In light of GoPro’s decision to lay off a portion of its workforce a few weeks ago, the company has recently announced its financial results for Q4 2015. Part of the reason why GoPro had to cut its workforce is due to the drop in camera sales, and of course, this is reflected in the company’s Q4 2015 financial performance.
In Q4 2015, GoPro earned US$436.6 million (about RM1.8 billion) in terms of revenue, which translates to a 31% decline when compared against revenues recorded for Q4 2014. Besides that, the projected revenue for the company has declined as well from being at US$1.6 billion (around RM6.7 billion) in 2015 to about US$1.5 billion (approximately RM6.2 billion) this year. In addition to that, the company’s Q4 2015 financial report also shows that it’s making losses that amounts to US$41 million (about RM170 million).
Unfortunately, due its weak financial position, GoPro has also announced that it will be discontinuing several of its action camera lineup. These include the Hero+ LCD, Hero+ and Hero action cameras, which means that the company will only be manufacturing the Hero 4 action camera variants. In other words, most of the company’s more affordable action camera models will no longer be produced. However, GoPro did mention that its new flagship model, the Hero 5, will debut sometime this year.
It’s interesting to see how GoPro will handle its current financial situation. Hopefully, the upcoming Karma drone will help GoPro improve its financial position this year.
(Source: The Verge)