GoPro, Inc. (NASDAQ: GPRO) shares closed up over 3% going into earnings, but that goodwill from Wall Street was handily removed after the wearable sports camera maker reported its second quarter earnings. As a reminder, this was the first such corporate earnings report from GoPro since its monumental initial public offering. We warned readers in our full GoPro preview that this report would likely be key for Ambarella, Inc. (NASDAQ: AMBA) as well. It was.

GoPro’s earnings came in at $0.08 in earnings per share on an adjusted and operating basis. Revenue in the second quarter rose 38% from a year ago $244.6 million. Thomson Reuters had its consensus estimates for GoPro at $0.06 in earnings per share and $237.7 million in revenues.

Non-GAAP gross margin was 42.2% in the second quarter, up handily from the 32.3% in the second quarter of 2013 and up a point from the 41.1% margin from the first quarter of 2014.

Coming into the earnings report, GoPro was valued at 63 times expected 2014 earnings per share and valued at 4.6-times expected 2014 revenues.

On the Ambarella front, Ambarella closed down 3.5% at $28.61 ahead of GoPro’s earnings. Ambarella shares were down another 3% or so at $27.76 in the after-hours session against a 52-week trading range of $13.16 to $36.49.

Update at 4:50 p.m. Eastern Time – GoPro shares were down 7.8% at $44.25 in the after-hours session. Sometimes good, or even great, just isn’t enough.

One additional item worth noting was that GoPro said that the company shipped its 10 millionth cumulative capture device in July. It also said that there was a 200% year over year increase in video views on YouTube.

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