Fitbit enjoys Q2 revenue hike

Fitbit enjoys Q2 revenue hike

10 AUG 2015

Recently-listed wearables company Fitbit said that the quarter to 30 June saw its highest quarterly revenue in its eight-year history, as the company capitalised on growth in the sector.

The company sold 4.5 million connected health and fitness devices during the period.

“In the quarter, we introduced new features and services, expanded brand awareness, increased global distribution and further penetrated the corporate wellness market,” said James Park, co-founder and CEO.

This included a redesigned Fitbit mobile experience, including the visual redesign of daily activity graphs for iPhone, Android and Windows Phone.

Fitbit reported a Q2 net profit of $17.68 million, up 19.8 per cent, on revenue of $400.41 million, up more than threefold.

The company said the 250 per cent international revenue increase was “driven by EMEA and APAC year-over-year revenue growth of 301 per cent and 292 per cent, respectively”.

But not all went smoothly: some observers were concerned by gross margin, which dropped to 47 per cent from 52 per cent (non-GAAP). The company is forecasting gross margin of 47 per cent to 48 per cent for Q3.

It is anticipating Q3 revenue in the $335 million to $365 million range.

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Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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