The numbers: Not so good. GoPro’s loss widened to $19.8 million in the second quarter, compared to a loss of $5.8 million a year prior. Still, the company beat analyst expectations when certain items are excluded. Revenue was $244.6 million for the quarter, up 38% from a year ago. The stock fell about 9% in after-hours trading.
The takeaway: GoPro is expanding its media presence, including an app for Microsoft’s Xbox consoles that launched last quarter. It said Americans using the Xbox app spent an average of “just under 30 minutes” watching videos of extreme sports and other adventures filmed with GoPro cameras. The company also highlighted the launch of its Pinterest channel and increases in YouTube views. Still, GoPro generates nearly all of its revenue from hardware sales. Its media efforts just help drive camera sales.
What’s interesting: This is the company’s first earnings report as a public company. Investors on the earnings call joked that they were disappointed by the lack of a GoPro video element to the webcast, but after-hours trading revealed investor disappointment with the debut. Executives on the call emphasized their focus on creating an all-around user experience to drive future GoPro sales: The company spent $34.7 million on research and development last quarter, more than double the same quarter last year. Looking forward, it will also be interesting to see the growth in different areas of the world. All of its markets are growing. Though Asia accounts for the smallest portion of revenue, at 12%, revenue there almost doubled, $29.1 million last quarter.