Year to date GoPro shares is down 58% as the US Company struggles to compete with Chinese brand DJI despite having shipped 50 million action cameras since 2009 when their Hero model transformed the market.
While the business is averaging roughly 3.33 million cameras per year with 20 different models launch since the Company was launched, they are having problems making a profit, with the business recently reporting a A$80-million-dollar loss last year.
During the past month their share value has climbed but it’s their year-to-date performance that is concerning investors.
Despite a 6% year-over-year increase in camera sales for 2023, the company’s overall revenue of A$1.5 billion was an 8% decline compared to the previous year.
While revenue exceeded analyst estimates by 6.1%. Earnings per share (EPS) missed analyst estimates significantly.
Looking ahead, analysts claim revenue is forecast to grow 1.2% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Consumer Durables industry in the US.
A contributor is the ban on competing Chinese brands such as DJI.
The big contributor to the bottom line is GoPro’s subscription and service revenue, this grew 18% year-over-year to reach $97 million in 2023.
