November 1, 2017 / 8:23 PM / in a year

Fitbit reports better than expected quarterly revenue

(Reuters) - Wearable device maker Fitbit Inc forecast a better-than-expected bottom line for the holiday quarter, as the company reaps the benefits of its latest launches.

A visitor uses a Fitbit Ionic watch at the IFA Electronics Show in Berlin, Germany, September 1, 2017. REUTERS/Fabrizio Bensch

New products, including the Ionic smartwatch and Fitbit Alta HR, represented 32 percent of total revenue in the third quarter ended Sept. 30.

“There is a change in the market with the demand for smartwatches growing and we see huge opportunity there,” Chief Executive James Park told Reuters.

On an adjusted basis, Fitbit forecast key holiday-quarter earnings between a loss of 3 cents to a profit of 1 cent per share. Analysts were expecting a loss of 4 cents per share, according to Thomson Reuters I/B/E/S.

The company sold 3.6 million devices in the reported quarter, below analysts’ estimate of 3.80 million, according to financial data analytics firm FactSet.

The San Francisco, California-based company has come under pressure in a saturating market for wearables and as new rivals such as Apple Inc, Samsung Electronics, Xiaomi Inc [XTC.UL] and Garmin Ltd have also stepped in.

Fitbit reported a net loss of $113.4 million, or 48 cents per share, in the quarter, compared to a profit of $26.1 million, or 11 cents per share, a year earlier.

Excluding items, the company lost 1 cent per share. Revenue fell 22.1 percent to $392.5 million.

Analysts on average had expected the company to report a loss of 3 cents per share on revenue of $391.7 million.

Reporting by Laharee Chatterjee and Sriaj Kalluvila in Bengaluru; editing by Patrick Graham and Shounak Dasgupta

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