Fitbit reported a significant decrease in sales
Series financial statements continued thanks to Fitbit. The company ended the first quarter of the 2017 financial year, for which she earned 298,9 million dollars. For comparison, a year earlier revenue reached $ 505.4 bn million dollars.
Gross margin decreased from 46.3% to 39.6%. Fitbit for the quarter ended in a net loss of $ 60.1 million dollars against a profit of 11 million a year earlier. In the USA, the average sales price of Fitbit devices has decreased by 4% and amounted to of 96.45 USD. Given the fact that most manufacturer models cost significantly more, it can be concluded that the main sales have a Fitbit to the most affordable solutions.
For the past quarter, the company sold 3 million of its devices, compared to 4.8 million in the first quarter of last year. As you can see, the main reason for the almost double revenue drop is the significant decline in demand for activity trackers Fitbit. In addition, the company says the restructuring costs of the business. 36% of buyers in the last quarter already owned some products Fitbit. In the current quarter, the company expects revenue at the level of 330-350 million dollars, and at the end of the year — 1.5-1.7 billion dollars.