Struggling GoPro Falls 10% On Earnings Miss; Announces New CFO
Sales of action camera maker GoPro fell short of Wall Street expectations on Wednesday, with the company reporting a loss of 8 cents per share, whereas analysts were predicting an average of 0 cents.
Fourth quarter revenue also fell short, coming in at $437 million, but investors had been forecasting $496 million. This is also down 31% from the $634 million in the same period the year before.
Shares were initially halted, but quickly fell 10% in after-hours trading.
The company previously reduced expectations when it announced disappointing guidance for the fourth quarter, but GoPro still managed to significantly miss the bar.
The company also announced that it will be naming a new CFO next month. “Brian McGee, a 30-year finance veteran who has served as CFO of two publicly-traded companies and who joined GoPro in 2015 from Qualcomm will succeed CFO Jack Lazar effective March 11,” said the company statement.
“Growth slowed in the second half of the year and we recognize the need to develop software solutions that make it easier for our customers to offload, access and edit their GoPro content,”
said GoPro Founder and CEO, Nicholas Woodman, in a statement.
“Our growth rate has slowed,” Woodman acknowledged on the call. But he voiced optimism for the new Hero 5 camera. “Later this year we will introduce the most connected and convenient GoPro we’ve ever made.”
It’s been a tough ride for GoPro — Even before today, it’s stock had fallen 83% in the past six months. Last month, the company also announced layoffs.
As TechCrunch’s Josh Constine notes, a lot of this is due to existing users choosing not to upgrade to the newest GoPro models. If you already have a GoPro, you don’t need another.
The company has been doing what it can to stay relevant. Trying to capitalize on the latest livestreaming trend, GoPro recently announced that it was integrating with Periscope.
GoPro has been trying to brand itself as a media company, to deemphasize its hardware sales problems. The company not only encourages livestreams, but asks people to upload their great skiing, surfing and other footage to YouTube. It has been trying to sell investors on this media branding since its IPO in 2014, but it seems that the public doesn’t buy it – GoPro is largely viewed as a camera maker.
GoPro closed Wednesday at $10.74.