GoPro Inc. (NASDAQ: GPRO), a maker of action cameras and software, released its first-quarter results on Thursday, May 5. It should be emphasized that after the February announcement, investors had high expectations for the company’s financial performance.
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GoPro management announced a few months ago that profits are skyrocketing and that demand for many of its cameras is still high. The shift to a subscription-based sales model helps to improve financial performance. This improves cash flow and ensures long-term revenue growth.
Furthermore, GoPro said a few months ago that it is dealing with supply chain issues, which helps the company better manage inventories and reduce wait times.
GoPro’s sales rose 6% year over year to $217 million in the first quarter. Income from subscriptions grew by 8% to $89 million, accounting for 41% of overall revenue. Revenue went up by 73 percent year over year to $19 million.
The company’s GAAP net income was $6 million, or $0.04 per share, compared to a net loss of $10 million, or $0.07 per share, the previous year.
However, GoPro, like many other consumer products companies, is vulnerable to inflationary pressures, which might hurt demand. However, the business anticipates significant demand for hardware and software in the coming months as a result of the approaching summer vacations.
It’s worth noting that GoPro goods have had a devoted following up until now. In the first quarter of 2022, cameras with a retail price of at least $400 accounted for 92 percent of camera revenue, up from 79 percent in the first quarter of 2021.
GoPro Inc. (GPRO) stock dropped -6.82 percent on Thursday, closing at $8.75. The total number of shares exchanged was 2.64 million, up from 2.43 million on average during the previous three months. The 50-day moving average for the stock is $8.45, which is higher than the 200-day moving average of $9.46. Furthermore, the stock now has an RSI of 50.32.
