GoPro, Inc. (NASDAQ: GPRO) posted its second quarter results that beat estimates in revenue and loss per share.
GoPro shares skyrocketed from Thursday’s close to Friday’s open. Shares closed at $8.42 on Thursday and shares opened at $9.57 on Friday. Shares are currently $9.96, up over 20 percent midday Friday.
The digital camera company posted a loss per share of 9 cents vs. 25 cents expected and revenue of $296.5 million vs. $269.6 million expected, according to Thomson Reuters. Majority of the revenue this past quarter was brought in from markets outside the U.S.
In the previous year’s second quarter, GoPro posted $220.7 million, which now the company is up 34.3 percent year over year and up 36 percent quarter over quarter now.
"GoPro is building momentum," said Founder and CEO Nicholas Woodman. "Strong demand combined with our cost management and margin initiatives contributed to GoPro's EBITDA positive performance in the second quarter. HERO6 and Fusion, our 5.2K spherical camera, are on course to launch later this year and we continue to track toward our goal of full-year, non-GAAP profitability in 2017."
GoPro highlighted many aspects that resulted in a strong quarter for the company:
The company had launched QuikStories on July 27th which is the new GoPro app feature automatically pulls footage from a HERO5 camera and creates ready-to-share videos on your phone. Woodman said, "We believe QuikStories is a game changer – it represents our biggest leap forward in ease-of-use since the invention of the GoPro, itself.”
Global sell-thru of cameras increased 18% sequentially. Additionally, camera sell-thru above $300 was up 13% year-over-year. Demands for the digital cameras were very high on Amazon day as the company reported that within a day, the HERO5 Black had moved the same amount in a full week just in a span of one day. The HERO5 Black was the best selling digital camera in the U.S.
The strong second quarter will lead the company to achieve its goal for the rest of the fiscal year.
For the third quarter, the company expects to post even higher revenues of $290-$310 million, but analysts had projected a third-quarter loss of 12 cents a share on revenue of $278.5 million.
The company also estimates a GAAP EPS to be from $0.19 to $0.29 and non-GAAP EPS to be from $0.01 to $0.11
As for the full year, the company only posted projections for GAAP operating costs, which it predicts to be below $570 million, and non-GAAP operating costs, which the company predicts to be below $495 million.