About Fitbit, Inc.
Fitbit is counting on you to step up and step out to get in shape. The company's wrist-worn fitness tracking devices are some of the most popular in the emerging fitness market. Its line of devices track steps, calories burned, and duration of activity. Other measurements taken by the spectrum of Fitbit devices include sleep duration and quality, heart rate, and distance and route. All Fitbit devices sync with computers and some sync with apps on mobile devices to show feedback. More than 39,000 stores carry Fitbits including Best Buy, Target, and Dick's Sporting Goods, as does Amazon.com. The company also sells devices directly to consumers and through corporate wellness programs. Most of Fitbit's revenue is from the US.
While Fitbit develops the sensors, algorithms, and software for its products, the devices are made by contract manufacturers, mainly Flextronics. Fitbit devices range in price from about $70 for the entry level Fitbit Inspire up to $250 for the Fitbit Ionic, which has the features of a GPS watch, heart-rate tracker, activity tracker, and smartwatch. The company updates its products through wireless connections. Fitbit also sells a WiFi-enabled scale, called Aria, that tracks weight, body fat percentage, and body mass index.
The company offers premium services, for which customers pay extra. They include virtual coaching through customized fitness plans and interactive video-based exercise on mobile devices and computers. The company's open application programming interface (API) allows third-party developers to create health and fitness apps for Fitbit's platform.
Fitbit is headquartered in San Francisco and has other offices in San Diego, California, Issaquah, Washington, and Boston. It has international operations in Ireland, Belarus, Romania, India, China, South Korea, Japan, and Singapore.
Fitbit relies on the US for about 60% of its sales, with about 25% from the Europe, Africa, and Middle East region, and 10% each from the Asia/Pacific region and the Americas excluding the US.
Sales and Marketing
Fitbit sells mainly through several distributors and some 39,000 retail stores, which often have dedicated displays. The company's five largest retailers and distributors account for more than 40% of sales, with its two largest D&H Distributing and Amazon.com accounting for 10% or more of sales each. The company also gets about 10% of sales through its website.
After peaking at $2.17 billion in 2016, Fitbit's revenue declined in 2017 and 2018. On the bottom line, the company has lost money for three straight years.
In 2018, sales fell 6% to $1.5 billion, about $103 million less than in 2017. Fitbit sold 9% fewer devices in 2018 from 2017 as customers moved to smart watches and away from fitness trackers. The company introduced the Fitbit Versa, a smartwatch in 2018, which drove its smartwatch revenue 437% to account for about 44% of sales.
Fitbit focuses on growth, investing in new devices and sales and marketing, leading to a loss of $185.8 million in 2018, compared to a loss of $277 million in 2017.
The company had about $474 million in cash and equivalents in 2018 compared to $342 million in 2017. Operations generated $113 million in 2018 while investing activities provided $17.5 million and financing activities provided $1.3 million.
Fitbit didn't miss the market's switch to smartwatches from trackers entirely, but it was late in pproducing a product to meet the trend. The Fitbit Versa, the company's first mass appeal smartwatch, came out in the second quarter of 2019. The device charged Fitbit's smartwatch revenue to account for 44% of the total, compared to 8% in 2017.
The company hasn't abandoned trackers, releasing the Fitbit Charge 3, a family of devices that numbers about 38 million sold, and the Fitbit Ace, a tracker designed for kids ages 8 and older.
Fitbit had negligible software revenue in 2018, but plans to develop software services for its user community. It also plans to develop the Fitbit Health Solutions channel, which provides health and wellness information and services for employers, health plans and health systems. Another 2018 product, Fitbit Care, is a connected health platform that combines health coaching and virtual care, wearable devices, and personalized digital interventions to better support patients outside a clinical environment.
Fitbit is a leading fitness tracking device company, according to research organizations like International Data Corp. and NPD Group. The market for fitness devices is still young and competition is intense. Companies with ample resources such as Apple with its Apple Watch and Google are joined by Garmin, Under Armour, Misfit, Xiaomi, and others in the fitness device race.
199 FREMONT ST FL 14
San Francisco, CA 94105-2253
Phone: 1 (415) 513-1000
Employer Type: Publicly Owned
Stock Symbol: FIT
Stock Exchange: , NYSE
CTO: Eric N. Friedman
VP Operations: Patrick McGivern
Chairman, President, and CEO: James Park
Employees (This Location): 277
Employees (All Locations): 1,694