Fitbit announced better-than-expected revenues for the quarter ending March 31 thanks to a 117 percent increase in smartwatch sales.
“We saw continued momentum across our business in the first quarter, with revenue up 10 percent and devices sold up 36 percent year-over-year,” Fitbit co-founder and CEO James Park said in a prepared statement. “Smartwatch device sales increased 117 percent YOY, and the introduction of our new trackers, Inspire and Inspire HR, helped spark the first quarter of year-over-year growth in tracker device sales in three years.”
Fitbit posted a net loss of $79.5 million on revenues of $272 million. Smartwatches were the primary driver of those revenues, Fitbit said, with its tracker business growing only 17 percent by revenue in the quarter. Total devices sold jump 36 percent by unit sales YOY. Versa Lite is the firm’s biggest success story so far in 2019.
Fitbit also reported that its Health Solutions business grew 70 percent YOY and delivered $30.5 million in revenues.
“New users are continuing to join the Fitbit platform with active users increasing in the first quarter,” Park added, “underscoring the effectiveness of our strategy to bring more users onto the Fitbit platform with the introduction of more accessible, affordable devices.”
According to Counterpoint, Fitbit is now the fourth-biggest maker of smartwatches, behind Apple, which dominates this market, Samsung, and Imoo. But as is the case in smartphones, Huawei grew share faster than any of its competitors in the most recent quarter and should establish itself as a top player sometime this year.