GoPro announced some details of its Q4 earnings early this week, revealing their plan to cut 7% of its global staff as a result of weak earnings from the quarter, which missed the companies goal completely.
The company announced that it is expected to have revenue of $435 million for the fourth quarter, with a total of $1.6 billion for 2015, massively below analysists expectations of $521 million.
Re/code where one of the first to report the news, obtaining an email in which Nick Woodman, GoPro’s CEO blames the launch and pricing of their Hero 4 Session Camera.
Here’s that statement:
Today’s announcement reflects the issues we faced in 2015, largely related to our launch and pricing of HERO4 Session. While we clearly made a mistake pricing Session at $399 (more specifically I made the mistake, it was my decision), I’m proud of how we responded. We recognized the problem, price adjusted to $299 … recognized that wasn’t enough and price adjusted again to $199 which positioned Session as the best entry-level product we’ve ever made.
This is despite selling 2.4 million units of the Hero 4 Black and Hero 4 Silver during the final quarter.
At closing shares fell more than 20 percent, closing at $14.61 and coming after a massive 72 percent drop over the last six months.