Fitbit, Inc., a provider of connected health and fitness market this week reported it sold 4.8 million connected health and fitness devices in the first quarter of 2016. The wearables company reported total revenue of $505.4 million, GAAP diluted net income per share of $0.05, non-GAAP diluted net income per share of $0.10, and adjusted EBITDA of $45.1 million, for its first quarter of 2016.
Successful Launch of Fitbit Blaze and Alta Weraables
47% of the reported revenue was driven by the recent successful launch of Fitbit Blaze and Alta werable devices, which comprised 47% of Q116 revenue, which sold a million units each in the latter part of the quarter. Approximately 40% of Fitbit Blaze and Alta user activations were by users who had prior Fitbit devices; and approximately 20% of those were buyers who re-activated, coming back to the Fitbit community after having been inactive for 90 days or more. The vast majority of Fitbit Blaze and Alta buyers bought up from a less expensive prior Fitbit device. Less than 10% bought down
Other Q1 2016 financial and operational highlights include:
– Q116 revenue increased 50% year-over-year
– U.S. comprised 70% of Q116 revenue; EMEA 15%, APAC 11%, and Other Americas 4%
– U.S. revenue grew 33% year-over-year; EMEA 113%, APAC 142%, and Other Americas 74%
– Non-GAAP operating expenses comprised 39.3% of revenue in Q116, compared to 22.3% in Q115 and 32.2% in Q415, predominantly reflecting increased investment in R&D and marketing to drive innovation and growth
– R&D headcount grew to 755 in Q116, compared to 295 in Q115, and 624 at year-end 2015
Fitbit’s projected revenue for 2016 is in the range of $2.5 billion to $2.6 billion with an adjusted EBITDA in the range of $430 to $490 million.