He notes that the firm doesn’t break out revenue for corporate wellness business, as it’s less than 10% of revenue, but says it a “very attractive business model” for FitBit, and called contracts with Target (TGT) and Barclays (BCS) “big wins” in the quarter.
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Fitbit said it is offering additional shares to increase financial flexibility, obtain additional capital, facilitate an orderly distribution of shares for the selling stockholders, and to increase its public float.
The San Francisco company, however, reported that profit fell 33% in the third quarter, weighed down by surging costs.
Fitbit also announced today that Morgan Stanley released the lockup restriction of its shares for employees and consultants as of October 31, which will add about 2.3 million more shares of the company into the market by making them available for trading.
Through Monday’s close, Fitbit stock had more than doubled since its IPO. Charge, Charge HR, and Surge sales comprised 79% of the company’s revenue in the quarter. “We are seeing continued consumer adoption of our product”.
Fitbit has dominated the wearables market, though competition is increasing from companies including Apple Inc., Samsung Electronics Co., Xiaomi Corp. and Jawbone.
Investors should expect FitBit to continue capitalizing on its brand and first-mover advantages, Zerella says, as the company will roll out ad campaigns in 20 countries-“we’re putting our foot on the gas in a big way in terms of continuing to drive brand awareness”.
The maker of wearable fitness trackers reported third-quarter revenue of $409.3 million, up an impressive 168 per cent year-on-year. Analysts, on average, were expecting fourth-quarter earnings of 20 cents a share on revenue of $590 million, according to Thomson Reuters.
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The company also raised its prior forecast for full-year revenues from a range of $1.6 to $1.7 billion to a new range of $1.77 to $1.8 billion and the estimated range for adjusted EPS rose from a prior range of $0.69 to $0.77 to a new range of $0.92 to $0.96.
