Fitbit published fourth quarter financial results on Monday, missing market estimates.
Fitbit reported a net loss of $46 million, or 19 cents a share, on revenue of $571 million. The company reported a non-GAAP loss of 2 cents a share compared to estimates calling for it to break even and revenue of $588.89 million. Fitbit sold 5.4 million devices during the quarter.
In the same quarter a year ago, Fitbit reported a loss of $146.3 million on revenue of $573.8 million and sold 6.5 million devices.
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Fitbit said as it introduces new products and shifts from trackers to smartwatches, its revenue is set to decline roughly 15 to 20 percent year-over-year during Q1 in the range of $240 million to $255 million. Analysts were expecting estimates in the $340 million range.
During Q4, Fitbit said its Ionic, Alta HR, Aria 2, and accessory Fitbit Flyer, represented 36 percent of revenue. Average selling price increased 20 percent to $102 per device, thanks to its smartwatches.
For the full year, Fitbit reported net loss of $277 million, or $1.19 cents a share, on revenue of $1.6 billion. The company reported a non-GAAP loss of 26 cents a share.
"We made important progress in 2017 under rapidly changing market conditions. We delivered on our full year guidance and drove down operating expenses while continuing to invest in innovation. We delivered important foundational assets with the launch of the Fitbit operating system and SDK, allowing us to scale future smartwatches quickly and deliver dynamic experiences for users," James Park, co-founder and CEO of Fitbit, said in a statement. "We also made progress in integrating into the healthcare system, with strategic collaborations with United Healthcare and Dexcom, and acceptance into the FDA's digital health pre-certification program."
"In 2018 we'll focus on managing down expenses, continuing to expand in the smartwatch category and supporting our engaged global community on their health and fitness journeys," he continued.
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Fitbit shares dropped 12 percent after hours.