Fitbit Swings To Q1 Profit

(RTTNews) - Smart wearables maker Fitbit Inc. (FIT), Wednesday reported first-quarter profit of $20.3 million or $0.07 per share, compared to a loss of $79.5 million or $0.31 per share last year.

Adjusted loss was $0.24 per share compared to $0.15 per share last year. Analysts polled by Thomson Reuters expected the company to report loss of $0.16 per share. Analysts' estimates typically exclude special items.

Revenues for the quarter declined to $188.2 million from $271.9 million in the prior year. Analysts expected revenue of $268.55 million for the quarter.

The company sold 2.2 million devices, down 26% year-over-year, driven by the introduction of one new product in the first quarter 2020 versus three new products in the first quarter 2019. Average selling price decreased 11% year-over-year to $81 per device.

CEO James Park said, "While COVID-19 has impacted our business, and there continues to be uncertainty around consumer demand and the economy, we are moving quickly to develop innovative products and services that can help people during this time."

In November 2019, Fitbit agreed to be acquired by Google LLC for $7.35 per share in cash, valuing the company about $2.1 billion.