Fitbit runs past analyst estimates in its second quarter after strong Versa smartwatch sales

Fitbit Inc (NYSE:FIT) announced better-than-expected second-quarter results as demand for smartwatches continues to grow.

The wearables company reported a net loss of US$0.49 per share on revenue of US$299.3mln compared with a net loss of US$0.25 per share on revenue of US$353.3mln in the previous year’s second quarter.

The California-based company reported an adjusted net loss of US$0.22, lower than the net loss of US$0.24 per share that analysts were expecting. Revenue came in above the consensus estimate of US$285.4mln.

For the next quarter, Fitbit expects revenue of US$370mln to US$390mln, in-line with analyst estimates of US$378mln.

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A total of 2.7 million wearable devices were sold in this quarter with the average selling price increasing 6% year-over-year to US$106 per device.

Smartwatch revenue increased to 55% of revenue, up from 30% on a sequential basis, according to the release.

“Demand for Versa, our first ‘mass-appeal’ smartwatch, is very strong. Within the second quarter, Versa outsold Samsung, Garmin and Fossil smartwatches combined in North America, improving our position with retailers, solidifying shelf space for the Fitbit brand and providing a halo effect to our other product offerings,” said CEO James Park in the company’s release.

Shares of Fitbit were up nearly 2% to US$6.03 in Wednesday after-hours trading.

Story by ProactiveInvestors