Fitbit, Inc. reported second-quarter 2020 adjusted loss of 12 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents.
The company’s total revenues came in at $261.3 million, down 16.7% year over year. However, the figure surpassed the Zacks Consensus Estimate by 28.2%.
Let’s check out the numbers in detail.
Top-Line Details
During the second quarter, Fitbit sold 2.5 million wearable devices, down 28.6% year over year.
The average selling price increased 16% from the prior-year level to $100 per device for the second quarter. This was primarily driven by a higher percentage of sales through the Fitbit.com channel, which grew 102% year over year to $66 million.
Geographically, revenues from the United States accounted for 63% of second-quarter revenues and decreased 9% year over year.
On a year-over-year basis, international revenues declined 27% to $97 million. Revenues from Americas — excluding the United States — declined 45% to $10 million, and that of APAC and EMEA was down 47% and 17% year over year to $14 million and $72 million, respectively.
Operating Results
Non-GAAP gross margin was 37.6%, up 200 basis points year over year. Gross margins were driven by higher average selling price, favorable mix, and a decrease in excess and obsolete inventory write-downs.
Non-GAAP operating expenses were 143 million, down 11% from the year-ago quarter. The decrease was due to lower marketing costs and customer service expenses.
Non-GAAP operating loss was $42.2 million compared with a loss of $44.9 million in the year-ago quarter.
Balance Sheet and Cash Flow
Cash and cash equivalents & marketable securities were $448.2 million compared with $427.7 million in the first quarter.
Accounts receivables were $215.4 million compared with $182.3 million in first-quarter 2020.
Cash flow from operations was $32.5 million and free cash flow totaled $27.5 million in the second quarter of 2020.
Zacks Rank and Stocks to Consider
Currently, Fitbit has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Benefitfocus , Cogent Communications Holdings (CCOI - Free Report) and Synaptics (SYNA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Benefitfocus, Cogent and Synaptics is currently pegged at 30%, 10.6%, and 10%, respectively.
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Fitbit, Inc. reported second-quarter 2020 adjusted loss of 12 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents.
The company’s total revenues came in at $261.3 million, down 16.7% year over year. However, the figure surpassed the Zacks Consensus Estimate by 28.2%.
Let’s check out the numbers in detail.
Top-Line Details
During the second quarter, Fitbit sold 2.5 million wearable devices, down 28.6% year over year.
The average selling price increased 16% from the prior-year level to $100 per device for the second quarter. This was primarily driven by a higher percentage of sales through the Fitbit.com channel, which grew 102% year over year to $66 million.
Geographically, revenues from the United States accounted for 63% of second-quarter revenues and decreased 9% year over year.
On a year-over-year basis, international revenues declined 27% to $97 million. Revenues from Americas — excluding the United States — declined 45% to $10 million, and that of APAC and EMEA was down 47% and 17% year over year to $14 million and $72 million, respectively.
Operating Results
Non-GAAP gross margin was 37.6%, up 200 basis points year over year. Gross margins were driven by higher average selling price, favorable mix, and a decrease in excess and obsolete inventory write-downs.
Non-GAAP operating expenses were 143 million, down 11% from the year-ago quarter. The decrease was due to lower marketing costs and customer service expenses.
Non-GAAP operating loss was $42.2 million compared with a loss of $44.9 million in the year-ago quarter.
Balance Sheet and Cash Flow
Cash and cash equivalents & marketable securities were $448.2 million compared with $427.7 million in the first quarter.
Accounts receivables were $215.4 million compared with $182.3 million in first-quarter 2020.
Cash flow from operations was $32.5 million and free cash flow totaled $27.5 million in the second quarter of 2020.
Zacks Rank and Stocks to Consider
Currently, Fitbit has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Benefitfocus , Cogent Communications Holdings (CCOI - Free Report) and Synaptics (SYNA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Benefitfocus, Cogent and Synaptics is currently pegged at 30%, 10.6%, and 10%, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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