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GoPro says improved margins will lead to a profitable 2019

Published August 3, 2018
Second quarter sales were down from last year, but up from the first quarter as net losses outperform estimates.

SAN MATEO, Calif. (BRAIN) — GoPro, Inc. announced second quarter sales of $283 million, down 5 percent from the same period last year, but up 40 percent compared to Q1. The company — which claims it holds a 97 percent share by dollar in the U.S. action camera market — said its gross margin improved over Q1, as well. 

It reported a GAAP net loss of $37 million in the quarter, or $0.27 loss per share and a non-GAAP net loss of $21 million, or $0.15 loss per share. The net loss exceeded Wall Street estimates and shares were up nearly 20 percent in after hours trading Thursday following the earnings announcement.

"GoPro is executing," said founder and CEO Nicholas Woodman. "We are on track; sell-through is solid in all regions indicating strong demand, and we believe GoPro will be profitable in the second half of 2018. Our plan is to exit the year with an improved margin profile we believe translates into a profitable 2019."

Second quarter inventory decreased by $47 million from the first quarter to GoPro's lowest level since the second quarter of 2014.

GoPro also celebrated two recent milestones. During the second quarter, it exceeded 30 million HERO cameras sold since the debut of its first HD model in November 2009. And GoPro has now sold more than four million HERO5 Black cameras, making it the best-selling GoPro in record time. The HERO5 Black reached the four million unit milestone three months faster than HERO4 Silver.


Topics associated with this article: Earnings/Financial Reports

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