Fitbit Reports Second Quarter 2015 Results, Revenues more than triple

Fitbit saw its revenue beat expectations and more than triple to $400m (£256m) in the second quarter of the year. Margins fell, however, due to higher spending on new products.

Net income rose to $17.7m in the quarter from $14.8m in the same period the previous year.

“Our second quarter results included our highest quarterly revenue in the eight-year history of Fitbit,” said James Park, Fitbit co-founder and CEO.

“In the quarter, we introduced new features and services, expanded brand awareness, increased global distribution and further penetrated the corporate wellness market. We remain focused on continuing to deliver innovative products and services that empower people around the world to reach their health and fitness goals.”

Second Quarter 2015 Financial Summary
[table style=”table-striped”]

Three Months EndedJune 30, Six Months EndedJune 30,
In thousands, except percentages and per share amounts 2014 2015 2014 2015
Revenue $ 113,572 $ 400,412 $ 222,387 $ 737,166
Gross margin
GAAP 51 % 47 % 46 % 48 %
Non-GAAP* 52 % 47 % 56 % 48 %
Net income
GAAP $ 14,753 $ 17,681 $ 23,625 $ 65,678
Non-GAAP* $ 18,345 $ 51,313 $ 43,240 $ 107,487
Diluted net income per share
GAAP $ 0.07 $ 0.07 $ 0.11 $ 0.29
Non-GAAP* $ 0.09 $ 0.21 $ 0.21 $ 0.47
Adjusted EBITDA* $ 29,088 $ 86,245 $ 71,116 $ 179,628
Devices sold 1,720 4,458 3,295 8,324
* For information regarding the non-GAAP financial measures, see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

[/table]
Second Quarter 2015 and Recent Fitbit Highlights

  • Sold 4.5 million connected health and fitness devices in the second quarter of 2015
  • International revenue increased 250% year-over-year for the second quarter of 2015, driven by EMEA and APAC year-over-year revenue growth of 301% and 292%, respectively, for the second quarter of 2015
  • Released an update to the Fitbit Surge, enabling GPS bike tracking
  • Redesigned Fitbit mobile experience, including the visual redesign of the daily activity graphs for iPhone, Android and Windows Phones
  • Expanded partnership with Tory Burch
  • Teamed up with Kellogg’s, showcasing Fitbit Flex on 20 million packages nationwide
  • Entered into Corporate Wellness agreements with Geico, Sutter Health, Transunion, Quicken Loans, and several financial institutions. To date, we have signed over 50 of the Fortune 500 companies to our Corporate Wellness offerings

Outlook

Fitbit’s outlook for the third quarter of 2015 is as follows:

  • Revenue in the range of $335 million to $365 million
  • Non-GAAP gross margin in the range of 47% to 48%
  • Non-GAAP tax rate of approximately 37%
  • Stock-based compensation expense in the range of $15 million to $17 million
  • Non-GAAP diluted net income per share in the range of $0.07 to $0.10
  • Adjusted EBITDA in the range of $35 million to $45 million
  • Non-GAAP diluted share count between 247 million and 249 million

Fitbit’s outlook for the full year of 2015 is as follows:

  • Revenue in the range of $1.6 billion to $1.7 billion
  • Non-GAAP gross margin in the range of 47% to 48%
  • Non-GAAP tax rate of approximately 37%
  • Stock-based compensation expense in the range of $50 million to $54 million
  • Non-GAAP diluted net income per share in the range of $0.69 to $0.77
  • Adjusted EBITDA in the range of $275 million to $310 million
  • Non-GAAP diluted share count between 235 million and 240 million

Rapid Mobile

Rapid Mobile uses cookies, tokens, and other third party scripts to recognise visitors of our sites and services, remember your settings and privacy choices, and - depending on your settings and privacy choices - enable us and some key partners to collect information about you so that we can improve our services and deliver relevant ads.

 

By continuing to use our site or clicking I Accept, you agree that Rapid Mobile and our key partners may collect data and use cookies for personalised ads and other purposes, as described more fully in our privacy policy.

 

You can change your settings at any time by clicking Manage Settings or by visiting our Privacy Centre for more detailed information.

 

Privacy Settings saved!
Cookie Services

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

These cookies allow us to count visits and traffic sources, so we can measure and improve the performance of our site.

We track anonymized user information to improve our website.
  • _ga
  • _gid
  • _gat

Decline all Services
Accept all Services