GoPro reported a lower-than-expected quarterly revenue as the company struggled with demand for its body-mounted point-of-view cameras during the holiday season.
GoPro, which launched the Hero5 camera and Karma drone in mid-September, also gave a revenue forecast for the current quarter that fell short of analysts’ average estimate.
The company’s shares (GPRO)fell 11% to $9.73 in extended trading on Thursday.
GoPro’s net loss widened to $115.7 million, or 82 cents per share, in the fourth quarter ended Dec. 31, from $34.5 million or 25 cents per share, a year earlier.
The latest quarter included $102 million for a full valuation allowance on U.S. deferred tax assets and nearly $37 million for restructuring costs, GoPro said.
The company’s revenue rose nearly 24% to $540.6 million, but missed analysts’ average estimate of $574.5 million, according to Thomson Reuters I/B/E/S.
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The average estimate is nearly 14% lower than the estimate on Nov. 3, when GoPro first gave its revenue forecast, mainly due to the issues with the company’s drone.
GoPro said on Nov. 8 that it would recall about 2,500 Karma drones as they lost power during use, and said on Feb. 1 that it had resumed shipments of the drone.
The company did not sell the Hero5 on Amazon for most of the quarter – from mid-October to end-November – due to pricing disagreements with the online retailer.
