Fitbit's first-quarter wearable device sales, second-quarter revenue outlook fell short of expectations, dragging stock prices down nearly 7% in after-hours trading.
Stock performance:
Fitbit shares fell 6.55% after the close
Fitbit's opening price on the New York Stock Exchange on Wednesday was $5.51. As of Wednesday's close, Fitbit's stock price closed at $5.50, unchanged from the previous trading day. As of Wednesday, 19:31 U.S. Eastern Time (7:31 p.m. Beijing time) ), Fitbit shares fell by $0.36 to $5.14, or 6.55%, in after-hours trading. For the past 52 weeks, Fitbit's share price has been highest at $7.32 and the minimum is $4.51.
First quarter performance highlights:
- 2.2 million wearable devices were sold, down 27% from 3 million in the same period of last year. With an increase in the proportion of smart watches, the average selling price of each device increased by 16% year-on-year to US$112;
- Total revenue was $247.9 million, a decrease of 17% from $298.9 million in the same period of last year;
·US revenue was 140 million U.S. dollars, down 18% year-on-year, accounting for 56% of total revenue;
• International revenues were US$108 million, a decrease of 16% year-on-year, accounting for 44% of total revenue;
- Gross profit margin was 46.0%, up 0.4% from 39.6% in the same period of last year. According to Non-GAAP, gross margin was 47.1%, an increase of 7.1 percentage points from 40.0% in the same period of last year;
- The net loss was US$80.9 million, a 35% increase from the net loss of US$60.1 million for the same period of last year. According to non-US GAAP, the net loss was US$41 million, an increase of 19% from US$34.4 million in the same period of last year;
- Net loss per share of $0.34, an increase of 26% from a net loss of $0.27 per share for the same period of the previous year; Non-US GAAP, a net loss of $0.17 per share, an increase from a net loss per share of $0.15 per share for the same period last year 13%;
-- The adjusted profit before tax, depreciation and amortization was -46.20 million U.S. dollars, which was -52.3 million U.S. dollars in the same period of last year.
Outlook:
The second quarter outlook:
- Revenues ranged from 275 to 295 million U.S. dollars, a decrease of approximately 19% year-on-year;
- According to non-US GAAP, net loss per share is between US$0.23 and US$0.27;
- Capital expenditure accounted for about 5% of revenue;
- Free cash flow dropped to around -85 million U.S. dollars;
- Equity-based incentive spending is approximately US$26 million;
- According to non-US GAAP, the effective tax rate is approximately 25%.
Looking forward to the full year of 2018:
- Revenue is about $1.5 billion
- Operating expenses decreased by 7% to US$740 million;
- Capital expenditures accounted for about 4% of revenue;
- Equity-based incentive spending is about 110 million U.S. dollars.