âFitbit, San Francisco, reported second quarter revenue of $586.6 million in financials released Tuesday, marking an increase of 46 percent compared to the second quarter of 2015.
The company sold 5.7 million devices with the United States comprising 76 percent of total revenue in the second quarter. Fitbit's new products (the Fitbit Blaze and Alta, including related accessories) comprised 54 percent of second quarter revenue compared to 50 percent in the first quarter 2016.
In the earnings release, Fitbit noted that approximately two-thirds of all Alta and Blaze activations in the second quarter were by new customers with the other third coming from users who own or previously owned a Fitbit device.
"Second quarter results reflect accelerated unit and revenue growth in the U.S. and EMEA (Europe, Middle East and Africa), our two largest markets, despite an unusually strong Q215 with the full availability of Fitbit Charge HR fulfilling built-up demand in that quarter," James Park, founder and CEO, Fitbit, said in a statement. "Our strong profitability reflects careful management of operating expenses, while we continue to invest in future growth. Based on the progress of our business, against a backdrop of a growing worldwide opportunity for our products, we remain confident in our guidance for the year."
Fitbit confirmed its revenue estimate in the range of $490 million to $510 million for the third quarter and its 2016 revenue estimate in the range of $2.5 billion to $2.6 billion. Fitbit reported revenue of $505 million in the first quarter and total revenue of $1.86 billion in 2015.
In May, the International Data Corporation (IDC) ranked Fitbit No. 1 on the top five worldwide wearables vendors for the first quarter of 2016 with 4.8 million worldwide shipments. Xiaomi was No. 2 with 3.7 million shipments, Apple was No. 3 with 1.5 million shipments and Garmin was No. 4 with 900,000 unit shipments. In July, Garmin reported a 34 percent revenue increase in its fitness segment to $212.8 million in the second quarter.
Pellegrini Named Vice President of Digital Health
Adam Pellegrini will join Fitbit as its vice president of digital health beginning Sept. 6, Fitbit announced on Monday. He will be responsible for leading Fitbit's vision, strategies and programs to drive the company's integration into health care systems around the world.
Pellegrini joins Fitbit from Walgreens Boots Alliance where he served as the vice president of digital health. He has more than 20 years of experience across multiple sectors of the health care industry, including providers, insurers, health technology and non-profits.
"Fitbit is uniquely positioned to help drive better health outcomes by incorporating its innovative technology, renowned brand and powerful engagement into clinical healthcare programs," Pellegrini said in a statement. "I'm a passionate believer in the power of digital health technology to improve the effectiveness, efficiency and reach of our healthcare system. I see a tremendous opportunity for healthcare providers, health plans and pharmaceutical companies to foster a more proactive, consumer-centric approach to health care using Fitbit's products, software, services and extraordinary health brand."
Pellegrini's role is to help Fitbit connect its products, information, data and insights in new and innovative ways into clinical settings, according to the announcement. He will focus on developing new partnerships with healthcare systems, insurers and other payers, pharma companies and medical device manufacturers.
"Over the past nine years, we've enabled millions of people around the world to lead healthier, more active lives by helping them to be more active, sleep better, eat smarter and manage their weight. These are some of the very changes healthcare systems and disease-management programs encourage people to make to help prevent or mitigate chronic diseases, such as diabetes, hypertension and obesity," said Woody Scal, chief business officer, Fitbit. "Because of this, we believe that Fitbit can play a meaningful role in the digital health revolution, and Adam is the ideal person to lead our efforts."