GoPro Skates Higher After Q4 Earnings, Revenue Beats

GoPro Inc. GPRO reported an earnings beat Wednesday on stronger-than-expected sales of its namesake action cameras.

GoPro reported fourth-quarter earnings of 30 cents a share, a nickel higher than Street expectations. Sales came it at a healthy $377 million, also topping expectations. Wall Street had expected the company to post earnings of 25 cents per share on revenue of $368.87 million for the quarter.

Highlights

• Revenue for Q4 2018 was $377 million, up 13 percent year-over-year.
• GAAP gross margin for Q4 2018 was 38 percent, up from 32 percent in the prior quarter. Non-GAAP gross margin for Q4 2018 was 38 percent, up from 33 percent in the prior quarter.
• GoPro reduced Q4 2018 GAAP and non-GAAP operating expenses by $29 million and $22 million, a year-over-year reduction of 21 percent and 18 percent, respectively.

"Thanks to a strong product line-up and efficient execution, GoPro grew both camera unit sell-through and market share in 2018, resulting in GAAP profitability in the fourth quarter and second half of the year," founder and CEO Nicholas Woodman said in a statement. "With this momentum and a continued focus on expense management, we're planning for growth and profitability in 2019."

Industry watchers were expecting strong sales of GoPro's new HERO7 Black. When the camera came out late last year the company saw record social media engagement and GoPro's best-ever post-launch sales.

GoPro shares dropped 44 percent in 2018, hitting a record low of $4 in December, after posting its worst single-day ever in November.

Shares were up 6.4 percent to $5.48 in Wednesday's after-hours session.

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