GoPro, once a high flying tech company and Wall Street darling, is getting destroyed.
The stock is down over 80% in the past 12 months and revenues are sliding along with it.
After a disastrous quarterly report, the company and its executives are trying to re-brand themselves and convince investors that they’re more than a passing fad.
“We’re sort of narrowly described as being an action camera company,” said CEO Nick Woodman in the quarterly earnings call Wednesday.
“I’d prefer … we would all prefer that we think of it more as — GoPro as — the world’s leading activity capture company.”
For much of its life, the company has been defined by action sports branding. Its been about wild adventures captured by mounted cameras that can be shared with friends.
Woodman said that wild activities aren’t the only thing that people can use GoPro for. Here’s his take:
“Action implies something kind of risky and dangerous that you’re doing, but in truth the majority of our customers use a GoPro to film themselves having fantastic weekends with their families and perusing sort of more everyday activities, and unlike a smartphone or a traditional camera where you need a third person to hold the camera to photograph or film you doing whatever it is that you love to doing life, with a GoPro you can film yourself.”
Woodman also said that the advertising for the company will reflect this shift, starting with a TV during the Super Bowl. Up until now, most GoPro ads featuring high-flying activities like skiing, surfing, or rock climbing.
“Something else that we’re doing moving forward is adjusting our marketing slightly to be more product centric and do a better job of communicating the product itself and the benefit of GoPro cameras themselves and less about the big branded visuals,” said Woodman.
One of the biggest questions facing the company have been the market for a product like a GoPro. By shifting the focus from a niche product for action sports to a camera for everyday use, Woodman and the company hope to expand its possible customer base.
Whatever the company does, it needs to do it fast as more and more investors are getting bearish on the product.
We agree with GoPro that a software revamp is crucial, but believe the company is too optimistic about its addressable market,” said Andrew Uerkwitz at Oppenheimer in a note Thursday. “With macro headwinds, channel inventory digestion, and poor user experience haunting the company, we see 2016 as a very tough year for GoPro to regain momentum.”
Based on their own admission and analysts’ opinion a change is scenery is needed for GoPro, but it remains to be seen if they can pull it off.
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