Fitbit Releases $353M In Revenue, Beats Loss Estimated In Q2 2017

Fitbit on Wednesday published its consolidated financial report for the second quarter of the year, revealing that it generated $353.3 million in revenue over the three-month period ending June 30, thus beating street estimates of approximately $341 million by a significant margin. The company’s adjusted loss in the same period amounted to $0.08 per share and was almost 50 percent smaller than the $0.15 figure given by Thomson Reuters earlier this month. The company’s shares are currently trading almost nine percentage points up, indicating that investors are pleased by the fact that Fitbit posted much lower losses than the market expected. The firm still has some way to go in order to bounce back from its recent issues, having reported earnings of $0.12 per share in the second quarter of last year.

The San Francisco, California-based original equipment manufacturer (OEM) revealed that it sold 3.4 million devices in Q2 2017, thus meeting most consensus estimates. Fitbit co-founder and Chief Executive Officer James Park stated that this improved performance was directly prompted by the increasing demand for the firm’s products that weren’t expected earlier this year, adding that the tech company is now looking to build on that momentum by releasing a dedicated smartwatch which will be aimed at consumers looking for a health and fitness-oriented wearable. The product will be released in time for this year’s holiday season and should additionally improve Fitbit’s commercial performance, allowing it to conclude the year on a high note, Mr. Park believes.

The release of a new smartwatch is just the beginning of the company’s long-term corporate strategy aimed at dominating the health wearable segment. Fitbit CEO explained that the firm will be looking to continue leveraging its brand and assets to ennoble its product and service portfolio in the future but didn’t elaborate on the matter. Fitbit’s latest financial report also revealed that 38 percent of its new products were purchased by its existing customers, with 39 percent of that group not using its older products for at least three months prior to their new purchase. This particular metric indicates that the firm may have managed to revitalize its user base and once again get them excited about its new offerings, though it remains to be seen how its user retention rates will fare in the coming months. 

Source: Fitbit Via: Business Insider