Layoffs at GoPro already underway at their desktop team in San Diego, diminishing 40 in headcount. At least 100 employees of GoPro will be losing their jobs at the headquarters in San Mateo.
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Despite eminent job cuts there is a silver lining in all of this – pro surfer, Anthony Walsh, is enjoying his KARMA kit and so should everyone else. Now ex-GoPro employees can reflect upon their experiences and go live their lives in their own vicarious terms.
Currently, the overall sentiment or disposition towards GoPro can best be described as negative. Echoing the word on Wall Street, the discernible sentiment towards GPRO stock has created a resulting influx of opinion that is now created a volume situation of a weak disposition. Analysts are looking at what GoPro will release in its financial results for Q1 2017, ended March 31 after the market closes on April 27, 2017.
Return to profitability in 2017
The action cam company said it expects revenue for the quarter on the high end of the $190 million to $210 million range. It also said it would slash 270 jobs. According to CEO of GoPro, Nick Woodman, the company has shifted its culture toward efficiency and will cut costs to better serve the customer.
“Today we are updating revenue guidance for the first quarter of 2017. We now expect to deliver revenue in the upper end of our guidance range of between $190 million and $210 million. We currently have no need to draw on our credit facility and we expect to be EBITDA positive for full-year 2017.” – Brian McGee, GoPro Chief Financial Officer
The reduction in operating expenses is achieved with a combination of cuts to program costs, San Mateo headcount and open positions, totaling the elimination of approximately 270 positions. GoPro estimates that it will incur total aggregate charges of up to $10 million for the restructuring, which are primarily cash expenditures related to severance costs. The Company expects to recognize the restructuring charges in the first quarter of 2017.
Niche to mass traction strategy
The reduction sent the stock soaring 16% in morning trade on March 16, 2017, putting it on track for the biggest one-day gain in 11 months. About one hour after the open, volume was already more the double the full-day average. If GoPro can continue to effectively mesh with that smartphone sharing aspect, the company could begin to break out of its niche.
“We need to focus keenly on the #1 customer and this is the person who buys the GoPro” – Nick Woodman
Nick Woodman today
Nick founded the company in 2002, formerly known as Woodman Labs when the original Hero SD came into the global market as a super niche product for surfers.
GoPro is focusing investments on customers, exceptional hardware and software development that help customers capture experiences, Nick told Ace+ Media.
Serving their customers will bring significant opportunities to run the business more efficiently and with that strategy in mind, GoPro is forecasting on spending of less than $495 million in operating costs which has a significant impact to achieve profitability in 2017.
While GoPro management admitted its recent troubles in failing to make GoPro contemporary, and it’s good to see that the company is aligning itself more with the smartphone era. Analyst notes are not believing action camera strategy written in large. Wall Street’s sentiment lays into GoPro’s shortcomings as it is now a commodity product that isn’t going to get higher yields without big hardware improvements. Some has gone as far as saying the newest HERO5 was a repackaged disappointment. Why would an existing user waste money and not be able to use my aftermarket batteries or accessories for literally no noticeable difference in video?
People are now attuned to visually expressing themselves more and more online. Look at the rate at which consumers are sharing themselves online, growth year over year and this works as an advantage for GoPro. Using a GoPro with a smartphone to share ourselves in incredible ways is now at the forefront of GoPro’s development strategies. To conclude this segment let’s take pro surfer Anthony Walsh as a prime example. He takes KARMA along for a day with his wife Crystal and their son Damien. Watch the Walsh family as they explore their native Hawaii in the air, on land and in the water with the complete KARMA stabilization system.
Shot 100% on Karma and the HERO5® camera from http://GoPro.com.
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