Fitbit reported a revenue of $586.5 million in this quarter last year.
Recently, Fitbit has shares their financial warning of this quarter, which saw a considerable decline. However, in the same breath, the company also announced the tentative date for its next smartwatch, which it holds as a friendly beacon of light. This upcoming device from Fitbit has been long awaited, especially after the company acquired Pebble; also because this is believed to be first of the fitness wearable by the company that will lean a little bit extra towards being smarter.
This upcoming smartwatch will apparently still be fitness focused, and won’t necessarily run Android – or anything fancy like that. It is going to be a very basic smartwatch with a few key features that’ll set it apart from the rest. “Our smartwatch, which we believe will deliver the best health and fitness experience in the category, is on track for delivery ahead of the holiday season and will drive a strong second half of the year,” Fitbit co-founder and CEO James Park said.
Financially, Fitbit isn’t doing so hot right now. This quarter they reported a revenue of $353.3 million. This time last year, Fitbit reported a revenue of $586.5 million. Net income was a loss of $58.2 million, while net income this quarter last year was positive, up at $6.3 million. Fitbit sold this 3.4 million units of devices this quarter, as compared to 5.7 million units it sold this quarter last year. That’s down 40 percent year-over-year. The new products Fitbit introduced in the past 12 months accounted for 81 percent of their total revenue, which includes the Fitbit Charge 2, Fitbit Alta HR, and Fitbit Flex 2. ALSO READ: Apple retains top position in wearable segment; Samsung beats Fitbit to become number 2: Report
One more interesting fact from Fitbit’s report today suggested that people who’ve owned Fitbit products before don’t necessarily use them that often. “38 percent of the activations in the quarter came from customers who made repeat purchases. Of the repeat purchasers, 39 percent came from customers who were inactive for 90 days or greater,” the report reads.
Now it all rests on the upcoming Fitbit smartwatch! ALSO READ: Fitbit devices accurately tracks sleep stages: Study