The net loss for the three months ended 30 June narrowed dramatically to US$30.5mln, compared with a loss of almost US$92mln for the same period in 2016.
When adjusted for one-off items, the California-based group reported a US$0.09 per share loss for the quarter, much smaller than the US$0.25 analysts had been looking for.
Revenues also increased by 34% to US$296.5mln during the period, eclipsing market expectations of US$269.2mln. More than half of those sales were to customers outside of the US.
Chief executive Nicholas Woodman said “strong demand combined with cost management and margin initiatives” contributed to the improved performance.
As for the current (third) quarter, the company is guiding for a per-share loss of US$0.06 to earnings of US$0.05 on revenues of US$290-US$300mln. Analysts had estimated a loss of 12 cents a share on revenue of US$278.5mln.
Difficult couple of years
GoPro has had a torrid couple of years beset with disappointing launches, product delays and weaker demand as more and more people use their smartphones to record videos on the go.
Earlier this year, Woodman outlined plans to kick the company back into gear with various cost-cutting measures and jobs cuts.
The efforts seems to be paying off and put GoPro in a better position ahead of the release of its Hero6 and spherical Fusion camera later this year.
Wedbush still not convinced
“While first half outperformance gives us more confidence in GoPro’s potential to return to profitability, we remain somewhat skeptical due to past execution missteps and supply issues,” said Wedbush analyst Alicia Reese.
“There is no question that HERO6 will get initial orders, but we will reserve judgment about the prospects for the HERO6’s success until we see if it is well received by consumers.”
Shares gained 14.2% to US$9.43 in pre-market trade.
--Updates for share price and broker comment--