GoPro Inc GPRO shares surged about 31.9% in Wednesday's regular and after-market sessions as the adventure camera maker said there was “high demand” for its Hero9 Black product.
What Happened: The demand for Hero9 Black has increased the number of GoPro subscribers to more than 500,000, GoPro said in a statement.
“Our paid GoPro subscriber count is ahead of where we expected to be at this time and bodes well for us to exceed our previously-stated target of 600,000 to 700,000 paid subscribers by year-end,” said GoPro CEO Nicholas Woodman.
GoPro said the vast majority of consumers buying the new $350 camera through its website were also purchasing the bundled annual “GoPro subscription” along with it.
The camera maker said the demand for both the camera and the subscription drove a 230% growth in sales at its website in a comparable two-week period post its launch in 2019.
Why It Matters: GoPro aimed to save $100 million in 2020 as a part of the restructuring, which involved selling products directly to customers.
The COVID-19 pandemic affected the company’s global distribution network leading up to the transition. In April, the company laid off 20% of its employees due to the crisis.
The digital action camera company launched a line of outdoor products in July that featured bags, apparel, and water bottles to give GoPro a more lifestyle-oriented image.
Price Action: GoPro shares traded at $6.58 in the after-h
Photo courtesy: Vijapendyam via Pixabay
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