By James DeRuvo (doddleNEWS)
After making a series of cost cutting measures including laying off staff and simplifying their product line, GoPro is finally seeing a return to profitability with a first quarter earnings call that shows that sales are once again back up.
“GoPro has turned a corner, restoring growth and profitability of our business… We dramatically reduced operating costs without impacting our product roadmap. We are now focused on driving consumer demand to reach our goal of full-year double-digit revenue growth.” – GoPro CEO Nick Woodman
After the near disastrous recall of the GoPro Karma drone and sales that seemed to have dropped due to lower priced action clones, GoPro was forced to institute a cost cutting plan that would give the company more “runway” to weather the storm. Those measures accomplished the intended goal of buying the time necessary, but it was also the unexpected success of the GoPro Karma Grip that boosted the company’s bottom line.
During their third quarter results earning call, GoPro CEO Nick Woodman reported that the company’s revenue was up 37% to $330 million, with a cash balance of $197 Million. Net income was about .10 a share, a cast improvement over aq year ago when GoPro was looking at a staggering $104 million loss. It’s a remarkable turnaround.
GoPro has been able to reintroduce the Karma drone with necessary fixes and begin development of the GoPro HERO6. The sixth generation action camera has at its heart a newly designed GP1 image sensor for better performance and high dynamic range. It’s GoPro’s best camera yet. “We launched our premium-priced HERO6 Black with global on-shelf availability and strong critical acclaim,” Woodman added.
Then news came of the GoPro Fusion, the company’s first 360° spherical camera with the innovative new feature known as OverCapture, that essentially punches out a 2D image from anywhere within the 360° space. It’s a very cool feature that essentially sold me on the potential that 360 Video can provide as a proper filmmaking tool and not a gimmick.
The product launch of both the Hero6 and Fusion was met with great fanfare in San Francisco, and the image quality matches that hype. But what was missing was any news of a follow up for the GoPro Session and a second generation Karma Drone.
“Demand for GoPro’s entry level Session was much higher than anticipated… This new camera will be one of several new products planned for GoPro”,
While we don’t know anything new about a Karma drone, Woodman promises a new Session will be forthcoming after the first of the year. Woodman says that the Session will be one of several new products that are planned and I can’t help but wonder if it will be at the heart of a smaller Karma drone that will go head to head with the DJI Spark, designed for an entry level clientele who wish to take more selfie style aerial shots. That would be my guess.
More details of GoPro’s quarterly earnings can be found here. But as Woodman said at the end of his call “It’s impossible to not be excited about the future.”