Struggling action cam manufacturer, GoPro, has post better-than-expected Q2 results, with revenue jumping 40% to US$283 million, versus US$270 million analysts expected. The turnaround has led GoPro to pledge a return to profitability in the second half of 2018.
Despite the lift, GoPro reported a loss of $37 million [27 cents a share], beating analysts’ forecasts for a 32 cent loss per share.
As per Bloomberg, GoPro Founder and Chief Executive, Nicholas Woodman, claims the company will be profitable in the second half of 2018, through to 2019.
Shares in GoPro jumped around 5% in extended trading following results.
Despite the turnaround, some commentators question the sustainability of GoPro’s mid-term strategy, with “several quarters” of robust earnings required to sway investors.
GoPro Chief Financial Officer, Brian McGee, forecasts Q3 revenues of US$260 million to US$280 million, followed by US$380 million and US$400 million in Q4.
CEO Woodman claims the company is seeing signs of “strong demand” for its products, with inventory reportedly at its lowest level since 2014.
GoPro also revealed it plans to launch three new cameras sometime soon, priced between US$199 and US$299.
As previously reported, early this year GoPro released a low-cost actioncam the ‘HERO’. The company claims the product did not cannibalise sales of high-end models.
In April, the GoPro announced a US ‘trade-in’ program which would discount GoPro cameras for trade-ins of any digital camera brand.
GoPro also struck a deal with manufacturer, Jabil, to place its camera lenses and sensors in third-party devices. The deal was tipped by commentators to provide an earnings boost.
The company has also continued to slash cuts, reducing its workforce by 20% since the beginning of the year.
In April, reports emerged that CEO, Mr Woodman, had dropped his salary to $1.
As per its recent earnings report, GoPro has boost Q2 adjusted gross margins to 31%, up from 24.3% in Q1.
