Fitbit Announces Third Quarter Financial Results | Financial Buzz

Fitbit Announces Third Quarter Financial Results

Fitbit, Inc. (NYSE: FIT) announced USD 347 Million in revenue and free cash flow of USD 56 Million for q3.  The company sold 3.5 million devices in the third quarter.  Revenue as a whole declined 12% year over year due to a fall in pricing and flat growth in devices sold.  Average sale per device amounted to USD 96.  Fitbit Health Solutions revenue increased 10%, amounting to USD 73 Million and up 31% year over year. The smart watch revenue increase accounted for 58% of revenue. 

“In Q3 we continued to make good progress shifting our business towards the faster growing smartwatch category with the introduction of Versa 2, expanding Fitbit Health Solutions, and deepening our relationship with consumers with the launch of Premium,” said James Park, co-founder and CEO. “The continued success of the Fitbit brand is built on the trust of our users, and our commitment to strong user privacy and security will not change. I’m excited about the combination of Fitbit and Google and look forward to closing the transaction and further advancing our vision and mission, accelerating innovation in the category and ultimately helping more people around the world get healthier.”

Consumer business directly on increased 23% to USD 27 Million.  Revenue in the U.S. accounted for 60% of total revenue or USD 207 Million.  Revenue in the U.S. is down 10% year over year.  On an international scale, revenue fell 14% to USD 141 Million.  Active users grew 9% year over year. 

Fitbit has refused to host an earnings call and provide guidance for the future as the pending acquisition by Alphabet Inc.’s (NASDAQ: GOOGL) Google is in process.