Fitbit, Inc. (NYSE: FIT) reported its third quarter financial results after the markets closed on Wednesday. The company said that it had $0.04 in earnings per share (EPS) and $393.6 million in revenue, compared with consensus estimates that called for a net loss of $0.01 per share and $381.21 million in revenue. The same period from last year had a net loss of $0.01 per share and $392.52 million in revenue.
During this quarter, the company sold 3.5 million devices. Also new products introduced in the past year represented 62% of revenue. The average selling price was up 3% year over year to $108.
In terms of its segment revenue, the firm reported that Asia Pacific was flat at $34 million, Other America’s revenue dropped 2% to $25 million, Europe Middle East Asia revenue grew 17% to $104 million, and U.S. revenue decreased 6% to $230 million. International revenue was $163 million, representing 42% of revenue.
As for fourth quarter guidance, the company expects to see a EPS of at least $0.07 and revenues to be greater than $560 million. There are consensus estimates calling for $0.06 in EPS on $569.22 million in revenue for the coming quarter.
James Park, co-founder and CEO, commented:
We have been incredibly focused on executing our transition plan and as a result, saw a return to profitability this quarter, and are re-affirming our full year revenue guidance of $1.5 billion. We succeeded in growing our healthcare business by 26% and diversifying our revenue to compete in the changing wearables category and saw sequential growth in both tracker and smartwatch devices. We are now the number two player in the smartwatch space in the U.S. – a category we just entered with zero share only fourteen months ago. We also launched our most advanced tracker yet, Fitbit Charge 3, which is blurring the lines between trackers and smartwatches and is already one of the top selling devices in the U.S. All this shows the power of the Fitbit brand and our ability to continue to deliver a wearable platform consumers love and that drives positive health outcomes.
Shares of Fitbit closed Wednesday at $4.74, with a consensus analyst price target of $6.47 and a 52-week range of $4.23 to $7.79. Following the announcement, the stock was initially up 10% at $5.20 in the after-hours trading session.