Fitbit the maker of wearable activity monitors, tripled its third quarter sales – capitalising on the popularity of wearable fitness technology.
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Revenue from the United States increased 130% year-over-year, while revenue from APAC and EMEA grew 314% and 282% respectively. The company projects revenue of between $620 million and $650 million for the quarter, which is also ahead of the consensus estimate at $580.72 million. The company announced a secondary offering where it seeks to sell 7 million shares in the market with investors proposing to sell 14 million.
Fitbit said it sold 4.8 million devices during Q3.
Fitbit had projected profit of seven cents to 10 cents a share on $335 million to $365 million in sales.
The continued expansion of Fitbit’s corporate wellness program was a significant contributor. Effective Wednesday, November 4th, approximately 2.3 million shares will shed lockup restrictions imposed at the time of the June 18th initial public offering.
FIT stock fell as much as 8% in afternoon trading.
Among other things, Fitbit is aggressively marketing its Corporate Wellness Program, onboarding 20 companies in the last four months alone. For it, the aggregated worth of the upticks was $2.89 million and the combined worth of the downticks was $3.16, Million, leading to the up/down ratio of 0.91. It offered 36.6 million shares at $20 on the first day, raising a total of $732m. The use of this additional capital could result in higher earnings for investors if Fitbit is able to use the capital to better meet customer demands.
Heading into the holiday shopping season, Fitbit is set for even stronger growth. The Business “s Fitbit platform joins fitness devices and associated well-being with software and services, including virtual coaching and mobile applications, data analytics, social and motivational tools, insights that are personalized, and an online dashboard through work outs that are interactive and fitness plans”.
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Pro-forma net income was $46.4 million or earnings per share of 19 cents compared with $45.8 million or earnings per share of 19 cents in the previous quarter and $69.1 million or earnings per share of 34 cents a year ago. However, that didn’t seem to satisfy the Street: Despite a beat-and-raise quarter, FitBit stock was falling 7.7% just before 5 PM. Eight equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the stock.
