Today marked GoPro’s first earnings report as a public company. The camera firm traded up more than 3.5 percent in regular hours before its release. GoPro had roughly doubled from its IPO price of $24 heading into reporting its second-quarter financial results.
For the second quarter, GoPro had revenue of $244.6 million, up 38.1 percent year-over-year, and earnings per share of $0.08 on a non-GAAP basis. Analysts had expected GoPro to earn $0.06 per share (non-GAAP) on revenue of $237.73 million.
For comparison, in the first quarter of 2014, GoPro had revenue of $235 million. Investors were therefore not expecting much in the way of sequential revenue growth.
In after-hours trading, GoPro is down more around 8 percent. Why is the firm down so sharply if it managed to beat guidance? The firm’s investors appear to have priced into its value a higher growth delta than what it managed to record.
Using normal accounting methods, GoPro lost $19.8 million in the quarter, or $0.24 per diluted share. By comparison, GoPro was profitable on a GAAP basis in its first quarter of 2014. In its year-ago quarter, the company also lost money, with a GAAP net loss of $5.1 million, or $0.06.
The company ended the quarter with just over $100 million in cash. Another $200 million from its IPO will show up on its next-quarter earnings report.
GoPro had a massive run following its initial public offering. It has a lot to prove if it wants to command the rich valuation that investors afforded it. In this first report, it failed to live up to expectations.