The company’s marketshare price fell amid the disappointing reports. The camera and technology company said it would cut its workforce of 1,254 to fewer than a thousand.
According to AFP, GoPro hired JPMorgan Chase to advise it on strategic options, including a possible sale. Woodman earlier told CNBC that the company expected to remain independent, but would consider a sale.
“If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at,” Woodman told CNBC.
“Of course we need to run the business as though we’re going to be independent, and we’re planning accordingly.”
Contrary to the expectations, GoPro projected fourth-quarter sales of just $340 million, well below the $474 million expected by analysts. On the other hand, midway through the holiday season, GoPro slashed prices on some camera models, which lifted sales but lowered profit margins.
“Despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier,” said Woodman, adding that the company “is committed to turning our business around in 2018.”
Although GoPro’s Karma drone was the number two offering in its price division, the company will exit the “extremely competitive” drone market, it said.
According to GoPro, “A hostile regulatory environment in Europe and the United States will likely reduce the total addressable market in the years ahead. These factors make the aerial market untenable.”