GoPro getting its mojo back
GoPro is keeping its promise to Wall Street.
The company’s second-quarter results beat analysts’ expectations, proving that cost cuts are stemming losses and software updates are reinvigorating demand for action cameras.
The maker of wearable action cameras and drones is recovering after a series of product delays, recalls, disappointing earnings and a long stock slide, prompting chief executive officer Nicholas Woodman to eliminate hundreds of jobs and abandon an entertainment division. Now a leaner company with a narrower vision, GoPro is focused on making its devices easier to use and gearing up for the upcoming Hero6 camera and Fusion spherical camera rollouts.
GoPro reported $296.5 million in revenue for the three months ended June 30, up 34 per cent from a year earlier, and surpassing analysts’ average estimate of $269.2 million. The San Mateo, Calif.based company forecast thirdquarter revenue of as much as $310 million, beating the average projection of $277.8 million.
“I believe we are coming out of our two-year slump where we rationalize ourselves in this smartphone-centric world,” Woodman said in an interview. “We’ve cleaned up our business. It was inefficiencies in the rest of our business that was clouding the true pace and health.”
Woodman attributes renewed demand for the action-cameras to the company’s efforts to make its devices easier to use. He acknowledged that GoPro has long struggled to make uploading and sharing videos simple.
The company recently rolled out an app feature, called QuikStories, that automatically uploads captured video and edits it in a smartphone. To reach new consumers, GoPro realized it needs to make its devices attractive to people accustomed to the iPhone-easy process of capturing and sharing content, so Woodman is repositioning its action-cameras as an “extension of the smartphone itself.”
GoPro has looked abroad for expansion, as the market slows domestically.