Fitbit Inc (NYSE:FIT) reported upbeat results for its fourth quarter, but issued weak first-quarter earnings guidance.
The San Francisco-based exercise device maker reported Wednesday reported revenue of $571 million, GAAP net income per share of $0.06, non-GAAP net income per share of $0.14, GAAP net income of $15 million, non-GAAP net income of $36 million, cash flow from operations of $108 million and free cash flow of $96 million for its fourth quarter of 2018.
Said CEO James Park, "I’m proud of our performance this year - our results demonstrate that our strategy is the right one, placing us on a path back to growth and profitability. We grew our active users 9% to 27.6 million, became the number-two player in the smartwatch category in the U.S., and grew the number of devices sold in the fourth quarter.
"In 2019 we’re committed to offering more affordable devices with engaging health and fitness features, making the health benefits of being on Fitbit even more accessible. As a result, we are forecasting active users, devices sold, and revenue to grow in 2019. We expect our Fitbit Health Solutions revenue growth to accelerate to approximately $100 million and to grow non-device consumer revenue."
The company sold 5.6 million wearable devices, up 3% year-over-year. The average selling price of those devices decreased 2% year-over-year to $100 per device, driven by adding Fitbit Charge 3 what Fitbit calls its "most intelligent tracker."
Shares in FIT were pummeled soon after Thursday’s open, $1.16, or 16%, to $5.72
