Olga Ivanova
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Olga Ivanova in Apex Traiders,

Fitbit: Fitness devices can gain much profit

Fitbit helps people lead healthier, more active lives by empowering them with data, inspiration and guidance to reach their goals. Fitbit pioneered the connected health and fitness market starting in 2007, and since then, has grown into a leading global health and fitness brand. As the leader in the connected health and fitness category, Fitbit designs products and experiences that track everyday health and fitness. Fitbit’s diverse line of award-winning products includes Fitbit Surge, Fitbit ChargeHR, Fitbit Charge, FitbitFlex, Fitbit Zip and Fitbit One activity trackers, as well as the Aria Wi-Fi Smart Scale. Fitbit products are carried in over 48,000 retail stores and in 55 countries around the globe.

The recent 25% decrease in price per share makes Fitbit shares more valuable at the market. The future growth is expected due to the participation of the company in the 27th Annual Piper Jaffray Healthcare Conference held on December 2, 2015. Meanwhile, the perspective to buy FitBit shares at a lower price and sell them in 5-6-month period after winter season can help to earn at the price spread.

Source: Google Finance

As for financial results for the third quarter of 2015, the revenue of the company was at the level of $409.3 million, GAAP net income per share of $0.19, non-GAAP net income per share of $0.24 and adjusted EBITDA of $85.0 million. It is necessary to mention that 4.8 million connected health and fitness devices were sold. Charge, charge HR and surge comprised 79% of revenue. Q3 Non-GAAP Gross Margin adjusted for international currency impact was 50.8%. Operational expenses comprised 28.6% of revenue in Q315, compared to 26.9% in Q215 and 25.0% in Q314. Q315 cash from operations increased 37x to $121.3 million compared to Q314. Cash, cash equivalents and marketable securities totaled $575.5 million at September 30, 2015, compared to $64.0 million at September 30, 2014.