By Toby Hill
SAN MATEO, Calif. (BRAIN) — GoPro Inc. on Thursday reported a 38 percent drop in revenue to $334.8 million and a loss of $55.8 million for the fourth quarter following another weak holiday sales period for the action camera maker. Both results fell well short of Wall Street expectations.
The Q4 financials compound woes at GoPro, which announced in January that it was exiting the drone business and cutting 250 jobs due to recall issues with its Karma drone. GoPro also stated last month that it had hired JPMorgan Chase & Co. to investigate finding a buyer for the company.
At the opening of the market Thursday, GoPro shares were down almost 50 percent over the past 52-week period, and the earnings announcement sent the stock further downward in after-hours trading.
While acknowledging the quarter was a challenging one, GoPro founder and CEO Nicholas Woodman said during an earnings call Thursday that the company gleaned several important lessons during the period, especially when it comes to pricing GoPro products.
For example, to address soft demand for its Hero5 Black and Hero5 Session cameras following the launch of the Hero6 Black camera, in December GoPro cut the price on the Hero5 models by $100. …read more