GoPro’s first quarter results for 2018 have revealed that the company has seen a 3 percent year-on-year unit growth with $202 million in revenue. But GoPro still reports a 7 percent year-on-year drop in revenue.
Nevertheless, these numbers exceed the expectations predicted by analysts and has put GoPro’s stock on the rise. GoPro CEO Nick Woodman expects Q2 to pan out in a similar positive manner.
Woodman attributes the company’s success this quarter to the HERO5 Black and HERO6 Black along with the new 200 dollar HERO action camera. "Initial demand for HERO is promising," said Woodman, "and we expect it to improve as large retail partners like Target and Walmart begin selling the product in the second quarter."
But it’s not all good news
Despite the growth and rising stock, GoPro’s year-on-year revenue decreased 7 percent this quarter. GoPro has been shifting around its focuses and investments recently to hopefully turn a sustainable profit. The company has reported its GAAP operating expenses have be reduces by 24 percent year-on-year.
There’s still a demand for GoPro
Though GoPro has seen a drop in its revenue compared to last year, Woodman believes that this quarter is a clear sign that there’s still a demand for GoPro. "Our first quarter performance makes it clear that there is significant demand for GoPro, at the right price," says Woodman.
GoPro does still top the US action camera market, reporting that it holds 86 percent and 95 percent of the market share based around unit and dollar volume.