Fitbit Reports Fourth Consecutive Year of Revenue Decline

Fitbit financials
(Photo courtesy Fitbit.) Newly introduced devices including the Fitbit Versa 2, Fitbit Inspire and Fitbit Aria Air represented 72 percent of the company's fourth quarter's revenue and 55 percent of its full year's revenue in 2019.

Fitbit, San Francisco, reported fourth quarter 2019 revenue of $502.1 million and year-end revenue of $1.43 billion, representing decreases of 12 percent and 5.1 percent, respectively, according to a recent financial report. This marks Fitbit's fourth consecutive year of revenue decline.

Fitbit sold 16 million devices in 2019, an increase of 2.1 million devices sales year-to-year. Device sales during the fourth quarter increased year-over-year by 400,000, with 6 million total sales. New devices including the Fitbit Versa 2, Fitbit Inspire and Fitbit Aria Air represented 72 percent of the fourth quarter's revenue and 55 percent of the full year's revenue.

Fitbit's active user base grew by 2 million users in 2019 (27.6 million to 29.6 million), and CEO James Park said he is encouraged by the growth of the company's Health Solutions arm (17 percent growth to $95 million).

“In 2019, we continued to advance our mission of making health accessible to more people around the world by delivering devices, software and services at affordable prices that help improve peoples’ health,” Park said in a Feb. 20 release. "Looking ahead, we expect to grow our higher margin revenue streams in 2020.”

On Jan. 3, Fitbit's shareholders overwhelmingly approved of the company's agreement to be acquired by Google for $2.1 billion. Due to the acquisition, Fitbit will not host further earnings calls or share forward-looking guidance, Park said.

"Working with Google gives us an opportunity to transform how we scale our business, allowing us to reach more people around the world faster, while also enhancing the experience we offer to our users and the healthcare system,” Park said of Fitbit’s relationship with Google in November 2019. “This collaboration will accelerate the pace of innovation to define the next generation of healthcare and wearables.”

Fitbit's stock price (NYSE: FIT) closed at $6.49 on March 2. This compares to a closing price of $6.14 on March 1, 2019.

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