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How Fitbit Performed in Fiscal 4Q17

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Revenue in 4Q17

Fitbit (FIT) announced its 4Q17 results on February 26, 2018, reporting revenue of $571 million with non-GAAP (generally accepted accounting principles) EPS (earnings per share) of -$0.02. In comparison, Fitbit posted revenue of $573.8 million with EPS of -$0.56 in 4Q16. Fitbit’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) were $22.5 million in 4Q17, significantly higher than its EBITDA of -$144.2 million in 4Q16.

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Fitbit’s revenue fell YoY (year-over-year) in the quarter ended December 2017. According to a press release, CEO James Park said, “We made important progress in 2017 under rapidly changing market conditions. We delivered on our full year guidance and drove down operating expenses while continuing to invest in innovation. We delivered important foundational assets with the launch of the Fitbit operating system and SDK, allowing us to scale future smartwatches quickly and deliver dynamic experiences for users.”

What analysts expected for Fitbit in 4Q17

Analysts had an average revenue estimate of $589.1 million for Fitbit in 4Q17, with a high revenue estimate of $600.6 million and a low estimate of $583.3 million. The average earnings per share estimate for the company was -$0.01. In 4Q17, Fitbit’s revenue was 2.6% below the average estimate and 1.6% below the low estimate, leading to its stock falling ~12% on February 27, 2018, to close at $4.86. Fitbit stock also touched an all-time low of $4.67 that day.

Fitbit has a market cap of $1.2 billion. Peers Fossil (FOSL), Garmin (GRMN), and Nokia (NOK) have market caps of $651 million, $11.3 billion, and $34 billion, respectively.

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