GoPro's shares jumped by 21.3 percent after the company announced that it expects fewer losses for the third quarter, following better-than-expected results for the second quarter. It also revealed that it is on track to launch the latest version of its flagship camera for the holiday season.

The company's battered share price went up by a further 15 percent a few days ago, after it announced stronger-than-expected sales of its latest cameras. They should push sales up to the top a forecasted range of between $290 million and $310 million for the third quarter

GoPro hada huge net loss of $111.1 million for the first quarter, which was even bigger than the loss of $107.4 million of the year-ago period. However, Nicholas Woodman, founder and chief executive, said the company was on track to return to profitability for the full financial year.

The second quarter seemed to confirm that prediction. The gross margin improved as compared to the first quarter, although it was still 6.2 percentage points lower than in the year-ago quarter at 36.2 percent, partly due to a difficult comparison base. The management sees the gross margin continuing to improve toward a longerm target range of 39 to 41 percent.

The operating loss eased down to $9.3 million in the second quarter from $89.3 million a year ago, as the company slashed R&D spending by 40 percent to $55.5 million and sales and marketing expenses by a third to $56.6 million. Adjusted Ebitda was a positive $5.21 million, against a loss of $76.8 million. The net loss was reduced to $30.5 million from $91.8 million a year ago.

Beating the company's own guidance, sales advanced by 34.0 percent over the year-ago quarter to $297 million, driven by demand for its Hero5 Black camera and sequential revenue growth for the Karma drone. Revenues were expected to come in between $260 million and $280 million. The company shipped over one million cameras in the second quarter, 40 percent more than in the same period a year ago.

Sales in the Americas accounted for 53.0 percent of the quarterly turnover, while Europe and Asia-Pacific represented 27.0 percent and 20.0 percent, respectively. European sales went up by 32 percent to $80.2 million. Japan was a highlight, with camera unit sales up by 164.0 percent. In China, a top 10 market for GoPro and one of its fastest-growing opportunities, the year-on-year increase in unit sell-through reached 57 percent.

GoPro has just launched the revised version of its Karma drone in the U.K., Germany, France, Korea and Japan. It was the #2 selling drone in the U.S. during the second quarter, according to NPD, although it got some negative reviews lately.

Meanwhile, GoPro has just launched QuikStories, a new GoPro App feature that automatically copies footage from a GoPro camera to the user's smartphone. The app then creates ready-to-share video for social networks. Woodman expects it to be “game-changing” for customers and the business. In addition, the Hero6 and Fusion, a 5.2K spherical camera, are on course for launch later this year.