GoPro, Inc. (GPRO) saw its loss widen to $115.71 million, or $0.82 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $34.45 million, or $0.25 a share. On an adjusted basis, net profit for the quarter stood at $42.37 million, or $0.29 a share compared with a net loss of $11.40 million, or $0.08 a share in the last year period.
Revenue during the quarter grew 23.82 percent to $540.62 million from $436.60 million in the previous year period. Gross margin for the quarter expanded 980 basis points over the previous year period to 39.24 percent. Operating margin for the quarter stood at negative 4.91 percent as compared to a negative 9.46 percent for the previous year period.
Operating loss for the quarter was $26.57 million, compared with an operating loss of $41.29 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $31.64 million compared to operating loss of $21.63 million in prior year period.
"In 2016, big investments in hardware, cloud, and mobile yielded a solid foundational experience for our customers.” said Nicholas Woodman, GoPro’s Founder and chief executive officer. "In 2017, we will build on this foundation for our customers while improving efficiency and managing cost to achieve profitability.”
For the first-quarter, GoPro expects revenue to be in the range of $190 million to $210 million.
Operating cash flow turns negativeGoPro has spent $107.75 million cash to meet operating activities during the year as against cash inflow of $157.61 million in the last year. Cash flow from investing activities was $19.29 million from investing activities during the year as against cash outgo of $211.98 million in the last year.
Cash flow from financing activities was $1.96 million for the year, down 87.52 percent or $13.71 million, when compared with the last year.
Cash and cash equivalents stood at $192.11 million as on Dec. 31, 2016, down 31.31 percent or $87.56 million from $279.67 million on Dec. 31, 2015.
Working capital drops significantly
GoPro has witnessed a decline in the working capital over the last year. It stood at $157.07 million as at Dec. 31, 2016, down 70.81 percent or $380.99 million from $538.07 million on Dec. 31, 2015. Current ratio was at 1.36 as on Dec. 31, 2016, down from 2.82 on Dec. 31, 2015.
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