SAN MATEO, Calif. (BRAIN) — GoPro Inc. third-quarter revenues dropped 54.1% compared to the same time last year, a development the company expected because of a production delay.
Revenue was $131 million for the period ending Sept. 30, compared to $285 million during last year's third quarter. The drop in revenue and GAAP gross margin (22%) was attributed to a late-stage production problem shifting sales of the HERO8 Black cameras from the third to the fourth quarter.
GoPro's first-quarter earnings this year were $243 million.
"Third-quarter results are above the guidance provided on Oct. 2," said GoPro founder and CEO Nicholas Woodman. "We are reiterating our annual revenue outlook of 6% to 9% growth, and increasing our profitability outlook for the fourth quarter and 2019."
GAAP operating expenses for the third quarter were $99.6 million, an 11% year-over-year decline. Non-GAAP operating expenses were $90.3 million, a year-over-year drop of 8%. GAAP and non-GAAP operating expenses were at a five-year low.
GoPro Plus service surpassed 305,000 paying subscribers as of Nov. 4, an increase of 21% over the second quarter of this year.
"HERO8 Black and MAX are generating the highest positive social sentiment metrics of any new GoPro and are setting record unit sales for new cameras at GoPro.com," Woodman said. "Both products appear to be unquestionable hits with consumers, and we're optimistic about their impact on our business going forward."
GoPro's stock closed at $4.45 Thursday, 3 cents higher than Wednesday's closing price.
