Reuters

(Reuters)

Wearable Camera Maker GoPro's Revenue Jumps 54%

Earnings Reuters

Wearable camera maker GoPro Inc (GPRO) reported quarterly profit and revenue that beat Wall Street expectations as sales surged outside of the United States.

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GoPro, which makes cameras used by surfers, skydivers and other action junkies, said international sales accounted for more than half of revenue in the first quarter.

The company said sales from markets, including Europe and Asia Pacific, jumped 66 percent.

GoPro, whose devices account for the five top-selling camera or camcorders in the United States, has said international expansion was a key part of its efforts to boost revenue growth.

However, the company's shares fell 4.8 percent in extended trading on Tuesday.

FBN Securities analyst Shebly Seyrafi said investors could be disappointed by the impact of international growth, traditionally lower margin markets, on the company's gross margins.

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"The gross margin was 45.2 percent (in the first quarter), perhaps some people wanted 46 percent because last quarter (it was) 48 percent," he said.

GoPro's resounding success has prompted companies such as Garmin Ltd (GRMN), Panasonic Corp <6752.T> and Polaroid to launch their own action cameras. The market has also attracted the attention of Apple Inc (AAPL).

Separately, GoPro said it would buy Kolor, a virtual reality software maker.

Net income attributable to GoPro shareholders nearly doubled to $16.8 million, or 11 cents per share.

Excluding items, the company earned 24 cents per share.

Revenue rose to $363.1 million from $235.7 million.

Analysts on average had expected earnings of 18 cents per share on revenue of $341 million, according to Thomson Reuters I/B/E/S.

The San Mateo, California-based company's shares closed at $47.02 on the Nasdaq on Tuesday.

(Reporting by Kshitiz Goliya and Devika Krishna Kumar in Bengaluru; Editing by Kirti Pandey and Sriraj Kalluvila)