On Thursday, CNBC interviewed GoPro’s Chief Executive Officer Nick Woodman and in the show “Squawk Alley,” the CEO told that GoPro is finally embracing the smartphone after a couple of years. Woodman said that their mission has never changed, which is that they believe there is a megatrend of buyers who express themselves visually and share themselves more and more on the internet.
We failed to make GoPro contemporary: CEO Nick Woodman
Woodman told CNBC, “Where we fell out a little bit in our post-IPO years was that we failed to make GoPro contemporary and failed to align with the smartphone movement.” The camera making giant is popular for making first person and action packed footage, however, it has been struggling recently to capitalize on its initial buzz, notes CNBC.
Woodman said in the interview that the drone maker is now going to make it even simpler to move footage to smartphones. Amid increasing improvements in smartphone cameras, like iPhone 7, Google Pixel XL and several other camera phones, the sales of GoPro cameras has reduced considerably. The GoPro trades at about $8.50, a lot below its $24 a share IPO price. On Thursday, the shares of the drone making giant ramped 14%, after the camera making company announced measure of reducing expenditures and predicted Q1 earnings at the high end of guidance.
Woodman said that over the past couple of years, they have recognized that they need to concentrate keenly on one consumer and that they are the person who purchases a GoPro (product). Further, the GoPro CEO said, “In the quarters after going public, we were making different investments, placing different bets. Some of those bets didn’t work out. And we’re refocusing.”
GoPro to lay off 270 jobs
Last year, the investors were quite disappointed after learning that the drone maker has recalled its drone. The reason behind the recall was delay and increasing competition that the camera making giant was facing from other companies. According to Woodman, the camera maker is still working on its drones while giving the drone maker robotics experience with expectations that there will be breakout of robot products in the future.
The camera maker said that it is expecting revenue for the quarter on the high end of $210 million or at least the $190 to $210 million range. In addition to this, the camera maker said that it would lay off 270 jobs as well. The CEO of GoPro said the drone maker has diverted its culture toward efficiency and will reduce costs “dramatically.”
The camera making giant is expecting the full year to end with positive earnings before amortization, interest taxes, and depreciation, said GoPro. Woodman revealed that sales are good and it is all good signs that they are improving their business. He said, “that’s something we intend to build on throughout the year.”