GoPro, the action camera manufacturer, has promised to cut 270 jobs, along with other measures, to get the company back to profitability. The company also pre-announced that its first-quarter earnings for 2017 would be at the high-end of guidance, coming to about $210 million. Operating expenses are to go down by over $200 million, and the company will return to EBITDA (Earnings before interest, taxes, depreciation, and amortization) profitability during 2017.
In response, the company’s stock rose by 11 percent after the news was announced.
Last quarter GoPro had previously guided revenue between $190 million and $120 million. Its operating expenses totaled between $168 million and $178 million (GAAP) for the same quarter. They reported a net loss of $116 million on $541 million in revenue for the year. The restructuring should give the company control of 10 million additional dollars.
“We’re determined that GoPro’s financial performance match the strength of our products and brand. Importantly, expense reductions preserve our product roadmap and we are tracking to full-year non-GAAP profitability in 2017,” said CEO Nick Woodman.