FitBit 12% Revenue Drop, Still Beat Analysts
Fitbit Inc posted a revenue decline of 12% and still beat analysts estimates in its first quarterly result since acquisition plans were announced by Google.
Facing deep competition from the likes of Apple, and Samsung, the wearable device maker Fitbit posted a net loss of $51.9 million in the third quarter, with revenue dropping to $347.2 million, a fall of 11.7%.
Despite the decline, Fitbit still managed to stay ahead of analysts’ projections of $345.1 million.
It comes following the recent announcement by Alphabet Inc to acquire the wearable company, which is expected to close sometime in 2020.
The $2.1 billion deal will see Fitbit’s become more competitive as Google looks to become a more significant player in the health market.
‘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,’ said James Park, chief executive officer of Fitbit in a statement.
‘I’m excited about the combination of Fitbit and Google and look forward to closing the transaction.’
Fitbit highlighted its disease detection partnerships with Fibricheck and Bristol-Meyers Squibb Pfizer Alliance, ‘to target chronic condition areas and raise awareness and support from screening to diagnosis for heart rhythm irregularities and atrial fibrillation’.
The two partnerships greatly compliment Fitbits expansion to 59 Medicare Advantage plans in 2020 as a fully covered benefit from 42 plans.
Despite a decline in revenue and a subsequent drop in net income, Fitbit is still pushing ahead into the health market to challenge the likes of the Apple Watch Series and its ECG app.
‘Accelerating innovation in the category and ultimately helping more people around the world get healthier’ is the ultimate goal of Fitbit going into 2020 according to Mr Park.