GoPro’s IPO Filing - Another Tech Company Showing Profit
June 16, 2014
By Marc Fogarty, CPA, CFE
GoPro, the maker of rugged and waterproof devices to video tape extreme sports action, announced it will join the recent boom in the tech IPO market. The technology aspect of GoPro is not new, but they created a new and unique way to use it. The product is appealing to the daredevil/extreme sports market who wants to video tape a sports activity, like skydiving or kayaking, without putting their more fragile iPhone at risk.
This tech company may be attractive to investors because there is real inventory and true gross margins. Investors will like that they can see growth in sales, users, pricing and they can measure inventory turnover and margins.
GoPro is currently showing a substantial profit but has stated that its profit margin may change if the makers of smartphones and tablets change the durability of their product offering. As I have mentioned in my previous blog, After the IPO, Twitter Can’t Rest on its Laurels, tech companies need to adapt to changing technology to stay viable.