GoPro is tanking
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GoPro on Thursday reported first-quarter sales that were better than expected but a loss that was more than analysts forecast.
Shares fell 5% in premarket trading on Friday after rising by as much as 6% in after-hours trading right after the earnings crossed.
The digital-camera maker's revenues totaled $183.5 million, topping the forecast for $169.1 million. But that's about half of what GoPro earned in the first quarter of last year.
The company reported an adjusted loss per share of $0.63 — greater than the $0.59 that was expected, according to Bloomberg.
The market for the handy cameras that GoPro is known for has become very saturated, and this has some analysts concerned about the company's ability to compete well.
GoPro highlighted numerous data points suggesting that its cameras were still outselling on a unit and dollar basis.
In January, GoPro announced that it was cutting 7% of its workforce. It also announced preliminary results for the prior quarter that were worse than forecast because of slow sales.
The company is now pivoting to drones, but consumers have to wait a little longer.
"While we had to make the difficult decision to delay our drone, Karma, the upside is that Karma's launch should now benefit from the holidays," CEO Nick Woodman said in theearnings statement.
The company restated its earlier outlook for full-year revenues, and it expects to rake in $1.35 billion to $1.5 billion in 2016.
As at Thursday, GoPro shares had tumbled 70% since the company went public in July 2014.Google
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