GoPro founder: 'We are open to a partnership'

Brian Sozzi
·Executive Editor

GoPro founder and CEO Nick Woodman has two messages to investors who watched the stock dive more than 20% Friday after a mixed third quarter.

But both of them have the same overarching theme: don’t count GoPro out. Woodman told Yahoo Finance GoPro will likely be profitable in the all-important fourth quarter despite what he sees as a more promotional holiday season. Next year is shaping up reasonably well, too, Woodman said, on the back of interest in GoPro’s new Hero 7 line of action cameras.

And Woodman is open to striking a deal of some sorts to create shareholder value, provided it makes sense. “We are open to a partnership,” Woodman said, stopping short of suggesting an outright sale to a larger company is possible.

Indeed, time is ticking on GoPro and Woodman to deliver a solid quarter or a strategic transaction. Shares of GoPro (GPRO), which Woodman took public in 2014, were nailed by more than 20% on Friday’s session.

GoPro CEO and Chairman Nick Woodman (AP Images)
GoPro CEO and Chairman Nick Woodman (AP Images)

Investors locked into GoPro’s gross profit margin that came in at 33.2% versus Wall Street estimates of 34.1%. The third-quarter adjusted net loss was 4 cents a share, better than analyst forecasts for a 6 cents a share loss.

Concern also raged about the promotions GoPro may offer in the market during the holidays to move its action cameras. Woodman said retailers have asked GoPro to be more aggressive on holiday promotions, citing a likely very competitive shopping season.

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Brian Sozzi is an editor-at-large at Yahoo Finance. Follow him on Twitter @BrianSozzi

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