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Fitbit Inc: Q4 2017 Earnings Snapshot

Leading wearables maker Fitbit (FIT) reported flat fourth quarter revenues of $571 million vs. prior year period. On a GAAP basis, the company pared down its losses to $0.19 per share vs. $0.46 reported last year. Non-GAAP loss came in at $0.02 per share compared to $0.56 in the fourth quarter of 2017. Device Sales […]

February 26, 2018 1 min read

Leading wearables maker Fitbit (FIT) reported flat fourth quarter revenues of $571 million vs. prior year period. On a GAAP basis, the company pared down its losses to $0.19 per share vs. $0.46 reported last year. Non-GAAP loss came in at $0.02 per share compared to $0.56 in the fourth quarter of 2017. Device Sales […]

· February 26, 2018

Leading wearables maker Fitbit (FIT) reported flat fourth quarter revenues of $571 million vs. prior year period. On a GAAP basis, the company pared down its losses to $0.19 per share vs. $0.46 reported last year. Non-GAAP loss came in at $0.02 per share compared to $0.56 in the fourth quarter of 2017.

Device Sales

Fitbit sold 5.4 million devices in the fourth quarter, which improved 50% sequentially, but was down 17% when compared to the prior year period. Average selling price improved 20% to $102 vs. previous quarter, but was down 3% compared to the fourth quarter of 2016.

Regarding customer mix, 67% of activations were from new users, while the rest came from repeat customers.

Active Users

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At the end of 2017, no. of active users stood at 25.4 million, spiked 9% from 23.2 million reported at the end of December 31, 2016.

Outlook

Fitbit expects its device mix to lean towards smartwatches during 2018. The company expects its sales to be approx. $1.5 billion and hopes to breakeven in the fiscal 2018. For the first quarter of 2018, revenues are expected to come between $240 million to $255 million and basic non-GAAP loss in the range of $0.21 to $0.18 per share.

Fitbit 4Q earnings highlights

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