GoPro stock surges as subscription momentum drives big earnings beat

2 months ago 18
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Shares of GoPro Inc. were up much than 7% successful after-hours trading Thursday aft the shaper of enactment cameras delivered upbeat profits and revenue.

The institution posted second-quarter nett income of $17.0 million, oregon 10 cents a share, versus a nonaccomplishment of $51.0 million, oregon 34 cents a share, successful the year-prior quarter. On an adjusted basis, GoPro GPRO, +1.92% earned 12 cents a share, whereas it mislaid 20 cents per stock a twelvemonth prior. Analysts tracked by FactSet were expecting 4 cents successful adjusted net per share.

GoPro’s gross climbed to $250 cardinal from $134 cardinal a twelvemonth ago, portion analysts had been projecting $232 million. Revenue from GoPro’s ain tract roseate 48% to $88 cardinal and made up 35% of full sales.

Cameras with retail prices of astatine slightest $300 accounted for 94% of camera gross successful the quarter.

“Strong execution further revealed the benefits of the strategical shifts we’ve made successful our concern to a much direct-to-consumer, subscription-centric model,” Chief Financial Officer Brian McGee said successful a release. “We judge the changes to our concern volition proceed to effect successful a much predictable and profitable GoPro.”

The institution finished the 4th with 1.16 cardinal subscribers, up 23% sequentially. GoPro has 100,000 paying subscribers to its Quik app, which lets radical manage and edit their photograph and video libraries.

For the 3rd quarter, GoPro expects gross of $285 cardinal to $295 cardinal and adjusted net per stock of 17 cents to 21 cents, according to the prepared remarks from GoPro’s net telephone that it released successful advance.

“We are comping against July/August 2020 enthusiasm wherever markets prematurely opened up crossed North America and Europe,” McGee said successful those remarks.

Analysts tracked by FactSet were expecting gross of $296 cardinal and adjusted net per stock of 17 cents.

McGee besides noted that the company’s outlook implies that units sold volition beryllium down astir 10% from a twelvemonth earlier.

“We judge that determination is coagulated request for our cameras astatine each terms points; however, owed to proviso constraints and constituent terms increases, we are prioritizing the accumulation of our premium camera products,” helium said. “As a result, volumes for our lower-end cameras volition beryllium down importantly year-over-year.”

The institution present anticipates 25% to 30% gross maturation for the afloat year, up from its anterior anticipation of 20% to 25% growth.

Shares of GoPro person dipped 4.9% implicit the past 3 months arsenic the S&P 500 SPX, +0.60% has risen 6.3%.

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