Fitbit co-founder James Park hailed the company’s “tremendous opportunity” to grow globally, as the wearables player enjoyed a Q3 revenue surge, while almost tripling sales of its fitness devices year on year.
Fitbit, which listed in June, saw revenue hit $409.3 million for the quarter ending 30 September, up a mammoth 168 per cent from $152.9 million in Q3 2014, as sales increased in and out of the US.
During the period, the company said it sold 4.8 million connected health and fitness devices, compared to 2.3 million over the same period last year, with the US comprising two thirds of its overall revenues at 66 per cent, with 16 per cent in APAC, 12 per cent in EMEA and 6 per cent in “other Americas”.
“Fitbit’s third quarter results demonstrated the continued rapid growth of the Fitbit platform and our team’s ability to execute on the tremendous opportunity we see globally, as we help people reach their health and fitness goals,” said Park.
Despite the revenue surge, net income was down, declining year on year by 33.5 per cent to $45.8 million from $68.9 million, which the company put down to rising costs for research and development and marketing in particular.
The company announced it will also lift a lockup restriction on shares owned by its employees and consultants, amounting to approximately 2.3 million shares, representing up to 10 per cent of common stock shares, effective from 4 November, a month earlier than planned.
Separately, a regulatory filing showed Fitbit proposed to sell an additional 7 million shares, with certain shareholders proposing to sell 14 million, which the company said would contribute to additional working capital and other general corporate purposes, including R&D, sales and marketing activities.
For Q4, Fitbit is anticipating revenues of between $620 million to $650 million, with sales expected to increase as the holiday season approaches.