GoPro faces uncertain future as holiday sales disappoint
The holidays were not kind to GoPro. The action camera company had already issued an earnings warning in January, dropping its projected Q4 revenues from $470 million to $340 million, that's a 37 percent year-over-year decline. The holidays were so dreadful, in fact, that GoPro has since decided to abandon its drone pursuits and a fifth of its workforce, roughly 300 positions . That said, the company did earn $1.18 billion in 2017, flat year-over-year, and the staff reductions did help drop GoPro's operating expenses by 30 percent, which left the company with $247 million in cash and marketable securities at the end of the year. That's $50 million more than it had on hand at the end of Q3. Neither the oft troubled Karma drone nor the existing Hero5 flagship camera managed to ignite the public's passions during the holidays. As a result, the company was forced to offer these products at a discount, further eroding its profit margins during the critical sales season...