Everyone is giving up on GoPro
GoPro has taken a huge hit.
The hardware manufacturer behind those nifty cameras and more recently high-flying drones took a steep tumble Thursday following a huge miss in third-quarter earnings.
Shares were down by more than 21 percent in after-hours trading. The company even chose to halt trading on the NASDAQ until 4:45 p.m. ET — a clear indication that the company knew how bad things had gotten.
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Investors agreed.
GoPro's income had dropped by 330 percent this quarter compared to the prior year. In total, the company lost $84 million in the past three months, which is almost twice as much as analysts predicted.
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It seems like the devices are just not selling as much as they used to. Sales for the quarter totaled $241 million, a 40 percent decline compared to the same time last year — and again failing to meet expectations.
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With the poor quarter, GoPro also issued guidance that was weaker than analysts' expected.
And yet, Nick Woodman, founder and CEO of GoPro, issued confidence.
"These are the best products we've ever made and consumer demand is strong. GoPro is now a seamless storytelling experience and we're very happy with customer reception so far," he said in a statement.
The inability to grow revenue and income is a repetitive story for GoPro
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In addition to striking a positive tone, Woodman claimed that the company was in a good place because its problem resided in not being able to make enough products.
Customer demand, he said, remains high, especially for the recently-released Hero 5 action cameras and foldable Karma drone. The sales for these products, which were released in October, were not included in this quarter's report.
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The report is the second recent blow to the wearables market. Fitbit also released less-than-ideal earnings that send its stock dropped by more than 33 percent and CNBC analyst Jim Cramer squawking that the company is "done."
Topics Cameras
Kerry Flynn is a business reporter for Mashable covering the tech industry. She previously reported on social media companies, mobile apps and startups for International Business Times. She has also written for The Huffington Post, Forbes and Money magazine. Kerry studied environmental science and economics at Harvard College, where she led The Harvard Crimson's metro news and design teams and played mellophone in the Band. When not listening to startup pitches, she runs half-marathons, plays with puppies and pretends to like craft beer.
