NEWS RELEASEFitbit Reports $571M Q4’17 and $1.616B FY’17Revenue2/26/2018Generated $61M cash flow from operations and free cash flow of $(25)M in FY’17SAN FRANCISCO--(BUSINESS WIRE)-- Fitbit, Inc. (NYSE:FIT), the leading global wearables brand, today reportedrevenue of $571 million, GAAP net loss per share of $(0.19), non-GAAP net loss per share of $(0.02), GAAP net loss of$(46) million, non-GAAP net loss of $(5) million, cash flow from operations of $52 million and free cash flow of $25million, for its fourth quarter of 2017.For the full-year 2017, Fitbit reported revenue of $1.6 billion, GAAP net loss per share of $(1.19), non-GAAP net lossper share of $(0.26), GAAP net loss of $(277) million, non-GAAP net loss of $(61) million, cash flow from operationsof $61 million and free cash flow of $(25) million.“We made important progress in 2017 under rapidly changing market conditions. We delivered on our full yearguidance and drove down operating expenses while continuing to invest in innovation. We delivered importantfoundational assets with the launch of the Fitbit operating system and SDK, allowing us to scale futuresmartwatches quickly and deliver dynamic experiences for users. We also made progress in integrating into thehealthcare system, with strategic collaborations with United Healthcare and Dexcom, and acceptance into the FDA’sdigital health pre-certification program,” said James Park, co-founder and CEO. “In 2018 we’ll focus on managingdown expenses, continuing to expand in the smartwatch category and supporting our engaged global communityon their health and fitness journeys.”Fourth Quarter and Full Year 2017Financial Summary1
As of or For the Three Months EndedAs of or For the Year EndedIn millions, except percentages and per share amountsDecember 31,2017December 31,2016December 31,2017December 31,2016GAAP ResultsRevenue$570.8$573.8$1,615.5$2,169.5Gross Margin43.6%22.1%42.8 %39.0%Net Loss$(45.5)$(146.3)$(277.2)$(102.8)Net Loss Per Share$(0.19)$(0.65)$(1.19)$(0.47)Non-GAAP ResultsGross Margin44.2%22.4%43.4 %39.3%Net Loss$(4.7)$(125.7)$(61.1)$(25.9)Net Loss Per Share$(0.02)$(0.56)$(0.26)$(0.12)Adjusted EBITDA$22.5$(144.2)$(52.2)$30.0Devices Sold5.46.515.322.3Active Users25.423.2For additional information regarding the non-GAAP financial measures, see “Non-GAAP Financial Measures” and“Reconciliation of GAAP to Non-GAAP Financial Measures” below.Fourth Quarter 2017 Financial HighlightsSold 5.4 million wearable devices. Average selling price increased 20% to $102 per device driven by addingFitbit IonicTM, our smartwatch, to device mix.APAC grew 56% to $39 million, Other America’s revenue grew 40% to $47 million, EMEA revenue grew 16% to$155 million, and U.S. revenue decreased 13% to $330 million. International revenue was $241 million,representing 42% of revenue.New devices Fitbit IonicTM, Alta HRTM and Fitbit Aria 2TM and accessory Fitbit Flyer, represented 36% ofrevenue.GAAP gross margin was 43.6%, and non-GAAP gross margin was 44.2%.
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