Fitbit earnings beat, new devices give big boost

Fitbit

• Fitbit
  beat on both the top and bottom lines.
• The fitness-tracker maker reaffirmed its full-year revenue
  guidance of $1.5 billion.
• Shares jumped more than 12% ahead of Thursday’s opening bell.
• Watch
  Fitbit trade live.

Fitbit
was soaring Thursday, up more than 12% ahead of the opening bell,
after reporting third-quarter results that beat on both the top
and bottom line and reaffirming its full-year revenue guidance.

The fitness-tracker maker earned an adjusted $0.04 a share on
revenue of $394 million, easily beating the $0.01 loss and $381.2
million that was expected by the Bloomberg consensus. Fitbit
reaffirmed its full-year revenue guidance of $1.5 billion, edging
out the $1.49 billion that Wall Street analysts were hoping
for. 

“We have been incredibly focused on executing our transition plan
and as a result, saw a return to profitability this quarter, and
are re-affirming our full year revenue guidance of $1.5 billion,”
cofounder and CEO James Park said in the earnings release.

“We succeeded in growing our healthcare business by 26% and
diversifying our revenue to compete in the changing wearables
category and saw sequential growth in both tracker and smartwatch
devices.”

Fitbit said it sold 3.5 million wearable devices during the
quarter, and that the average selling price increased by 3% to
$108. Its Fitbit Versa, Fitbit Charge 3, Fitbit Ace, and
Fitbit Aria 2 — all launced within the past year
— represented 62% of revenue.

“We are now the number two player in the smartwatch space
in the U.S. – a category we just entered with zero share only
fourteen months ago,” Park said. 

Fitbit was down 17.16% this year through
Wednesday. 

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