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GoPro’s shares fell by as much as 11 per cent after it reported fourth-quarter sales and a first-quarter outlook that missed investors’ expectations, even after slashing its guidance in November.

Revenues of $540.6m were up 24 per cent on the prior year but fell short of Wall Street’s forecast of $573m. For the first quarter, GoPro said sales would be around $200m, below consensus of $268m.

Net losses leapt to $115.7m, including $37m of restructuring costs and a $102m charge related to deferred tax assets. Gross margin was 39.5 per cent, up from 29.6 per cent a year ago.

GoPro shipped 2.3m of its cameras in the holiday quarter, 14 per cent higher than the same quarter a year earlier but below the same period in 2014.

GoPro stock was down 11 per cent at $9.80 in after-hours trading, having already fallen by 15 per cent in the last three months.

“In 2016, big investments in hardware, cloud, and mobile yielded a solid foundational experience for our customers,” said Nick Woodman, GoPro’s founder and chief executive. “In 2017, we will build on this foundation for our customers while improving efficiency and managing cost to achieve profitability.”

GoPro recently appointed a new chief operating officer, CJ Prober, after the departure of president Tony Bates at the end of last year. Mr Prober, a former Electronic Arts executive, has been GoPro’s head of software and services since 2014 – an area of significant investment for the camera maker. More than 4m people installed its new Quik video editing app in the December quarter.

Earlier this week, GoPro announced that its Karma drone had gone back on sale after November’s recall. The Karma quadcopter, which also acts as a handheld stabiliser for its latest Hero cameras, was pulled from sale less than a week after it launched after power failures caused it to abruptly fall from the sky. GoPro subsequently blamed battery problems for the malfunction.

In November, GoPro had slashed its outlook for the holiday quarter, blaming production issues for an anticipated $200m shortfall in sales.

Copyright The Financial Times Limited 2017. All rights reserved.
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