GoPro, Inc.’s GPRO stock jumped after it announced on Wednesday afternoon it expects to reach the upper end of its previously projected first quarter 2017 outlook.
GoPro’s stock is up 8.84% to $8 per share in after-hours trading, and is currently a Zacks Rank #3 (HOLD).
The action camera company also announced it plans to cut 270 jobs in order to reduce expenses to try to become profitable in 2017. The company’s previous revenue forecast was between $190 million and $210 million for the first quarter of 2017. GoPro now projects it will be at the high end of guidance at around $210 million.
The company also said it would cut operating expenses by more than $200 million and return to EBITDA profitability in 2017. GoPro reported revenue of $541 million and a net loss of $116 million in fourth quarter 2016.
The self-mounted camera company said it will lower its full-year operating expenses “to below $495 million without impacting the company’s roadmap for new hardware and software products.”
"We're determined that GoPro's financial performance match the strength of our products and brand,” CEO Nick Woodman said in a press release. “Importantly, expense reductions preserve our product roadmap and we are tracking to full-year non-GAAP profitability in 2017."
GoPro was founded in 2002, and it went public in June 2014. GoPro’s stock soared 30% after its debut. The camera company’s stock reached an all-time high of $62.88 per share in Aug. 2015. Since then, GoPro’s stock has bottomed out.
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