ROCK HEALTH - May 11 - Fitbit launched its first device in 2009 and has since experienced explosive revenue growth, reaching $750M in sales in 2014. Fitbit's full year 2015 revenue is expected to be $1.6 - 2B. The growth has been driven not solely by the increase in devices sold (~11M in 2014), but also by improvement in the ASP of Fitbit’s devices. $233M of Q1 2015 revenue was from new products released inQ4 2014, or ~70% of Q1 2015′s revenue. This is significant, since Fitbit did not discontinue older products, including the Zip, One, or Flex, and all of the new products launched at higher price points ($129+) than existing products.The company has been profitable with operating income of $158M in 2014.
In the S-1, Fitbit provides limited data on engagement. It’s unclear how many active users Fitbit has. Presently, this is the largest criticism of wearables—that the devices are abandoned after six months by the majority of people. Fitbit presents its own metric: Paid Active Asers (PAUs).
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