GoPro Inc (NASDAQ:GPRO), an American corporation famous for its high-definition personal cameras, often used in extreme action video photography is really making its way into the stock market by offering a perfect amalgamation of hardware and software punch. Mainly famous for its hardware products, especially cameras that are fitted for rugged terrains, Quadcopters, skiing equipment, GoPro Inc (NASDAQ:GPRO), is quickly becoming a mainstream company giving a decent IPO.
Talking to CNBC, Scott Kupor, COO of Andreessen Horowitz, said that GoPro Inc (NASDAQ:GPRO) can really harness market potential into a long term benefit if they can monetize a community around it just like YouTube or Oculus VR.
Answering to the question that whether GoPro is purely a hardware company or is there an element of software, giving an edge as well, Scott Kupor, said that although the software part of GoPro Inc (NASDAQ:GPRO) is not that much differentiated but everything depends upon whether the company can build a community around its offerings or not and in case of GoPro, Kupor thinks, they have managed to inculcate the community around that is necessary to harness the future market base.
“I think the part that makes it difficult to commoditize is if they can actually continue to build the community around it,” said Kupor.
Kupor also gave the example of subscription models of other companies that rally a community around them by crafting a model that can elevate the customer loyalty by streamlining their efforts around one solid software or hardware domain.
“To me basically what you are buying in the IPO is you are basically paying something like two times revenue, which at that growth level for a hardware company, I think is pretty reasonable,” think Kupor.
Kupor analogizes Oculus VR for explaining the possibilities for GoPro Inc (NASDAQ:GPRO) and touted that the parts of Oculus hardware consists of just mobile hardware parts but the really catch lies in the software.