Fitbit revenues triple as margins decline

Wearable tech firm Fitbit has seen its revenue more than triple to $400 million (£256 million) during its second quarter of 2015.

The firm revealed that during the second quarter ended June 30th 2015, Fitbit sold 4.5 million connected health and fitness devices.

Net income rose to $17.7 million (£11.3 million) in the quarter from $14.8 million (£9.48 million) in the same period the previous year.

International revenue also increased by 250 per cent year-on-year, driven by EMEA and APC year-on-year revenue growth of 301 per cent and 292 per cent respectively.

However, margins have fallen due to higher spending on new products, with shares falling by 15 per cent during Thursday’s after-hour trading.

Fitbit revealed that margins fell to 47 per cent in the three months ending June 30th, which were down from 52 per cent from the previous year.

In addition, the company’s outlook for the full year of 2015 sees non-GAAP gross margin to raise form 47 per cent to 48 per cent.

James Park, co-founder and CEO of Fitbit, said: “Our second quarter results included our highest quarterly revenue in the eight-year history of Fitbit.

“In the quarter, we introduced new features and services, expanded brand awareness, increased global distribution and further penetrated the corporate wellness market.

“We remain focused on continuing to deliver innovative products and services that empower people around the world to reach their health and fitness goals.”

This news comes after Slice Intelligence revealed that Fitbit is outselling the Apple Watch.