It's down 10% in after-hours trading. "Longer term, we reduced our outlook for camera sales, drone market re-entry, and growth of non-hardware revenues".
The company has been struggling with slowing sales of its helmet- and body-mounted cameras as cheaper rivals emerge and smartphones feature increasingly advanced cameras. The stock is now falling like a recalled GoPro Karma drone.
In November 2016, GoPro had issued a recall of about 2,500 Karma drones after power a failure issue was discovered during the operation. But in the meantime, GoPro expects first-quarter revenue of $190 million to $210 million, significantly below analysts' estimates for $264.5 million.
Revenue during the crucial holiday quarter slid 5.7% versus a year ago to $540.6 million, which was well shy of the $574.5 million that analysts were expecting.
GoPro's revenue is expected to rise again in the current quarter - to between US$190mil (RM841mil) and US$210mil (RM929.6mil) from US$183.5mil (RM812.3mil) a year earlier. That guidance fell short of the nearly $268 million that analysts surveyed by Thomson Reuters had estimated.
The company said its gross margin in the current quarter would be in the low 30% range, a sharp drop from the 39.2% recorded in the fourth quarter.
The company notes the $0.82 per share loss includes charges of $102 million for a full valuation allowance on US deferred tax assets and almost $37 million for restructuring costs.
After the company's poor Q3, GoPro CEO Nick Woodman announced that he was shuttering the action sports camera maker's entertainment division, which cost the company 15% of its work force, or 200 full-time jobs.
That meant Karma couldn't help GoPro sales in the all-important fourth quarter, when rival DJI also had a hot, consumer oriented drone, the Mavic Pro, which sold for $1,000 and was sold out for many weeks.