Fitbit revenues top $1.8B in 2015, added 1,000 enterprise customers for corporate wellness

By Aditi Pai
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Fitness device tracker company Fitbit saw its revenue more than double in 2015 compared to the year before. The company’s revenue in 2015 reached $1.8 billion, up 149 percent from $754 million in 2014, according to the company's year-end results.

Last year, Fitbit sold 21.4 million devices in total and added 18 million new registered device users, bringing the total number of registered device users to 29 million. About 13 million of the new registered users were active users (which likely means they had used the company's devices in the past three months) by the end of the year. Total active users in 2015 reached 16.9 million, up from 6.7 million in 2014.

Specifically in the fourth quarter last year, Fitbit’s revenues reached $712 million, up 92 percent from the fourth quarter of 2014. These revenues were driven by three of the company’s newest devices, the Charge, Charge HR, and Surge, which accounted for about 79 percent of the company’s revenue. The average selling price for Fitbit devices also increased year over year, from $69 in Q4 2014 to $85 in Q4 2015.

Fitbit expects its 2016 revenue to reach between $2.4 billion to $2.5 billion.

Some 74 percent of Fitbit’s 2015 revenue came from the US, while another 11 percent came from Europe, Middle East, and Africa, and 10 percent from the Asia Pacific region. Including the US, Fitbit is in 63 countries.

Less than 10 percent of Fitbit’s revenues came from their corporate wellness business, though Fitbit CEO James Park said on the company’s Q4 2015 earnings call that corporate wellness is a very important part of the company’s business.

In 2015, Fitbit added 1,000 enterprise customers to its corporate wellness platform, including Wendy’s, Marathon Petroleum, YMCA, Teach for America, and University of Kentucky. Other customers disclosed in prior earnings calls include Geico, Sutter Health, Trans Union, Quicken Loans.

Park said that Fitbit is also increasingly active in the disease management and medical research communities.

“One program is focused on diabetes management and has been offering Fitbit trackers to its members as a component of the overall program since 2013,” Park said according to a transcript of the call over at Seeking Alpha: “The other programs, focused on weight management, provide personal coaching to improve nutrition activity, blood pressure, cholesterol levels, and overall health. Fitbit Zip trackers are offered as part of the program. Over a six month period, 73 percent of participants lost weight with an average weight loss of 5 percent of total body weight.”

In another study, this one with a corporate wellness customer, Indiana University Health, found that employees who participated in its wellness program saw drops in BMI and employees with diabetes saw a reduction in A1c levels.

Park added that Fitbit aims to grow its medical research business and support researchers who want to incorporate Fitbit trackers into their studies. Fitbit offers specialized tools that are designed for the needs of the research community, Park said. One such example of a medical research effort is Mayo Clinic, which used Fitbit in a trial that found, by monitoring activity data, researchers could more accurately predict surgical recovery time.