Fitbit Q1 Results Beat Wall Street View

(RTTNews) - Fitbit Inc. (FIT) Tuesday reported a first-quarter loss that was smaller than Wall Street analysts' estimates, as revenues increased 10% driven by stronger demand for both tracker and smartwatch.

First-quarter net loss was $79.5 million or $0.31 per share, compared with last year's loss of $80.9 million or $0.34 per share.

Adjusted loss per share for the quarter were $0.15 per share, compared with last year's loss of $0.17 per share. Analysts polled by Thomson Reuters estimated loss of $0.22 per share last year.

Revenues for the quarter rose 10% to $271.9 million from $247.9 million last year. Analysts had a consensus revenue estimate of $259.7 million for the quarter.

Devices sold increased 36% year-over-year to 2.9 million. Average selling price decreased 19% year-over-year to $91 per device due to the introduction of more affordable devices.

"We saw continued momentum across our business in the first quarter, with revenue up 10% and devices sold up 36% year-over-year. Smartwatch device sales increased 117% year-over-year and the introduction of our new trackers, Inspire and Inspire HR, helped spark the first quarter of year-over-year growth in tracker device sales in three years," said James Park, co-founder and CEO.

"In addition, our Fitbit Health Solutions business grew 70% with revenue of $30.5 million, demonstrating great progress towards our $100 million revenue target for 2019," Park added.

Looking forward to the third quarter, Fitbit expects revenues of $305 million to $320 million and adjusted loss per share of $0.20 to $0.17 per share. Analysts currently estimate loss of $0.16 per share and revenues of $312.84 million for the quarter.

FIT closed Wednesday's trading at $5.37, up $0.09 or 1.70%, on the NYSE. The stock further gained $0.08 or 1.49% in the after-hours trading.