Fitbit beats analyst estimates but takes a net loss of $113 million in Q3

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It seems Fitbit is only slightly benefitting from the news of its new products — particularly the Fitbit Ionic device. The company just reported it beat analyst estimates with a non-GAAP net loss per share of $0.01, with $393 million in revenue; though that’s down from the $504 million in revenue last October, leading to a net loss of $113 million, or 48 cents per share.

Yahoo Finance analysts had originally estimated a loss of $0.04 EPS.

The company also reports it sold 3.6 million of its health and fitness devices in Q3, up 7 percent from Q2 of this year.

The health wearables provider has struggled these past few years under the weight of competition from bigger companies such as Apple, which has integrated health and fitness into the Apple Watch, but the introduction of Fitbit Ionic is pushing the company forward in the smartwatch industry, according to the company’s co-founder and CEO James Park.

“We continue to execute on our transition plan by delivering on our financial guidance and product roadmap, positioning Fitbit on a path back to growth and profitability,” Park said in the company’s third-quarter financial report. “We believe Fitbit Ionic delivers the best health and fitness experience in the category. It has received the highest customer ratings of any Fitbit product within the first month of sales, giving us confidence in our ability to capture share of the fast-growing smartwatch market.”

The third-quarter results are a continued mixed bag for investors who have seen the company go through several highs and lows since its initial public offering two years ago.

Following this news, shares rose 1.95 percent in after-hours trading.

Read more: https://techcrunch.com/2017/11/01/fitbit-beats-analyst-estimates-but-takes-a-net-loss-of-113-million-in-q3/