Fitbit Beats Expectations but Faces Massive Loss in Third Quarter Reports

Fitbit Beats Expectations but Faces Massive Loss in Third Quarter Reports

Fitbit Beats Expectations but Faces Massive Loss in Third Quarter Reports

Wearable fitness tracking device maker Fitbit forecast a better-than-expected bottom line for the holiday quarter, as the company reaps the benefits of its latest launches. The company’s newest products include the Ionic smartwatch and Fitbit Alta HR. These products account for about 32 percent of total revenue in the third quarter which ended on September 30, 2017.

“There is a change in the market with the demand for smartwatches growing and we see huge opportunity there,” Chief Executive James Park told Reuters.

On an adjusted basis, Fitbit forecast its holiday-quarter earnings between a loss of 3 cents to a profit of 1 cent per share. The company sold 3.6 million devices in the third quarter, which fails to beat analysts’ expectations of 3.80 million, according to financial data analytics firm FactSet.

As Apple, Samsung Electronics, Xiaomi, and Garmin have also stepped into the wearable fitness tracking gear market, Fitbit faces healthy competition.

In its third quarter financial reports, Fitbit reported a net loss of $113.4 million or 48 cents per share. Excluding items, the company lost 1 cent per share. Revenue fell 22.1 percent to $392.5 million. Analysts on average had expected the company to report a loss of 3 cents per share on revenue of $391.7 million.

“We continue to execute on our transition plan by delivering on our financial guidance and product roadmap, positioning Fitbit on a path back to growth and profitability,” Park said in the company’s third-quarter financial report. “We believe Fitbit Ionic delivers the best health and fitness experience in the category. It has received the highest customer ratings of any Fitbit product within the first month of sales, giving us confidence in our ability to capture share of the fast-growing smartwatch market.”

Megha Shah
Megha Shah
A dreamer, traveler, aspiring entrepreneur and a bookworm beyond repair, Megha Shah is extremely fond of writing and has been doing so since she was a child. Apart from being a part-time writer, Megha is currently in college, pursuing B. Com. (Hons). Megha is an ardent follower of ‘Hardship, Hustle and Heart’ and firmly believes in the power of hard work and destiny!

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