GoPro reports first-quarter sales up 7% but net losses climb

GoPro Inc. announced first quarter revenue was $155 million, down 11% year-over-year, while subscription and service revenue increased 12% year-over-year to $26 million. The GAAP net loss was $339 million, or a $2.24 loss per share, compared to a net loss of $30 million or $0.19 loss per share, in the prior year period, due to the recording of a $295 million tax valuation allowance.

“GoPro exceeded our revenue target in Q1, and we are making progress on our multi-year TAM expansion strategy, but it is taking more time than we anticipated,” said Nicholas Woodman, GoPro’s founder and CEO. “We believe our investments to grow our brand, retail presence and broader product line will restore growth and pro tability over the long term. Patience is required, but our progress and product roadmap give us confidence.”

“Subscription and service revenue continues to grow and our Q1 aggregate annual subscriber retention rate of 69% was an all-time high,” said Brian McGee, GoPro’s CFO and COO. “Entering Q2, our annual recurring revenue from subscription is approximately $125 million.”

Results Summary:

                                                                    Three months ended March 31,