Tomahawk, WI 11/06/2014 (Basicsmedia) – GoPro Inc. (NASDAQ:GPRO) posted its first full-quarter earnings as a public company that beat estimates as the company continues to gain customer confidence with its wide array of camera products. During an interview on CNBC, Wedbush Equity Research Managing Director, Michael Pachter, said the solid results are an indication of the amount of headroom GoPro has, to generate more awareness among consumers.
GoPro Inc. (NASDAQ:GPRO)’s cameras continue to enjoy an impressive reception from consumers, attributed to the ongoing campaign to popularize the products on YouTube. Revenue increasing by 46% in the quarter according to Pachter is an indication that the company is becoming a mainstream brand instead of being a revenue story.
“I think people thought of this as an outdoor athlete brand. I think it is becoming a mainstream brand and that the YouTube videos are proving to you, this really has a broad-broad addressable market,” said Mr. Pachter.
Pachter attributes increased revenue in the third-quarter to repeat customers who bought GoPro Inc. (NASDAQ:GPRO)’s new line of cameras in plenty. The analyst expects the same to change going forward as the company continues to attract more people with the ongoing marketing campaign.
“I’m certain that in the past-quarter it was probably a lot more of repeat customers but in the coming quarter, they have just launched a $129 camera. That’s going to make this thing affordable for a whole new classic people,” said Pachter.
Pachter remains confident that GoPro Inc. (NASDAQ:GPRO) products are all but set to become mainstream with increased sales in the coming quarter. GoPro Inc. (NASDAQ:GPRO)’s third-quarter revenue came in at $280 million an increase of 46% compared to the prior year. Non-GAAP net income for the quarter came in at $18 million. Founder and CEO, Nicholas Woodman attributes the impressive results to global scale as well as the execution of the company’s HERO4 launch.
Advancements in desktop and mobile content management apps also continues to make it easier for customers to create compelling stories that are driving the demand for GoPro’s products.