GoPro Inc. beat analysts’ estimates for first-quarter revenue and profit, spurred in part by overseas sales that rose to about half of the company’s revenue.
GoPro, the leading maker of action cameras used to shoot first-person video, posted profit of 24 cents per share, excluding certain costs, the company said Tuesday in a statement. Analysts on average were projecting 18 cents, according to data compiled by Bloomberg. Revenue was $363.1 million, compared with the average estimate of $341.1 million.
The improved international sales may show GoPro’s popularity isn’t confined to skiers and other extreme sports enthusiasts in the U.S., said Tavis McCourt, an analyst with Raymond James & Associates Inc.
“To the extent that they’re growing faster overseas, it shows that this is not just a U.S. phenomenon,” McCourt said.
Second-quarter profit will be 24 cents to 26 cents a share, the company said on a conference call. Analysts on average projected 16 cents. Sales will be $380 million to $400 million, compared with estimates of $333.7 million.
Shares gained 10 percent in extended trading after the forecast was announced. Earlier, they had gained 4.1 percent to $47.02 at the close in New York.
The San Mateo, California-based company’s stock has dropped 26 percent this year, in part because GoPro provided a conservative first-quarter forecast that projected growth far below the 75 percent increase posted in the fourth quarter.
First-quarter sales increased 66 percent in Europe and Asia in the quarter from a year earlier, the company said. The growth is evidence the company’s Hero-brand cameras are becoming a more mainstream product, GoPro president Tony Bates said in an interview. In a company-sponsored study, about 50 percent of customers said they bought a GoPro to capture family videos, more than for any other use.
“No. 2 was to get videos of their pets,” Bates said. “It wasn’t all about wing-jumpers and kite-surfers.”
The 50-50 split of U.S. versus non-U.S. sales may vary in the quarters ahead, as new products catch on at different rates around the world. Over time, however, that split is where the business will settle, Bates said.
GoPro is expanding distribution in dozens of Chinese cities after failing at times to provide enough inventory to meet demand. By the end of June, an entry-level camera costing $130 will be available in China. The camera was introduced in the U.S. last September.
“We’re very happy with our initial results in China,” Bates said.
GoPro also earlier announced the acquisition of Kolor, a startup that makes software for patching together photos to create 360-degree panoramas or videos.
“We see incredible opportunity for GoPro to be at the forefront of the virtual reality movement,” Chief Executive Officer Nick Woodman said during a call with analysts.