GoPro shares jump after crushing Black Friday and Cyber Monday sales

GoPro Here 8 Black

Source: GoPro

GoPro shares were up more than 5% in premarket trading Wednesday after the company a day earlier reported record Black Friday and Cyber Monday sales, which were boosted by new cameras.

During Black Friday and Cyber Monday, GoPro’s total camera sales jumped 120% year-over-year in the time between the two shopping days. The Hero8, which was launched in October, accounted for 90% of that growth, the company said.

“We’re very happy with how each of our products are selling-through so far this holiday,” GoPro founder and CEO Nick Woodman said in a release. “We believe the surge in demand we’re seeing positions us well for full-year profitability in 2019 and continued revenue and earnings growth in 2020.

“We crushed it,” Woodman said.

These strong sales show that customers are responding well to the company’s most recent camera innovations, which have boosted sales over the last two months.

The company said in its third-quarter earnings report that its new cameras reached record sales after their launch on the company’s website.

In October, just in time for holiday shopping, GoPro debuted two new cameras, the Hero8 Black and the Max, in addition to new GoPro app features. Unit sales of the Hero8 Black surpassed every previous new GoPro in its first month on the company’s website, including the 2018 Hero7 Black by 40%, according to GoPro’s earnings report. The Max also outpaced its predecessor Fusion in the first month of sales.

“Both products appear to be unquestionable hits with consumers and we’re optimistic about their impact on our business going forward,” Woodman said in the company’s earnings report.

The Hero8 Black has better stabilization than previous models and “sports four digital lenses to easily select a field of view,” the company said. The MAX is a dual-lens camera that is “like having three cameras in one.”

The cameras also generated “the highest positive social sentiment metrics of any new GoPro,” Woodman said. The Hero8 Black’s launch video became the most viral launch video of any other GoPro camera.

GoPro reported sales of $131 million in the third quarter and a net loss of $75 million, or 51 cents a share loss.

The company had a market cap of $601.2 million at Tuesday’s close.

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