GoPro, maker of wearable action cameras, had a very disappointing last quarter. The company’s shares are down 20% after badly missing revenue estimates and reducing its forecast for the key holiday quarter.
GoPro’s newly unveiled products, the Hero5 camera and Karma consumer drone, were crucial to the company’s future success. But GoPro faced production issues that are still ongoing, affecting two quarters. And because GoPro reduced inventory on older products in anticipation of the next-gen launch, it’s facing supply issues across the board.
Revenue for GoPro declined almost 40% to $240 million. The company lost more than $100 million, compared with a profit of $19 million a year ago.