FILE PHOTO – A GoPro camera is seen on a skier’s helmet as he rides down the slopes in the ski resort of Meribel, French Alps, January 7, 2014. REUTERS/Emmanuel Foudrot/File Photo
(Reuters) – GoPro Inc reported its first profit in five quarters on Wednesday and topped Wall Street estimates for revenue, as it cut costs and saw strong demand for HERO 7 action cameras, the cheapest so far in its flagship line.
GoPro, whose mounted cameras are used by everyone from action junkies to Instagram travel bloggers, has launched cheaper products to drive demand, exited a failing drone business and become leaner through job cuts, helping it revive profit margins. Still, its action cameras face stiff competition from ever-improving cameras on smartphones.
In the December quarter, GoPro said it gained market share in Asian markets including Japan, China, Korea and Thailand, while in the United States it had an 87 percent share of the action camera market by units.
“With this momentum and a continued focus on expense management, we’re planning for growth and profitability in 2019,” GoPro Chief Executive Officer Nicholas Woodman said in a statement.
The San Mateo, California-based firm reported a net income of $32 million in the fourth quarter ended Dec. 31. Excluding one-time items, the company earned 30 cents per share.
Quarterly revenue surged 13 percent to $377 million, exceeding Wall Street analysts’ average estimate of $374.2 million, according to IBES data from Refinitiv.
Reporting by Sonam Rai in Bengaluru; Editing by Sai Sachin Ravikumar