[May 02, 2018] |
|
Fitbit Reports First Quarter Results
Fitbit, Inc. (NYSE:FIT), the leading global wearables brand, today
reported revenue of $248 million, GAAP net loss per share of ($0.34),
non-GAAP net loss per share of ($0.17), GAAP net loss of ($81) million,
non-GAAP net loss of ($41) million, cash flow from operations of $10
million and free cash flow of ($2) million for its first quarter of 2018.
"We made important progress in the transformation of our business in the
first quarter as we continue to adapt to the changing wearables market.
Early sell through of Fitbit Versa, our first true mass appeal
smartwatch, has been the best in our company's history, positioning us
to expand our user base and capture greater share of the fast-growing
smartwatch market," said James Park, co-founder and CEO. "We continued
to deepen our relationship with our users, investing in software and
services that deliver on our promise of helping people achieve better
health outcomes. To this end, we closed the acquisition of Twine Health
and, most recently announced a long-term collaboration with Google that
will accelerate innovation in digital health and wearables."
First Quarter 2018
|
|
|
For the Three Months Ended
|
In millions, except percentages and per share amounts
|
|
|
March 31, 2018
|
|
April 1, 2017
|
GAAP Results
|
|
|
|
|
|
Revenue
|
|
|
$
|
247.9
|
|
|
$
|
298.9
|
|
Gross Margin
|
|
|
46.0
|
%
|
|
39.6
|
%
|
Net Loss
|
|
|
$
|
(80.9
|
)
|
|
$
|
(60.1
|
)
|
Net Loss Per Share
|
|
|
$
|
(0.34
|
)
|
|
$
|
(0.27
|
)
|
Non-GAAP Results
|
|
|
|
|
|
Gross Margin
|
|
|
47.1
|
%
|
|
40.0
|
%
|
Net Loss
|
|
|
$
|
(41.0
|
)
|
|
$
|
(34.4
|
)
|
Net Loss Per Share
|
|
|
$
|
(0.17
|
)
|
|
$
|
(0.15
|
)
|
Adjusted EBITDA
|
|
|
$
|
(46.2
|
)
|
|
$
|
(52.3
|
)
|
Devices Sold
|
|
|
2.2
|
|
|
3.0
|
|
For additional information regarding the non-GAAP financial measures,
see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to
Non-GAAP Financial Measures" below.
First Quarter 2018 Financial Highlights
-
Sold 2.2 million wearable devices. Average selling price increased 16%
year-over-year to $112 per device driven by the growing mix of
smartwatch devices.
-
U.S. revenue represented 56% of revenue or $140 million, down 18%
year-over-year.
-
International revenue represented 44% and declined 16% year-over-year
to $108 million: EMEA revenue declined 26% to $65 million; Americas
ex. U.S. revenue declined 19% to $16 million; and APAC revenue grew
33% to $28 million, all year-over-year, respectively.
-
New devices introduced in the past year, Fitbit IonicTM,
Fitbit VersaTM and Fitbit Aria 2TM and accessory
Fitbit Flyer, represented 34% of revenue.
-
GAAP gross margin was 46.0%, and non-GAAP gross margin was 47.1%. Both
GAAP and non-GAAP gross margin benefited from $12.4 million in revenue
recognized from the release of outstanding reserves and rebates
related to Wynit, in addition to lower warranty costs.
-
GAAP operating expenses represented 80% of revenue, and non-GAAP
operating expenses represented 70% of revenue.
First Quarter 2018 Operational Highlights
-
Smartwatch revenue nearly doubled to approximately 30% of revenue, on
a sequential basis from the fourth quarter of 2017.
-
Strong Versa pre-orders, and the best sell-through sales in North
America of any device in the company's history in the first week of
availability.
-
Tracker device sales impacted by a reduction in retail channel tracker
inventory. Exited the first quarter of 2018 with a relatively clean
retail channel.
-
Leveraged Fitbit operating system investment, launched Versa with
approximately 45% lower development hours than Ionic.
-
38% of activations came from repeat users; of the repeat users, 49%
came from users who were inactive for 90 days or greater.
-
18,000 developers have joined the Fitbit developer community.
