Fitbit’s Revenue More Than Triples To $400 Million

Fitbit Profits SoarFitbit is killing it.

In its first financial filing since its IPO the wearables company has reported $400 million in revenue.

To put that number into comparison, analysts were expecting $139 million. The company reported 21 cents per share, up from an estimate of 8 cents per share.

Fitbit went public in June after reporting $18.3 million for last year’s second quarter and $51.3 million in profits for this year’s second quarter.

The company has reported selling 4.5 million health devices in the quarter, mostly in the fitness tracking sector.

The Fitbit Charge HR has been heralded as a must have fitness device. It is capable of tracking heart-rate and other important fitness-related actions.

Fitbit has largely targeted corporations where they can convince them to distribute the hardware as part of employee wellness programs. Among its corporate partners are Geico, Sutter Health, Transunion, Quicken Loans, and several financial institutions.

Fitbit has it has formed agreements with 50 of the Fortune 500 companies to buy Fitbit devices for wellness programs.

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“Our second quarter results included our highest quarterly revenue in the eight-year history of Fitbit,” said Fitbit CEO James Park in a statement. “In the quarter, we introduced new features and services, expanded brand awareness, increased global distribution and further penetrated the corporate wellness market.”

Fitbit is projecting revenue numbers between $335 million and $365 million for the third quarter, ending in September. It expects earnings of between 7 cents and 10 cents per share. It is predicting margins of 47% to 48% in the third quarter.

Fitbit shares are down 7% in after-hours trading today. Shares are likely down because of gross margins splitting from 51% in last year’s second quarter to 47% in the current quarter.

Fitbit CFO Bill Zerella said during a conference call that the company has not yet had time to reduce production costs to make up for the difference.