GPRO - GoPro stock plunges on wider than expected loss projected price cuts
2023-05-10 15:02:14 ET
GoPro ( NASDAQ: GPRO ) stock fell sharply on Wednesday after a Q1 earnings report revealed accelerating losses to start 2023.
For the first quarter, an $0.18 per share loss was $0.04 wider than anticipated. Meanwhile, a 19.5% drop in revenue year over year to $174.72M came in $9.57M better than analysts had predicted. GoPro Subscribers Grew 36% from Q1 2022 to reach 2.36M, aiding a 24% rise in subscription and service revenue of $23M.
The company also signaled it will lower prices to continue fostering demand. The company said that the return of prices to pre-pandemic levels has been well received by retail partners and the company expects consumers to respond as well.
“Reductions in inbound freight and product costs along with an improved supply chain are helping to enable this price adjustment from a margin perspective, as will the introduction of new, higher-priced, higher-margin SKUs in the future,” CEO Nicholas Woodman said.
The company believes it will grow to 2.45M to 2.6M in 2023, 2.7M to 2.8M subscribers in 2024, and 2.9M to 3.1M subscribers by the end of 2025. Management also projected “significantly improved adjusted EBITDA of approximately $300M” in total across 2024 and 2025.
Shares of GoPro ( GPRO ) dropped 9.97% in afternoon trading on Wednesday.
Read the earnings call transcript .
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GoPro stock plunges on wider than expected loss, projected price cuts