Second Quarter 2018 Guidance
-
We expect results to be impacted by the reduced demand by the channel
for trackers, partially offset by an increase in smartwatch revenue,
driven primarily by Versa sales. We expect smartwatches to grow as a
percentage of revenue, but our overall mix to continue to be skewed
towards trackers. We expect revenue to decline approximately 19%
year-over-year and to be in a range of $275 million to $295 million.
-
Non-GAAP basic net loss per share in the range of ($0.27) to ($0.23).
-
Capital expenditures as a percentage of revenue of approximately 5%.
-
With lower receivables entering the second quarter of 2018, we expect
free cash flow to decline from the first quarter of 2018 to
approximately ($85) million in the second quarter of 2018.
-
Effective non-GAAP tax rate of approximately 25%.
-
Stock-based compensation expense of approximately $26 million and
basic share count of approximately 242 million.
Full Year 2018 Guidance
-
We reiterate our full-year 2018 revenue guidance of approximately $1.5
billion. We have extrapolated the tracker demand trend we have
experienced in the first quarter of 2018 and incorporated a further
reduction in channel inventory levels. We expect smartwatch revenue to
become the majority of revenue in the second half of the year. We
expect average selling price to be up year over year and roughly flat
with the first quarter of 2018. We expect to grow Fitbit Health
Solutions and increase premium subscribers, but this growth will be
relatively immaterial to wearable device revenue.
-
We expect gross margins to trend lower through 2018 as smartwatches
become a greater percentage of our revenue mix, partially offset by
operating efficiencies.
-
We expect to drive operating expenses 7% lower, to a target of $740
million.
-
Capital expenditures as a percentage of revenue of approximately 4%.
-
We expect free cash flow to decline less than revenue and expect to
breakeven for 2018. Guidance excludes the benefit of an expected $80
million tax refund payment.
-
We expect effective non-GAAP tax rate to be volatile driven by
geographic mix of revenue, tax credits, and shift to profitability.
-
Stock-based compensation expense of approximately $110 million and
basic/diluted share count of approximately 248/260 million.
For additional information regarding the non-GAAP financial measures
presented above, see "Non-GAAP Financial Measures" below.
Webcast and Conference Call Information
Fitbit will host a conference call today at 5:00 p.m. Eastern Time, 2:00
p.m. Pacific Time, to discuss its results. Investors may access a live
webcast of the call through the Investor section of Fitbit's website at investor.fitbit.com.
The call can also be accessed by dialing (888) 339-3513 or (719)
457-2618, access code 8366625. A replay of the call will be archived on
Fitbit's website for the following six months.
Forward Looking Statements
This press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding our outlook for
the second quarter 2018 and full year 2018; our future collaboration
with Google in digital health and wearables; expected device mix; trends
in smartwatch revenue, average selling price, our ability to reduce
operating expenses, capital expenditures, free cash flow, gross margins,
and non-GAAP tax rate; our expected growth of our user base, our share
of the smartwatch market, and Fitbit Health Solutions and premium
subscribers; and consumer and retail demand for smartwatches and
trackers. These forward-looking statements are only predictions and may
differ materially from actual results due to a variety of factors,
including: the effects of the highly competitive market in which we
operate, including competition from much larger technology companies;
our ability to anticipate and satisfy consumer preferences in a timely
manner; our ability to successfully develop and timely introduce new
products and services or enhance existing products and services; retail
and customer acceptance of existing and new products; any inability to
accurately forecast consumer demand and adequately manage our inventory;
our ability to ship products on the timelines we anticipate and
unexpected delays; our ability to detect, prevent or fix quality issues
in our products or services; uncertain ability to retain employees; our
reliance on third-party suppliers, contract manufacturers, and logistics
providers, and our limited control over such parties; delays in
procuring components and product from these third parties or their
suppliers; the ability of third parties to successfully manufacture and
ship in a timely manner quality products; seasonality; product liability
issues, security breaches or other defects, which may adversely affect
product performance, our reputation and brand awareness and overall
market acceptance of our products and services; ability to integrate
acquired technologies and employees into our operations, particularly in
new geographies; warranty claims; the fact that the market for connected
health and fitness devices is relatively new and unproven; the ability
of our channel partners to sell our products; litigation and related
costs; privacy; and other general market, political, economic and
business conditions.
