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Fitbit is best known for its devices, but hardware is quickly becoming a means to an end to data as the company pivots to better embed itself into the healthcare food chain.
CEO James Park summed up Fitbit’s approach well on the company’s third quarter earnings report.
Devices enable data collection, provide a point of interaction, while software and data drives engagement and can be leveraged to provide personalized insight. Together, devices, data and software form a platform that gives users the tools to help reach our health and fitness goals, while also providing them with a more complete picture of their overall health.
And the enterprise business for Fitbit is promising more than 1,300 enterprise customers including 70 of the Fortune 500 companies. Indeed, 6.8 million Fitbit users have connected their data to employer health programs.
Here’s the catch. Fitbit is likely to run into Apple in the enterprise and healthcare space. Apple obviously has a bit more in the bank and has resources Fitbit can only dream of. However, Fitbit is early to the healthcare and enterprise space and may be able to build a defensible business.
And then there’s the reality of Fitbit’s today. The company is dependent on devices. Fitbit has become more efficient, but the third quarter results compared to a year ago highlight the challenges. Matthew Miller: Fitbit Ionic: Excellent activity tracker, but it’s not a very smart watch | CNET Fitbit reviews
Fitbit reported a third quarter net loss of $113 million, or 48 cents a share, on revenue of $393 million. The company reported a non-GAAP loss of a penny a share compared to estimates calling for a loss of 3 cents a share. Fitbit sold 3.6 million devices.
In the same quarter a year ago, Fitbit reported a profit of $26.1 million on revenue of $503.8 million and sold 5.3 million devices.
For the fiscal year, Fitbit is targeting a non-GAAP loss of 27 cents a share to 23 cents a share on revenue of $1.61 billion to $1.64 billion. Fitbit targeted fourth quarter revenue of $570 million to $600 million compared to estimates of $578.1 million.
More healthcare:
Why swallowable robots could be the future of healthcareSurgery in virtual reality: How VR could give trainee doctors the feel of real patientsGoogle’s DeepMind and the NHS: A glimpse of what AI means for the future of healthcareAI that knows you’re sick before you do: IBM’s five-year plan to remake healthcareHoloLens, MD: Why this medical school will teach doctors anatomy with Microsoft’s augmented reality, not cadaversPlaying House: How IBM’s Watson is helping doctors diagnose the most rare and elusive illnesses
Related Topics:
Hardware
Digital Transformation
Robotics
Internet of Things
Innovation
Enterprise Software
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