Source: courtesy of Fitbit Inc.
The company recorded a gross margin of 47% for the second quarter. At the same time Fitbit sold 4.46 million devices compared with 1.72 million sold in the same period last year.
In the second quarter, international revenue increased 250% year over year, driven by EMEA (Europe, Middle East, Africa) and APAC (Asia, Pacific) year over year revenue growth of 301% and 292%, respectively.
In terms of guidance, Fitbit gave its outlook as $0.07 to $0.10 in EPS on $335 million to $365 million in revenue compared to consensus estimates that call for $0.07 in EPS on $261.90 million in revenue. The company expects the full year EPS to be $0.69 to $0.77 on $1.6 billion to $1.7 billion in revenue; the consensus estimates for the full year are $0.61 in EPS on $1.41 billion in revenue.
James Park, Fitbit co-founder and CEO, commented on earnings:
Our second quarter results included our highest quarterly revenue in the eight-year history of Fitbit. In the quarter, we introduced new features and services, expanded brand awareness, increased global distribution and further penetrated the corporate wellness market. We remain focused on continuing to deliver innovative products and services that empower people around the world to reach their health and fitness goals.
At the end of the quarter, Fitbit had $461.3 million in cash and cash equivalents compared to $195.6 million at the end of December 2014.
Shares of Fitbit closed Wednesday up 3.9% at $51.64 on a post-IPO trading range of $29.50 to $51.65. Following the release of the earnings report, shares were initially down 9.3% at $46.82 in the after-hours trading session. The stock has a consensus analyst price target of $46.45. In just the first 25 minutes in the after-hours trading session, about 3 million shares of Fitbit had moved.
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