Additional risks and uncertainties that could affect our financial
results are included under the caption "Risk Factors" in our Annual
Report on Form 10-K for the full year ended December 31, 2017.
Additional information will also be set forth in our Quarterly Report on
Form 10-Q for the quarter ended March 31, 2018. All forward-looking
statements contained herein are based on information available to us as
of the date hereof and we do not assume any obligation to update these
statements as a result of new information or future events.
Disclosure of Material Information
Fitbit announces material information to its investors using SEC
filings, press releases, public conference calls and on its Investor
Relations page on the company's website at http://investor.fitbit.com.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared
and presented in accordance with GAAP, we use the following non-GAAP
financial measures in this press release: non-GAAP gross profit,
non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating
loss, non-GAAP operating loss before income taxes, non-GAAP net loss,
non-GAAP diluted net loss per share, non-GAAP free cash flow, and
adjusted EBITDA. The presentation of these financial measures is not
intended to be considered in isolation or as a substitute for, or
superior to, financial information prepared and presented in accordance
with GAAP.
We use non-GAAP measures to internally evaluate and analyze financial
results. We believe these non-GAAP financial measures provide investors
with useful supplemental information about the financial performance of
our business, enable comparison of financial results between periods
where certain items may vary independent of business performance, and
enable comparison of our financial results with other public companies,
many of which present similar non-GAAP financial measures.
There are limitations associated with the use of non-GAAP financial
measures as an analytical tool. In particular, many of the adjustments
to our GAAP financial measures reflect the exclusion of certain items,
specifically stock-based compensation expense, depreciation,
amortization of intangible assets, interest income, net and the related
income tax effects of the aforementioned exclusions, that are recurring
and will be reflected in our financial results for the foreseeable
future. In addition, these measures may be different from non-GAAP
financial measures used by other companies, limiting their usefulness
for comparison purposes. A reconciliation of our non-GAAP financial
measures to their most directly comparable GAAP measures has been
provided in the financial statement tables included in this press
release, and investors are encouraged to review the reconciliation.
Guidance for non-GAAP financial measures excludes Jawbone litigation
costs, stock-based compensation, impact of restructuring, amortization
of acquired intangible assets, and tax effects associated with these
items. We have not reconciled guidance for non-GAAP financial measures
to their most directly comparable GAAP measures because certain items
that impact these measures are uncertain, out of our control and/or
cannot be reasonably predicted. Accordingly, a reconciliation of the
non-GAAP financial measure guidance to the corresponding GAAP measures
is not available without unreasonable effort.
The following are explanations of the adjustments that are reflected in
one or more of our non-GAAP financial measures:
-
Stock-based compensation expense relates to equity awards granted
primarily to our employees. We exclude stock-based compensation
expense because we believe that the non-GAAP financial measures
excluding this item provide meaningful supplemental information
regarding operational performance. In particular, companies calculate
stock-based compensation expense using a variety of valuation
methodologies and subjective assumptions.
-
In January 2017, the Company conducted a reorganization of its
business, including a reduction in workforce. The restructuring costs
impacted our results for the first quarter of 2017. Restructuring
costs primarily included severance-related costs. We believe that
excluding this expense provides greater visibility to the underlying
performance of our business operations, facilitates comparison of our
results with other periods, and may also facilitate comparison with
the results of other companies in our industry.
-
Litigation expense relates to legal costs incurred due to litigation
with Aliphcom, Inc. d/b/a Jawbone. We exclude these expenses because
we do not believe these expenses have a direct correlation to the
operations of our business and because of the singular nature of the
claims underlying the Jawbone litigation matters. We began excluding
Jawbone litigation costs in the second quarter of 2016 as these costs
significantly increased in 2016, and may continue to be material for
the remainder of 2017. Although not excluded in reporting for the
first quarter of 2016, these litigation expenses were $9.1 million in
that quarter.
-
Amortization of intangible assets relates to our acquisition of
FitStar, Pebble, Vector and Twine Health. We exclude these
amortization expenses because we do not believe these expenses have a
direct correlation to the operation of our business.
-
Income tax effect of non-GAAP adjustments relates to the tax effect of
the adjustments that we incorporate into non-GAAP financial measures
such as stock-based compensation, amortization of intangibles,
restructuring and valuation allowance in order to provide a more
meaningful measure of non-GAAP net loss.
