GoPro stocks tumble after Q3 financial results show a struggling company

GoPro posted financial results for the third quarter. The results are not encouraging as the $240 million in revenue that it earned in this quarter is a 39.9 percent drop from the $400 million it made in the same period last year. The steep drop is almost twice of what it had predicted for this quarter. GoPro also posted conservative expectations for the critical holiday quarter ahead. The announcements sent the GoPro stock prices tumbling by 19.68 percent.

GoPro recently launched the Hero5 action camera with a touchscreen, supported by a cloud storage service in the United states. The camera also supports voice activated controls in seven languages. For the eighth consecutive quarter, the GoPro Hero4 Silver was the most sold product, and GoPro estimates that the Session was the second most sold camera in the US. Engagement on social media, including Twitter and Facebook has grown, with an increasing number of international followers.

Nicholas Woodman, GoPro’s Founder and CEO said “These are the best products we’ve ever made and consumer demand is strong. GoPro is now a seamless storytelling experience and we’re very happy with customer reception so far. Looking forward to 2017, we expect to return to profitability, driven by the strength of our new products, double digit revenue growth and annual operating expenses of approximately $650 million.”

GoPro management is holding a conference call with investors and analysts to discuss the financial results today. In December, the company management will participate in an investor conference.