29 August 2019
Fitbit has beaten analysts’ forecasts with a revenue of $271.9 million in Q1, 2019, while the company’s net loss came in narrower than expected. The company beat market analysts’ predictions of $259.7 million by a wide margin.
The total revenue for the company rose 10% year-over-year to $272 million, driven by growth in the tracker and smartwatch market. Smartwatch device sales grew 117% year-over-year for the company. Fitbit’s tracker device sales increased 17%, which is the company’s first quarter of year-over-year growth in the last three years. The company stated that the growth in trackers was driven by the introduction of new devices, the Inspire and Inspire HR.
Fitbit stated that the company is hoping for a good spring-fall season with new launches coming up. However, added that it depends on the market conditions as well.
Fitbit sold 2.9 million devices during Q1, 2019, which is an increase of 36% year-over-year. Average selling price for devices dropped 19% to $91 per device as the company introduced a more affordable range.
In Q2, 2019 Fitbit expects revenues to grow 2-7% year-over-year of approx. $320 million. For the full year of 2019, the company expects revenues to grow 1-4% to the tune of $1.52 billion to $1.58 billion. Fitbit predicts an increase in devices sold in the coming months and a decline in average selling price both over the full-year 2019.
“We’re continuing to forecast growth in the tracker business, and even faster growth and smartwatch business — but group growth in both segments,” stated CEO James Park. “At a very high level, the vision for our premium offering is a service that uses and gathers Fitbit data and data from other sources to screen and diagnose different disease and health conditions for users, that analyses this data to give people richer and deeper insights about their health, and also provides coaching and guidance,” says Park. “Next steps are for people to address their health conditions or to reach their fitness and wellness goals.”