Chief Executive of Fitbit Inc. (NYSE:FIT) [Detail Analytic Report], James Park commented during first quarter earning call that strong growth and defensibility of their business continues to be powered by product innovation, the network effects of their community, their extending worldwide distribution, and investment in their brand. Based on the performance and momentum of first quarter, they are confident about the remainder of the year, which is reflected in their increased guidance.
Fitbit declared its Q1 profit of $11 million. Fitbit reported that it had net income of 5 cents a share. Earnings, revised for one-time gains and costs, came in 10 cents a share. The results beat Wall Street anticipations. Fitbit announced its first quarter revenue of $505.4 million, also topping Street forecasts. For the current quarter completing in July, Fitbit expects its earnings to be 8 to 11 cents a share. Fitbit revealed that it expects revenue in the range of $565 to $585 million for the fiscal second quarter. Shares of Fitbit have plunged 42 percent since the starting of the year.
Shareholders may be disappointed in the firm’s lowered outlook due to increased spending, but the Park stated that it’s all going according to plan. Park added their growth is driven by new products, MarketWatch reported. Park stated that the firm is planning to spend more this year, and that they’ve already seen results from the prior quarter’s launch of two products, which has given them a lead over Apple and with consumers. According to Park, Fitbit’s new Blaze, a smartwatch-like device, and Alta, a new fitness tracker, made up 47% of the firm’s revenue in the period, when both were launched. Additionally, Park added the launch of those devices has marked a significant milestone for the firm in terms of existing customers buying a more expensive device.
Shopify Inc. (NYSE:SHOP) [Detail Analytic Report] declared its first quarter loss of $8.9 million. On a per-share basis, Shopify revealed that it had a loss of 11 cents. Losses, revised for stock option expense, were 6 cents a share. The results topped Wall Street outlooks. The average estimate of experts polled by Zacks Investment Research was for a loss of 9 cents a share. The cloud-based commerce firm announced revenue of $72.7 million in the quarter, which also beat Street forecasts. According to analysts polled by Zacks has expected $67.1 million. For the current period completing in July, Shopify reported that it expects revenue in the range of $79 to $81 million. Shopify disclosed that it expects full-year revenue in the range of $337 to $347 million. Shares of Shopify have soared 19 percent since the starting of the year.
Tobi Lütke, founder and Chief Executive of of Shopify commented in a conference call that the era of mobile commerce has officially arrived: mobile orders from Shopify merchants surpassed those of desktops in February, and have continued to climb since. Mobile is bringing commerce to places it’s never been before, it is making it more social, and they are pushing that forward in a big way. With their recent integration with Facebook’s new Messenger platform and their acquisition of a leader in mobile messaging for commerce, Kit CRM, they’re making it easier for their merchants to thrive in this new era.
Chief Financial Officer of Shopify, Russ Jones commented that their Q1 delivered a great start to the year. The strong merchant adds in the period, together with GMV once again doubling year on year, highlight the value they bring to merchants of all sizes. Their unique combination of strengths is clearly meeting a pressing need in commerce at the moment.