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GoPro Tops Wall Street Expectations But Losses Widen

Wearable device maker GoPro reported a lower-than-expected quarterly loss on Thursday, helped by strong sales of its flagship cameras and Karma drones.

GoPro, which has lacked new products and saw slower sales of its action cameras in the past year, re-released its Karma drones in February to drive demand and revenue growth.

The company, whose cameras are worn by surfers, skydivers and other action junkies, has been cutting costs and jobs to offset slowing sales growth of its flagship products and return to profitability.

The company said in March it would cut 270 jobs on top of the 200 full-time employees it laid off in December last year.

GoPro forecast second-quarter revenue of $260 million-$280 million, above analysts’ average estimate of $243.7 million, according to Thomson Reuters.

Revenue rose 19.1%, its second straight quarterly rise, to $218.6 million, beating analysts’ average estimate of $207.8 million.

Net loss widened to $111.2 million in the quarter, from $107.5 million in the year-earlier period.

Excluding items, GoPro reported a loss of 44 cents per share. Analysts were expecting a loss of 45 cents per share.

GoPro’ shares (GPRO) were little changed in extended trading. Up to Thursday’s close, the company’s shares had fallen 32.6% in the past 12 months.