Fitbit CEO James Park said the second quarter revenue was the highest revenue in the eightyear history of the company Photo courtesy Fitbit

Fitbit CEO James Park said the second quarter revenue was the highest revenue in the eight-year history of the company. (Photo courtesy Fitbit.)

Fitbit Reports Record Revenue of $400.4 Million in Second Quarter

Fitbit sold 4.5 million connected health and fitness devices in the second quarter.

Fitbit, San Francisco, reported revenue of $400.4 million in the second quarter of 2015, according to financials released Wednesday.

The revenue reflected year-over-year quarterly growth of 253 percent ($113.5 million in 2014) for the manufacturer of wearable fitness based devices.

Fitbit CEO James Park said the second quarter revenue was the highest revenue in the eight-year history of the company.

"In the quarter, we introduced new features and services, expanded brand awareness, increased global distribution and further penetrated the corporate wellness market," Park said in a statement. "We remain focused on continuing to deliver innovative products and services that empower people around the world to reach their health and fitness goals."

Fitbit sold 4.5 million connected health and fitness devices in the second quarter. Its products are sold in 45,000 retail stores and in more than 50 countries. The company's growth in the second quarter was driven by year-over-year quarterly growth in the Europe, Middle East and Africa (EMEA), and Asia-Pacific regions (APAC).

EMEA revenue grew 301 percent to $39.7 million and APAC revenue grew 292 percent to $31.2 million in the second quarter. United States revenue was $312.6 million in the second quarter.

The company anticipates revenue in the range of $1.6 billion to $1.7 billion in 2015.

Fitbit also disclosed it entered into corporate wellness agreements with Geico, Sutter Health, Transunion, Quicken Loans and several financial institutions. It said it has signed over 50 of the Fortune 500 to Corporate Wellness offerings.

Fitbit debuted on the New York Stock Exchange on June 18 at a price per share of $30.40. Shares have risen steadily since the IPO, closing up Wednesday at $51.64 per share. It was down 13 percent at $44.75 during early after-hours trading on Wednesday.

Forbes speculated the aftermarket drop in share price could be investors pocketing profits or a reaction to a slight slip in gross margins – a decline from 52 percent to 47 percent in the quarter.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish