GoPro Inc. saw losses swell and revenue decline in the second quarter as the pandemic forced closures of retail stores, but sales came in ahead of expectations with management citing “resilient” demand.
Shares were up 1.1% in after-hours trading Thursday.
The company posted a net loss of $51 million, or 34 cents a share, compared with a loss of $11.3 million, or 8 cents a share, in the year-earlier quarter. On an adjusted basis, GoPro
lost 20 cents a share, whereas it earned an adjusted 3 cents a share a year prior. Analysts surveyed by FactSet had been expecting a 17-cent adjusted loss per share.
GoPro’s revenue for the second quarter declined to $134.2 million from $292.4 million a year earlier. The company’s revenue came in above the FactSet consensus of $114.2 million, which had come down from a prior estimate of $137.4 million as of late April and a forecast for $255.8 million as of late March.
“Our direct-to-consumer model is gaining momentum and we’re seeing a faster-than-expected rebound at retail,” Chief Financial Officer Brian McGee said. GoPro disclosed in its earnings release that sales from GoPro.com accounted for 44% of revenue and that channel inventory declined 25% sequentially.
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Chief Executive Nick Woodman said in a statement that the company has seen “resilient consumer demand for GoPro” and argued that the brand “has proven to be a part of global consumers’ ‘new normal’ during the pandemic.”
Shares of GoPro have gained 71% over the past three months as the S&P 500
has risen 18%.