Fitbit Inc., San Francisco, reported $271.9 million in first quarter 2019 revenue, a 10 percent increase year-over-year. This marks the company’s third consecutive quarter of revenue growth.
The first quarter saw Fitbit’s device sales jump 36 percent to 2.9 million, with smartwatch sales increasing 117 percent and representing 42 percent of the quarter’s business.
New products including the Fitbit Charge 3, Fitbit Inspire and Fitbit Versa Lite Edition comprised 67 percent of the quarter's revenue.
Year-over-year, the company also reported slight but positive decreases in its adjusted EBITDA (a loss of $43.2 million) and overall net loss ($79.5 million).
This news follows Fitbit CEO James Park’s recent comments that the company was on a “path back to growth and profitability,” despite reporting its third straight year of revenue decline in 2018.
“We saw continued momentum across our business in the first quarter,” Park said in a May 1 media release. “New users are continuing to join the Fitbit platform with active users increasing in the first quarter, underscoring the effectiveness of our strategy to bring more users onto the Fitbit platform with the introduction of more accessible, affordable devices.”
Park noted that the company's Fitbit Health Solutions business grew 70 percent year-over-year and is on track to deliver its full-year revenue target of $100 million.
Park expects Fitbit's revenue to grow at least 2 percent to $305 million during the second quarter and at least 1 percent to $1.52 billion for 2019.
The quarterly report states: "We expect devices sold to increase in 2019, but average selling price to decline each year-over-year driven by our intention to increase accessibility to our platform and grow our community of active users."