About Fitbit, Inc. (NYSE: FIT)
Fitbit helps people lead healthier, more active lives by empowering them
with data, inspiration and guidance to reach their goals. As the leading
global wearables brand, Fitbit designs products and experiences that
track and provide motivation for everyday health and fitness. Fitbit's
diverse line of innovative and popular products
include Fitbit Blaze®, Fitbit Charge 2®, Fitbit Alta HR™, Fitbit
Alta®, Fitbit Ace™, Fitbit Flex 2®, and Fitbit Zip® activity trackers,
as well as the Fitbit Ionic™ and Fitbit Versa™ smartwatches, Fitbit
Flyer™ wireless headphones and Fitbit Aria 2™Wi-Fi Smart Scale. Fitbit
products are carried in over 47,000 retail stores and in 86 countries
around the globe. Powered by one of the world's largest social fitness
networks and databases of health and fitness data, the Fitbit platform
delivers personalized experiences, insights and guidance through leading
software and interactive tools, including the Fitbit and Fitbit Coach
apps, and the Fitbit OS for smartwatches. Fitbit Health Solutions
develops health and wellness solutions designed to help increase
engagement, improve health outcomes, and drive a positive return for
employers, health plans and health systems.
Fitbit and the Fitbit logo are trademarks or registered trademarks
of Fitbit, Inc. in the U.S. and other countries. Additional Fitbit
trademarks can be found at www.fitbit.com/legal/trademark-list.
Third-party trademarks are the property of their respective owners.
Connect with us on Facebook, Instagram or Twitter and share
your Fitbit experience.
|
FITBIT, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except for per share amounts)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2018
|
|
April 1, 2017
|
Revenue
|
|
|
$
|
247,865
|
|
|
$
|
298,942
|
|
Cost of revenue
|
|
|
133,742
|
|
|
180,643
|
|
Gross profit
|
|
|
114,123
|
|
|
118,299
|
|
Operating expenses:
|
|
|
|
|
|
Research and development
|
|
|
89,336
|
|
|
87,758
|
|
Sales and marketing
|
|
|
72,052
|
|
|
91,174
|
|
General and administrative
|
|
|
36,088
|
|
|
30,746
|
|
Total operating expenses
|
|
|
197,476
|
|
|
209,678
|
|
Operating loss
|
|
|
(83,353
|
)
|
|
(91,379
|
)
|
Interest income, net
|
|
|
1,350
|
|
|
1,096
|
|
Other income, net
|
|
|
517
|
|
|
533
|
|
Loss before income taxes
|
|
|
(81,486
|
)
|
|
(89,750
|
)
|
Income tax benefit
|
|
|
(609
|
)
|
|
(29,671
|
)
|
Net loss
|
|
|
$
|
(80,877
|
)
|
|
$
|
(60,079
|
)
|
|
|
|
|
|
|
Net loss per shares:
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.34
|
)
|
|
$
|
(0.27
|
)
|
Diluted
|
|
|
$
|
(0.34
|
)
|
|
$
|
(0.27
|
)
|
Weighted average shares used to compute net loss per share:
|
|
|
|
|
|
Basic
|
|
|
239,431
|
|
|
226,511
|
|
Diluted
|
|
|
239,431
|
|
|
226,511
|
|
|
FITBIT, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
(unaudited)
|
|
|
March 31, 2018
|
|
December 31, 2017
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
378,360
|
|
|
$
|
341,966
|
|
Marketable securities
|
|
279,994
|
|
|
337,334
|
|
Accounts receivable, net
|
|
214,355
|
|
|
406,019
|
|
Inventories
|
|
145,373
|
|
|
123,895
|
|
Income tax receivable
|
|
77,746
|
|
|
77,882
|
|
