GoPro will launch an aggressive marketing campaign for the all-important holiday quarter of 2019. While sales growth for 2019 is estimated at 7.8% YoY, analysts expect Q4 sales to rise by a significant 51.7% YoY.
GoPro continues to have a huge presence on social media platforms, including YouTube and Facebook’s Instagram. The company’s content generated an impressive 234 million organic views in the third quarter. YouTube and Instagram views were up by 48% sequentially and 64% YoY in the September quarter. It has a cumulative 42 million followers across social media platforms. Will GoPro manage to convert a portion of these followers into customers?
Another vertical that is gaining traction is GoPro’s Quik software, which is a mobile editing application. The company is looking to monetize the application in 2020 after increasing its user base. The GoPro Plus is a cloud-based subscription service priced at $4.17 per month. Plus subscribers get access to unlimited cloud storage, 50% discount for accessories, and product replacement guarantee.
GoPro Plus has around 305,000 subscribers at the end of Q3 and the company estimates this to rise to between 600k and 700k subscribers by 2020. In case GoPro manages to exit 2020 with 650k Plus subscribers, it will result in annual sales of $32 million. However, this is just 2.5% of its estimated sales.
View more information: https://marketrealist.com/2019/11/what-next-for-gopro-stock-after-46-decline/