Fitbit Inc. (NYSE:FIT) [Detail Analytic Report] proclaimed that its sales in the first quarter jumped 50%, demonstrating that low-priced fitness trackers still have legs as they compete with the Apple Watch, according to WSJ. However, the firm invests heavily to drive its sales growth and future product launches. Operating costs nearly tripled, causing profit to drop 77% to 5 cents per share after the payout of preferred dividends.
James Park, Chief Executive of Fitbit commented that their hope is to speed up the pace of development that they have on the product side, and also lower the time frame in which they launch products. Fitbit has faced more intense rivalry since Apple launched its smartwatch a year earlier. In response, Fitbit has launched new products, notably the Blaze and Alta models, which are more advanced than its early fitness trackers. Fitbit reported that the Blaze and Alta models made up 47% of revenue in the period completed on April 2. Overall revenue in the period totaled $505 million, increased 50% from $337 million a year ago, significantly ahead of analyst anticipations of $444 million.
William Zerella, chief financial officer of Fitbit stated that their revenue growth is very much driven by new product launches. As Fitbit introduced the new models, sales and marketing expenses over doubled to $107 million. The firm stepped up hiring in R&D, and those costs more than tripled. Park added they demonstrated that they can not only upgrade their existing user base to next-generation products, but also reach out to people who have fallen dormant and reactivate them.
President and CEO of Arista Networks, Inc. (NYSE:ANET) [Detail Analytic Report] Jayshree Ullal commented after the firm released first quarter results that as they started 2016, they delivered a solid quarter. They continue to experience increased relevance and acceptance from their customers in the ongoing shift to cloud networking. Arista Networks released profit of $35.2 million in its first-quarter. On a per-share basis, the California-located firm reported that said it had net income of 48 cents.
The first quarter results exceed Wall Street estimates. The average estimate of experts polled by Zacks Investment Research was for earnings of 61 cents a share. The cloud networking firm announced its first quarter revenue of $242.2 million, also exceeding Street forecasts.
For the current quarter completing in July, Arista Networks disclosed that it expects revenue in the range of $259 to $265 million. Shares of Arista Networks have plunged 18 percent since the starting of the year. Ita Brennan, Chief Financial Officer of Arista stated that they are pleased with their execution across all financial metrics in the period and with their outlook for Q2 reflecting strong customer adoption of their new products.
TrueCar, Inc. (NASDAQ:TRUE) [Detail Analytic Report] announced a loss of $11.7 million in its recently completed quarter. TrueCar revealed that it had a loss of 14 cents a share. The results were in line Wall Street outlooks. The average estimate of experts polled by Zacks Investment Research was also for a loss of 7 cents a share. TrueCar declared its first quarter revenue of $61.9 million.
For the second quarter completing in July, TrueCar proclaimed that it expects revenue in the range of $64 to $66 million. The firm expects full-year revenue in the range of $270 to $275 million. Shares of TrueCar have plunged 34 percent since the starting of the year. Mike Guthrie, Chief Financial Officer of TrueCar stated that in the period, they accomplished what they set out to do, with revenue hitting the high end of their $60-$62 million guidance, units also reaching the high end of their 170,000-175,000 guidance, and adjusted EBITDA exceeding their guidance of breakeven.
In the second quarter, they have started to make more significant investments in their three major focus areas: dealer sales and service, their product and technology platform, and consumer and dealer research. Chip Perry, President and CEO of TrueCar commented that he is excited about their early progress and about the plan they have in place to position the firm as the category winner in this market and to drive more attractive top-line growth and better margins in next year and beyond.