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GoPro rakes in more profit thanks to surge in overseas demand

July 22, 2015, 8:54 PM UTC
Nicholas "Nick" Woodman, founder and chief executive officer of GoPro, holds a GoPro Hero 3+ camera.
Photograph by David Paul Morris — Bloomberg/Getty Images

GoPro, the action hardware company that can’t stop growing, has managed to snap up even more sales in its second quarter.

The firm, which makes clip-on cameras for daredevils, has managed to wring even more money from consumers, especially overseas, as it celebrates the end to its first year as a publicly traded company.

Speaking on the company’s earnings call on Tuesday, GoPro CEO Nick Woodman made sure to emphasize the company’s overall revenue for the second quarter came in at $419.9 million, much higher than the $395.2 million analysts originally estimated. Meanwhile, net income came in slightly over the $35 million mark.

The company’s bottom line was boosted by increased demand overseas, specifically in China where the country is now designated as a top-ten revenue generating country. With those figures, it’s easy to see why GoPro (GPRO) has focused a lot of attention overseas recently.

The company, not satisfied resting on its laurels, also plans to launch a new mobile application that will let users edit and upload content directly from their smartphone by end of summer. It’s also in the early stages of testing out a new content management service that will let users upload content instantaneously to the cloud service.

Looking beyond its lineup of action cameras, Woodman reiterated the company’s plan to release a quad-copter (also referred to as a drone) in the first-half of 2016. The quad-copter will be positioned as the “ultimate accessory for your GoPro camera.”

Despite recent moves meant to bolster GoPro’s transition from a hardware company into a global entertainment behemoth, Woodman and his team made it clear they’re in no rush to change things. The statement echoed sentiments recently made by new hire, and former Hulu director, Charlotte Koh.

On Monday, before its earnings were announced, GoPro revealed a licensing program for “global advertising brands and agencies to license premiere video and images.” The new offering gives content creators an outlet to upload, license, and profit off of their hardwork. GoPro will take care of the licensing, handling, and licensing of the content, while adding yet another revenue stream.

The good news doesn’t stop there either: the company also shipped 1.6 million devices throughout the quarter; an increase of 93% year-over-year. In total, GoPro has shipped over 16 million devices and now available in 40,000 stores worldwide.

As CEO Nick Woodman, President Tony Bates, and CFO Jack Lazar rattled off various statistics during the company’s earnings call, a theme began to emerge: GoPro is growing in every possible area and it doesn’t look like it will stop anytime soon.

But, one of the most surprising pieces of news to come out of the call was the company’s social media triumph. The GoPro hashtag has doubled in use over the year, with over 45,000 daily shares across social networks. Facebook interaction and YouTube views are also up. Yes, GoPro detailed its social media metrics on an earnings call.

The social aspect is an important one for investors to take note of says Bates. Users create content that’s using GoPro’s growing camera and software lineup, which is then shared across social networks and in turn inspires others to go out and buy a company product. Social media, he says, is an integral part of continuing to grow the action camera business.

When asked by analysts about the company’s outlook in terms of product pipeline and expansion, Woodman confidently stated: “We’re not done yet.”

After looking at the company’s stellar second quarter, you can’t help but believe him.