GoPro Inc Rises, Groupon Inc Soars On Earnings

GoPro Inc Rises, Groupon Inc Soars On Earnings
Image Source: GoPro Press Kit

GoPro and Groupon released their latest earnings reports after closing bell. GoPro reported adjusted losses of 52 cents per share on $220.8 million in revenue, against the consensus estimates of 58 cents per share in adjusted losses on $194.6 million in sales. In last year’s second quarter, the action camera maker reported 26 cents per share in adjusted earnings on $419.9 million in revenue.

Groupon reported adjused losses of 1 cent per share on $756 million in revenue, compared to the consensus estimates of 2 cents per share in losses and $711 million in revenue. In last year’s second quarter, the daily deals giant reported 2 cents per share in earnings on $738.4 million in revenue.

GoPro’s losses widen

GoPro’s GAAP losses were 66 cents per share, compared to the year-ago loss of 24 cents per share. The GAAP margin was 42.1%, while the non-GAAP gross margin was 42.4%. Adjusted EBITDA plunged 202% to a loss of $76.8 million from $75.3 million in the green last year.

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GoPro expects revenue of between $1.35 billion and $1.5 billion for this year and a GAAP and non-GAAP gross margin of 40% plus or minus one percentage point, for the second half of this year. The company expects to be profitable on a GAAP and non-GAAP Basis for the fourth quarter.

“GoPro is well-positioned for the second half of the year,” GoPro Founder and Chief Executive Officer Nicholas Woodman said in a statement. “We now have a simple product line, a clean retail channel and clear indications of strong consumer demand. HERO5 and Karma will contribute to the largest introduction of products in our history, all in time for what we believe will be GoPro’s most exciting fourth quarter, ever — a quarter where we expect to return to profitability.”

GoPro shares jumped by as much as 1.21% to $11.71 in after-hours trading.

Groupon raises revenue guide

GoPro Inc Rises, Groupon Inc Soars On Earnings

Groupon’s GAAP loss was 10 cents per share, while adjusted EBITDA was $34 million. Gross billings were $1.49 billion during the second quarter, representing a 2% decline from last year. Global units fell 4% year over year to 51 million as the company exited some countries and continued its restructuring efforts. Local billings in North America increased 9% year over year as Groupon grew its North America customer base almost 1.1 million incremental customers.

Groupon management increased their revenue outlook for the full year to a range of $3 billion to $3.1 billion from their previous guide of $2.75 billion to $3.05 billion. Consensus stands at $3.02 billion. They expect adjusted EBITDA to be between $140 million and $165 million for the full year.

“We continued to see strong traction in customer acquisition as we added more than 1 million new customers — the most in more than two years,” Groupon Chief Executive Officer Rich Williams said in a statement. “We’re excited with the progress of our marketing programs to date and their effectiveness in introducing millions more people to our marketplace.”

Shares of Groupon skyrocketed by as much as 24.34% to $4.70 in after-hours trading.

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