GOPRO Reports Decrease in Revenue for Second Quarter of FY2023
August 25, 2023
🌥️Earnings Overview
For the second quarter of the fiscal year 2023, GOPRO ($NASDAQ:GPRO) reported a total revenue of USD 241.0 million, a decrease of 3.9% year-on-year. In comparison, their net income for the same period was USD -17.2 million, as opposed to USD 2.5 million in the previous year.
Stock Price
The company’s stock opened at $4.0 and closed at $4.1, up by 2.5% from its prior closing price of $4.0. This follows a trend of declining revenues since the beginning of the year, as well as a drop in profits throughout the quarter. The decrease in revenue is mainly attributed to a decrease in demand for its core products, such as action cameras and wearable devices.
Additionally, the company has experienced reduced demand for its software and services due to the pandemic. Furthermore, competition in the industry has increased, resulting in lower prices and fewer sales for GOPRO’s products. In response to these challenges, GOPRO has been focusing on cutting costs and streamlining operations. The company has announced plans to reduce staff and close some of its stores in order to become more efficient. They have also shifted their focus towards developing new products and services that will help them stay competitive in the market. Despite the decrease in revenue, GOPRO remains confident in its ability to return to profitability and continue to provide high-quality products and services. Investors should monitor the company’s performance closely for any updates on their progress towards achieving these goals. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gopro. GOPRO_Reports_Decrease_in_Revenue_for_Second_Quarter_of_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 1.04k | -26.44 | -2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gopro. GOPRO_Reports_Decrease_in_Revenue_for_Second_Quarter_of_FY2023″>More…
| Operations | Investing | Financing |
| -8.66 | 38.3 | -43.22 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gopro. GOPRO_Reports_Decrease_in_Revenue_for_Second_Quarter_of_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.01k | 445.62 | 3.69 |
Key Ratios Snapshot
Some of the financial key ratios for Gopro are shown below. GOPRO_Reports_Decrease_in_Revenue_for_Second_Quarter_of_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.5% | 0.7% | -2.7% |
| FCF Margin | ROE | ROA |
| -1.1% | -3.1% | -1.8% |
Analysis
As a part of GoodWhale’s analysis of GOPRO’s wellbeing, we have classified them as an ‘elephant’ type company due to their rich assets after deducting liabilities. GOPRO is strong in asset and profitability, but weak in dividend and growth. According to our Star Chart, we estimate that GOPRO has an intermediate health score of 6/10 with regard to cashflows and debt, which makes it likely to sustain future operations even in times of crisis. Given these factors, it is likely that GOPRO would be of interest to a variety of investors. Those seeking stability might appreciate the solid cashflow and debt metrics, while those with an eye for growth might be drawn to the company’s strong asset and profitability. As such, GOPRO can offer a variety of opportunities for potential investors. More…
Peers
In recent years, GoPro Inc has faced stiff competition from Sonos Inc, B&C Speakers SpA, Bang & Olufsen A/S, and other companies in the market for portable speakers. GoPro Inc has responded by innovating its product line and expanding its market share.
– Sonos Inc ($NASDAQ:SONO)
Sonos Inc is a publicly traded company that manufactures and sells wireless speakers and home audio systems. As of 2022, the company has a market capitalization of 1.81 billion dollars and a return on equity of 11.22%. Sonos was founded in 2002 and is headquartered in Santa Barbara, California. The company sells its products through a network of retailers and distributors worldwide.
– B&C Speakers SpA ($LTS:0OM7)
B&C Speakers SpA is a leading manufacturer of professional loudspeakers, PA systems, and related products. The company has a market cap of 118.99M as of 2022 and a Return on Equity of 25.26%. B&C Speakers SpA’s products are used in a wide range of applications, including live sound, recording, broadcast, and installed sound. The company’s products are sold through a network of authorized dealers and distributors worldwide.
– Bang & Olufsen A/S ($OTCPK:BGOUF)
Bang & Olufsen A/S is a world-renowned provider of high-end audio and visual products. The company has a market capitalization of 136.77 million as of 2022 and a return on equity of -4.5%. Bang & Olufsen was founded in 1925 and is headquartered in Denmark. The company’s products are sold in more than 100 countries worldwide. Bang & Olufsen is best known for its innovative, high-quality audio and visual products. The company’s product portfolio includes televisions, radios, sound systems, and portable speakers. Bang & Olufsen is committed to providing its customers with the best possible experience. The company’s products are designed to meet the needs of its customers and to exceed their expectations.
Summary
Investors may be disappointed by the financial results of GoPro Inc. for the second quarter of FY2023. The company reported total revenue of USD 241.0 million, which is down 3.9% year-over-year from the same period in FY2022. Net income was a significant loss of USD -17.2 million, compared to a positive result of USD 2.5 million in the prior year. As a result, investors should take a close look at the company’s operations and strategy in order to determine how it can improve its performance.
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