Shares of GoPro Inc. were down 7% in premarket trading Friday after the maker of action cameras posted weaker-than-expected revenue for the holiday quarter.
reported fourth-quarter revenue of $358 million late Thursday, down from $528 million a year earlier and below the $374 million that analysts surveyed by FactSet had been expecting. The company generated $116 million in revenue from its website, which it said was a record figure.
The company recorded net income of $44 million, or 28 cents a share, up down from $96 million, or 65 cents a share in the year-prior period. On an adjusted basis, GoPro earned 39 cents a share, down from 70 cents a share in the year-earlier quarter but just ahead of the 38 cents a share that analysts had been expecting.
“GoPro’s shift to a more subscription-centric consumer-direct model is resulting in a simpler, more profitable business with materially better cash generation,” Chief Executive Nick Woodman said in the earnings release. “The steps we’ve taken to improve our business during the pandemic should serve us very well when the world begins to recover in earnest — but as a business, fortunately we don’t have to wait for that to happen.”
The company capped off the year with 761,000 subscribers, up 52% sequentially and 145% on a year-over-year basis. Cameras priced above $300 made up 91% of GoPro’s revenue in the latest quarter.
GoPro shares have gained 67% over the past three months as the S&P 500
has risen 12%.