GoPro reported earnings of 8 cents per share and revenue of $245 million, beating Street estimates. Shares fell 11 percent after the report.
Analysts had expected the company to report earnings, excluding items, of 6 cents a share on $238 million in revenue, according to a consensus estimate from Thomson Reuters.
Ignoring the one-time items, the company reported a loss of $19.8 million in the second quarter.
The company's second-quarter revenues jumped 38.1 percent over the year-ago period, when it generated $177.1 million as a privately held firm.
"We are seeing a tremendous volume of quality content generated by our users and a 200 percent year-over-year increase in video views on YouTube, which is fueling our virtuous cycle whereby viewership of GoPro content drives sales," said GoPro CEO Nicholas Woodman, in a statement. He cited the Hero 3+ Black Edition and various accessories as sales of various accessories as leaders.
Although the company is profitable and enjoys solid sales, some traders remain leery.
"Management's great; the product's great," says Brian Hamilton, chairman of Sageworks. "But right now they're overvalued. Basically, they are double the relative value that they were when they came out, so that's the real problem with this stock."