When GoPro Inc. (NASDAQ: GPRO) released its most recent quarterly results after the markets closed on Thursday, the company said that it had a net loss of $0.34 per share on $202.3 million in revenue. The consensus estimates from Thomson Reuters had called for a net loss of $0.38 per share on revenue of $184.19 million. In the first quarter of last year, it said it had EPS of $0.44 and $218.61 million in revenue.
During this quarter, GoPro exited its Karma drone business in an effort to cut losses, with total operating expenses falling about 24%. The firm also focused more on its advertising, pushing promotional offers and launching its new $199 entry-level HERO camera.
The GoPro Plus subscription service has 147,000 active paying subscribers, up 17% since the December quarter. On Instagram, GoPro added 245,000 new followers in the first quarter, reaching a total of 15 million.
In terms of the outlook, the consensus estimates call for a net loss of $0.25 per share on $239.69 million in revenue in the current quarter.
On the books, GoPro cash, cash equivalents and marketable securities totaled $144.5 million at the end of the quarter, down from $247.4 million at the end of the previous fiscal year.
Nicholas Woodman, GoPro CEO and founder, commented:
Our first quarter was driven by strong sell-through of HERO5 Black and HERO6 Black, along with the launch of our new $199 entry-level HERO. Initial demand for HERO is promising and we expect it to improve as large retail partners like Target and Walmart begin selling the product in the second quarter. Our first quarter performance makes it clear that there is significant demand for GoPro, at the right price. We began to step up marketing programs in March which, coupled with overall expense controls, solid channel management and second half new product launches, gives us confidence for a successful 2018 for GoPro.
Shares of GoPro were last seen up about 7% at $5.30, with a consensus analyst price target of $5.75 and a 52-week range of $4.42 to $11.89.