Fitbit's Q1 2018 Results Show Growth Of Wearable Competition

Posted: May 9 2018, 4:24am CDT | by , in Technology News

 

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Fitbit's Q1 2018 Results Show Growth of Wearable Competition

Fitbit, a Pioneer Company in wearable gadgets, recently reported Q1 results for the year 2018.

Due to increasing competition, and the consumer demand shifting from fitness trackers to niche specific healthcare gadgets, Fitbit reported a loss of 17% in its revenues for the first quarter.

GAAP Loss Per Share of ($0.34)

Non-GAAP Loss Per Share of ($0.17)

The total revenue for Q1 fell from $ 298.9 to $247.9 as compared with last year, main reason behind the loss was fewer sales of its products. Although the average selling price of their devices has increased by 16%, making it around $112 per device, the total sales were down to 2.2 million devices during the first quarter.

Even though the sales were down, the company was successful in the launch of their new device, Fitbit Versa. Sales of this new smartwatch, released during the first quarter, accounted for 30% of their total revenue. According to Fitbit launch of their new smartwatch had no impact on sales generated by their fitness trackers.

Fitbit started shipping Versa during last two weeks of the first quarter, so it is unclear how it’s sales will impact the Q2 results, but they seem very optimistic about the future.

“While sales and earnings were challenged as expected in the first quarter, we executed on our plan and exceeded our commitments while making progress towards these objectives,” James Park, CEO Fitbit said, “This included launching two new product offerings to expand our addressable market, Fitbit Versa and Fitbit Ace, closing the acquisition of Twine Health, and reducing operating expenses on a year-over-year basis.”

The acquisition of Twine Health by Fitbit clearly indicates the company has no intention of limiting themselves to just devices; they also plan to expand into software and service sector.

“Twine is just one example of how we can expand and grow our non-device revenue and transform our business from an episodic-driven model centered around device sales to more software and services,” Park said. “In the future, we plan to leverage the Twine platform to provide wellness-focused programs to our large active user base.”

Fitbit has also announced its partnership with Google, Fitbit will use their Cloud Healthcare API to collect data from different sources and connect it to their user’s medical records. Doctors will be able to access all this data through patient’s Fitbit device, enabling them to provide better and personalized treatment for different patients.

Just in time for Mother's Day, Fitbit fitness trackers are on sale on amazon.com with up to a $50 discount. The new Fitbit Ionic Smartwatch is on sale for only $249.95, compared to $299.95.

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<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
Luigi can be contacted directly at ml[@]i4u.com.

 

 

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