Smaller-Than-Expected Loss Reported by GoPro On Lower Costs

Advertisment

On Thursday, GoPro Inc, the action-camera maker, reported a smaller-than-expected loss for the first-quarter as the company reduced its costs and sold more of its new entry-level cameras.

The shares of the company increased by 2.4 percent to $5.08 in extended trading as the quarterly revenue of the company also surpassed the expectations of Wall Street.

The total operating expenses of the company dropped from $156.8 million to $119.7 million (£88.05 million).

The company exited its Karma drone business to reduce losses. It has been trying to attract more users with its $199.99 entry-level HERO camera that was announced last March.

Last April, the company also announced massive discounts and trade-up programs for its premium products.

Demand for cameras of GoPro has been declining as users opt for cheaper options and smartphones that feature powerful cameras.

The net loss of the company narrowed to $76.3 million, or 55 cents per share, for the quarter ended March 31, from $111.2 million, or 78 cents per share, during the previous year.

According to Thomson Reuters I/B/E/S, the firm lost 34 cents per share, excluding items, as compared with the average estimate of analysts of a loss of 37 cents per share.

The cameras of GoPro are used by skydivers, surfers, and other action junkies. It said that the revenue of the company fell from $218.61 million to $202.35 million. The analysts had anticipated a revenue of $184.2 million.