Fitbit announces sharp decline in sales in War with Apple

Fitbit announced their second quarter results of 2019 noting revenue fell 27 percent year-over-year. The results come a day after Apple announced their Q3 earnings noting a sharp increase in wearable sales.

All is not doomed for Fitbit, however, as revenue increased 51 percent year-over-year. Average selling price fell by 19 percent compared to the year-ago quarter.

Fitbit reported revenue of $314 billion during the quarter, up 5 percent year-over-year. The company has slashed its Q3 revenue expectations to between $335 million and $355 million. Fitbit attributed some of its struggles to “weaker than expected sales” of the Fitbit Versa Lite.

“While we are disappointed to lower guidance for the year, we remain confident in our long-term transformation strategy and have demonstrated good results across key areas of the business. We saw growth in devices sold, increased active users and continued growth in our Fitbit Health Solutions channel, up 42% in the first half of 2019,” said James Park, co-founder and CEO. “In addition, we have made progress in diversifying our revenue towards building more predictable, recurring revenue streams with the launch of our premium services in two test markets. We are pleased with the initial results and expect a full launch this fall. Coupled with innovative hardware and software offerings, we believe we’re well positioned to bring more users to the Fitbit platform and continue to grow our business.”

Fitbit, Inc. reported revenue of $314 million, GAAP net loss per share of $(0.27), non-GAAP net loss per share of $(0.14), GAAP net loss of $(69) million, non-GAAP net loss of $(36) million, cash used in operations of $(76) million and free cash flow of $(81) million for its second quarter of 2019.