Tags: GoPro | GPRO | earnings | IPO

GoPro Reports Wider Quarterly Loss in First Report After IPO

Thursday, 31 Jul 2014 04:59 PM

GoPro Inc., in its first earnings release as a public company, reported a wider quarterly loss, helping to send shares down as much as 13 percent.

The net loss was $19.8 million, wider than the $5.1 million from a year earlier, the company said in a statement Thursday. Excluding some items, it posted a profit of 8 cents a share, compared with analysts’ projection of 7 cents a share.

Sales rose 38 percent to $244.6 million in the second quarter, topping the average analysts’ estimate of $238.1 million.

The San Mateo, California-based company went public last month at $24 and its shares have since soared. That has resulted in investors taking profits from the rise, said Alex Gauna, an analyst at JMP Securities.

“It looks clean to me,” Gauna said in an interview. “Maybe there’s some profit-taking from people who thought they’d get even more. Plus, there was a huge move ahead of this announcement.”

Shares dropped as low as $41.70 in extended trading after rising 3.6 percent to $47.97 at the close in New York. The stock has almost doubled since its June IPO.

The company sells tiny video cameras that surfers, hang-gliders and other adventurers strap onto their bodies to record their exploits. GoPro has also been trying to parlay the content into a media strategy to make money from advertising and partnerships.

Media Strategy

GoPro recently began bringing in revenue through distribution of user-generated content, as well as from videos created by its own production staff. Earlier this month, the company announced a deal with Microsoft Corp. to let owners of the Xbox One game console stream videos from a new GoPro channel.

The IPO has helped make GoPro founder and Chief Executive Officer Nick Woodman a $2.4 billion fortune. He owns about 48 percent of the company.

“The monetization of content is a critical factor for investors to monitor going forward, especially at the current stock price,” wrote Joseph Wolf, an analyst at Barclays Plc., in a July 22 note.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Companies
GoPro Inc., in its first earnings release as a public company, reported a wider quarterly loss, helping to send shares down as much as 13 percent.
GoPro, GPRO, earnings, IPO
334
2014-59-31
Thursday, 31 Jul 2014 04:59 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved