- Revenue of $314 million, GAAP Loss Per Share of $(0.27),
Non-GAAP Loss Per Share of $(0.14)
- Revenue increased 5% year-over-year driven by 31% growth in
devices sold
- Fitbit Health Solutions revenue increased 16%, on-track to
deliver revenue of ~$100M in 2019
Fitbit, Inc. (NYSE:FIT) today reported revenue of $314 million,
GAAP net loss per share of $(0.27), non-GAAP net loss per share of
$(0.14), GAAP net loss of $(69) million, non-GAAP net loss of $(36)
million, cash used in operations of $(76) million and free cash
flow of $(81) million for its second quarter of 2019.
“While we are disappointed to lower guidance for the year, we
remain confident in our long-term transformation strategy and have
demonstrated good results across key areas of the business. We saw
growth in devices sold, increased active users and continued growth
in our Fitbit Health Solutions channel, up 42% in the first half of
2019,” said James Park, co-founder and CEO. “In addition, we have
made progress in diversifying our revenue towards building more
predictable, recurring revenue streams with the launch of our
premium services in two test markets. We are pleased with the
initial results and expect a full launch this fall. Coupled with
innovative hardware and software offerings, we believe we’re well
positioned to bring more users to the Fitbit platform and continue
to grow our business.”
Second Quarter 2019
For the Three Months
Ended
For the Six Months
Ended
In millions, except percentages and per
share amounts
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
GAAP Results
Revenue
$
313.6
$
299.3
$
585.4
$
547.2
Gross Margin
34.5
%
39.8
%
33.8
%
42.6
%
Net Loss
$
(68.5
)
$
(118.3
)
$
(148.0
)
$
(199.1
)
Net Loss Per Share
$
(0.27
)
$
(0.49
)
$
(0.58
)
$
(0.83
)
Non-GAAP Results
Gross Margin
35.6
%
40.9
%
34.9
%
43.7
%
Net Loss
$
(35.8
)
$
(54.2
)
$
(73.8
)
$
(95.2
)
Net Loss Per Share
$
(0.14
)
$
(0.22
)
$
(0.29
)
$
(0.39
)
Adjusted EBITDA
$
(30.8
)
$
(55.8
)
$
(74.0
)
$
(102.0
)
Devices Sold
3.5
2.7
6.5
4.8
For additional information regarding the non-GAAP financial
measures, see “Non-GAAP Financial Measures” and “Reconciliation of
GAAP to Non-GAAP Financial Measures” below. Please note that
certain terms used here, including “active user,” “activations,”
and “repeat users,” are defined in our Annual Report on Form 10-K
for the full year ended December 31, 2018 or our most recently
filed Quarterly Report on Form 10-Q.
Second Quarter 2019 Financial Highlights
- Tracker revenue increased 51% year-over-year and represented
59% of revenue. Smartwatch revenue decreased 27% year-over-year,
partly due to weaker than expected sales of Fitbit Versa Lite
EditionTM, and represented 38% of revenue. Accessory and non-device
revenue represented 3% of revenue.
- Devices sold increased 31% year-over-year to 3.5 million.
Average selling price decreased 19% year-over-year to $86 per
device due to the introduction of more affordable devices, lowering
the barriers to joining our community of active users.
- U.S. revenue represented 58% of total revenue or $181 million,
down 1% year-over-year.
- International revenue represented 42% of total revenue and grew
14% to $133 million: EMEA revenue grew 33% to $88 million; Americas
excluding U.S. revenue grew 21% to $19 million and APAC revenue
declined 26% to $26 million (all on a year-over-year basis).
- New devices introduced in the past 12 months, Fitbit Charge
3TM, Fitbit InspireTM, Fitbit Inspire HRTM, Fitbit Ace 2TM and
Fitbit Versa Lite EditionTM, represented 68% of revenue.
- GAAP gross margin was 34.5% and non-GAAP gross margin was
35.6%. Both GAAP and non-GAAP gross margin were negatively impacted
by lower warranty benefit compared to the prior year and the
reduction in average selling price, partially offset by an
improvement in yield loss and efficiencies.
- GAAP operating expenses represented 57% of revenue, declining
18% year-over-year to $179 million, and non-GAAP operating expenses
represented 51% revenue declining 18% year-over-year to $160
million.
Second Quarter 2019 Operational Highlights
- Tracker devices sold increased 56% year-over-year. Smartwatch
devices sold decreased 7% year-over-year. Average selling price
declined 19% year-over-year.
- Fitbit Health Solutions revenue grew 16% year-over-year, with
strength overseas, and is on-track to deliver its full-year revenue
of approximately $100 million.
- 41% of activations came from repeat users; of the repeat users,
53% came from users who were inactive for 90 days or more. Active
users increased year-over-year.
Third Quarter 2019 Guidance
- We expect an increase in devices sold and a decline in average
selling price, each year-over-year. We expect revenue to decline
15% to 10% year-over-year and to be in the range of $335 million to
$355 million.
- We expect average selling price to improve from Q2 as we plan
to shift our new product introduction cadence back to innovation
from value.
- We expect non-GAAP gross margin to trend lower than Q2 driven
by the increase in revenue mix towards smartwatches, higher hosting
costs, and higher promotions.
- We expect non-GAAP operating expenses to remain relatively flat
year-over-year.
- We expect non-GAAP basic net loss per share in the range of
$(0.11) to $(0.09).
- We expect adjusted EBITDA to be in the range of a loss of $(27)
million to $(19) million.
- We expect non-GAAP effective tax rate of approximately
25%.
- We expect stock-based compensation expense of approximately $19
million and basic share count of approximately 260 million.
- We expect capital expenditures as a percentage of revenue of
approximately 5%.
Full Year 2019 Guidance
- We expect an increase in devices sold in 2019 and a decrease in
average selling price, each year-over-year.
- With weaker Versa Lite sales, we are lowering the midpoint of
our 2019 revenue guidance by $95 million to $1.455 billion from
$1.550 billion and now expect full year 2019 revenue to be $1.43
billion to $1.48 billion.
- We expect non-GAAP gross margin to be approximately 35% for the
full year 2019, down from approximately 40% as previously expected,
due to a decrease in revenue, higher returns and E&O costs, and
higher promotions.
- We are reducing our non-GAAP operating expense target to
approximately $640 million from the previously forecasted range of
$660 million to $690 million.
- We expect non-GAAP basic net loss per share in the range of
$(0.38) to $(0.31).
- We expect adjusted EBITDA to be in the range of $(85) million
to $(60) million.
- We expect non-GAAP effective tax rate of approximately 25%. We
expect non-GAAP effective tax rate to be volatile driven by
geographic mix of revenue, tax credits, and our shift to
profitability.
- We expect stock-based compensation expense of approximately $80
million and basic share count of approximately 260 million.
- Capital expenditures as a percentage of revenue of
approximately 3%.
- With the year-over-year change in working capital anticipated
to be less of a benefit in 2019 as compared to 2018, we expect free
cash flow to be less than adjusted EBITDA, and in the range of
approximately $(150) million to $(120) million.
For additional information regarding the non-GAAP financial
measures presented above, see “Non-GAAP Financial Measures”
below.
Webcast and Conference Call Information
Fitbit will host a conference call today at 5:00 p.m. Eastern
Time, 2:00 p.m. Pacific Time, to discuss its results. Investors may
access a live webcast of the call through the Investor section of
Fitbit’s website at investor.fitbit.com. The call can also be
accessed by dialing (800) 458-4148 or (929) 477-0324, access code
8960839. A replay of the call will be archived on Fitbit’s website
for the following six months.
Forward Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties, including statements regarding our
outlook for the third quarter of 2019 and full year 2019 and all
underlying assumptions; trends in revenues, devices sold, average
selling price, product mix, non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP net loss per share, adjusted EBITDA,
non-GAAP effective tax rate and drivers, stock-based compensation
expense, basic/diluted share count, capital expenditures, product
returns, E&O costs, hosting costs, promotional activities,
working capital, and free cash flow; expected Versa Lite sales,
including impacts related to seasonality; growth in our Fitbit
Health Solutions channel and non-device offerings and their
associated revenue and impact on gross margins; growth of our user
base; business strategies; introductions of new products and
services, including timing of our premium and other software
services and hardware offerings and their expected features and
benefits; and retail and consumer demand for smartwatches and
trackers; and all other statements that are not historical
facts.
These forward-looking statements are only predictions and may
differ materially from actual results due to a variety of factors,
including: the effects of the highly competitive market in which we
operate, including competition from much larger technology
companies; our ability to anticipate and satisfy consumer
preferences in a timely and cost-effective manner; our ability to
successfully develop, timely introduce, and achieve retail and
customer acceptance of new products and services, or enhance
existing products and services, including software and subscription
services; our ability to accurately forecast consumer demand and
adequately manage our inventory; our ability to ship products on
the timelines we anticipate and avoid unexpected delays; our
ability to detect, prevent or fix quality issues in our products
and services; our ability to attract and retain employees; our
reliance on third-party suppliers, contract manufacturers, and
logistics providers and our limited control over such parties;
delays in procuring components and product from third parties or
their suppliers; the ability of third parties to successfully
manufacture and ship quality products in a timely manner;
seasonality of demand; the concentrated nature of our retailer and
distributor base; product liability issues, security breaches or
other defects that may adversely affect product performance and
overall market acceptance of our products and services; our ability
to integrate acquired technologies and employees of acquired
businesses into our operations, particularly in new geographies;
warranty claims; the relatively new and unproven market for
trackers and wearable devices; the ability of our channel partners
to sell our products; litigation and related costs; the impact of
privacy and data security laws; changes in tax laws; the impact of
tariffs; and other general market, political, economic and business
conditions.
Additional risks and uncertainties that could affect our
financial results are included under the caption “Risk Factors” in
our Annual Report on Form 10-K for the full year ended December 31,
2018 and our most recently filed Quarterly Report on Form 10-Q
which are available on our Investor Relations website at
investor.fitbit.com and on the Securities and Exchange Commission
(SEC) website at www.sec.gov. Once filed with the SEC, additional
information will be set forth in our Quarterly Report on Form 10-Q
for the quarter ended June 29, 2019. All forward-looking statements
contained herein are based on information available to us as of the
date hereof and we do not assume any obligation to update these
statements as a result of new information or future events. We may
not actually achieve the plans, intentions, or expectations
disclosed in our forward-looking statements and you should not
place undue reliance on such statements. Our forward-looking
statements do not reflect the potential impact of any future
acquisitions, mergers, dispositions, joint ventures, or investments
we may make.
Disclosure of Material Information
Fitbit announces material information to its investors using SEC
filings, press releases, public conference calls and on its
Investor Relations page on the company’s website at
http://investor.fitbit.com.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use the
following non-GAAP financial measures in this press release:
non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP operating income (loss), non-GAAP operating
income (loss) before income taxes, non-GAAP net income (loss),
non-GAAP basic/diluted net income (loss) per share, non-GAAP free
cash flow, effective non-GAAP tax rate, non-GAAP research and
development expenses, non-GAAP sales and marketing expenses,
non-GAAP general and administrative expenses, and adjusted EBITDA.
The presentation of these financial measures is not intended to be
considered in isolation or as a substitute for, or superior to,
financial information prepared and presented in accordance with
GAAP.
We use non-GAAP measures to internally evaluate and analyze
financial results. We believe these non-GAAP financial measures
provide investors with useful supplemental information about the
financial performance of our business, enable comparison of
financial results between periods where certain items may vary
independent of business performance, and enable comparison of our
financial results with other public companies, many of which
present similar non-GAAP financial measures.
There are limitations associated with the use of non-GAAP
financial measures as an analytical tool. In particular, many of
the adjustments to our GAAP financial measures reflect the
exclusion of certain items, specifically stock-based compensation
expense, depreciation, amortization of intangible assets, interest
income, net, and the related income tax effects of the
aforementioned exclusions, that are recurring and will be reflected
in our financial results for the foreseeable future. In addition,
these measures may be different from non-GAAP financial measures
used by other companies, limiting their usefulness for comparison
purposes. A reconciliation of our non-GAAP financial measures to
their most directly comparable GAAP measures has been provided in
the financial statement tables included in this press release, and
investors are encouraged to review the reconciliation.
Guidance for non-GAAP financial measures excludes stock-based
compensation, impact of restructuring, amortization of acquired
intangible assets, and tax effects associated with these items. We
have not reconciled guidance for non-GAAP financial measures to
their most directly comparable GAAP measures because certain items
that impact these measures are uncertain, out of our control,
and/or cannot be reasonably predicted. Accordingly, a
reconciliation of the non-GAAP financial measure guidance to the
corresponding GAAP measures is not available without unreasonable
effort.
The following are explanations of the adjustments that are
reflected in one or more of our non-GAAP financial measures:
- Stock-based compensation expense relates to equity awards
granted primarily to our employees. We exclude stock-based
compensation expense because we believe that the non-GAAP financial
measures excluding this item provide meaningful supplemental
information regarding operational performance. In particular,
companies calculate stock-based compensation expense using a
variety of valuation methodologies and subjective assumptions.
- Restructuring costs primarily included severance-related costs.
We believe that excluding this expense provides greater visibility
to the underlying performance of our business operations,
facilitates comparison of our results with other periods, and may
also facilitate comparison with the results of other companies in
our industry.
- Litigation expense relates to legal costs incurred due to
litigation with Aliphcom, Inc. d/b/a Jawbone. We exclude these
expenses because we do not believe they have a direct correlation
to the operations of our business and because of the singular
nature of the claims underlying the Jawbone litigation
matters.
- Amortization of intangible assets relates to our acquisitions
of FitStar, Pebble, Vector and Twine Health. We exclude these
amortization expenses because we do not believe they have a direct
correlation to the operation of our business.
- Income tax effect of non-GAAP adjustments relates to the tax
effect of the adjustments that we incorporate into non-GAAP
financial measures such as stock-based compensation, amortization
of intangibles, restructuring and valuation allowance in order to
provide a more meaningful measure of non-GAAP net loss.
- We define free cash flow as net cash provided by (used in)
operating activities adjusted for purchase of property and
equipment. We consider free cash flow to be a liquidity measure
that provides useful information to management and investors about
the amount of cash generated by the business that can possibly be
used for investing in our business and strengthening the balance
sheet, but it is not intended to represent the residual cash flow
available for discretionary expenditures.
About Fitbit, Inc. (NYSE: FIT)
Fitbit helps people lead healthier, more active lives by
empowering them with data, inspiration and guidance to reach their
goals. Fitbit designs products and experiences that track and
provide motivation for everyday health and fitness. Fitbit’s
diverse line of innovative and popular products include Fitbit
Charge 3™, Fitbit Inspire HR™, Fitbit Inspire™, and Fitbit Ace 2™
activity trackers, as well as the Fitbit Ionic™ and Fitbit Versa™
family of smartwatches, Fitbit Flyer™ wireless headphones, and
Fitbit Aria 2™ Wi-Fi Smart Scale. Fitbit products are carried in
approximately 39,000 retail stores and in 87 countries around the
globe. Powered by one of the world’s largest health and fitness
social networks and databases of health and fitness data, the
Fitbit platform delivers personalized experiences, insights and
guidance through leading software and interactive tools, including
the Fitbit and Fitbit Coach apps, and Fitbit OS for smartwatches.
Fitbit Health Solutions develops health and wellness solutions
designed to help increase engagement, improve health outcomes, and
drive a positive return for employers, health plans and health
systems.
Fitbit and the Fitbit logo are trademarks or registered
trademarks of Fitbit, Inc. in the U.S. and other countries.
Additional Fitbit trademarks can be found at
www.fitbit.com/legal/trademark-list. Third-party trademarks are the
property of their respective owners.
Connect with us on Facebook, Instagram or Twitter and share your
Fitbit experience.
FITBIT, INC.
Condensed Consolidated
Statements of Operations
(In thousands, except per share
amounts)
(unaudited)
Three Months Ended
Six Months Ended
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
Revenue
$
313,556
$
299,344
$
585,446
$
547,209
Cost of revenue
205,342
180,329
387,779
314,071
Gross profit
108,214
119,015
197,667
233,138
Operating expenses:
Research and development
70,919
87,047
147,958
176,383
Sales and marketing
83,060
100,845
151,676
172,897
General and administrative
24,865
30,211
51,557
66,299
Total operating expenses
178,844
218,103
351,191
415,579
Operating loss
(70,630
)
(99,088
)
(153,524
)
(182,441
)
Interest income, net
2,622
2,177
6,088
3,527
Other income, net
461
2,258
1,734
2,775
Loss before income taxes
(67,547
)
(94,653
)
(145,702
)
(176,139
)
Income tax expense
971
23,615
2,281
23,006
Net loss
$
(68,518
)
$
(118,268
)
$
(147,983
)
$
(199,145
)
Net loss per share:
Basic
$
(0.27
)
$
(0.49
)
$
(0.58
)
$
(0.83
)
Diluted
$
(0.27
)
$
(0.49
)
$
(0.58
)
$
(0.83
)
Shares used to compute net loss per
share:
Basic
256,160
242,898
254,659
241,227
Diluted
256,160
242,898
254,659
241,227
FITBIT, INC.
Condensed Consolidated Balance
Sheets
(In thousands)
(unaudited)
June 29, 2019
December 31, 2018
Assets
Current assets:
Cash and cash equivalents
$
335,229
$
473,956
Marketable securities
229,708
249,493
Accounts receivable, net
258,599
414,209
Inventories
161,931
124,871
Income tax receivable
7,365
6,957
Prepaid expenses and other current
assets
24,124
42,325
Total current assets
1,016,956
1,311,811
Property and equipment, net
91,718
106,286
Operating lease right-of use-assets
75,528
—
Goodwill
60,979
60,979
Intangible assets, net
19,499
23,620
Deferred tax assets
4,222
4,489
Other assets
9,278
8,362
Total assets
$
1,278,180
$
1,515,547
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
157,204
$
251,657
Accrued liabilities
332,857
437,234
Operating lease liabilities
23,907
—
Deferred revenue
28,076
29,400
Income taxes payable
578
1,092
Total current liabilities
542,622
719,383
Long-term deferred revenue
5,285
7,436
Long-term operating lease liabilities
75,309
—
Other liabilities
29,420
52,790
Total liabilities
652,636
779,609
Stockholders’ equity:
Class A and Class B common stock
25
25
Additional paid-in capital
1,092,306
1,055,046
Accumulated other comprehensive income
(loss)
263
(66
)
Accumulated deficit
(467,050
)
(319,067
)
Total stockholders’ equity
625,544
735,938
Total liabilities and stockholders’
equity
$
1,278,180
$
1,515,547
FITBIT, INC.
Condensed Consolidated
Statements of Cash Flow
(In thousands)
(unaudited)
Three Months Ended
Six Months Ended
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
Cash Flows from Operating
Activities
Net loss
$
(68,518
)
$
(118,268
)
$
(147,983
)
$
(199,145
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Provision for doubtful accounts
16
—
48
—
Provision for inventory obsolescence
2,644
1,677
4,122
8,014
Depreciation
16,733
13,116
30,106
23,572
Non-cash lease expense
3,902
—
11,615
—
Write-off of property and equipment
170
226
170
7,485
Amortization of intangible assets
2,061
2,057
4,121
3,805
Stock-based compensation
20,547
25,857
41,091
49,498
Deferred income taxes
154
500
134
(1,299
)
Other
212
(144
)
162
(419
)
Changes in operating assets and
liabilities, net of acquisition:
Accounts receivable
(8,031
)
(27,787
)
155,561
164,195
Inventories
9,775
3,090
(41,183
)
(24,217
)
Prepaid expenses and other assets
1,413
(1,986
)
14,007
37,624
Fitbit force recall reserve
90
(159
)
136
(291
)
Accounts payable
(18,861
)
19,971
(100,517
)
(64,184
)
Accrued liabilities and other
liabilities
(28,138
)
(3,886
)
(98,100
)
(74,033
)
Lease liabilities
(8,605
)
—
(13,577
)
—
Deferred revenue
(1,216
)
(3,613
)
(3,475
)
(9,623
)
Income taxes payable
(771
)
21,974
(514
)
21,801
Net cash used in operating
activities
(76,423
)
(67,375
)
(144,076
)
(57,217
)
Cash Flows from Investing
Activities
Purchase of property and equipment
(4,731
)
(15,908
)
(10,827
)
(28,524
)
Purchases of marketable securities
(108,880
)
(83,408
)
(220,495
)
(224,812
)
Sales of marketable securities
2,016
22,975
2,016
73,770
Maturities of marketable securities
111,120
88,534
239,429
236,575
Acquisition, net of cash acquired
—
—
—
(13,646
)
Net cash provided by (used in)
investing activities
(475
)
12,193
10,123
43,363
Cash Flows from Financing
Activities
Repayment of debt
—
—
—
(747
)
Financing lease
(340
)
—
(937
)
—
Proceeds from issuance of common stock
5,881
9,746
6,812
10,738
Taxes paid related to net share settlement
of restricted stock units
(4,227
)
(4,808
)
(10,649
)
(9,987
)
Net cash provided by (used in)
financing activities
1,314
4,938
(4,774
)
4
Net decrease in cash and cash
equivalents
(75,584
)
(50,244
)
(138,727
)
(13,850
)
Cash and cash equivalents at beginning of
period
410,813
378,360
473,956
341,966
Cash and cash equivalents at end of
period
$
335,229
$
328,116
$
335,229
$
328,116
FITBIT, INC.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(In thousands, except percentages
and per share amounts)
(unaudited)
Three Months Ended
Six Months Ended
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
Non-GAAP gross profit:
GAAP gross profit
$
108,214
$
119,015
$
197,667
$
233,138
Stock-based compensation expense
1,521
2,032
2,951
3,130
Impact of restructuring
—
—
190
—
Intangible assets amortization
1,853
1,516
3,707
3,032
Non-GAAP gross profit
$
111,588
$
122,563
$
204,515
$
239,300
Non-GAAP gross margin (as a percentage
of revenue):
GAAP gross margin
34.5
%
39.8
%
33.8
%
42.6
%
Stock-based compensation expense
0.5
0.7
0.5
0.6
Intangible assets amortization
0.6
0.5
0.6
0.6
Non-GAAP gross margin
35.6
%
40.9
%
34.9
%
43.7
%
Non-GAAP research and
development:
GAAP research and development
$
70,919
$
87,047
$
147,958
$
176,383
Stock-based compensation expense
(11,892
)
(15,090
)
(23,880
)
(29,762
)
Impact of restructuring
—
—
(1,550
)
—
Non-GAAP research and development
$
59,027
$
71,957
$
122,528
$
146,621
Non-GAAP sales and marketing
expense:
GAAP sales and marketing
$
83,060
$
100,845
$
151,676
$
172,897
Stock-based compensation expense
(3,175
)
(3,911
)
(6,313
)
(7,358
)
Impact of restructuring
—
—
(589
)
—
Intangible assets amortization
(136
)
(470
)
(271
)
(630
)
Non-GAAP sales and marketing
$
79,749
$
96,464
$
144,503
$
164,909
Non-GAAP general and administrative
expense:
GAAP general and administrative
$
24,865
$
30,211
$
51,557
$
66,299
Stock-based compensation expense
(3,959
)
(4,824
)
(7,947
)
(9,249
)
Litigation expense
—
—
—
(765
)
Impact of restructuring
—
—
(129
)
—
Intangible assets amortization
(72
)
(71
)
(143
)
(143
)
Non-GAAP general and administrative
$
20,834
$
25,316
$
43,338
$
56,142
Non-GAAP operating expenses:
GAAP operating expenses
$
178,844
$
218,103
$
351,191
$
415,579
Stock-based compensation expense
(19,026
)
(23,825
)
(38,140
)
(46,369
)
Litigation expense
—
—
—
(765
)
Impact of restructuring
—
—
(2,268
)
—
Intangible assets amortization
(208
)
(541
)
(414
)
(773
)
Non-GAAP operating expenses
$
159,610
$
193,737
$
310,369
$
367,672
FITBIT, INC.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(In thousands, except percentages
and per share amounts)
(unaudited)
Three Months Ended
Six Months Ended
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
Non-GAAP operating loss and loss before
income taxes:
GAAP operating loss
$
(70,630
)
$
(99,088
)
$
(153,524
)
$
(182,441
)
Stock-based compensation expense
20,547
25,857
41,091
49,498
Litigation expense
—
—
—
765
Impact of restructuring
—
—
2,458
—
Intangible assets amortization
2,061
2,057
4,121
3,805
Non-GAAP operating loss
(48,022
)
(71,174
)
(105,854
)
(128,373
)
Interest income, net
2,622
2,177
6,088
3,527
Other income, net
461
2,258
1,734
2,775
Non-GAAP loss before income taxes
$
(44,939
)
$
(66,739
)
$
(98,032
)
$
(122,071
)
Non-GAAP net loss and net loss per
share:
Net loss
$
(68,518
)
$
(118,268
)
$
(147,983
)
$
(199,145
)
Stock-based compensation expense
20,547
25,857
41,091
49,498
Litigation expense
—
—
—
765
Impact of restructuring
—
—
2,458
—
Intangible assets amortization
2,061
2,057
4,121
3,805
Income tax effect of non-GAAP
adjustments
10,139
36,121
26,474
49,888
Non-GAAP net loss
$
(35,771
)
$
(54,233
)
$
(73,839
)
$
(95,189
)
GAAP diluted shares
256,160
242,898
254,659
241,227
Other dilutive equity awards
—
—
—
—
Non-GAAP diluted shares
256,160
242,898
254,659
241,227
Non-GAAP diluted net loss per share
$
(0.14
)
$
(0.22
)
$
(0.29
)
$
(0.39
)
Free cash flow:
Net cash used in operating activities
$
(76,423
)
$
(67,375
)
$
(144,076
)
$
(57,217
)
Purchases of property and equipment
(4,731
)
(15,908
)
(10,827
)
(28,524
)
Free cash flow
$
(81,154
)
$
(83,283
)
$
(154,903
)
$
(85,741
)
Net cash provided by (used in) investing
activities
$
(475
)
$
12,193
$
10,123
$
43,363
Net cash provided by (used in) financing
activities
$
1,314
$
4,938
$
(4,774
)
$
4
FITBIT, INC.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(In thousands, except percentages
and per share amounts)
(unaudited)
Three Months Ended
Six Months Ended
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
Adjusted EBITDA:
Net loss
$
(68,518
)
$
(118,268
)
$
(147,983
)
$
(199,145
)
Stock-based compensation expense
20,547
25,857
41,091
49,498
Litigation expense
—
—
—
765
Impact of restructuring
—
—
2,458
—
Depreciation and intangible assets
amortization
18,792
15,173
34,225
27,377
Interest income, net
(2,622
)
(2,177
)
(6,088
)
(3,527
)
Income tax expense
971
23,615
2,281
23,006
Adjusted EBITDA
$
(30,830
)
$
(55,800
)
$
(74,016
)
$
(102,026
)
Stock-based compensation
expense:
Cost of revenue
$
1,521
$
2,032
$
2,951
$
3,130
Research and development
11,892
15,090
23,880
29,761
Sales and marketing
3,175
3,911
6,313
7,358
General and administrative
3,959
4,824
7,947
9,249
Total stock-based compensation expense
$
20,547
$
25,857
$
41,091
$
49,498
FITBIT, INC.
Revenue by Geographic
Region
(In thousands)
(unaudited)
Three Months Ended
Six Months Ended
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
United States
$
180,862
$
182,451
$
315,953
$
321,947
Americas, excluding United States
19,178
15,838
34,505
31,938
Europe, Middle East, and Africa
87,563
65,969
174,661
130,507
APAC
25,953
35,086
60,327
62,817
Total
$
313,556
$
299,344
$
585,446
$
547,209
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190731005858/en/
Investor Contact:
Tom Hudson, (415) 604-4106 investor@fitbit.com
Media Contact:
Jen Ralls, (415) 722-6937 PR@fitbit.com
Fitbit (NYSE:FIT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fitbit (NYSE:FIT)
Historical Stock Chart
From Jul 2023 to Jul 2024