Prepaid expenses and other current assets
|
|
59,109
|
|
|
97,269
|
|
Total current assets
|
|
1,154,937
|
|
|
1,384,365
|
|
Property and equipment, net
|
|
104,530
|
|
|
104,908
|
|
Goodwill and intangible assets, net
|
|
90,726
|
|
|
73,392
|
|
Deferred tax assets
|
|
4,158
|
|
|
3,990
|
|
Other assets
|
|
14,750
|
|
|
15,420
|
|
Total assets
|
|
$
|
1,369,101
|
|
|
$
|
1,582,075
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
132,910
|
|
|
$
|
212,731
|
|
Accrued liabilities
|
|
382,384
|
|
|
452,137
|
|
Deferred revenue
|
|
31,272
|
|
|
35,504
|
|
Income taxes payable
|
|
755
|
|
|
928
|
|
Total current liabilities
|
|
547,321
|
|
|
701,300
|
|
Long-term deferred revenue
|
|
5,176
|
|
|
6,928
|
|
Other liabilities
|
|
54,345
|
|
|
49,884
|
|
Total liabilities
|
|
606,842
|
|
|
758,112
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock
|
|
24
|
|
|
24
|
|
Additional paid-in capital
|
|
976,022
|
|
|
956,060
|
|
Accumulated other comprehensive income (loss)
|
|
329
|
|
|
(9
|
)
|
Accumulated deficit
|
|
(214,116
|
)
|
|
(132,112
|
)
|
Total stockholders' equity
|
|
762,259
|
|
|
823,963
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,369,101
|
|
|
$
|
1,582,075
|
|
|
FITBIT, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
|
(In thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2018
|
|
April 1, 2017
|
Cash Flows from Operating Activities
|
|
|
|
|
|
Net loss
|
|
|
$
|
(80,877
|
)
|
|
$
|
(60,079
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Provision for inventory obsolescence
|
|
|
6,337
|
|
|
3,997
|
|
Depreciation
|
|
|
10,456
|
|
|
9,140
|
|
Write-off of property and equipment
|
|
|
7,259
|
|
|
-
|
|
Amortization of intangible assets
|
|
|
1,748
|
|
|
1,377
|
|
Stock-based compensation
|
|
|
23,641
|
|
|
22,493
|
|
Deferred income taxes
|
|
|
(1,799
|
)
|
|
(5,005
|
)
|
Other
|
|
|
(275
|
)
|
|
(183
|
)
|
Changes in operating assets and liabilities, net of acquisition:
|
|
|
|
|
|
Accounts receivable
|
|
|
191,982
|
|
|
282,917
|
|
Inventories
|
|
|
(27,307
|
)
|
|
27,193
|
|
Prepaid expenses and other assets
|
|
|
39,610
|
|
|
(976
|
)
|
Fitbit Force recall reserve
|
|
|
(132
|
)
|
|
(295
|
)
|
Accounts payable
|
|
|
(84,155
|
)
|
|
(176,619
|
)
|
Accrued liabilities and other liabilities
|
|
|
(70,147
|
)
|
|
(52,173
|
)
|
Deferred revenue
|
|
|
(6,010
|
)
|
|
(3,000
|
)
|
Income taxes payable
|
|
|
(173
|
)
|
|
351
|
|
Net cash provided by operating activities
|
|
|
10,158
|
|
|
49,138
|
|
Cash Flows from Investing Activities
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(12,616
|
)
|
|
(28,157
|
)
|
Purchases of marketable securities
|
|
|
(141,404
|
)
|
|
(129,661
|
)
|
Sales of marketable securities
|
|
|
50,795
|
|
|
4,256
|
|
Maturities of marketable securities
|
|
|
148,041
|
|
|
178,028
|
|
Acquisition, net of cash acquired
|
|
|
(13,646
|
)
|
|
-
|
|
Net cash provided by investing activities
|
|
|
31,170
|
|
|
24,466
|
|
Cash Flows from Financing Activities
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
992
|
|
|
2,581
|
|
Repayment of debt
|
|
|
(747
|
)
|
|
-
|
|
Taxes paid related to net share settlement of restricted stock units
|
|
|
(5,179
|
)
|
|
(3,127
|
)
|
