Fitbit Inc., San Francisco, reported $392.5 million in third-quarter revenue, amounting to a net loss of $113.4 million, after reporting a profit in the same period last year, according to financials released Nov. 1. However, this amount fell within the company's original guidance range of $380 million to $400 million.
“We continue to execute on our transition plan by delivering on our financial guidance and product roadmap, positioning Fitbit on a path back to growth and profitability,” CEO James Park said in a media release. “We believe Fitbit Ionic delivers the best health and fitness experience in the category. It has received the highest customer ratings of any Fitbit product within the first month of sales, giving us confidence in our ability to capture share of the fast-growing smartwatch market. Ionic is also a platform for us to deliver our most powerful health and fitness tools into the market, furthering our mission to make the world healthier.”
Fitbit reported 3.6 million devices sold during the quarter, a 7 percent increase from the second quarter. New products introduced in the last calendar year, including the Fitbit Alta and Fitbit Ionic, represented 32 percent of the quarter's total revenue. The Fitbit app was the top-downloaded health and fitness application, based on U.S. downloads, across Android and Apple platforms.
Despite a difficult late 2016 and 2017, Park is expecting Fitbit products will generate $570 million to $600 million in fourth-quarter revenue. Park delivered on his promise to launch the Ionic smartwatch prior to the holiday season; it is expected to drive fourth-quarter sales.
The company hasn't reported more than $400 million in quarterly revenue since the fourth quarter of 2016. Park is targeting $1.61 billion to $1.64 billion in year-end 2017 revenue. The company had aimed for at least $2.4 billion in year-end 2016 and ultimately reported $2.17 billion.
Park has repeatedly called 2017 a transition year for the wearables manufacturer, based on a new business strategy focused on smartwatches and corporate partnerships.