GoPro Sales Plunge, Year Revenue Flat
GoPro has had a tough quarter with its sales dropping 38 per cent compared to the previous year from US$540m to US$334m, lower than what the company was initially forecasting.
Forecasts suggested its 2017 fourth quarter revenue would be around US$340 million, thereby significantly lower that its original holiday season forecast of US$470 million.
Following the forecast news its shares plummeted 33 per cent, a new low for the action camera company. Currently, its shares are US$5.50, up by 0.55 per cent.
The company’s year revenue was flat year over year coming in at US$1.18bn and operating expenses decreased by more than 30 per cent year-over-year.
These results are indicative of GoPro cutting 300 jobs, no longer manufacturing drones and paying its CEO US$1 after its Hero Black struggled to make the sales the company was hoping for.
Nicholas Woodman, CEO at GoPro says, “The fourth quarter demonstrated there is significant demand for GoPro products at the right price.
“Our opportunity in 2018 is to marry consumer demand for GoPro with new, higher margin cameras launching in the second half that will appeal to existing and new consumers. We are also focused on growing GoPro’s subscription service, Plus, and launching new initiatives as subscription becomes an increasingly important focus for our business.”