Fitbit's Health Solutions Revenue Grows, but Overall Revenue Drops on Lower Pricing
Fitbit’s Q3 Health Solutions revenue climbed 31 percent to $73 million, but overall revenue dropped 12 percent to $347 million, it reported Wednesday. The company didn’t hold a call with investors, citing the agreement to be acquired by Google (see…
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1911010051). Net loss for the wearables maker widened to $51.9 million from $2.1 million in the year-ago quarter. It sold 3.5 million devices in the September quarter, with revenue declines driven by a 12 percent drop in pricing and flat year-on-year device sales growth; average device selling price was $96. Smartwatch revenue was 58 percent of revenue. Fitbit didn't release new trackers in Q3, contributing to a category decline. Trackers were 39 percent of revenue; accessories and non-device revenues were 3 percent. CEO James Park cited progress shifting the business toward the smartwatch category from trackers and a “deepening” relationship with consumers with the launch of its Premium service. Park repeated the company's commitment that “privacy and security will not change” after the Google acquisition, expected to close next year pending regulatory and Fitbit shareholder approvals.