Categories Earnings, Technology

Fitbit’s stock gains after Q1 results beat expectations

Fitbit Inc. (NYSE: FIT) beat analysts’ forecasts on revenue for the first quarter of 2019 while net loss came in narrower than expected. Shares were up 1.1% during after-market hours on Wednesday.

Total revenues rose 10% year-over-year to $272 million, driven by tracker and smartwatch growth. Smartwatch device sales grew 117% year-over-year. Tracker device sales increased 17%, marking the first quarter of year-over-year growth in three years. The growth in trackers was driven by the introduction of new devices Inspire and Inspire HR.

Fitbit reports first quarter 2019 earnings

On a GAAP basis, net loss was $79.5 million, or $0.31 per share, versus $80.9 million, or $0.34 per share, in the year-ago period. Adjusted net loss was $38.1 million, or $0.15 per share.

Revenue in the US fell 3% to $135 million while international revenues grew 26% to $137 million. The Fitbit Health Solutions business grew 70% with revenues of $30.5 million, and is on track to achieve its full-year revenue target of approx. $100 million.

Fitbit sold 2.9 million devices during the quarter, up 36% year-over-year. Average selling price dropped 19% to $91 per device due to the introduction of more affordable devices.

For the second quarter of 2019, Fitbit expects revenues to grow 2-7% year-over-year to a range of $305 million to $320 million. For the full year of 2019, revenues are expected to grow 1-4% to a range of $1.52 billion to $1.58 billion. The company expects to see an increase in devices sold and a decline in average selling price both for the second quarter and full-year 2019.

 

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