Action camera maker GoPro failed to meet analysts' expectations in the fourth quarter of 2016. While the California company's revenue grew by 24 percent year-over-year (to $540.6 million), it was significantly lower than the projected revenue of $570 million. The company said it incurred an additional $115.7 million in restructuring and tax-related expenses.
After poor holiday sales in 2015 and throughout 2016, the company was hoping for a significant revenue increase. However, in November the company faced the unpleasant need to recall its first drone, Karma. Only recently has this drone returned to sale.
There were problems related to the production of the new Hero 5 camera - the company was unable to deliver the required number of models to stores. At the end of the year, GoPro sold 2.3 million cameras - 14 percent more than in the fourth quarter of 2015, but significantly less than in its successful 2014.
In addition, the company failed to meet analysts' expectations for the current quarter. The company's stock price fell by 13 percent. GoPro shares are now trading at $10 (compared to $80 in 2014).