Shares were down 11.8% to $42.31 despite the wearable camera company reporting adjusted earnings of $11.8 million, or 8 cents per share on $244.8 million in revenue. That was up from a loss of $3.2 million, or 3 cents per share, a year earlier.
Analysts polled by Thomson Reuters expected GoPro would earn 6 cents per share on a non-GAAP basis, on revenues of $238 million.
However, the results failed to allay investors’ fears. For example, the company reported a net loss this quarter of $19.8 million, or 24 cents per share, well above the loss of $5.1 million, or 6 cents per share, a year ago. Some investors have commented that with smartphone cameras getting better and better, GoPro’s ability to sell cameras costing hundreds of dollars may decline.
The company tried to address these concerns, noting that its popular YouTube videos are "fueling our virtuous cycle whereby viewership of GoPro content drives sales."
CEO Nicholas Woodburn also tried to demonstrate the company's international reach. "We are a global brand with room for expansion opportunities," he said on the earnings call. "38% of revenue came outside of America and there are growth opportunities in Europe, Japan, China and Korea."
Nonetheless, since its blockbuster IPO, in which shares rose 31% in the first day of trading, GoPro shares have run out of steam for now.
Here’s what a few analysts on Wall Street had to say: