At the current market, the fitness wearables company Fitbit Inc sits on higher mountains. For the second quarter of the running year, Fitbit crossed every limit of profit. The enormous demand for its products made the Q2 revenue hop its way higher than the analyst-estimated value. The shares of Fitbit climbed to 8.1 percent in after-market trading.
The company diversified its product catalogues. It has catchy wristbands and capable devices. The devices provide varied features of tracking calories, sleeping patterns and heart rate. The company is also knocking some new markets.
Most of the revenue earned corresponds to the latest products. Blaze, Alta, and their related accessories produced almost 54 percent of total revenue. This profit is 50 percent higher than the Q1 profit. The company disclosed these facts recently.
Two-thirds of the total Blaze and Alta activators are new users. Another one-third of the activations is from the other Fitbit device owners. Blaze is a smartwatch, while Alta is a wristband. Both the products are four stars rated on Amazon.
The company claims a sale of 5.7 million devices in the second quarter of 2016 that ended on July the 2nd. This amount would be the highest sale since last holiday season. In the Q2 of 2015, Fitbit sold 4.5 million devices.
The CEO James Park says that there are no changes in the dynamics of the competitions. The investment fears now are as less as negligible. Executives stated that the rising competition is just a misconception.
Fitbit in the current market has some large enterprises as competitions. The Chinese electronic company Xiomi, Garmin Ltd, Samsung Electronics, and Apple Inc are in the contest. Apple Inc is also out with its watch line.
At the end of first quarter, a research firm IDC declared Fitbit as the global market leader with 24.5 percent share. Xiomi and Apple had 19 and 7.5 percent shares in the given order.
Fitbit is accomplishing its expansion goals well. It is earning massive revenues from markets outside the US. Fitbit revenues from the Middle East and Africa stand doubled to $99.5 million this quarter.
The income of the company now touched the new heights. It rose by 46.5 percent $586.5 million as it went past the average analyst estimate of $578.5 million. The net profit attributable to the shareholders fell to $6.3 million (3 cents per share) from $7.1 million (7 cents per share) last year. The operating cost of the firm gets doubled to $235.3 million in Q2.
Excluding the items, the Fitbit rep[orts a profit of 12 cents per share. The figures have a definite edge over the average analyst estimate of 11 cents per share. The company shares had fallen by 56 percent this year up till the time of reporting.