GoPro Deliver First Profit Since Q3Y17
Embattled action cam manufacturer, GoPro, has honoured its promise to post a profit in 2018, netting US$32 million in Q4Y18.
Derived from Q4 revenues of $377 million, it’s the company’s first quarterly profit since Q3Y17.
The figure is also GoPro’s second profit since Q3Y15 – the year it entered the competitive drone market, and soon retreated from.
“GoPro’s brand has never been stronger, our product never better, and we’re fired up for the year ahead,” claims CEO Nick Woodman.
GoPro credits the revenue boost to strong sales of its new flagship Hero 7 Black, launched in September last year.
The company claims the Hero 7 Black is its fastest selling camera on record, with sales carrying into Christmas trading.
For the full year, camera sales climbed 9% year-on-year, notching revenues of US$1.15 billion.
Q4 camera sales lift 20% year-on-year.
The company has continued to improve its balance sheet, with full year loss notching US$94 million – significantly down from US$163 million the year before.
Despite this, GoPro failed to meet its cost reduction target, with full year operating expenses hitting US$455 million versus US$400 million targeted.
The company’s cloud storage subscription service ‘GoPro Plus’ has continued to gain momentum, notching 199,000 paid subscribers at the end of 2018. The service costs US$5/month.
GoPro has also announced it’s moving its US-bound camera production from China to Mexico in Q2Y19.