Fitbit Reports Revenue of $1.86 Billion in 2015, Raises 2016 Forecast

Preorders for the new Blaze pictured here and Alta models quotexceeded internal forecastsquot Fitbit noted in its earnings release Photo courtesy Fitbit
<p>Pre-orders for the new Blaze, pictured here, and Alta models &quot;exceeded internal forecasts,&quot; Fitbit noted in its earnings release. (Photo courtesy Fitbit.)</p>

Fitbit, San Francisco, reported revenue of $1.86 billion in 2015 and revenue of $712 million in the fourth quarter of 2015, according to financials released Monday.

The wearable fitness device manufacturer increased its 2016 revenue forecast from $2.4 billion to $2.5 billion, citing new product introductions and geographic expansion.

“We believe we are beginning 2016 with strong customer engagement and retention, an accelerating pace of innovation and competitive differentiation, and a foundation of significant revenue growth and profitability in 2015,” Fitbit CEO James Park said in a statement. “I am very optimistic about our growth opportunities and long-term vision as a broader digital health company.”

Fitbit sold 21.4 million connected health and fitness devices in 2015 with the Charge, Charge HR and Surge Models comprising 79 percent of the company's 2015 revenue. Fitbit sold 21.4 million connected health and fitness devices in 2015 with 8.2 million devices sold in the fourth quarter alone.

The company introduced its Blaze and Alta models in the fourth quarter, noting the pre-order volume for the two products "exceeded internal forecasts." The global launch of those products is expected to drive higher sales and marketing expenses in the first quarter as well as additional manufacturing costs in the first quarter to maximize production and meet expected demand. Those two factors will impact gross margins in the quarter. Fitbit is estimating revenue for the first quarter in the range of $420 to $440 million. Fitbit's stock dropped over 14 percent to $14.12 per share in after-hours trading Monday on the weakened forecast, according to CNBC.

The United States accounted for 74 percent of Fitbit's 2015 revenue total, with U.S. revenue increasing 149 percent from 2014 to 2015 to $1.38 billion. Europe, Middle East and Africa revenue grew from $60.7 million in 2014 to $208.8 million in 2015.

Fitbit's active users grew 152 percent from 2014 to 2015 with 16.9 million active users at the end of 2015. The company added 18 million new registered device users in 2015 and said 72 percent of those were active users at the end of the year. There were 29 million total registered devices at the end of 2015.

Fitbit's strategic investments in 2016 include further developing its digital health strategy, expansion of corporate wellness offerings, and supporting 2017 and 2018 product roadmaps. Fitbit Wellness added 1,000 enterprise customers, including Target, in 2015.

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