GoPro Surprises on Top and Bottom Lines

That net income compared to net income of $1.0 million or $0.01 per share in the third quarter of 2013, and compares to net income of $11.8 million or $0.08 per share in the second quarter of 2014.

Non-GAAP gross margin in the third quarter of 2014 was 44.5%, versus 33.5% in the third quarter of 2013 and versus 42.2% in the second quarter of 2014. Non-GAAP operating income in the third quarter of 2014 was $27.6 million, compared to operating income of $2.3 million in the third quarter of 2013 and operating income of $17.8 million in the second quarter of 2014.

Cash and cash equivalents was $237.7 million at the end of September versus $190.1 million a year ago and versus $132.9 million as of June 30. Cash flow from operations for the third quarter was $47.0 million.

Unfortunately we saw no earnings or revenue guidance, same as the quarter before.

It was just last week that one analyst cautioned on close to 50% downside in GoPro. The flip-side to that this week is that GoPro was started as Outperform with an $81 price target this week by Wedbush.

GoPro shares closed up 0.5% at $68.25 against a post-IPO range of $28.65 to $98.47. The after-hours reaction after the report initially had GoPro shares up around 3.75% at $70.60.

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GoPro CEO Nicholas Woodman said,

“The global scale and execution of our HERO4 launch made this the most successful roll out in GoPro’s history. HERO4 pushes the performance envelope of our Emmy Award winning capture technology. Advancements in our desktop and mobile content management applications continue to make it easier for our customers to create and share compelling content stories that go on to virally drive awareness and demand for our business. This positions us well for an exciting holiday season.”