GoPro Inc (NASDAQ:GPRO) has been having a rough couple of years as far as profits are concerned but the company is hopeful that drones will be instrumental towards boosting turnaround.
GoPro quickly earned itself quite a reputation in the action camera market and its IPO was quite attractive. However, it has been an uphill battle for the firm over the past couple of years as it has struggled to make profits. The main focus has been action cameras but that strategy has clearly not been working out as expected. This is why the firm decided to switch things up in a bid to get things moving in the right direction.
GoPro CEO talks about a turnaround
GoPro CEO Nick Woodman has pointed towards a turnaround despite marking losses in six consecutive quarters. This is because the firm is hopeful that selling drones along with its cameras will be an attractive offer to customers. The strategy could be good for the company because it provides a more specialized service meaning drones are customized to be fully compatible with the GoPro experience.
While profits have been elusive, Woodman is optimistic that there will be a turnaround especially because the company’s sales were $218.6 million, thus registering a 19 percent rise. It also surpassed analyst expectations by more than $10 million. GoPro had also given a revenue guidance of $270 million give or take $10 million for the second quarter and this was higher than the analysts’ expectation of $240 million.
“Roughly two-thirds of GoPro’s revenue came from outside the United States during the last quarter,” GoPro reported.
GoPro might have to employ a more aggressive strategy that involves drones with cameras in order to boost revenue. There has been a lot of competition in the action camera market which is why it is important for the firm to venture aggressively into the drone market. The company also reported that almost a third of its revenue came from outside the US. This means that international sales have been good especially in Europe and China. Focusing on the international market would also be a good move for the firm in pushing for that turnaround.
GoPro stock closed the latest trading session on Wednesday at $8.40.
