GoPro shares have fallen 13% after the company reported lower than expected revenue growth in the final quarter of 2016.
Despite bucking the trend of four consecutive quarterly losses with a revenue increase of 23.8%, GoPro failed to meet expectations. Analysts had estimated revenue of US$574.5 million in the fourth quarter holiday period according to Reuters.
GoPro also estimated revenue for the first quarter of 2017 to be US$190-210 million, significantly below analyst expectations of $267.6 million.
The results cap off a disappointing year for GoPro, with high hopes for the company’s Karma drone crashing after lengthy delays and a subsequent recall due to safety issues.
While the Hero5 Black action camera also suffered delays due to production issues, GoPro said it was the best selling digital imaging device in the US and EMEA during the fourth quarter in both units and dollars.
“In 2016, big investments in hardware, cloud, and mobile yielded a solid foundational experience for our customers,” said GoPro Founder and CEO Nicholas Woodman.
“In 2017, we will build on this foundation for our customers while improving efficiency and managing cost to achieve profitability,” Mr Woodman added.
Yesterday GoPro announced it would begin selling its Karma drone again.
