Fitbit continued strong system progress for Q2, up 31%, 12 months over 12 months, representing a 5% bump in income. From that angle, the corporate’s long-term turnaround seems to be on observe — however issues weren’t all cheery this day trip. Notably, the corporate’s inventory is down in after-hours buying and selling after it lowered steerage for annual income.
The firm laid a lot of the blame on the toes of the Versa Lite. Announced in March, the $160 system is a stripped-down model of the Versa, the smartwatch that helped kickstart Fitbit’s most up-to-date act.
“While we are disappointed to lower guidance for the year, we remain confident in our long-term transformation strategy and have demonstrated good results across key areas of the business,” CEO James Park mentioned in a launch tied to the earnings. We noticed progress in units bought, elevated lively customers and continued progress in our Fitbit Health Solutions channel, up 42% within the first half of 2019.”
All instructed, smartwatch income dropped 27% 12 months over 12 months, with the Lite making up a decrease than anticipated 38% of that quantity. Ultimately the corporate’s lately consolidated tracker affords had been there to select up among the slack, with a 51% 12 months over 12 months improve.
The stumbles are available in distinction to this week’s Apple earnings, which discovered wearables on the upswing as iPhone gross sales continued to sputter. In addition to a newfound give attention to smartwatches, Fitbit’s latest shift additionally features a healthcare providing. Fitbit Health Solutions is up 42% for the 12 months, with worldwide progress taking part in a key function.
