GoPro shares dive as company logs losing quarter

February 4, 2016
A GoPro Hero 4 camera is displayed at the 2015 International CES at the Las Vegas Convention Center on January 6, 2015 in Las Ve
A GoPro Hero 4 camera is displayed at the 2015 International CES at the Las Vegas Convention Center on January 6, 2015 in Las Vegas, Nevada

GoPro shares dove on Wednesday after the mini-camera maker reported quarterly earnings that were worse than the market's dismal expectations.

GoPro said that it lost about $34.5 million during the holiday season quarter that ended last year, as revenue sank some 31 percent to $436.6 million when compared to the same three-month period in 2014.

Wall Street had been braced for GoPro to essentially break-even but did not expected GoPro to post a loss for the year-ending shopping season.

"In 2015, we recorded 16 percent year-over-year revenue growth and the fourth quarter represented the second highest revenue quarter in the company's history," said GoPro Founder and chief executive Nicholas Woodman.

"However, growth slowed in the second half of the year and we recognize the need to develop software solutions that make it easier for our customers to offload, access and edit their GoPro content."

GoPro revenue for the year tallied $1.6 billion, an increase of more than 16 percent from 2014, but profit was down 71.8 percent to $36.13 million.

Shares plunged in after-market trades that followed release of the earnings report, but regained some ground to be down about 10 percent to $9.62 shortly after 2400 GMT.

Nick Woodman, founder and CEO of GoPro celebrates during the company's initial public offering (IPO) at the Nasdaq Stock Exchang
Nick Woodman, founder and CEO of GoPro celebrates during the company's initial public offering (IPO) at the Nasdaq Stock Exchange on June 26, 2014 in New York City

GoPro forecast that its revenue in the current quarter would be from $160 million to $180 million.

The Silicon Valley-based company last month announced it would cut seven percent of its workforce and that last year was less than expected, causing shares to sink.

The job cuts represent hundreds of positions, with the stated intent being to "better align resources to key growth initiatives."

GoPro said that its ranks of employees had been growing by more than 50 percent annually and tallied more than 1,500 as of the end of 2015.

GoPro was an early hit with extreme sports enthusiasts who used the mini-cameras to film their exploits and went on to win over teens and young adults interested in sharing videos on YouTube or social networks.

GoPro went public in June of 2014 with shares initially priced at $24 and soared in subsequent months, more than tripling in value at one point.

But investors began to worry about the company's growth prospects and the possible saturation of an increasingly competitive market.

GoPro shares began sliding last year, much of their value since August.

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

Related Stories

GoPro shares go downhill, slide below IPO price

November 12, 2015

US mini-camera maker GoPro, which gained notoriety and a devoted following of extreme sports enthusiasts, on Thursday ended the stock market trading day below its debut price.

GoPro gets real ... virtually real

May 28, 2015

Shares of GoPro jumped to a five-month high Thursday after the company's CEO said the company is getting into the drone and virtual reality business.

GoPro shares soar on first day of trading

June 27, 2014

Shares in the company behind GoPro cameras, used to capture sports action from players' perspectives, jumped more than 30 percent on their first day of trading.

Recommended for you

A not-quite-random walk demystifies the algorithm

December 15, 2017

The algorithm is having a cultural moment. Originally a math and computer science term, algorithms are now used to account for everything from military drone strikes and financial market forecasts to Google search results.

US faces moment of truth on 'net neutrality'

December 14, 2017

The acrimonious battle over "net neutrality" in America comes to a head Thursday with a US agency set to vote to roll back rules enacted two years earlier aimed at preventing a "two-speed" internet.

FCC votes along party lines to end 'net neutrality' (Update)

December 14, 2017

The Federal Communications Commission repealed the Obama-era "net neutrality" rules Thursday, giving internet service providers like Verizon, Comcast and AT&T a free hand to slow or block websites and apps as they see fit ...

The wet road to fast and stable batteries

December 14, 2017

An international team of scientists—including several researchers from the U.S. Department of Energy's (DOE) Argonne National Laboratory—has discovered an anode battery material with superfast charging and stable operation ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.