tough Quarter For GoPro
GoPro recorded quarter-three revenue of US$400 million, up 43 per cent year-on-year, with net income of US$18.8 million, up 28.6 per cent. As reported by Reuters, analysts had expected revenue of US$433.6 million.
GoPro shares were down 18.6 per cent in extended trading on Wednesday, Reuters reported.
GoPro’s figures reveal that international sales totalled more than 50 per cent of its revenue for the quarter, with China the fastest growing market in its history, based on the first nine months of revenue.
GoPro, which recently introduced its Hero+ camera, also recently announced a price cut for its Hero4 Session, launched in July, which is now priced at $449.95 in the local market, a significant cut from its original $579.95 pricing.
“I am proud of our year-to-date accomplishments in which we posted strong financial results and expanded our portfolio of products, however our business in the third quarter was clearly more difficult than anticipated,” Woodman commented.
“GoPro is entering the holidays with an industry-leading line-up backed by great software solutions and a globally-recognised brand. We are excited about our business and the investments we continue to make to scale GoPro into its next phase as a product, software and entertainment company.”