The other day, Fitbit announced its third quarter 2018 results from where we get to learn that the company generated revenue of $394 million, cash flow from operations of $59 million and free cash flow of $47 million for its third quarter of 2018.
“We have been incredibly focused on executing our transition plan and as a result, saw a return to profitability this quarter, and are re-affirming our full year revenue guidance of $1.5 billion. We succeeded in growing our healthcare business by 26% and diversifying our revenue to compete in the changing wearables category and saw sequential growth in both tracker and smartwatch devices,” James Park, co-founder and CEO, said in a statement. “We are now the number two player in the smartwatch space in the U.S. — a category we just entered with zero share only fourteen months ago.”
During the third quarter, Fitbit has sold 3.5 million wearable devices with the average selling price increasing 3% year-over-year to $108 per device, driven by the growing mix of smartwatches.
U.S. revenue represented 58% of revenue or $230 million, down 6% year-over-year. International markets, on the other hand, accounted for 42% of revenue and increased 10% year-over-year to $163 million. Specifically, EMEA revenue increased 17% to $104 million; Americas excluding U.S. revenue declined 2% to $25 million; and APAC revenue was relatively flat at $34 million, all year-over-year, respectively.
New devices introduced in the past year, Fitbit Versa, Fitbit Charge 3, Fitbit Ace and Fitbit Aria 2, represented 62% of revenue. Versa alone has managed to outsold competitive offerings from each of Garmin, Samsung, Fossil in the U.S.
When it comes to the next, fourth quarter, Fitbit expects revenues to be greater than $560 million, with device sales down and a higher average selling price. For the full-year 2018, the company expects revenue of approximately $1.5 billion.