The turnaround was driven by a 3% increase in device sales to 5.6 million units, on an average selling price of $100 per device
The turnaround was driven by a 3% increase in device sales to 5.6 million units, on an average selling price of $100 per device, down 2%. The sales growth was achieved mainly by adding tracking-device Fitbit Charge3 to the product mix. New devices – Fitbit Versa, Fitbit Ace, and Fitbit Charge3 – accounted for about 79% of total revenue during the three-month period.
“In 2019 we’re committed to offering more affordable devices with engaging health and fitness features, making the health benefits of being on Fitbit even more accessible. We expect our Fitbit Health Solutions revenue growth to accelerate to approximately $100 million and to grow non-device consumer revenue,” said CEO James Park.
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In an indication that the recovery seen in the fourth quarter might not be sustained, the management currently forecasts a net loss in the range of $24 per share to $22 per share for the March quarter, when revenues are expected to grow 1-8% to the range of $250 million to $268 million.
Full-year 2019 revenues are estimated between $1.52 billion and $1.58 billion, up 1-4% compared to last year. Though device sales are expected to grow during the remainder of the year, the average selling price is seen falling further.
Fitbit’s shares gained about 22% so far this year, after witnessing significant volatility throughout 2018. The stock closed Wednesday’s regular session higher but fell sharply in the after-hours following the earnings report.