FILE PHOTO: A GoPro camera is seen in this illustration photo January 9, 2018. REUTERS/Thomas White/Illustration
August 1, 2019
(Reuters) – GoPro Inc <GPRO.O> fell short of Wall Street expectations for second-quarter revenue and profit on Thursday, as it struggled to attract customers for its action cameras, sending shares down 12% in extended trading.
The company’s trademark action cameras, which were once a must-have for surfers, sky divers and Instagram travel bloggers, have been facing stiff competition amid rising popularity of pocket-friendly smartphones with improving cameras.
Revenue rose 3% to $292 million, but missed estimates of $302.3 million, according to IBES data from Refinitiv.
The San Mateo, California-based company’s net loss narrowed to $11 million, or 8 cents per share, in the three months ended June 30, from $37.3 million, or 27 cents per share, a year earlier.
GoPro said it was able to cut operating expenses by $5 million in the quarter, which helped gross margins improve to 35% from 29% a year earlier.
The company said it is raising its outlook for the second half of 2019, but didn’t divulge details.
Excluding items, the company earned 3 cents per share, below estimates of 4 cents per share.
(Reporting by Akanksha Rana and Vibhuti Sharma in Bengaluru; Editing by Sriraj Kalluvila)
