Fitbit rolled out several software updates and added new
features to Versa 2 in the fourth quarter and it remains to be seen if these
have helped in driving device sales and overall revenue.
The company managed to post an increase in smartwatch revenues last quarter even as it faces tough competition in the wearables space from tech giants like Apple (NYSE: AAPL). Tracker revenues declined in the absence of new launches and tough comparisons with the year-ago period. The number of active users increased 9% last quarter.
The main topic to watch will be updates on the proposed acquisition by Google. The deal faces certain hurdles related to investigations over concerns about the tracking of user data by Google. Some analysts speculate that the deal might take a longer time to close than previously anticipated and might not bring investors the expected value.
Shares of Fitbit have dropped 4% over the past three months. The stock was up slightly by 0.16% in afternoon hours on Tuesday.