Earnings came in at a loss of 14 cents per share, beating estimates by 4 cents. Sales came in at $313.6 million, beating estimates by $1.62 million.
The company sees third-quarter adjusted earnings guidance between a loss of 11 cents-9 cents compared to a consensus estimate of 2 cents per share. Third-quarter sales guidance of $335 million-$355 million also fell well short of the $399.4 million consensus.
"While we are disappointed to lower guidance for the year, we remain confident in our long-term transformation strategy and have demonstrated good results across key areas of the business. We saw growth in devices sold, increased active users and continued growth in our Fitbit Health Solutions channel, up 42% in the first half of 2019," said James Park, co-founder and CEO. "Coupled with innovative hardware and software offerings, we believe we're well positioned to bring more users to the Fitbit platform and continue to grow our business."
- Revenue increased 5% year-over-year
- Health Solutions revenues increased 16%, on track to reach around $100 million in revenue in 2019
- Smartwatch revenue decreased 27% year-over-year
Fitbit's stock traded down more than 16% to $3.51 per share in the after-hours session. The stock closed at $4.20.
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