Fitbit beats Q2 expectations with strong Versa sales
Fitbit published second quarter fiscal results on Wednesday, beating market expectations with strong performance from the Versa, Fitbit's first mass-appeal smartwatch.
The wearables maker posted a non-GAAP net loss per share of 22 cents on revenue of $299 million.
Wall Street expected a net loss per share of 24 cents on revenue of $285.4 million.
Q2 of Versa, Fitbit says, outpaced the combined sales of Samsung, Garmin and Fossil smartwatches in North America.
The Versa's strong sales improved Fitbit's position with retailers, CEO James Park said in a statement, "solidifying shelf space for the Fitbit brand and providing a halo effect to our other product offerings."
Overall, Fitbit sold 2.7 million wearable devices in Q2, with the average selling price increasing 6 percent year-over-year thanks to the growing mix of smartwatches. Devices introduced in just the past year accounted for 59 percent of revenue.
Smartwatch revenue in Q2 grew to 55 percent of revenue, up from 30 percent in Q1. Fitbit launched the Versa in mid-April. In June, just a little more than a month later, Fitbit announced it had already shipped more than a milion Versas.
Meanwhile, the company saw progress in its health care channel, strengthening relationships with partners. For example, Fitbit worked with partners like Humana and Diplomate to add more health apps to its smartwatch platform.
For Q3, Fitbit expects revenue to decline 3 percent year-over-year to a range of $370 million to $390 million. It expects to break even in Q3 and to return to growth and profitability in the second half of the fiscal year.