GoPro (GPRO) - Get GoPro, Inc. Class A Report is looking to add users and draw in new customers by tapping into the mobile market through two new video-editing apps, Splice and Quik, which the company acquired in February for $105 million.
The San Mateo, Calif.-based camera company plans to expand its consumer base beyond those who currently own their cameras by integrating the two apps into a single platform and letting users edit footage shot on their smartphone, the company said on its first-quarter earnings conference call.
"We believe Replay, with over 13 million downloads represents the best automated edit experience on mobile while Splice, with over 19 million downloads, represents the best manual edit experience," CEO Nicholas Woodman said on the call. "We intend to combine these two apps to simplify mobile content creation for not only GoPro customers but also smartphone users as well."
The company said it has viewed GoPro as a content-enabling platform but that it has only served that purpose for GoPro camera owners. Through the integration of Spice and Quik, which was renamed from Replay, the camera company will let anybody with a smartphone edit footage.
"We really believe we need to bring the whole solution. Mobile is a key aspect of that," President Anthony J. Bates said on the call, adding GoPro is looking to make the experience as "seamless and easy as possible."
Splice allows its users to trim, crop, animate and add music, among other editing capabilities, while Quik allows for more automated editing.
"In the short term the plan is really to create the best editing solution out there," Bates said in response to a question from an Oppenheimer analyst. "It will drive more engagement. It will drive more people to get excited about GoPro."
GoPro posted $183.54 million in revenue, an almost 50% drop from the same time last year when it brought in $363.11 million in revenue. The company beat its projections. GoPro told investors it expected to bring in between $160 million to $180 million in revenue for the first quarter 2016. Revenue guidance for 2016 remains between $1.35 billion to $1.5 billion.
GoPro's stock was down on the news of its earnings in after-hours trading. Shares traded at $10.71, down 6.05%.