GoPro reports lower Q2 revenue as camera sales decline
GoPro reports lower Q2 revenue as camera sales decline
Overview
Digital imaging device maker's Q2 revenue fell 31% yr/yr amid lower camera sales
Adjusted EPS for Q2 missed the sole analyst estimate
Subscription and service revenue grew 11% yr/yr, with record 69% attach rate
Outlook
GoPro did not provide specific financial guidance for the current quarter or full year
Result Drivers
HARDWARE SALES DROP - Q2 hardware revenue and camera unit sell-through declined sharply yr/yr; company did not provide detailed reasons for the decrease
SUBSCRIPTION GROWTH - Subscription and service revenue rose 11% yr/yr, driven by a record 69% attach rate and higher ARPU
GROSS MARGIN IMPACTS - Gross margin benefited from $19 mln in tariff refunds, partially offset by a $15 mln charge for component purchase commitments
Company press release: ID:nPn2Fq8Vha
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $104.93 mln |
|
Q2 Adjusted EPS |
| -$0.21 | $0.02 (1 Analyst) |
Q2 Net Loss |
| $51.005 mln |
|
Q2 Adjusted EBITDA |
| -$29.5 mln |
|
Q2 Gross Profit |
| $31.66 mln |
|
Q2 Operating Expenses |
| $70.65 mln |
|
Q2 Operating Income |
| -$38.98 mln |
|
Q2 Pretax Loss |
| $50.21 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "sell"
The average consensus recommendation for the household electronics peer group is "hold."
Wall Street's median 12-month price target for GoPro Inc is $1.30, about 79.1% above its August 7 closing price of $0.73
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 33 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)