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UPDATE 1-Price hikes help Fitbit beat revenue estimate

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Aug 2 (Reuters) - Fitbit Inc reported better-than-expected quarterly revenue as the wearable device maker benefited from higher prices and demand for its recently launched fitness bands.

Shares of Fitbit - which sells wristbands that monitor heartrate, tracks sleeping patterns, steps count and calories - were up about 7 percent in extended trading on Wednesday.

Average selling price rose 2 percent to $100.76 per device from a year earlier, beating estimates of $97.20, according to financial data and analytics firm FactSet.

The company said its new fitness wristbands, including Fitbit Charge 2 and Fitbit Alta HR, accounted for 81 percent of its total revenue in the quarter.

However, the fitness-band maker's revenue fell nearly 40 percent to $353.3 million in the second quarter ended July 1. Analysts had expected revenue of $341.6 million, according to Thomson Reuters I/B/E/S.

The company is struggling with rising competition and slowing demand for its fitness trackers, especially in the United States, where revenue fell 55 percent. The U.S. market accounts for about 56 percent of its total revenue.

Fitbit, which was once the market leader, is now ranked third after China's Xiaomi and Apple Inc, which share the no. 1 spot, according to research firm International Data Corp (IDC). (http://bit.ly/2uhg6Zo)

To shore up its business, Fitbit has taken steps to reduce operating costs by cutting 6 percent of its workforce in January.

The company forecast third-quarter revenue of $380 million to $400 million and an adjusted loss of 5 cents to 2 cents per share.

Analysts are expecting a loss of 5 cents per share on revenue of $393.1 million.

For the second quarter, the company reported a loss of $58.2 million, or 25 cents per share, compared with a profit of $6.3 million, or 3 cents per share, a year earlier.

Excluding items, the company posted a loss of 8 cents per share, beating analysts' loss estimate of 15 cents.

The company's shares had fallen 30.6 percent this year through Wednesday. (Reporting by Amy Caren Daniel and Ismail Shakil in Bengaluru; Editing by Anil D'Silva)