GoPro aims to reduce its operating expenses by $80 million in 2018
One of GoPro’s (GPRO) primary objectives in 2018 will be to reduce its operating expenses and improve its profitability. GoPro is aiming to reduce its operating expenses by $80 million in 2018, which will mean total operating expenses of below $400 million for the year.
GoPro is reducing its global workforce. The US-based (SPY) consumer technology (QQQ) company is looking to cut its workforce of 1,254 employees (as of 3Q17) to fewer than 1,000 employees. GoPro’s CEO, Nicholas Woodman, has reduced his compensation for 2018 to $1.
GoPro might achieve non-GAAP profitability in 2018
GoPro posted non-GAAP (generally accepted accounting principles) EPS (earnings per share) of -$0.44 in 1Q17 and -$0.09 in 2Q17. The company returned to profitability in 3Q17 with EPS of $0.15. Analysts, however, expect the company to post EPS of -$0.02 in 4Q17 compared to $0.29 in 4Q16. GoPro is expected to post EPS of -$0.45 in 2017 compared to -$1.44 in 2016. Its EPS are expected to rise to $0.04 in 2018.
In the table above, we can see that analysts have estimated GoPro’s GAAP net income to be -$146 million in 2017 compared to -$419 million in 2016. Its net income is expected to rise to -$38 million in 2018 and -$7 million in 2019.