Fitbit Inc. (NYSE: FIT) reported better-than-expected revenue and earnings for the second quarter of 2019 but the company lowered its revenue guidance for the full year, sending the stock crashing 12% in aftermarket hours on Wednesday. The consensus estimate was for a loss of $0.18 per share on revenue of $311.9 million.
Total revenue rose 5% year-over-year to $314 million, driven by a 31% growth in devices sold.
GAAP net loss was $69 million, or $0.27 per share, compared to $118 million, or $0.49 per share, in the year-ago period. Adjusted net loss was $36 million or $0.14 per share.
Tracker revenue grew 51% year-over-year and comprised 59% of total revenue. Smartwatch revenue fell 27%, hurt by weaker-than-expected sales of Fitbit Versa Lite Edition. Smartwatches represented 38% of total revenue. Accessory and non-device revenue formed 3% of total revenue.
Devices sold increased 31% year-over-year to 3.5 million. The average selling price was $86 per device, down 19%, due to the introduction of more affordable devices. Tracker devices sold increased 56% year-over-year while smartwatch devices sold fell 7%.
New devices introduced in the past 12 months – Fitbit Charge 3, Fitbit Inspire, Fitbit Inspire HR, Fitbit Ace 2 and Fitbit Versa Lite Edition – represented 68% of revenue. Fitbit Health Solutions revenue increased 16% year-over-year, and the segment is on track to achieve its full-year revenue target of approx. $100 million.
Revenue in the US fell 1% to $181 million while international revenues rose 14% to $133 million. The EMEA and Americas, excluding the US, regions saw double-digit revenue growth while APAC recorded a decline.
For the third quarter of 2019, revenue is expected to decline 10-15% year-over-year to $335-355 million. Adjusted basic net loss per share is expected to be $0.09-0.11.
For the full year of 2019, the company lowered its revenue guidance to a range of $1.43 billion to $1.48 billion versus the previous range of $1.52 billion to $1.58 billion. Adjusted basic net loss per share is expected to be $0.31-0.38.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
Key highlights from Abbott Laboratories (ABT) Q1 2024 earnings results
Abbott Laboratories (NYSE: ABT) reported its first quarter 2024 earnings results today. Total sales increased 2.2% year-over-year to $10 billion. Organic sales growth was 10.8%. Net earnings decreased 7% to $1.22
US Bancorp (USB) Q1 2024 Earnings: Key financials and quarterly highlights
US Bancorp (NYSE: USB) reported its first quarter 2024 earnings results today. Total net revenue decreased 6.4% year-over-year to $6.7 billion. Net income applicable to US Bancorp common shareholders decreased
UAL Earnings: United Airlines Q1 loss narrows on higher revenues; results beat
United Airlines Holdings, Inc. (NYSE: UAL) reported a narrower net loss for the first quarter of 2024, on an adjusted basis. The bottom line benefitted from an increase in revenues.
