Fitbit spikes as new devices provide a big boost
- Fitbit beat on both the top and bottom lines.
- The fitness-tracker maker reaffirmed its full-year revenue guidance of $1.5 billion.
- Shares jumped more than 12% ahead of Thursday's opening bell.
- Watch Fitbit trade live.
Fitbit was soaring Thursday, up more than 12% ahead of the opening bell, after reporting third-quarter results that beat on both the top and bottom line and reaffirming its full-year revenue guidance.
The fitness-tracker maker earned an adjusted $0.04 a share on revenue of $394 million, easily beating the $0.01 loss and $381.2 million that was expected by the Bloomberg consensus. Fitbit reaffirmed its full-year revenue guidance of $1.5 billion, edging out the $1.49 billion that Wall Street analysts were hoping for.
"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," cofounder and CEO James Park said in the earnings release.
"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."
Fitbit said it sold 3.5 million wearable devices during the quarter, and that the average selling price increased by 3% to $108. Its Fitbit Versa, Fitbit Charge 3, Fitbit Ace, and Fitbit Aria 2 - all launced within the past year - represented 62% of revenue.
"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," Park said.
Fitbit was down 17.16% this year through Wednesday.
