October 3, 2022
Chicago 12, Melborne City, USA
Finance

GoPro swings to a surprise profit but stock dips as outlook comes up light

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Shares of GoPro Inc. traded in after-hours trading, despite the action camera maker surpassing expectations with its recent results but provided a second-quarter outlook that was lower than the consensus outlook.

The company posted a net profit of $ 6 million, or 4 cents per share, in the first quarter, compared to a loss of $ 10 million or 7 cents per share in the previous quarter. Analysts expected a GAAP loss of 2 cents per share.

On a compatibility basis, GoPro GPRO,
-6.82%
The stock earned 9 cents per share, 3 cents more than a year ago, while Factset agreed to 6 cents per share.

Revenue rose to $ 217 million from $ 204 million a year earlier, with analysts modeling 217 million.

GoPro earned $ 89 million from GoPro.com, including subscriptions and services, for a total of $ 19 million.

The company launched the HERO10 Black Bones last month, the first of two “derivative” cameras that GoPro has planned for this year. This first-person-view camera is a “strip-down, lightweight variant of the HERO10 Black designed specifically for mounting on small, agile drones” that chief executive Nick Woodman hopes will serve a “significant core GoPro customer group”. GoPro has prepared shared comments before its earnings call.

“We look forward to seeing more of our derivatives and diversification strategies in both hardware and software later this year and will expand further in 2023,” Woodman continued. “We are confident that we can increase our TAM [total addressable market] Our consumer and professional customers serve diverse, often very specific needs. “

GoPro expects second-quarter earnings of $ 235 million to $ 245 million, as well as consistent earnings per share of 4 cents to 8 cents. Factset consent was for $ 272 million in revenue and 15 cents for adjusted EPS.

“Looking ahead to the second quarter and full-year 2022, our expectation is for greater revenue growth in the second half due to product launch times,” Chief Financial Officer Brian McGee said in his prepared remarks.

Shares closed 1.7% higher in after-hours trading on Thursday.

For the full year, GoPro still expects that “the unit will lead to modest growth in sales as well as revenue growth through growth in ASP. [average selling prices]According to McGee.

Holiday quarters are typically GoPro’s strongest, with steady growth through sales of 30% to 50% or more. “We expect the launch of our derivatives and flagship products in the second half to result in a 4Q’22 cell-through lift to the upper end of our general sell-through range as we have more new products available for sale,” McGee said.

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