GoPro stock rises after reporting revenue in-line with pre-announcement in April
Published: May 7, 2020 at 4:26 p.m. ET
By Max A. Cherney
GoPro Inc. GPRO, +3.69%rose 1.5% in the extended session Thursday after the company reported revenue in-line with what it pre-announced in April. The company reported a first-quarter net loss of $63.5 million, which amounts to 43 cents a share, compared with $24.4 million, or 17 cents a share, in the year-ago period. Adjusted for stock-based compensation, among other things, losses were 34 cents a share. Revenue fell to $119.4 million from $242.7 million in the year-ago period. Analysts surveyed by FactSet had estimated adjusted losses of 34 cents a share on revenue of $119.1 million. On April 15, GoPro yanked its 2020 guidance due to the coronavirus, said it was laying off 20% of its staff, over 200 employees, and reducing operating expenses by $100 million. The company said at the time that its global distribution network was hurt by the pandemic, but its "product roadmap" for 2020 won't be impacted. The company also pre-announced revenue and adjusted earnings per share in April. GoPro had said it sold roughly 700,000 cameras during the quarter and reduced its channel inventory by 30%. For the second quarter, analysts model adjusted losses of 14 cents a share and sales of $137.4 million. "We've taken decisive action to transition into a more efficient and profitable direct-to-consumer business," GoPro Chief Executive Nicholas Woodman said in a statement. "This benefits GoPro with a substantially reduced operating expense model, improved gross margin and a significantly lower threshold to profitability." Shares of GoPro have fallen 46% in the past year, as the S&P 500 index SPX, +1.15%fell 1.2%.
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