GoPro posted a 23.8 percent revenue increase on an annualized basis in the fourth quarter of 2016. Sales reached $540.6 million for the period, falling below the company's previous guidance, which called for fourth-quarter revenues in the range of $600 million to $650 million. GoPro noted that it was the second-highest quarterly turnover in its history and that the sell-through of its product in China was up by 61 percent.
For the quarter, GoPro experienced a net loss of $115.7 million up from a net loss of $34.5 million in the fourth quarter of 2015. The net loss for the quarter ended Dec. 31, 2016 included charges of $102 million for a full valuation allowance on U.S. deferred tax assets, and nearly $37 million in restructuring costs. On an adjusted basis, which also excludes stock-based compensation, acquisition expenses and restructuring costs, the company generated net income of $42.4 million. The gross profit margin increased to 39.5 percent from 29.6 percent a year earlier.
During the latest quarter, the company released several GoPro accessories including the Karma Grip, a handheld and wearable stabilization accessory; Remo, a voice-activated waterproof remote for Hero5 cameras; and Quik Key, a mobile microSD card reader for fast editing and sharing from a smartphone. GoPro's Hero5 Black was the best-selling digital image camera on a unit basis in the U.S., while Hero Session was the No. 2 best-selling camera in the country on a unit basis, the company said.
GoPro's presence on social media increased significantly during the quarter. The number of international Instagram followers increased by 245 percent. Social media views of GoPro content were up by 40 percent and reached nearly 238 million, driven by a 160 percent increase in views on Facebook. The Quik mobile app was named one of Google Play's Best Apps in 2016. In December, the number of monthly active users of the app and exports tripled compared with the same period a year earlier. The Capture App saw the number of shares per month initiated from the app increase by 128 percent, while the number of people sharing content monthly on this app rose by 45 percent.
Meanwhile, GoPro again released its Karma drone a few days ago. It had been recalled last autumn, shortly after its launch, because the battery could lose contact with the device, causing the drone to crash. There were no casualties.
