Fitbit Revenue Beats Expectations From Versa Sales
Fitbit second quarter results saw the company beat analysts expectations as the recent release of its Versa bumped up revenue.
The wearable company reported a revenue of US$299m beating estimates of US$285.4m.
Fitbit has attributed this revenue growth to the Versa, a more affordable smart fitness watch released earlier in the year. The Versa and other newer devices such as the Ionic, Ace and Aria 2 represented 59 per cent of revenue.
However, compared to the prior year its revenue is lower with Q2 2017 showing a US$353.3m revenue.
Its GAAP net loss of was at US$118m, non-GAAP net loss came in at US$54m, cash flow from operations of ($67) million and free cash flow of ($83) million for its second quarter of 2018.
The Fitbit Versa was released in April missing the cut off for the first quarter result.
James Park, CEO and co-founder at Fitbit says, “Our performance in Q2 represents the sixth consecutive quarter that we have delivered on our financial commitments, made important progress in transforming our business, and continued to adapt to the changing wearables market.
“Demand for Versa, our first ‘mass-appeal’ smartwatch, is very strong. Within the second quarter, Versa outsold Samsung, Garmin and Fossil smartwatches combined in North America, improving our position with retailers, solidifying shelf space for the Fitbit brand and providing a halo effect to our other product offerings.”
The company has been struggling in the past year with the release of the Ionic giving the company disappointing sales. Fitbit then released its first ever children’s tracker, the Fitbit Ace and the Versa in hopes to bolster its financials.
Ever since tech giants like Samsung and Apple entered the smartwatch and wearables market Fitbit has tried to stay relevant launching new products like the Versa and Ionic. However, Fitbit says its Versa outsold Samsung, Garmin and Fossil smartwatches combined in North America for the second quarter.
The company expects its revenue to decline 3 per cent around US$370m to US$390m for the third quarter.