GoPro has finally registered its first profit in five quarters and has surpassed the estimates of Wall Street for revenue. The profit is being touted as a result of cost-cutting initiatives and rising demand for the action cameras.
GoPro mounted cameras are used by varied consumer segments including, action junkies to travel bloggers of Instagram. The company has unveiled budgetary cameras to propel demand and has also trimmed the number of employees to improve on its profit margins.
The major challenge upfront for the firm is improving smartphone cameras which are poised to become even better in the coming years..
In the fourth quarter which ended in the month of December, GoPro escalated in its market shares in Asian countries including China, Korea, Thailand and Japan. While in this home market, the United States it continued to retain 87 per cent of market share when it came to shipments.
“It appears that GoPro accurately planned its Q4 inventory,” said Wedbush Securities analyst Alicia Reese. “HERO7 Black sold very well in Q4, driving ASPs 20 per cent higher,”
‘’The HERO 7 Black camera by GoPro which comes with a $400 price tag emerged as the top-selling product in the quarter ended December,’’ said Brian McGee, CFO, GoPro
The company also estimates revenue of $510 million to $550 million in the first half of the year 2019.
“With this momentum and a continued focus on expense management, we’re planning for growth and profitability in 2019,” said GoPro Chief Executive Officer Nicholas Woodman.
The net income of the company stood at $32 million in the quarter which ended on December 31 as against the net loss of $55.9 million a year ago.
The revenue of the company soared 13 per cent to $377 million, surpassing analysts’ estimate of $374.2 million.