GoPro announces disappointing third quarter results ahead of holiday sale

GoPro announced revenues of $240.56 million, a decline of 40 percent from same period last year

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GoPro announced its third quarter results yesterday and it could cast a bad spell on the recently launched GoPro 5 action camera and Karma drone. GoPro has been pioneering the action camera market but it has seen competition from traditional camera makers like Nikon very recently.

The company's Q3 numbers indicate that it missed revenue expectations by 23 percent. GoPro announced revenues of $240.56 million, a decline of 40 percent from same period last year. GoPro also announced loss of $0.60 per share, a decline that dragged the market cap down from $1.23 billion to $972 million. TechCrunch reports that GoPro's trading was halted prior to the release of the results. However, the results did come with a silver lining in the form of Q4 projections which hint at better numbers on the back of holiday sales.

GoPro's fourth quarter guidance foresees revenue of $625 million and $0.30 earnings per share. The company expects 2016 revenue to be between $1.25 billion and $1.31 billion. The revenue guidance comes on the back of strong holiday season.

GoPro is banking heavily on the sales of newly announced GoPro 5 action camera and its first ever portable drone. "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," said Nicholas Woodman, GoPro's Founder and CEO.

GoPro expects to hit double digit revenue growth year-over-year in 2017 and turn profitable next year. The company is also projecting to reach annual operating expenses of approximately $650 million on the back of strong demand for new products.