SAN MATEO, Calif. (BRAIN) — GoPro Inc. said Thursday afternoon first-quarter revenue fell 51% year-over-year, in line with what the company predicted last month after announcing a workforce reduction and a transition to direct-to-consumer sales in the wake of the COVID-19 pandemic.
"We've taken decisive action to transition into a more efficient and profitable direct-to-consumer business," said GoPro founder and CEO, Nicholas Woodman. "This benefits GoPro with a substantially reduced operating expense model, improved gross margin and a significantly lower threshold to profitability."
Revenue in the first quarter was $119 million, what GoPro estimated on April 15, and down from $243 million for the same period last year.
GAAP gross margin this quarter was 32.2%, down from 33.1% year-over-year.
Non-GAAP gross margin was 34.2%, the same as last. GAAP net loss was $64 million, or $0.43 per share. Non-GAAP net loss was $50 million, or $0.34 per share.
The down quarter follows news on April 15 of a 20% staff cut, affecting more than 200 employees, and the business model change. The company said the changes are part of a strategic realignment to become a more efficient and profitable direct-to-consumer business with plans to further reduce non-headcount related operating expenses to $250 million in 2021.
"While our business slowed due to COVID-19, consumers have continued to purchase GoPro cameras at substantial levels during the pandemic, and since early April we've seen a sell-through trend in a positive direction," said Brian McGee, CFO and COO, in a statement Thursday. "Operationally, we are performing well during a difficult period, and we are extremely proud of our team's dedication. We expect our shift to a more consumer-direct model allows us to succeed both during the pandemic and in the long-term."
GoPro's corporate headquarters are in San Mateo. Its stock is traded on NASDAQ under the GPRO symbol. GoPro stock quote at Marketwatch.com.
