GoPro’s financials improve thanks to Karma drone, cost reductions
GoPro posted earnings in line with analyst expectations and better-than-expected sales today, reporting a non-GAAP loss of 44 cents per share on revenues of $218.6 million. That is an improvement from a loss of 63 cents per share and revenues of $183.5 million in the year-ago quarter.
The first-quarter earnings report marks some of the first positive news the company has had in several quarters. GoPro attributed its revenue increase to the return of the company’s fold-up Karma drone, which was recalled in the fall after it became clear that a loose battery could result in power loss and drones falling from the sky. Sales of the drone, which costs $799 by itself or $1,099 when bundled with a GoPro Hero 5, resumed in February.
Nor has GoPro stopped developing new products: It announced plans for the release of a spherical video camera called the Fusion, but that won’t be available for sale until the fall.
In the meantime, though, GoPro is hoping to get its earnings back on track. The company forecast revenues of $270 million and adjusted EBITDA loss of $15 million for the second quarter.
Prior to today’s earnings release, GoPro had a rocky start to the year. Its fourth-quarter and full-year numbers fell well below analyst expectations, causing its stock to fall 10 percent after their release.
It also announced layoffs last month that would result in the loss of 270 jobs, on top of two previous rounds of cuts in January and November. Thanks in part to those cuts, the company was able to reduce its operating expenses by $50 million.