Fitbit sold 4.5M devices in Q2 2015, added Geico, Sutter Health as new customers

By Aditi Pai
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Fitbit sold 4.5 million activity tracking devices in the second quarter of 2015, resulting in revenue of $400 million, Fitbit CEO James Park reported in the company's second quarter earning call. He added that this compares to revenue of $114 million in the same period last year and represents year-over-year growth of 250 percent.

Since first launching, Fitbit has sold over 25 million devices as of the second quarter 2015.

The US accounted for 78 percent of Fitbit's Q2 revenue, Fitbit CFO Bill Zarella said. After the US, 10 percent came from Europe, the Middle East, and Africa, 8 percent came from Asia Pacific, and 4 percent came from the Americas, excluding the US. Fitbit's newest products, Charge, Charge HR, and Surge collectively accounted for 78 percent of the company's revenue.

Park highlighted a few updates the company made to its software recently, including enabling multi-tracker support, which allows Fitbit users to pair up to six Fitbit devices to their app, and adding bike tracking to its most advanced wristworn activity tracker, the Fitbit Surge.

This quarter, Park said he's seen an increase in engagement with Fitbit's newest generation of products.

"I think that's due to a lot of different factors," he said. "More band sensors, more general purpose features such as caller ID, and continued investment in the interactive experience, particularly the social experience. So all of those things, I think, have driven engagement of our users and will continue to drive engagement in the future."

He also explained that Fitbit has made progress in further developing its corporate wellness business this quarter.

"We see employers becoming increasingly focused on the health and productivity of their workforce," Park said. "The corporate wellness market is expect to grow to an $11 billion market by 2019. During the second quarter we entered into agreements with numerous large companies including Geico, Sutter Health, Trans Union, Quicken Loans, and several global financial institutions. We also expanded our deployment at IBM. To date we have signed up over 50 of the Fortune 500 companies across a variety of industries."

A few times during the call, Park said that he would not share any specifics on the company's 2015 product pipeline or road map. But, last month, while speaking to Forbes International Editor Brian O’Keefe, Park said that Fitbit doesn’t see itself as a hardware company or a wearable company, but rather as a consumer health and wellness company that happens to sell wearables — for now.

“While press and analysts focus on Fitbit as a wearables company, the mission of the company is actually a lot broader,” he said, responding to a question about whether activity trackers might be a fad. “We’re all about ‘How do we use technology to help people become healthier and more active, giving them data and inspiration and guidance?’ And we’re pretty agnostic about how that’s done. It could be in the form of devices that are wearables, devices that are not wearable, or software and services. And in that sense, what we’re doing is pretty profound and well beyond a fad.”