Strong Q2 results for Fitbit

Fitness tech firm Fitbit outperformed expectations in its second quarter results released this week.

The California firm, which manufactures wearable tech devices that can track users’ heart rate, sleep patterns and other health indicators, saw a quarterly revenue of $400 million, a 253 per cent increase on the previous year’s figure.

The result marked the highest quarterly income in the company’s eight-year history, and also left the company with a quarterly profit of $17.6 million.

Despite those results, share prices for the company were down yesterday by about 9 per cent.

Analysts attributed the falling share value to the firm’s narrowing gross margin, which shrunk from 51 per cent last year to 47 per cent this year. Chief executive James Park said that the diminished margins came from increased investment expenditure and the negative effects of a strong dollar on the export market.

The Q2 results are the company’s first since its $4 billion IPO on June 17th, which saw its initial $20 share price jump to more than $30 by the day’s end.

The share price has continued to rise and is trading around the $40 mark after a record high of $51.90 early this week.

Fitbit has a growing presence in Dublin, which serves as its European headquarters.

It was reported last summer that two Irish companies, Fitbit International and Fitbit International Holdings, were incorporated, before the firm had any staff or offices in Ireland.

Plans for the company to create 50 Dublin jobs were reported in May.

Over eight million Fitbit devices were sold in the first six months of this year, as the company capitalises on the growing wearable technology market.

Its products range in price from €59.95 for the clip-on Zip that keeps track of the wearer’s steps to €249.95 for the Surge, which features GPS tracking and heart-rate monitoring.