GoPro (GPRO 3.36%) makes some very cool cameras capable of amazing things. That, however, isn't enough to turn a company into a sustainable business. And yet GoPro generates roughly $1 billion in revenue per year and has new products and services tied to its devices that suggest this camera maker has more opportunity ahead of it. Here are three reasons to like GoPro's future.

1. Turning a profit

Beyond Meat was, at one point, a very hot product that it seemed like everyone wanted to try. Its stock rocketed higher, and then, suddenly, investors started to realize that fake meat was a product, but maybe not a business. Bleeding red ink, Beyond Meat's shares have tanked. Fitbit is an example of something similar in the electronics space, with this company and its tracking device eventually getting bought by Alphabet, which hoped to use its size and scale to expand the Fitbit's reach. GoPro seems to have many similarities to both of these companies. 

A person on a zipline using a camera to photograph themselves.

Image source: Getty Images.

GoPro has a product, a high-tech and durable camera, that's very cool and, for a while, was a highly in-demand item. A larger technology company, meanwhile, could probably scale up GoPro's products in a way that the $900 million market cap company couldn't manage on its own. Yet, there's a very important fact here that changes the story immensely -- GoPro is profitable. Through the first nine months of 2022, it earned $0.16 per share on revenues of just over $770 million.

That may not sound like a lot of money, but having a profitable business is the difference between fighting for life and not, particularly for a relatively young and still-small company. Adding to the positives here is the fact that GoPro has more cash and marketable securities than long-term debt, giving it a very strong balance sheet. GoPro, simply put, has plenty of room to maneuver.

GPRO Chart.

GPRO data by YCharts.

2. Camera as a service

That said, it should be noted that GoPro's profitability has been a touch-and-go thing in recent years. But there's a big change that shouldn't be ignored. For most of its life, GoPro sold cameras. That's still its main business, of course, but it now also sells a subscription service that is quickly gaining traction. 

According to the company, the service "provides customers with unlimited cloud storage, the ability to auto upload footage to the cloud directly from GoPro cameras, premium editing tools in the Quik App, a private livestreaming platform, guaranteed damaged-camera replacement, exclusive savings on GoPro cameras, and up to 50% off at GoPro.com on accessories." It recently passed the 2 million-customer mark.

Far from an interesting sideline, this is a very real revenue generator that provides consistent cash flow and not episodic revenues, as does the sale of a camera. That's likely to be an increasingly important foundation on which to grow the business over time.

3. Broadening the reach

Watching GoPro video is intense because of the nature of the users and the product, which both lean toward high-octane thrills. GoPro content has apparently generated over 3 billion views on YouTube, with channels dedicated to such material having a huge 10 million subscribers. Looking to capitalize on that, GoPro has just teamed up with Roundtable Entertainment and Cinedigm (CIDM 1.00%) to create a GoPro streaming channel. 

Although details are limited at this point, a GoPro channel could result in a third income stream if the company gets a piece of any advertising revenue generated. More importantly, though, it will expose GoPro to a broader audience, highlighting what the company's cameras are capable of. Simply put, the entire channel is a giant advertisement for GoPro's products and services. Even if that's the only benefit GoPro receives, the GoPro channel will be a huge win given that advertising is a material cost for consumer discretionary companies.

More upside from here

Wall Street's infatuation with GoPro ended shortly after the company went public, with the stock pretty much staying stuck at a modest price level for several years. But it appears that now might be a good time to zoom in on this unique company as it starts to build an ecosystem around its high-tech cameras. Add a strong balance sheet and profitability to the mix, and the future looks increasingly bright here.