Fitbit reported sales of US$505m for the first quarter of 2016 – a 50 per cent increase on Q1 2015 – prompting the fitness tracking giant to raise profit guidance for the rest of the year.
The company shook off potential lawsuits around the accuracy of its fitness trackers to sell 4.8 million connected health and fitness devices in the first quarter, with 70 per cent of revenue coming from the US market.
The new smartwatch-inspired Fitbit Blaze – which the company unveiled at this year’s CES Show in January – has sold one million units since it launched and accounted for 47 per cent of the company's Q1 revenue.
Having floated on the New York Stock Exchange last June, the company had welcome news for investors, announcing an increase in forecasts for Q2 revenue (between $565m to $585m), in addition to the positive profit outlook.
“The strong growth and defensibility of our business continues to be powered by product innovation, the network effects of our community, our expanding global distribution, and investment in our brand,” said James Park, Fitbit co-founder and CEO.
“Based on the first quarter’s performance and momentum, we are confident about the remainder of the year, which is reflected in our increased guidance.”
To read an interview with Fitbit’s Gareth Jones about motivating people through challenges and rewards – from the June 2015 edition of Health Club Management – click here.
