Fitbit shares jumped Wednesday in extended trading after the company released better-than-expected second-quarter numbers.
Here’s how Fitbit fared:
- Loss per share: 22 cents, vs. 24 cents forecast by Thomson Reuters.
- Revenue: $299.3 million, vs. $285.4 million forecast by Thomson Reuters.
Analysts had projected quarterly revenue of $285.4 million, or a nearly 20 percent year-over-year sales decline. Fitbit reported a revenue drop of 15 percent.
In the year-ago quarter, the fitness tech company reported it had a loss of 8 cents per share on revenue of $353.3 million.
The stock initially jumped 8 percent in after-hours trading following the report. The shares since pared gains, and were last seen trading more than 3 percent higher.
Fitbit performed better in some regions than others. Its biggest decline was in Europe, the Middle East and Africa, where revenue plummeted 39 percent year over year. In the U.S., revenue dropped 8 percent.
However, the Asia-Pacific market was a bright spot for the company, where revenue increased 66 percent year over year.
For the third quarter, Fitbit said it expects revenue to come in between $370 million and $390 million. Analysts had forecast third-quarter revenue of $377.6 million, according to a Thomson Reuters consensus estimate.
The stock has been up modestly in 2018. In the same period the Invesco QQQ Trust, which tracks the tech-heavy Nasdaq 100 index, has gained more than 13 percent.
Fitbit’s business has started to pivot toward smartwatches, which made up 55 percent of revenue in the second quarter. Smartwatches also contributed to an increase in its average selling price. That figure rose 6 percent year over year to $106 per device.
However, Fitbit is not leaving its signature trackers behind. Co-founder and CEO James Park said on a call with investors that he expects the second quarter to be the “trough” in terms of tracker demand. He said there is potential growth for tracker use among children and in the health-care industry.
“We’re going to continue to invest and innovate in trackers,” he said.