Under Armour continues to grow its membership base for what it’s calling its Connected Fitness business — the three apps the company acquired in the past two years as well as its existing UA Record app — even as the company explores its new acquisitions and plots a course forward, according to the company’s first quarter earnings call. Under Armour bought MapMyFitness for $150 million in November 2013 and spent an additional $560 million to buy MyFitnessPal and Endomondo in February.
The company’s balance sheet shows that the company’s Connected Fitness revenue, at $8.4 million, is a tiny portion of its total revenue, but is growing faster than any other segment. It’s more than double the 2014 Q1 revenue from Connected Fitness. On the call, CEO Kevin Plank was more interested in reporting user data than financials. Since the initial investment call about the acquisitions in February, the various apps have added 10 million unique users for a total of 130 million, Plank said, and an average of 130,000 people per day downloaded an Under Armour app in the first quarter of 2014.
“There was a bit of concern and trepidation on our part, speaking about how we define victory, that are people gonna say ‘Now they’ve have been bought by a company, I’m not going to use it anymore’,” Plank said. “We haven’t seen any signs of that. We just see them now having a higher expectation of the product that we’re going to deliver. And I can tell you that everyone, we’re closing on 500 people working in our Connected Fitness and digital space, [is] focused on working towards that.” Keep reading>>