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GoPro is finally profitable again, but its holiday outlook disappoints

GoPro is finally profitable again, but its holiday outlook disappoints
From Engadget - November 1, 2017

But while GoPro had a strong showing this quarter, investors were not too pleased about its holiday revenue outlook of $470 million, driving its stock down to 10 percent at the time of this post. Analysts were expecting around $520 million in holiday sales.

The company credits its improved business on lower operating costs and a higher average sales price (ASP). It expects operating expenses to drop by 30 percent in 2017 (it sounds like those layoffs are paying off), and during the quarter they reached a three-year low. Its ASP, meanwhile, increased 22 percent this quarter. In particular, GoPro says "strong perfomance" from its $500 Hero 6 Black camera helped push that figure higher. Demand for its older Hero5 Black was "lighter than expected," GoPro CEO Nick Woodman said during an earnings call, but he noted that holiday promotions might help with sales. Additionally, he says consumers are warming to the entry-level $150 Hero Session.

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