Net cash used in financing activities
|
|
|
(4,934
|
)
|
|
(546
|
)
|
Net increase in cash and cash equivalents
|
|
|
36,394
|
|
|
73,058
|
|
Effect of exchange rate on cash and cash equivalents
|
|
|
-
|
|
|
(99
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
341,966
|
|
|
301,320
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
378,360
|
|
|
$
|
374,279
|
|
|
FITBIT, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
(In thousands, except percentages and per share amounts)
|
(unaudited)
|
|
|
Three Months Ended
|
|
|
March 31, 2018
|
|
April 1, 2017
|
Non-GAAP gross profit:
|
|
|
|
|
GAAP gross profit
|
|
$
|
114,123
|
|
|
$
|
118,299
|
|
Stock-based compensation expense
|
|
1,098
|
|
|
18
|
|
Impact of restructuring
|
|
-
|
|
|
37
|
|
Intangible assets amortization
|
|
1,516
|
|
|
1,319
|
|
Non-GAAP gross profit
|
|
$
|
116,737
|
|
|
$
|
119,673
|
|
|
|
|
|
|
Non-GAAP gross margin (as a percentage of revenue):
|
|
|
|
|
GAAP gross margin
|
|
46.0
|
%
|
|
39.6
|
%
|
Stock-based compensation expense
|
|
0.4
|
|
|
-
|
|
Impact of restructuring
|
|
-
|
|
|
-
|
|
Intangible assets amortization
|
|
0.6
|
|
|
0.4
|
|
Non-GAAP gross margin
|
|
47.1
|
%
|
|
40.0
|
%
|
|
|
|
|
|
Non-GAAP research and development:
|
|
|
|
|
GAAP research and development
|
|
$
|
89,336
|
|
|
$
|
87,758
|
|
Stock-based compensation expense
|
|
(14,671
|
)
|
|
(14,344
|
)
|
Impact of restructuring
|
|
-
|
|
|
(2,744
|
)
|
Non-GAAP research and development
|
|
$
|
74,665
|
|
|
$
|
70,670
|
|
|
|
|
|
|
Non-GAAP sales and marketing:
|
|
|
|
|
GAAP sales and marketing
|
|
$
|
72,052
|
|
|
$
|
91,174
|
|
Stock-based compensation expense
|
|
(3,447
|
)
|
|
(3,248
|
)
|
Impact of restructuring
|
|
-
|
|
|
(2,000
|
)
|
Intangible assets amortization
|
|
(161
|
)
|
|
-
|
|
Non-GAAP sales and marketing
|
|
$
|
68,444
|
|
|
$
|
85,926
|
|
|
|
|
|
|
Non-GAAP general and administrative:
|
|
|
|
|
GAAP general and administrative
|
|
$
|
36,088
|
|
|
$
|
30,746
|
|
Stock-based compensation expense
|
|
(4,425
|
)
|
|
(4,155
|
)
|
Litigation (expense) credit
|
|
(765
|
)
|
|
114
|
|
Impact of restructuring
|
|
-
|
|
|
(1,594
|
)
|
Intangible assets amortization
|
|
(71
|
)
|
|
(58
|
)
|
Non-GAAP general and administrative
|
|
$
|
30,827
|
|
|
$
|
25,053
|
|
|
|
|
|
|
Non-GAAP operating expenses:
|
|
|
|
|
GAAP operating expenses
|
|
$
|
197,476
|
|
|
$
|
209,678
|
|
Stock-based compensation expense
|
|
(22,543
|
)
|
|
(21,747
|
)
|
Litigation (expense) credit
|
|
(765
|
)
|
|
114
|
|
Impact of restructuring
|
|
-
|
|
|
(6,338
|
)
|
Intangible assets amortization
|
|
(232
|
)
|
|
(58
|
)
|
Non-GAAP operating expenses
|
|
$
|
173,936
|
|
|
$
|
181,649
|
|
|
FITBIT, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
(In thousands, except percentages and per share amounts)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2018
|
|
April 1, 2017
|
Non-GAAP operating loss and loss before income taxes:
|
|
|
|
|
|
GAAP operating loss
|
|
|
$
|
(83,353
|
)
|
|
$
|
(91,379
|
)
|
Stock-based compensation expense
|
|
|
23,641
|
|
|
21,765
|
|
Litigation (expense) credit
|
|
|
765
|
|
|
(114
|
)
|
Impact of restructuring
|
|
|
-
|
|
|
6,375
|
|
Intangible assets amortization
