GoPro’s been losing a lot of money the past few years. They lost over $104 million during Q3 just last year, so they’ve naturally been hungry for some major improvements to their business profitability. After increasing their average sale prices and lowering their operating costs, some good news has come back to GoPro in this year’s third quarter. It’s reported that GoPro saw their net income this quarter rise to $15 million.
GoPro may never reach the profit levels of years past, but you have to admit that $15 million is profit is a lot better than the $104 million dollar loss they were hit with last year — GoPro has finally become profitable again and is no longer losing money. That’s definitely good news to GoPro. They were also able to defy analysts’ expectations for their revenue growth; analysts expected GoPro’s revenues to rise by 30 percent, but they were able to increase it with 37 percent growth, reaching $330 million, higher than last year’s $240.5 million.
GoPro has credited their stronger performance this quarter to their acts of lowering operating costs and raising the average sales price, and they expect their operating expenses to drop by 30 percent in 2017. GoPro’s average sales price has also increased by 22 percent this quarter. Ultimately, GoPro attributes the increase to that figure to the $500 HERO6 Black, which they said had a “strong performance.”
But, even with GoPro’s performance this quarter, their future isn’t looking as promising. GoPro’s holiday revenue outlook is pegged at $470 million this year and their investors aren’t too happy with that, leading to GoPro’s stock dropping to 10 percent.
GoPro CEO Nick Woodman admitted that the demand for the HERO5 Black was “lighter than expected,” but he’s hopeful that holiday promotions will help boost the end of the year sales.