GoPro cuts jobs, estimates Q4 revenue below expectations
[BENGALURU] GoPro Inc said it was cutting 7 per cent of its workforce and estimated revenue for the holiday quarter below estimates as it sold fewer action cameras than expected, sending its shares plunging 28 per cent in extended trading.
GoPro said it expects revenue to be about US$435 million for the fourth quarter, well below analysts' average estimate of US$511.9 million, according to Thomson Reuters.
The company, which had about 1,500 employees at the end of 2015, said quarterly revenue was hit as it cut the prices of its HERO4 Session cameras to cope with waning demand.
GoPro Chief Executive Nicholas Woodman had said weaker-than-expected demand for its Hero4 Session camera was due to its initial high price and fewer marketing campaigns.
Traders said on Wednesday that the revenue miss was expected but not of this magnitude. This does not bode well for its 2016 forecast, they added.
Ambarella Inc, which provides chips used in GoPro's cameras, fell 8.5 per cent in after-market trading.
GoPro will report results for the fourth quarter and full year 2015 on Feb 3.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
HCA beats first-quarter profit estimates on higher patient admissions
US FDA approves Pfizer’s gene therapy for rare bleeding disorder
EU toughens rules on Chinese fashion retailer Shein
Best World under fire from shareholders at AGM over dividends, director salaries
‘Extreme’ climate blamed for world’s worst wine harvest in 62 years
Sheng Siong Q1 net profit up 9.3% on higher revenue