Fitbit has released its figures for the first quarter of 2017, and they have beat analysts' expectations. The wearable device maker has sold 3 million activity trackers in the period, and its revenue has hit $299 million.
"Underlying consumer demand has been better than our reported results in North America as we work down channel inventory levels, giving us increased confidence that we will enter the second half of 2017 with a relatively clean channel," Fitbit co-founder and CEO James Park said in a statement. "While 2017 remains a transition year, we have executed on our restructuring plan and are focused on positioning the company for the next stage of growth within wearables and connected health."
- U.S. revenue contracted 52% to $170 million, EMEA revenue grew 17% to $88 million, APAC revenue contracted 63% to $21 million, and Americas excluding U.S. revenue contracted 15% to $20 million.
- Launched new product Fitbit Alta HR, the world's slimmest continuous heart rate wrist band
- New products introduced in the last 12 months — including Fitbit Charge 2, Fitbit Alta HR, and Fitbit Flex 2 — represented 84% of revenue.
- 36% of the activations in the quarter came from customers who made repeat purchases.
- Average selling price declined 4% to $96.45 per device.
- Gross margin was 39.6%, and non-GAAP gross margin was 40.0%, each negatively impacted by product mix, excess component materials, and manufacturing capacity.
- GAAP operating expenses declined 2.5% to $210 million and non-GAAP operating expenses declined 8% to $182 million.
After the announcement, Fitbit shares were up 10 percent.