GoPro, Inc. reports losses despite achievements for the quarter.
For the quarter that ended in June 30, GoPro reported revenues of $244.6 million, a 38.1 percent boost from the same quarter in 2013 which registered $177.1 million. Compared to the first quarter of 2014, this quarter also enjoyed higher revenues, an increase of 3.8 percent from the reported $235.7 million.
"We delivered a strong quarter of operating results driven by increased demand for our Hero 3+ Black Edition and demand for our accessory products, We are seeing a tremendous volume of quality content generated by our users and a 200% year over year increase in video views on YouTube, which is fueling our virtuous cycle whereby viewership of GoPro content drives sales," said Nicholas Woodman, GoPro CEO. The company's second quarter performance goes to show that users have continued passion for not just GoPro products but the brand itself as a whole including the content it delivers.
Shares, however, fell by 9.3 percent to settle at $43.50 during extended trading. Net losses for GoPro grew to $19.8 million, a big jump from the $5 million it posted for the same quarter in 2013. Much of this is due to ballooning operating expenses which went from $62.8 million last year to $119.5 million in 2014; $34.7 million alone was spent on research and development.
GoPro represents the top three cameras in the market and six out of 10 camera accessories sold in the U.S. It also launched the GoPro App 2.5 for Android and iOS devices, letting users stream video playlists directly on their smartphones, and a GoPro channel on Pinterest. At the end of the quarter, GoPro has registered more than a 160 percent increase in published videos in YouTube and a 200-percent boost in the number of views. Compared to the same quarter last year, Q2 2014 recorded an increase of more than 270 percent in video minutes watched on YouTube.
All markets for GoPro grew in the reported quarter, with Americas accounting for $152.7 million of revenues while Europe, the Middle East and Africa registered $62.8 million. Asia and the Pacific rounds up the list with $29.1 million. But what's remarkable is that while Asia and the Pacific contributed the least to GoPro's revenues, whatever the market earned this quarter is actually almost double of what it got from the last. Bulk of GoPro's revenues is thanks to hardware sales which is driven by the company's media efforts.
This is GoPro's first month after having gone public in June.
