Skip to main content

Fitbit (FIT) - Get Fitbit, Inc. Class A Report shares were little changed after hours on Wednesday after the fitness- and healthcare-wearables company reported a wider third-quarter net loss and an adjusted deficit that matched analysts' estimates.

The report comes shortly after Alphabet's (GOOGL) - Get Alphabet Inc. Class A Report Google agreed to acquire Fitbit for $7.35 a share, or $2.1 billion.

The San Francisco company posted a loss of 20 cents a share compared with a penny a share in the year-earlier quarter. The adjusted loss for the latest period was a dime a share.

Revenue fell 12% to $347.2 million from $393.6 million.

A survey of analysts by FactSet produced consensus estimates of an adjusted loss of 10 cents a share on revenue of $345 million.

Scroll to Continue

TheStreet Recommends

"In the third quarter we continued to make good progress shifting our business towards the faster-growing smartwatch category with the introduction of Versa 2, expanding Fitbit Health Solutions," and launching the Premium service, Co-Founder and CEO James Park said in a statement.

Fitbit Premium is a paid membership that "uses consumers' unique data to deliver personalized actionable guidance," the company said.

The revenue decline reflected a 12% drop in pricing while devices sold were flat with a year earlier. The company sold 3.5 million devices at an average $96 each.

Revenue was divided 60% in the U.S. and 40% internationally. U.S. revenue fell 10% and international revenue gave up 14%.

Active users rose 9% from a year earlier.

Fitbit said that because of the pending acquisition by Google, it does not plan to hold an earnings call or to provide guidance toward future results.

Alphabet is a holding in Jim Cramer's Action Alerts PLUS member club.