GoPro Numbers Down, Betting On New Product Categories
GoPro cameras seem to be everywhere, and maybe that's a problem, because the company seems to have run into some problems getting its product off the shelves. The result? A pretty bad set financial report for Q1 2016.
The bad news for GoPro seems to be the increase in competition, which has driven down revenue (by 50%) and its gross margin (around two-thirds of what it was achieving this time last year).
The net result is that the company swung from a small, but tidy, $16m profit this time last year to a $107m loss for the quarter ended on March 31st.
With new products coming later this year (the Karma drone and Omni 360 degree VR camera array) GoPro is seeking to broaden its portfolio. With competition only likely to get stronger in its adventure camera core operation that's an absolute necessity. Announcing a delay on the drone probably isn't a good sign in this respect then.