GoPro is in a massive tailspin

After posting a huge loss last quarter, the company fired its chief financial officer and slashed its product lineup to just three different cameras.

Investors don’t seem to care. They sent the stock down 12% in premarket trading. Shares have now fallen 89% from their high in September 2014, just a few months after the company’s IPO.

GoPro (GPRO, Tech30) said Wednesday that it had lost $34.5 million last quarter, after sales slowed dramatically towards the end of the year. The company had to take a writedown on $57 million worth of excess GoPros that stores had ordered, and unwanted GoPros sitting on store shelves.
There weren’t many GoPro stocking stuffers over the holidays, either. Sales fell by 31% over the past year.

CEO Nicholas Woodman said he knows how to solve the company’s woes.

On a conference call with investors, Woodman acknowledged concerns that GoPro can’t expand beyond its niche market of people who want action cameras. He said that he’s not concerned about GoPro being a niche — instead, he says the company is focused on helping make GoPros easier to use for existing customers.

“We recognize the need to develop software solutions that make it easier for our customers to offload, access and edit their GoPro content,” he said.

He also said GoPro would only sell just three cameras in the future: Hero 4 Black, Hero 4 Silver, and Hero 4 Session. It’s killing off its cheapest, $130, camera called the Hero. It will also stop making the Hero+ LCD and the Hero+.

But the company isn’t totally giving up on expansion. GoPro will continue with its plans to launch the Hero 5 this year as well as its new Karma drone. It also is working on virtual reality products.

“In 2016 we are committed to delivering a breakthrough — the breakthrough experience we’ve all be waiting for,” Woodman promised. “It’s against this commitment that you can judge our performance this year.”

After laying off 7% of the staff last year, the next shoe to drop turned out to be GoPro CFO, Jack Lazar. The company named Brian McGee its new CFO, effective March 11. McGee joined GoPro from Qualcomm last year.


Source: CNN

2,370 thoughts on “GoPro is in a massive tailspin

  1. Wow, fantastic blog layout! How long have you been blogging for?
    you made blogging look easy. The overall look of your website
    is magnificent, as well as the content!

  2. Magnificent goods by you, man. I have got understand your stuff
    previous to and you happen to be just too fantastic.

    I really like what you’ve acquired here, really like what you’re stating and
    how where you say it. You will make it entertaining
    and also you still maintain to hold it sensible. I cant wait to read much more by you.

    This is actually a wonderful site.

  3. Just desire to say your article is as astounding.
    The clearness in your post is just spectacular and i
    can assume you are an expert on this subject.
    Fine with your permission let me to grab your RSS feed to keep up to date
    with forthcoming post. Thanks a million and please continue the rewarding work.

  4. Terrific article! That may be the kind of information which should
    be shared all over the net. Shame on the search engines
    for will no longer positioning this post
    upper! Come on over and check with my web site .
    Many thanks =)

  5. Thanks for ones marvelous posting! I definitely enjoyed reading it, you’re an excellent author.
    I will ensure to bookmark your site and indeed will come back from
    now on. I wish to encourage you to definitely continue your great
    job, have a nice morning!

  6. Hi! I’ve been reading your site for quite some time now and ultimately
    got the courage to go ahead and give you a shout
    out from Atascocita Texas! Just wished to mention maintain the
    fantastic work!

  7. It’s appropriate time for you to make some plans for the future and it really is
    time and energy to be at liberty. I’ve read this post and in case I was able to I desire to suggest you few interesting things or tips.
    Maybe you could write next articles making reference to this article.
    I want to read a lot more reasons for having it!

  8. Admiring the hard work you put into your website and detailed information you offer.

    It’s good to come across a blog every once in a while that isn’t the same unwanted rehashed material.
    Wonderful read! I’ve bookmarked your site and I’m adding
    your RSS feeds to my Google account.

  9. Hello there! This post couldn’t be written any better!

    Reading through this article reminds me of my previous roommate!
    He always kept preaching about this. I will send this post to
    him. Fairly certain he’ll use a great read.
    I appreciate you for sharing!

  10. Normally I don’t read article on blogs, however I want to claim that this
    write-up very forced me to try and do it! Your writing taste has become surprised me.
    Thank you, very nice article.

  11. My family members all the time claim that I am wasting my time here at net, except I realize I am getting knowledge everyday by reading such fastidious posts.

  12. I each and every time accustomed to read paragraph in news papers
    the good news is while i am a user of web thus from now I am just using net for posts, due
    to web.

  13. Things i tend not to understood is in reality how you’re now not really much
    more neatly-appreciated than you could possibly be at this time.
    You are so intelligent. You understand thus significantly
    with reference to this topic, produced me personally imagine it from numerous
    varied angles. Its like women and men don’t are fascinated until it
    is actually something to do with Girl gaga!

    Your own personal stuffs excellent. Always look after it up!

  14. Wonderful blog! I found it while browsing
    on Yahoo News. Do you possess any tips concerning how to get placed
    in Yahoo News? I’ve been trying for quite a while nevertheless i never often arrive!

    Thank you

  15. I am really loving the theme/form of your weblog. Do you come upon any browser compatibility issues?
    A variety of my blog visitors have complained about my site not working correctly in Explorer but looks great in Safari.
    Have you got any recommendations to aid fix this problem?

  16. Hi there, just became alert to your site through Google, and found that it’s truly informative.
    I am gonna be cautious about brussels. I am going to
    be grateful when you continue this in future. Numerous men and women will
    be taken advantage of your writing. Cheers!