After many financial fluctuations, GoPro is currently trying to raise their profit. Although their situation has not been perfect lately, they announced that they faced an unexpected rise in their sales from their last quarter.
Usually, GoPro’s shares are quite unstable, experiencing numerous fluctuations. However, on Thursday, their shares increased by 5 percent in after-hours trading. This happened before they could give up their gains.
After a tough year, GoPro started 2017 with a revenue increase
Their efforts might be now paying up, as their situation during the first quarter of the year was not bad at all. They succeeded in increasing their revenue by 19 percent, thus reaching $218.6 million. This even surprised the analysts, as the profit exceeded their estimates by $10.7 million.
This sudden boost was not provided by American clients. After GoPro launched their new HERO5 camera, they faced immense popularity and growing sales in Europe or China. They have also recently presented their new consumer drone called Karma, which was also greatly welcomed on the market.
Despite all this success, GoPro declared that their losses increased in the past year. In 2015, they lost 78 cents per share on average, which amounts to a total of $107.46 million. Next year, their losses increased to $111.15 million.
This also represented an average of 78 cents per share. However, analysts excluded certain items from their calculations and estimated a total loss of 44 cents per share. The actual situation was in line with the estimates.
The company is optimistic, but they still have a lot to regain
The GoPro CEO, Nick Woodman, is optimistic about their situation and declared that they might be on the right track. The beginning of 2017 was extremely profitable, as they had a great start of the year. This comes as a breath of fresh air after six dire quarters, when they have been consecutively losing money.
GoPro has been trying to cut their costs as much as possible, by dismissing a number of 200 people in November, and then announcing that they were going to open up another 270 positions. They have been struggling with certain issues with some of their drones, which cut from their popularity and sales. Now, it seems like they are starting to regain their leading positions.
For the second quarters, GoPro estimated a revenue of $270 million. This exceeds the estimates of the analysts, who predicted a profit of $240. They might have had a great start of the year, but they still lost much of their value last year.
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