In its newly published Q4 2016 results, Fitbit has shared details on the two acquisitions it made last year. Namely, we've got to learn how much the fitness tracker maker has paid for Pebble and Vector Watch — the former came with a price tag of $23 million and the latter – $15 million.
Other notable details include:
- Q4 2016: revenue of $574 million, 6.5 million devices sold and Adjusted EBITDA loss of $144.2 million.
- Full-year 2016: revenue of $2.17 billion, 22.3 million devices sold and Adjusted EBITDA of $30.0 million.
- Reduced 2016 exit operating expense run rate by $200 million. Conducted a reorganization, including a reduction in force, that impacts 107 positions or 6% of the global workforce.
- Entry into the smartwatch category to invigorate and capture a large addressable market by leveraging Fitbit's brand and vast experience delivering a best-in-class health and fitness experience on the wrist.
- Continuing to scale the business globally, including leveraging a new engineering center in Romania gained through the recent acquisition of assets of Vector Watch, enabling the company to efficiently serve the global business and further expand its presence in EMEA.
"Our ten-year history of building this category, coupled with our powerful brand and engaged global community gives us confidence we are making the right investments to support our vision and drive long-term success," James Park, Fitbit co-founder and CEO, said in a statement. "We will leverage our leadership position, recently acquired talent and IP, and the valuable data we collect to improve demand and continue to set the pace of innovation for the industry through more personalized experiences, deeper insights and guidance, expansion into new categories and deeper integration within the healthcare system."
This year, Fitbit expects revenues ranging from $1.5 to $1.7 billion with non-GAAP gross margins in the range of 42.5% to 44.0%.