0

GoPro sells more cameras on ad push, driving revenue beat

Action-camera maker GoPro’s first-quarter revenue beat expectations and it reported a smaller-than-expected loss on Thursday, benefiting from aggressive marketing of its cameras and controlling expenses.

The company recently exited its Karma drone business to stem losses and has been trying to attract consumers with promotional offers, new entry-level products and trade-up programs.

GoPro whose cameras are used by surfers, skydivers and other action junkies got a boost from higher sales of its HERO5 and HERO6 cameras as advertising helped it clear inventory and draw more customers.

“We experienced solid demand for our HERO6 Black and HERO5 Black cameras, which accounted for over 60 percent of our camera units and dollars shipped in the quarter,” Chief Financial Officer Brian McGee said on an earnings call with analysts.

Shares of the company rose as much as about 7 percent in extended trading, but pared those gains. The stock has dropped about 35 percent this year.

Morgan Wade competes to a gold in the GoPro BMX Big Air final during X Games Los Angeles at the Irwindale Event Center on August 2, 2013, in California.

Harry How | Getty Images
Morgan Wade competes to a gold in the GoPro BMX Big Air final during X Games Los Angeles at the Irwindale Event Center on August 2, 2013, in California.