GoPro Inc. posted a net loss in the third quarter ended September 30 with sales declining 13 percent year-over-year. But sales were up 1 percent sequentially and both the loss and revenues were slightly better than Wall Street’s targets.

In the quarter ended September 30, revenues declined 13.3 percent to $285.9 million, ahead of Wall Street’s consensus estimate of $272.27 million.

On a GAAP basis, the net loss came to $27.1 million, or 19 cents a share, against $14.7 million, or 10 cents, a year ago. The GAAP net loss of $27 million represented 27 percent sequential improvement.

On a non-GAAP basis, the net loss came to $6.1 million, or 4 cents, versus earnings of $21.1 million, or 15 cents, a year ago. Wall Street’s consensus estimate had been a loss of 6 cents.

GAAP gross margin for Q3 2018 was 32 percent, up from 29 percent in the prior quarter. Non-GAAP gross margin for Q3 2018 was 33 percent, up from 31 percent in the prior quarter.

GoPro reduced GAAP and non-GAAP operating expenses by $10 million, or 8 percent and 9 percent, year-over-year, respectively.

Cash and investments totaled $148 million at the end of Q3 2018.

“GoPro completed a successful third quarter highlighted by a very strong reception and global demand for HERO7 Black,” said founder and CEO Nicholas Woodman. “We expect to achieve profitability in Q4 and for the second-half of 2018, and exit the year with low channel inventory to be well positioned for Q1 2019.”

Other GoPro Highlights

  • HERO7 Black achieved the strongest month-one unit sell-through in company history.
  • GoPro.com generated a record breaking first month of camera unit sales after the launch of HERO7.
  • In the US, GoPro held 96 percent dollar share and 87 percent unit share of the action camera category. The top-six cameras sold by unit volume were GoPro cameras in Q3 2018 according to the NPD Group.
  • In the US, Fusion captured 47 percent dollar share of the spherical camera market according to the NPD Group.
  • In Europe, in the $150 and above price band, GoPro held 84 percent unit share, up from 78 percent a year ago in Q3 2018 according to GfK.
  • In Japan, GoPro market share in Q3 2018 was 58 percent and 71 percent by units and dollars, up from 51 percent and 61 percent respectively year-over-year, according to GfK.
  • In Korea, GoPro market share in Q3 2018 was 47 percent and 61 percent by units and dollars, up from 28 percent and 38 percent respectively year-over-year, according to GfK.
  • GoPro Plus subscription service reached 185,000 active paying subscribers at the end of Q3 2018, up 16 percent sequentially.
  • Social followers increased by 997,000 in the quarter to approximately 37.4 million driven primarily by increases on YouTube and Instagram.
  • GoPro content achieved 142 million organic video views in Q3, up 9 percent sequentially.
    Social sharing of GoPro content reached a 21-month high in September.
  • Jim Lanzone was appointed to GoPro’s Board of Directors. Mr. Lanzone is Chief Digital Officer at CBS and CEO of CBS Interactive.
  • Entered into a collaboration with Adobe to make thousands of curated GoPro video clips available for license on the Adobe Stock marketplace under a revenue sharing agreement.
  • For the 19th straight quarter, GoPro is the number one selling camera by unit volume in North America.

 

Image courtesy GoPro