GoPro’s (GPRO) shares tumbled over 7% in after-market hours on Thursday despite the company reporting better-than-expected results on revenue and earnings for the third quarter of 2018.
Total revenues fell 13% year-over-year to $286 million, but surpassed analysts’ estimates of $271.9 million. Revenues grew 1% sequentially.
On a GAAP basis, the company reported a net loss of $27 million or $0.19 per share versus a net income of $14 million or $0.10 per share in the prior-year period. Adjusted net loss was $6 million or $0.04 per share in the quarter. The estimate was for a loss of $0.06 per share.
GoPro saw revenue declines across both its channels as well as most of its regions. The Direct and Distribution channels posted revenue decreases of 22% and 4% respectively. With the exception of Asia-Pacific, which increased 2%, revenues dropped in other geographies.
HERO7 Black achieved the strongest month-one unit sell-through in the history of the company. GoPro.com generated a record-breaking first month of camera unit sales following the launch of HERO7.
CEO Nicholas Woodman said, “GoPro completed a successful third quarter highlighted by a very strong reception and global demand for HERO7 Black. We expect to achieve profitability in Q4 and for the second half of 2018, and exit the year with low channel inventory to be well positioned for Q1 2019.”
Total camera units shipped during the quarter amounted to 1.09 million, down 4% from last year’s third quarter.
In the US, GoPro held 96% dollar share and 87% unit share of the action camera category. GoPro Plus subscription service had 185,000 active paying subscribers at the end of the quarter. Social followers grew to around 37.4 million, driven mainly by increases on YouTube and Instagram.
GoPro content achieved 142 million organic video views in the quarter. The company entered into a revenue-sharing agreement with Adobe to make curated GoPro video clips available for license on the Adobe Stock marketplace.
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