Fitbit reports $587m revenue in Q216, represents a 46% year on year increase
Fitbit sold 5.7 million devices in the second quarter of 2016 on a 46% year-on-year increase in revenue to $586.5 million during the period.
The US accounted for 76% of revenue on sales growth of 42% year-over-year while EMEA revenue grew 150% year-over-year while accounting for 17% of the company’s revenue during the period. APAC accounted for 2% of the company’s revenue while seeing a 54% decline in sales. Excluding the impact of the progressive shut down of retailer Dick Smith in Australia, APAC revenue increased 98% year-over-year. Other regions in the Americas comprised 63% of sales.
James Park, Fitbit co-founder and CEO, said: “Second quarter results reflect accelerated unit and revenue growth in the US and EMEA, our two largest markets, despite an unusually strong Q215 with the full availability of Fitbit Charge HR fulfilling built-up demand in that quarter. Our strong profitability reflects careful management of operating expenses, while we continue to invest in future growth. Based on the progress of our business, against a backdrop of a growing worldwide opportunity for our products, we remain confident in our guidance for the year.”
New products – Fitbit Blaze and Alta, including related accessories – comprised 54% of Q2/2016 revenue, compared to 50% in Q1/2016. Gross margin was impacted by an increase in warranty reserves for legacy products; with an expectation the additional reserves taken will adequately cover future warranty liability, allowing a return to more normalised gross margins beginning in Q3/2016. The 120% GAAP and 90% non-GAAP year-over-year increase in operating expense is based on increased investments in R&D and marketing to pursue innovation and growth.
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