Advancements in the iPhone bring weak demand for GoPro cameras – causing it to miss revenue targets.
GoPro cameras may be for adrenaline junkies, but the company’s latest financial results are far from exciting for investors.
Although the US brand generated $400m (£262m) in revenue during the third quarter of 2015, this was considerably less than analysts’ expectations of up to $445m (£291m).
The earnings report caused GoPro shares to plummet to an all-time low – falling by 13% in after-hours trading at one point.
In its report, the company admitted sales of new camera devices had been “lighter than anticipated”, meaning GoPro’s quarterly profits of $18.8m (£12.3m) were considerably less than what had been forecast.
Demand for its products have been weak – especially in the Americas – where affluent tech enthusiasts have been wooed by Apple’s iPhone 6, which is more capable of shooting high-quality videos than its predecessors.
Shares in GoPro have been in long-term decline – with their price falling by more than 50% since the start of 2015.
Nicholas Woodman, the chief executive and founder of GoPro, said: “I am proud of our year-to-date accomplishments in which we posted strong financial results and expanded our portfolio of products, however our business in the third quarter was clearly more difficult than anticipated.”
Although GoPro’s IPO was extremely attractive to investors in June 2014, its performance has been erratic to say the least.
The brand produces helmet-mounted and body-mounted cameras which are especially popular among skydivers, surfers and other extreme sports fans – and is relying on virtual reality, drones and easy-to-use software to retain enthusiasts.
Source: SKY NEWS