Although GoPro (GPRO) beat Wall Street expectations came to sales, shares of the camera maker fell nearly 8% in early trading Friday after the company reported weaker than predicted earnings and heavy losses.
Revenue for the first quarter dipped 49.5% to $185.5 million on net loss of 78 cents per share. Analysts from had expected revenue of $169.1 million on revenue on a loss of 60 cents.
The losses in comparison from a quarter earlier highlighted a significant, long-term problem for GoPro: expanding its customer base. Thus far, GoPro has shown rapid growth by appealing to daredevils and sports fanatics—but has had trouble breaking into the mainstream market, a challenge that could stunt the company’s growth.
In the same earnings call Thursday after hours, GoPro also announced that it would delay the launch of the hotly anticipated Karma drone until the holiday season, which originally could have been released as early as this week.
The product had been considered a potential solution to GoPro’s problem of adding a broader customer base. Sales for GoPro in quarters past have also been lackluster, as demand for its core camera business seemed to dry up. Investors are hoping the drone might appeal to a different group of consumers—offsetting losses in GoPro’s camera business and perhaps allowing the company time to strategize and build its core back up.
As a result of flagging sales, GoPro cut 7% of its workforce in January.
Shares have slid 90% since their all-time high of $98 in October 2014.
