The wearables company reported a net loss of US$0.15 per share on revenue of US$282.7mln, performing better than Wall Street estimates of a net loss of US$0.22 EPS on revenue of US$270.23mln.
Oppenheimer analysts foresee GoPro developing into a profitable company in the near future as management learns from its mistakes and takes a new perspective on the market.
“Management—with three new products in tow—is close to achieving what it set out to do: a good, better, best product launch strategy + clean channel in a robust demand environment. If successful, profitability and sustained growth should follow,” wrote analyst Andrew Uerkwitz.
GoPro plans to offer new models across all product tiers for the upcoming holiday season, which the analyst implied it had not done in the past, and may reach more customers and see long-term cost reduction benefits as a result.
Uerkwitz also highlighted the company’s changing view of its market. Instead of trying to sell everyday use cameras, its zoning in on the customers that would use its cameras to document travels or for story-telling purposes.
The analyst gave GoPro shares a Perform rating.
Shares of the camera company were up more than 20% to US$7.22 in Friday afternoon trading.