GoPro (NASDAQ:GPRO) is starting to grow its business again. Revenue growth in all regions, record organic viewership and two billion in lifetime views as at April 2019 are just a few positive data points the company reported in its first quarter. Though GoPro’s action camera is a former fad, is there any upside in holding the stock?
GoPro reported revenue growing 20% to $243 million. GAAP gross margin increased from 22% to 33%. And though it lost $24 million, or $0.17 a share GAAP, the company reported areas of strength. GoPro Plus subscription service grew over 10% to 220,000 active paying subscribers. In Europe, its $199 and above price band took 86% of the market share. APAC – China, Japan, Korea, and Thailand – grew 11% year-on-year.
Outlook
GoPro expects to grow its Plus subscription service by enhancing its offering, growing internationally and increasing its marketing and new distribution channels. A new product refresh with new price points in Q4 of this year could drive revenue and profit growth. New features include a next generation spherical camera and a multi-year road map that will build on the first-quarter momentum.
Near-term Strength
For now, GPRO stock will trade on the strong demand for the company’s flagship Hero7 Black camera. And bullishness could grow after the company enjoys a cash balance levels of $150 million, a drawdown in inventory, and continued strength in Asia, America, and Europe.
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