Fitbit’s latest earnings call makes for grim reading. For the first quarter of 2018, the company’s revenue fell by $41.9 million compared to the same time last year.
Going from $298.9 million to $248 million hasn’t fazed CEO James Park though, who has revealed stern optimism in future growth led by the Versa smartwatch.
Versa Leads the Way
Park revealed during Fitbit’s earnings call that the Versa, the company’s new smartwatch, saw the best initial sales of any Fitbit in history. Park also revealed that the Versa, Ionic and Aria 2 smart scale accounted for 30 per cent of all sales.
The Fitbit Versa launched early 2018 and quickly gathered good reviews. It excels as a fitness tracker, with features for casual walkers and devoted runners alike. It also focuses on sleep and ‘calmness’, measured through heart rate tracking. It’s a great smartwatch and one Fitbit can be proud of. Hence, Park’s optimism for future growth.
Fitbit also revealed they sold a total of 2.2 million devices during the first quarter. That’s down from 3 million this time last year.
"We expect results to be impacted by the reduced demand by the channel for trackers, partially offset by an increase in smartwatch revenue, driven primarily by Versa sales," Fitbit said in its earnings call release. "We expect smartwatches to grow as a percentage of revenue, but our overall mix to continue to be skewed towards trackers."
So, despite losing 800,000 sales and $41.9 million in revenue compared to this time last year, Fitbit remain optimistic. Or at least, that’s what they appear to be in their statement.
This news comes as Research firm IDC revealed late last year they expect smartwatch sales to hit 71.5 million shipments by 2021. They also revealed that in 2017, smartwatches represented 27.9 per cent of the wearables market.