Fitbit Inc., San Francisco, reported a 39.8 percent decrease in second-quarter revenue to $353.3 million, according to financials released Aug. 2. However, this exceeded the company's original guidance of $330 million to $350 million.
Fitbit reported 3.4 million devices sold during the quarter, a 17 percent increase from the first quarter. The company also reported a net loss of $58.2 million, and adjusted EBITDA was down $28.2 million.
“Consumer demand in the second quarter was better than anticipated, enabling Fitbit to reduce channel inventory and generate better sales," CEO James Park said in the report. "We are executing according to our transition plan and have increased confidence in achieving our full year results."
The company's smartwatch is on track to deliver prior to the holiday season and may boost sales in the year's second half. The product was designed to offer the "best health and fitness experience in the category," Park said in the report.
Other products introduced in the last 12 months—the Fitbit Charge 2, Fitbit Alta HR, and Fitbit Flex 2—have driven 2017 sales, representing 81 percent of all revenue.
Park has called 2017 a transition year for the wearables manufacturer, based on a new business strategy focused on smartwatches and corporate partnerships.
"In the long term, we are confident in our vision for the future and are uniquely positioned to succeed by leveraging our brand, community, and data to drive positive health outcomes," Park said.
Fitbit is expecting third-quarter revenue in the range of $380 million to $400 million.