GoPro’s loss much smaller than estimates, shares surge 12 percent

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(Reuters) – GoPro Inc (GPRO.O) reported a much smaller-than-expected quarterly loss, as it sold more flagship cameras internationally while the company reined in costs as part of its goal to return to profitability in 2017.

The company’s shares jumped 12 percent to $9.28 in after-market trading.

GoPro said on Thursday that majority of its second-quarter revenue was generated in markets outside of the United States, with sales of its higher-priced cameras, including the Hero5 Black, rising 13 percent.

The company also forecast a third-quarter adjusted loss of 6 cents per share, plus or minus 5 cents, on revenue of $300 million, plus or minus $10 million. Analysts were expecting a loss of 12 cents per share on revenue of $278.5 million.

GoPro’s net loss narrowed to $30.5 million, or 22 cents per share, from $91.8 million, or 66 cents per share, a year earlier.

Excluding items, GoPro reported a loss of 9 cents per share, smaller than analysts’ estimate of a loss of 25 cents, according to Thomson Reuters I/B/E/S.

The company’s operating expenses declined 35.5 percent to $130.6 million.

GoPro, whose cameras are worn by surfers, skydivers and other action junkies, said revenue rose to $296.5 million in the quarter ended June 30 from $220.8 million a year earlier.

Analysts on average had expected revenue of $269.6 million.

Reporting by Ismail Shakil and Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel