A very strong holiday season for GoPro's latest Hero 7 series of cameras has helped the camera make its first quarterly profit since Q3 2017, the company announced on Wednesday. GoPro withdrew $ 377 million in revenue in the fourth quarter last year, with $ 32 million in profits.
This marks the second time GoPro has won profits since Q3 2015, back before the company's poor attempt to enter the drone market.
The company also announced that it will move its US-bound camera production from China to Guadalajara, Mexico, in the second quarter of this year. The company announced in December that it was moving some production because of the ongoing trade war with China.
"We are encouraged by the momentum," said GoPro director Nick Woodman on a conversation with investors. "GoPros brand has never been stronger, our product never gets better, and we are kicked up for the coming year."
Hero 7 Black was announced last September. While closely linked to the design of its two predecessors, Hero 5 and Hero 6 Black, the company's newest flagship, offer a range of internal improvements and new features.
Previously, GoPro said Hero 7 Black was the company's fastest-selling camera ever, and the momentum accomplished the 201
The camera company also continued to increase the number of customers for its $ 5 per month shootout subscription service called GoPro Plus. At the end of 2018, there were 199,000 paid Plus subscribers, according to GoPro, which is up from 185,000 at the end of the third quarter last year. GoPro recently announced that it removed all of the Plus storage cabinets in a bid to increase subscription rates.
GoPro started 2018 in a rough place. The company had come out of a 2017 high season that was worse than it was predicted. Then GoPro turned around and interrupted Karma drone, resulting in layoffs of a few hundred people. At CES 2018, Woodman even talked about exploring a sale of the company.
But the company's price adjustments seem to have worked. GoPro trimmed its operating costs to just under $ 400 million a year, and is now entering a new year with a trim height of 891 employees (the company had nearly 1,300 employees in 2017, even after the previous rounds of deviations).
"It feels great to be in 2019 with speed and steady foot," Woodman said on the investor interview Wednesday. This allows us to build constructively on the momentum we have in the business, and to look for ways to expand our business, and spend our time and energy on it, as opposed to fire fighting that we have had to do in years past. "