There has been talks that GoPro Inc (NASDAQ: GPRO) needs to diversify its operation away from the action camera business that has come under immense pressure amidst stiff competition in the space. The company could finally be addressing the concerns with a keen eye on the virtual reality space as it looks to flex its muscles against well established players of the likes of Facebook Inc. (NASDAQ:FB)
The announcement that GoPro Inc (NASDAQ:GPRO) has completed the acquisition of a French company Kolor that specializes in virtual reality just affirms how focused the company is, as it looks for other opportunities to spur growth. The action camera company will be looking to use Kolor software to create interactive content by combining multiple photographs and videos to create 360 degrees panoramas.
GoPro captures virtual life
Given the fact that GoPro Inc (NASDAQ:GPRO) devices are mostly used to capture life experiences; CEO Nick Woodman believes the virtual reality space creates an incredible growth opportunity for the company. Creating Virtual reality content may be a little bit complicated at the moment but the CEO believes they can be able to make it a little bit easy to the understanding of many.
The acquisition of Kolor comes on the heels of the unveiling of ‘Herocast’ a solution the company plans to use to boost its live streaming ambitions having already tested it on the Winter X-Games. Expansion into other areas of growth come as the company continues to register substantial growth on the sale of its action cameras that re expected to play a key role in virtual reality as well as live streaming.
GoPro rockets after earnings
GoPro Inc (NASDAQ:GPRO) ended the first quarter on a high seen by revenues of $363 million, the second highest in the company’s history. Earnings per share came in at 24 cents against an initial guidance of between 15 and 17 cents. Selling a total of 1.3 million devices in the quarter was just an indication of how the company continues to gain traction in the action camera business an improvement from 852,000 units sold a year earlier.
Gross margins were also up to 45.1%, up from 40.9% posted a year earlier. Going forward expects to generate revenues of between $380 million and $400 million.