Fitbit Shares Jump on Demand for Connected Health Wearables
Fitbit shares closed up 15 percent Thursday to $5.84 after the company raised full-year guidance to reflect what CEO James Park called a first-half “upside." Park said on a Q2 earnings call Wednesday that the company is “executing according to…
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our transition plan.” Demand and sell-in for connected health and fitness trackers were better than forecast, up 14 percent sequentially, he said. Revenue in Q2 fell to $353 million from $587 million in the year-ago quarter on sales of 3.4 million devices, said Park. Fitbit has sold some 67 million devices to date, he said, calling devices “a means to an end" in Fitbit’s “firm vision for the future.” The company's smartwatch will combine features “not yet seen in a smartwatch,” he said, seeing a $10 billion addressable market. It's the company's first product based on the IP and staff from recently acquired Pebble, he said: Fitbit sees a “blurring of lines” between trackers and smartwatches occurring over time.