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GoPro cutting 270 jobs, stock soars

GoPro has announced 270 job cuts and pre-announced that its first-quarter earnings would be at the high end of guidance, around $210 million. It also said it would cut operating expenses by more than $200 million and return to EBITDA profitability in 2017.

The stock rose by more than 11 percent after hours on the news.

The action camera manufacturer had previously guided revenue between $190 million and $210 million and operating expenses between $168 million and $178 million (GAAP) for the quarter. For the fourth quarter, the company reported a net loss of $116 million on revenue of $541 million.

It now expects GAAP expenses to be below $585 million for the year. It will take a charge of approximately $10 million due to the restructuring.

"We're determined that GoPro's financial performance match the strength of our products and brand. Importantly, expense reductions preserve our product roadmap and we are tracking to full-year non-GAAP profitability in 2017," said CEO Nick Woodman in a release.