Shares of GoPro Inc. fell 12% in after-hours trading Thursday after the action camera maker posted weaker-than-expected revenue for the holiday quarter. GoPro GPRO, -1.24% reported revenue of $ 358 million for its fourth quarter, down from the $ 528 million a year earlier and below the $ 374 million expected by analysts surveyed by FactSet. The company generated $ 116 million in revenue from its website, which it said was a record high.
The company posted net income of $ 44 million, or 28 cents a share, down from $ 96 million, or 65 cents a share in the prior year period. On an adjusted basis, GoPro earned 39 cents a share, down from 70 cents a share in the prior-year quarter, but just ahead of the 38 cents a share that analysts had expected. “GoPro’s shift to a more subscription-centric direct-to-consumer model is resulting in a simpler, more profitable business with substantially better cash generation,” Chief Executive Officer Nick Woodman said in the earnings release. “The steps we have taken to improve our business during the pandemic should be very useful to us when the world begins to recover in earnest, but as a company, fortunately we don’t have to wait for that to happen.” The company ended the year with 761,000 subscribers, up 52% sequentially and 145% year-over-year. Cameras priced over $ 300 accounted for 91% of GoPro’s revenue in the last quarter. GoPro shares have gained 67% in the last three months, as the S&P 500 SPX, + 1.09% has risen 12%.