The third-quarter results released by GoPro though not impressive show a major improvement in the company’s operations. The company on Thursday announced that the third-quarter revenue was at $131 million which is the lowest amount of revenue the company had ever scored since 2014.
However, the company had anticipated these results following a late-stage delay in the production of the newest camera, Hero8 Black.
According to the FactSet forecasting, the revenue was expected to be at $126 million but was instead increased by $5 million.
GoPro’s newly released Hero8 Black has had a blast first month of sales like no other camera on the company’s camera list as was reported during the report release. The sales were up 40% of the sales of its predecessor Hero7 Black that was first released in 2018.
This is a shocking reveal owing to the fact that everyone had expected the company to be run out of the market due to the emergence of smartphones with good camera skills. In fact, this year the smartphone manufacturers have added prowess to the cameras in their new releases. Examples include Apple’s iPhone 11 Pro and Xiaomi’s 108-megapixel smartphone.
While the assumption was very reasonable, the outcome was totally different because instead of facing low demand for their products, GoPro has realized increased demand for their cameras. This is partly because of the demand for having better social media content by consumers which is rewarding to this company.
Another aspect of the increased revenue for the company is the cutting down of operational expenses that would have otherwise lowered the revenue. GoPro has so far reduced its employees, stopped manufacturing drones and focused more on its camera lineup.
This has helped the company stand strong even during quarters where losses were inevitable. The company’s $99 million operational expense read out in the third quarter report was said to be the lowest in five years, a true definition of living within its means.
GoPro has also announced that its GoPro Plus subscribers have increased to 300,000 active subscribers which is a 66% increase compared to last year. GoPro Plus, GoPro’s cloud storage service has also supported the company’s revenue increase. According to the report, it generates up to $1.5 million in revenue.
Coming back to the Hero8 Black and Max camera, Nick Woodman the company’s CEO is positive that they will steer the company’s profit margins further. Now that it is the holiday season, the company anticipates a major sale and has forecasted revenue amount of between $555 million and $590 million in the coming fourth quarter.
Going by the increase in sales, GoPro can definitely achieve the anticipated revenue and the fact that the company has no consistent competitor makes it more definite. Over the years the company has established itself in the digital camera market producing top quality gadgets that are sort after globally.
Hero8 Black’s major sale has set the record straight and has become the bestselling camera in GoPro’s history. Bearing that in mind, the fourth quarter is just around the corner so let’s see if it will perform just as well.