Shares of GoPro Inc. (NASDAQ: GPRO) sunk about 12% on Wednesday after reporting weaker-than-expected results in the fourth quarter.
Q4 revenue rose 40% to $528 million, riding on the launch of two new flagships, HERO8 Black and MAX, as well as holiday sales. However, the topline came below the street estimate of $565.95 million.
The company, which faces stiff competition from smartphones that come with cameras of similar specifications, posted a profit of 70 cents per share, compared to 79 cents per share projected by the street. The came even as gross margin improved slightly to 38.2% from 37.7% a year ago.
GoPro had earlier provided its annual revenue guidance of 6-9% growth. However, the company managed to achieve just 4% growth, missing even the bottom leg of the guidance range.
The disappointing results come after a tumultuous third quarter that saw margin declines of about 10%, dragging bottom-line figures.
Brian McGee as COO
The company said its CFO Brian McGee is taking up the additional role of COO, effective February 3, 2020. McGee, who has been with GoPro for over 4 years, has previously held executive positions at Qualcomm (NASDAQ: QCOM)
The stock has eroded 15% in the trailing 12 months. In the hours leading up to the results, the stock up was 3.2%.