GoPro Inc (NASDAQ:GPRO) shares are trading higher after the company reported first-quarter financial results and announced a strategic review on Monday after market close.
Here are the key highlights.
• GoPro stock is among today’s top performers. Why is GPRO stock up today?
GoPro Q1 Financials
GoPro reported first-quarter revenue of $99.07 million, down 26% year-over-year. The revenue total beat a Street consensus estimate of $69.92 million, according to data from Benzinga Pro.
Hardware revenue was $72.15 million in the first quarter, down 32.8% year-over-year.
Subscription and Service revenue was $26.92 million in the first quarter, up 0.1% year-over-year
The company reported a loss of 35 cents per share, missing a Street consensus estimate of a loss of four cents per share.
“In Q1, revenue of $99 million was within guidance,” GoPro CFO Brian Tratt said. “We made meaningful progress on key metrics — cash used in operations improved $21 million year-over-year to $37 million, operating expenses declined year-over-year, and we continued to reduce both owned and channel inventory sequentially and year-over-year.”
The company highlighted the new MISSION 1 series of cameras, which it said puts GoPro at the high end of the digital imaging market.
GoPro CEO Nicholas Wooman said MISSION 1 is the boldest step for the company in the professional imaging space.
GoPro Announces Strategic Review
On Monday, GoPro also announced its board of directors is engaged in a strategic process to review strategic alternatives that could include a sale or merger.
The move comes with GoPro diversifying into the defense and aerospace sectors in recent months.
“There is significant unrealized value in GoPro’s technology, IP and brand, value we are committed to realizing on behalf of our shareholders,” Woodman said.
GoPro said the company’s Board plans to work with independent financial and legal advisors on the potential sale or merger.
The company said it has received several “unsolicited inbound strategic inquiries” since announcing its defense and aerospace consulting with Oliver Wyman in April.
“Over the past 24 years, GoPro has developed significant technology, IP, and brand assets along with world-class product development and scaled manufacturing capabilities,” Woodman said. “We are excited to work with our advisors to evaluate potential opportunities in various sectors to maximize shareholder value.”
No timetable has been set for the review process. The company said it does not plan to comment on the strategic review process until disclosure is appropriate or necessary.
GoPro Stock Price Action
GoPro stock is up 21.97% to $1.61 in after-hours trading Monday versus a 52-week trading range of 54 cents to $3.05.
Photo via Shutterstock
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