GoPro's Earnings: A Thrilling Ride Through 2019

Ticker: GPRO | Release Date: February 5, 2020

Revenue Growth and Positive Earnings Surprise

GoPro, Inc. (NASDAQ: GPRO) has emerged from the tumultuous waters of 2019 with a revenue forecast that?s sure to capture attention. The company announced fourth-quarter earnings that hit $528 million, representing a robust 40% increase year-over-year. This earnings surprise not only surpassed the EPS consensus but also positions GoPro as a key player in the action camera market.

2019 in Review: From Challenges to Opportunities

Last year, GoPro reported an impressive annual revenue of $1.195 billion, an increase of 4% compared to 2018. Interestingly, if we exclude the aerial segment, revenue would have jumped by 7%. This revenue growth can largely be attributed to the successful launch of the HERO8 Black and the MAX, which have proven to be crowd-pleasers.

Earnings Per Share: The Good, the Bad, and the Adjusted

In terms of earnings per share, GoPro posted a GAAP EPS of $(0.10) for the year, which does sound a tad disappointing. However, their non-GAAP EPS came in at $0.24, which is certainly sweeter for shareholders. This divergence highlights the importance of digging deeper into adjusted metrics, especially in a market where non-GAAP measures have become the norm.

GoPro's Strategic Moves and the Future Outlook

CEO Nicholas Woodman expressed optimism about 2020, citing expansion opportunities for margins and EPS driven by a strong product line and a burgeoning subscription service. And let's not forget the new Chief Operating Officer, Brian McGee, who?s stepping into a dual role?his financial acumen could play a vital part in steering GoPro through the next fiscal year.

Sector Impact and Competitive Landscape

As GoPro sets its sights on growth, it?s essential to consider the implications for competitors in the action camera sector. With a strong Q4 performance and a promising revenue forecast, GoPro may be setting the stage for a competitive resurgence. Brands that have been quietly lurking in the shadows should prepare for a battle?after all, no one wants to be left behind in the rapid-paced world of tech innovation.