Shares of GoPro are down 10% in after-hours trading after the company missed on revenue and issued disappointing guidance.
Revenue during the crucial holiday quarter slid 5.7% versus a year ago to $540.6 million, which was well shy of the $574.5 million that analysts were expecting. Additionally, GoPro says it sees first quarter revenue of $190 million to $210 million versus the Wall Street estimate of $267.6 million.
There was a bit of good news as adjusted earnings per share came in at $0.29, well ahead of the $0.22 was anticipated.
“In 2016, big investments in hardware, cloud, and mobile yielded a solid foundational experience for our customers,” Nicholas Woodman, GoPro’s founder and CEO said in the earnings release. “In 2017, we will build on this foundation for our customers while improving efficiency and managing cost to achieve profitability.”
GoPro’s struggles as of late have been well documented. On November 30, the company announced it was laying off 15% of its workforce and shutting down its entertainment division.
Shares of GoPro have been in a tailspin since reaching a peak of more than $93 per share in October 2014, less than four months after the stock IPOed. They have fallen about 89% from their peak.