|
|
|
1,748
|
|
|
1,377
|
|
Non-GAAP operating loss
|
|
|
(57,199
|
)
|
|
(61,976
|
)
|
Interest income, net
|
|
|
1,350
|
|
|
1,096
|
|
Other income, net
|
|
|
517
|
|
|
533
|
|
Non-GAAP operating loss before income taxes
|
|
|
$
|
(55,332
|
)
|
|
$
|
(60,347
|
)
|
|
|
|
|
|
|
Non-GAAP net loss and net loss per share:
|
|
|
|
|
|
Net loss
|
|
|
$
|
(80,877
|
)
|
|
$
|
(60,079
|
)
|
Stock-based compensation expense
|
|
|
23,641
|
|
|
21,765
|
|
Litigation (expense) credit
|
|
|
765
|
|
|
(114
|
)
|
Impact of restructuring
|
|
|
-
|
|
|
6,375
|
|
Intangible assets amortization
|
|
|
1,748
|
|
|
1,377
|
|
Income tax effect of non-GAAP adjustments
|
|
|
13,767
|
|
|
(3,722
|
)
|
Non-GAAP net loss
|
|
|
$
|
(40,956
|
)
|
|
$
|
(34,398
|
)
|
|
|
|
|
|
|
GAAP diluted shares
|
|
|
239,431
|
|
|
226,511
|
|
Other dilutive equity awards
|
|
|
-
|
|
|
-
|
|
Non-GAAP diluted shares
|
|
|
239,431
|
|
|
226,511
|
|
Non-GAAP diluted net loss per share
|
|
|
$
|
(0.17
|
)
|
|
$
|
(0.15
|
)
|
|
|
|
|
|
|
Non-GAAP free cash flow:
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
10,158
|
|
|
$
|
49,138
|
|
Purchases of property and equipment
|
|
|
(12,616
|
)
|
|
(28,157
|
)
|
Non-GAAP free cash flow
|
|
|
$
|
(2,458
|
)
|
|
$
|
20,981
|
|
Net cash provided by investing activities
|
|
|
$
|
31,170
|
|
|
$
|
24,466
|
|
Net cash used in financing activities
|
|
|
$
|
(4,934
|
)
|
|
$
|
(546
|
)
|
|
FITBIT, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
(In thousands, except percentages and per share amounts)
|
(unaudited)
|
|
Three Months Ended
|
|
March 31, 2018
|
|
April 1, 2017
|
Adjusted EBITDA:
|
|
|
|
Net loss
|
$
|
(80,877
|
)
|
|
$
|
(60,079
|
)
|
Stock-based compensation expense*
|
23,641
|
|
|
21,765
|
|
Litigation (expense) credit
|
765
|
|
|
(114
|
)
|
Impact of restructuring
|
-
|
|
|
6,375
|
|
Depreciation and intangible assets amortization
|
12,204
|
|
|
10,517
|
|
Interest income, net
|
(1,350
|
)
|
|
(1,096
|
)
|
Income tax benefit
|
(609
|
)
|
|
(29,671
|
)
|
Adjusted EBITDA
|
$
|
(46,226
|
)
|
|
$
|
(52,303
|
)
|
|
|
|
|
Stock-based compensation expense:
|
|
|
|
Cost of revenue
|
$
|
1,098
|
|
|
$
|
18
|
|
Research and development
|
14,671
|
|
|
14,344
|
|
Sales and marketing
|
3,447
|
|
|
3,248
|
|
General and administrative
|
4,425
|
|
|
4,155
|
|
Total stock-based compensation expense*
|
$
|
23,641
|
|
|
$
|
21,765
|
|
* A portion of stock-based compensation expense for the three months
ended April 1, 2017 was allocated to and included in "Impact of
restructuring," thus explaining the difference between the total by
function presented in this table compared to the amounts presented
in the above tables.
|
|
FITBIT, INC.
|
REVENUE BY GEOGRAPHICAL REGION
|
(In thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2018
|
|
April 1, 2017
|
United States
|
|
|
$
|
139,496
|
|
|
$
|
170,420
|
Americas, excluding United States
|
|
|
16,100
|
|
|
19,968
|
Europe, Middle East, and Africa
|
|
|
64,538
|
|
|
87,772
|
APAC
|
|
|
27,731
|
|
|
20,782
|
Total
|
|
|
$
|
247,865
|
|
|
$
|
298,942
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180502006366/en/
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