The worst was already expected even before the release of GoPro's third quarter financial report for 2016. It is a huge blow for GoPro. The company is facing an uncertain future. The success of their new products may decide GoPro's fate.
GoPro's Shares And Revenues Were Down
Based on the financial report released by GoPro, the company's third quarter revenue this year is $240.56 million compared to last year's $400.34 million. That's a 39.9 percent year-over-year change.
This is actually better than what analysts had predicted. It did not meet the expected $314.06 million in revenue. That is around 23 percent and $75 million less.
GoPro also suffered a loss of $0.60 per share from last year's $0.25. Wall Street analysts were expecting a loss of $0.36 per share.
According to TechCrunch, GoPro shareholders had given up on a promising knockout third-quarter earnings report in early October. The company's stock went down by nearly 30 percent over 21 trading days.
GoPro Investors Remain Optimistic For The Future
GoPro Founder and CEO Nicholas Woodman insisted that consumer demand for their products is strong. Apparently, the customer reception has been good for the company. He added that their new products will be instrumental in GoPro's future.
They expect a return to profitability, double-digit revenue growth and annual operating expenses of approximately $650 million.
The Future For GoPro
GoPro's newly released camera and drone were not able to make the cut of the financial report that ended in September. But it will definitely be involved in shaping GoPro's fourth quarter earnings this year.
Though its revenue and share were down, it's not all bad for GoPro in the third quarter of 2016. According to the NPD Group's Retail Tracking Service, GoPro accounted for three of the top five products on a unit basis in the digital camera/camcorder category in the US.
Particularly, its HERO4 Silver is still the best-selling digital image camera for the eight consecutive quarter.
Furthermore, GoPro's combined digital camera/camcorder share increased 80 basis points year-over-year to 21.5 percent. As for social media, GoPro followers on both Facebook and Instagram are now over 10 million. Likewise, the social media views of its content have reached nearly 179 million.