GoPro sees Q3 revenue and gross margins at high-end of guidance


GoPro said Thursday that revenue and gross margin for the third quarter are expected to be at the high end of their previously announced ranges.

The struggling action camera maker sees Q3 revenue of $290 million to $310 million and gross margins at 36 to 38 percent.

GoPro also forecasts a profitable third quarter on a non-GAAP basis.

The before-the-bell news initially sent shares of GoPro surging about 17 percent in the premarket. The stock was up about 15 percent in late morning trade.

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“We set some stretch forecasts at the beginning of the year to be profitable on a non-GAAP basis for all of 2017 and post double-digit revenue growth. And we expect to do that,” GoPro Chief Operating Officer CJ Prober told CNBC’s “Squawk Box,” moments after the company made the announcement about its outlook.

GoPro is launching two new cameras in the second half of the year. Prober said the HERO6 will be out before the holidays and spherical camera Fusion will be out before year end.

On Aug. 3, the company issued a smaller-than-expected second-quarter loss and better-than-expected revenue.

Shares spiked 27 percent higher in the three days following the report. But since their recent closing high on Aug. 8, shares lost more than half of those gains as of Wednesday’s close.

The stock first came under serious pressure two years ago, following a series of missteps including a delay in the launch of its Karma drone and production issues with its Hero5 camera.

“The bigger picture even beyond this quarter is that were seeing really strong consumer demand for our products and were successfully turning the business around,” said Prober.

Prober pointed to GoPro’s efforts around editing software and sharing abilities as a driver of consumer engagement. “We sold 26 million devices without really enabling consumers to easily share their content. And we just last month launched a new experience called QuikStories where your content automatically moves from your camera to your phone. We automatically create an edit for you and you can tweak it or share it out.”

“We’ve eliminated this big pain point that consumers historically have had,” he added.

GoPro debuted on the Nasdaq in June 2014 after being priced at $24 per share. The stock jumped nearly 31 percent on first day of trading. On Oct. 7, 2014, GoPro closed at its all-time high of nearly $94 per share. Since then, the stock has lost about 90 percent of its value as of Wednesday’s close of $8.90 per share.

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