Shares of GoPro Inc. headed higher in the after-market session Thursday after the maker of action cameras topped earnings expectations and said that it planned to broaden its camera offerings in the year ahead.
The company reported net income of $53 million, or 32 cents a share, up from $44 million, or 28 cents a share, in the year-earlier quarter. On an adjusted basis, GoPro GPRO, -6.84% earned 41 cents a share, up from 39 cents a share a year prior and ahead of the FactSet consensus, which was for 35 cents a share.
GoPro’s revenue increased to $391 million from $358 million, while analysts tracked by FactSet were anticipating $382 million.
The company saw $128 million in GoPro.com revenue, including subscription revenue. It brought in $16.8 million in revenue from its GoPro and Quik subscription offerings.
Shares of GoPro were up 5% in after-hours trading Thursday.
“The strategic shift we made in mid-2020 is bearing fruit in the form of financial and
operational improvements,” Chief Financial Officer Brian McGee said in prepared remarks that GoPro shared online ahead of its earnings call. “The result has been strong revenue growth with significant margin improvement, combined with controlled spending and leading to growing profitability and record cash flow generation.”
Looking to the full year, the company sees opportunities to grow its business and increase its total addressable market, in part by “creating derivative cameras to diversify our offerings,” Chief Executive Nick Woodman said in the prepared remarks.
The company plans to increase its hardware offerings to “four distinct camera products” by the end of 2022, up from two current product types — the HERO and MAX. The company anticipates that it will grow its offerings beyond that by the end of 2023, according to Woodman’s remarks.
The company also shared that its board of directors recently authorized the repurchase of up to $100 million in shares.
For the first quarter, GoPro expects revenue of $210 million to $220 million. Analysts were expecting $234 million in revenue. The company also anticipates gross margins of 41.5% at the midpoint and adjusted net income of $11 million to $12 million. Analysts were expecting $12 million.
For the full year, the company expects “slight unit growth and increasing ASPs [average selling prices] to drive revenue growth,” McGee said in the prepared remarks.