GoPro Q2 2017 earnings were released after closing bell tonight, and the action camera maker reported non-GAAP losses of 9 cents per share on $296.5 million in sales. Analysts had been predicting losses of 25 cents per share on $269 million in sales. In last year’s second quarter, GoPro Inc (NASDAQ:GPRO) reported losses of 52 cents per share on $220.8 million in revenue.

GoPro q2 2017 earnings
Image Source: GoPro Press Kit

GoPro Q2 2017 earnings

The GoPro Q2 2017 earnings release showed that on a GAAP basis, the camera company reported losses of 22 cents per share, compared to the 66 cents per share it lost in last year’s second quarter. Adjusted EBITDA flipped into the green at $5.1 million. Global sell-through of GoPro cameras grew 18% sequentially, and for cameras higher than $300, sell-through was up 13% year over year.

GoPro’s HERO5 Black was the best-selling digital camera in the U.S. during the second quarter, according to NPD Group, and the company said demand for its cameras was high on Amazon Prime Day. The company added 1.6 million new social media followers during the quarter. Further, the Karma drone was the second bestselling drone brand in the U.S. during the second quarter, also according to NPD Group.

Analysts had given up on GoPro

GoPro was up to some easy year-over-year comparisons because of how much it has struggled, but that’s about the only thing the camera company has going for it right now. The company still needs to prove to investors that it’s more than just a passing fad and that its products will appeal to more than just a small niche of users.

Analysts have stopped expecting much of anything from the company. At one time, bulls were betting that the company’s Karma drone would shift its fortunes back around, but that didn’t turn out to be the case. The first launch was marred by power failures that caused the heavy chunks of metal and components to drop out of the sky unexpectedly. GoPro recalled all of its drones, fixed the problems, and put them back on the market, but the damage had been done.

Since then, the company has had one failure after another. It shut down its entertainment division after giving up on that idea and then it had to start laying off employees in order to cut costs as sales plunge. Most analysts have now given up on GoPro’s ability to survive in the long term. After initially launching the Karma late last year, the company only just now finally completed a full quarter of sales for the drone.

GoPro provides guidance

GoPro management guided for third-quarter sales of $300 million, plus or minus $10 million. They expect a GAAP and non-GAAP gross margin of 37%, plus or minus 1%. GoPro expects GAAP losses of 24 cents per share, plus or minus 5 cents and non-GAAP earnings to be losses of 6 cents per share, plus or minus 5 cents. Wall Street consensus currently stands at non-GAAP losses of 12 cents per share for the third quarter.

After GoPro Q2 2017 earnings were released, the company’s stock soared in after-hours trade, climbing by as much as 11.86% to $9.24.