Fitbit reports lower Q4 on falling prices, sharp competition

News Wireless Global 21 FEB 2020
Fitbit reports lower Q4 on falling prices, sharp competition
Fitbit said it sold more devices and added 2 million active users in the fourth quarter, for a total of 29.6 million, but that revenues and profit continued to fall on lower device prices and declines in the US and abroad, especially at APAC. 

Revenues for the quarter declined to USD 502.1 million from 571 million the year before, with the gross margin sliding to 24.3 percent form 29.8 percent and the adjusted EBITDA going to a loss of USD 34.9 million from a gain of 49.6 million. The net result also slipped to a loss, of USD 31.5 million or USD 0.12 per share, from a gain of 36.3 million and 0.14 per share. 

The number of devices sold rose to 6.0 million from 5.6 million but average selling prices decreased 19 percent to USD 81 per device, pulled down by the introduction of more accessible and affordable devices, and higher promotions. 

Looking more closely at revenues, international revenue declined 7 percent to USD 226 million, with EMEA up 2 percent to USD 153 million but Americas (excluding US) down 2 percent to USD 44 million and APAC off 40 percent to USD 29 million. For the US, revenue went 16 percent lower to USD 276 million. 

For the full year, the company sold 16 million devices, up from the year before’s 13.9 million, but revenues went down to USD 1.434 billion from 1.542 million, the gross margin decreased to 29.8 percent from 39.9 percent, the EBITDA loss climbed to USD 128.3 million from a gain of 31.4 million and the net loss widened to USD 132 million and USD 0.51 per share, from a loss of USD 48.8 million and 0.20 per share. Average selling prices in the year weakened by 17 percent to USD 87 per device. Cash and cash equivalents totaled USD 519 million at end December, from 723 million the year earlier. 

 The company did not give an outlook, due to its pending takeover by Google.

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Sales figures, Financial figures, Consumer devices

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