GoPro cutting about 100 jobs after weak 4Q sales (Update)

January 13, 2016
GoPro cutting about 100 jobs after weak 4Q sales
This June 26, 2014, file photo shows GoPro's CEO Nick Woodman being filmed by multiple GoPro cameras as he celebrates his company's IPO at the Nasdaq MarketSite in New York. Wearable camera maker GoPro says it will eliminate about 100 jobs after its fourth-quarter sales fell far short of its expectations. GoPro says fourth-quarter revenue was $435 million instead of the $500 million to $550 million it forecast in October. The company lowered the price of its new Hero4 Session camera after saying it made the product too expensive. That reduced its fourth-quarter revenue by $21 million. (AP Photo/Seth Wenig, File)

Wearable camera maker GoPro says it will eliminate about 100 jobs after its fourth-quarter sales fell far short of its expectations.

GoPro says fourth-quarter revenue was $435 million instead of the $500 million to $550 million it forecast in October. The company lowered the price of its new Hero4 Session camera after saying it made the product too expensive, which reduced its fourth-quarter revenue by $21 million.

FactSet says analysts expected GoPro to report $521.2 million in revenue.

The San Mateo, California, company had around 1,500 employees at the end of 2015 after hiring more than 500 people that year. It is cutting 7 percent of its jobs, or around 100 positions.

GoPro's products are popular with extreme sports enthusiasts, but it faces competition from smartphones and other wearable gear.

It was already predicting a drop in sales compared to last year because it didn't launch a new product in the fourth quarter. The new forecast means revenue dropped about 31 percent from the fourth quarter of 2014.

GoPro shares closed at $14.61 on Wednesday, down 71 percent over the past 12 months. The stock skidded 22 percent to $11.40 in aftermarket trading.

GoPro Inc.'s June 2014 initial public offering priced at $24 per share.

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Jonseer
not rated yet Jan 13, 2016
NO big surprise to me.

It's nothing more than heavily remarketed, preexisting media technology to the lo info users taking advantage of what they do not know to make them think they are buying the latest and greatest way to take pictures and video, when they are just being hocked overpriced gadgets with very unimpressive specs.

It actually makes me feel good. When I first saw this product I figured it was going to make a mint scamming millions into believing it was something unique. Apparently they didn't.

Their marketing apparently underestimated the ability of even lo info gadget junkies to discern overpriced junk.

If they had been honest about what they were selling, they should have sold it for 20 bucks on the "as seen on TV" section at many drug stores today.
lynvingen
5 / 5 (1) Jan 14, 2016
Ouch Jonseer! Why so vicious? Did GoPro employees key your car, rob your house? I feel terrible for the people loosing their jobs, I wish the company the best, but they obviously have a job to do to improve their cameras. Product quality is insanely bad.

GoPro cameras are not cheap and not perfect, they use a super clumsy user interface and are quite clumsy to look at too. Camera specs are not terrible, they produce pretty good results and get the job done.

GoPro product quality is HORRIBLE I have had 4 or 5 GoPro cameras all die on me, some within a day or week of purchase because they cant charge the battery, or simply never wake up with a fully charged battery. My last Hero4black lasted almost 9 months. For this reason I have 0% confidence in their products because 100% of them fail. This makes it impossible for me to use these cameras on the job because they will fail at some point, and I must find a replacement.

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