After months of financial troubles, GoPro’s restructuring efforts have begun to pay off. The company showed notable growth during its second fiscal quarter 2017, including a 34% year-on-year increase in revenue and a 39% drop in quarter-on-quarter inventory levels. The company is still aiming to reach non-GAAP full year profitability this year, a goal that banks heavily on the successful launches of both the Fusion VR camera and HERO6 action camera later this year.
According to the numbers, GoPro made $297 million in revenue this past quarter, and saw global sell-thru of its cameras jump 18%, as well as a massive increase in camera sales in Japan (164%). As far as the U.S. market is concerned, the HERO5 Black was GoPro’s strongest product, representing the majority of its digital camera sales this past quarter. However, more than half of the company’s revenue was made outside of the U.S., indicating strong international growth for the company.
GoPro announced a restructuring plan in November 2016 that, in part, aimed to reduce operating expenses with the end goal of hitting non-GAAP profitability this year. That restructuring involved laying off more than 200 full-time employees, followed by another round of layoffs and cuts earlier this year which ultimately shed 270 more positions. GoPro also had to deal with the botched launch of its Karma drone, which ultimately resulted in a recall late last year.
Still, things are looking up for the company, and it is actively working to branch beyond its HERO action camera foundation with the upcoming launch of the 5.2K spherical camera Fusion. Talking about this, GoPro CEO Nicholas Woodman said:
GoPro is building momentum. Strong demand combined with our cost management and margin initiatives contributed to GoPro’s EBITDA position performance [$5.1m] in the second quarter. HERO6 and Fusion, our 5.2K spherical camera, are on course to launch later this year and we continue to track toward our goal of full-year non-GAAP profitability in 2017.
GoPro’s stock saw a huge (and sustained) spike after the positive financial news broke on Friday: