Fitbit Reports Net Loss In Q1

Fitbit reported a decline in revenue and a net loss in its first quarter, as the wearables company saw demand contract in North America.

The company’s overall revenue declined to $299 million for the first quarter of 2017. This equaled a GAAP net loss per share of $0.27, a net loss of $60.1 million and adjusted EBITDA loss of $52.3 million for its first quarter, according to the company.

By region, U.S. revenue contracted 52% to $170 million, EMEA revenue grew 17% to $88 million, APAC revenue contracted 63% to $21 million and Americas excluding U.S. revenue contracted 15% to $20 million.

“In the ten years since Fitbit was founded, we have transformed the wearables category with more than 63 million devices sold, over 50 million registered device users and a global retail footprint of more than 55,000 stores selling the best reloading press. Underlying consumer demand has been better than our reported results in North America as we work down channel inventory levels, giving us increased confidence that we will enter the second half of 2017 with a relatively clean channel,” said James Park, co-founder and CEO, Fitbit. “While 2017 remains a transition year, we have executed on our restructuring plan and are focused on positioning the company for the next stage of growth within wearables and connected health.”